Brewers Sign Matt Garza
JAN. 28: Joel Sherman of the New York Post reports the complex details of Garza's fifth year option (all Twitter links). The Brewers hold a $5MM option on Garza for the fifth year that will drop to just $1MM if Garza spends more than 130 days on the DL in any 183-day period throughout the life of the deal (183 days is the length of one regular season). However, the option will vest for Garza at $13MM if he pitches 110 games over the first four years of the deal, is not on the disabled list at the end of the 2017 season and throws at least 115 innings in 2017.
Sherman adds that Garza will also receive an additional $500K for reaching 190 innings and 30 games in each year of the deal. Each year of the contract contains $2MM in deferred money without interest.
Ken Rosenthal of FOX Sports notes (Twitter links) that the complex nature of the fifth-year option illustrates the Brewers' concerns over Garza's long-term health, and he adds that other teams shared those concerns.
JAN. 26: The Brewers drew plenty of criticism for not adding a single free agent on a Major League deal this winter, but that changed on Sunday when principal owner Mark Attanasio announced at the team's On Deck event that they've reached an agreement with right-hander Matt Garza. The Brewers have since announced the four-year deal with a fifth-year vesting option via press release.
The contract reportedly guarantees Garza $50MM and contains a $13MM vesting option for a fifth year plus $4MM worth of incentives, meaning the CAA Sports client can earn up to $67MM over five years in Milwaukee.
GM Doug Melvin told the crowd (as tweeted by the Milwaukee Journal-Sentinel's Todd Rosiak), "I know we are a stronger team today." Melvin also said ironing out the contract details is what held up the announcement, Rosiak tweets.
This marks another late-offseason, impactful starting pitching signing from GM Doug Melvin and Milwaukee. Last year, the club nabbed Kyle Lohse on a three-year, $33MM deal after he languished on the market due to draft-pick compensation. As MLBTR's Tim Dierkes recently examined, signing free agents late in the offseason is becoming a habit for Melvin and the Brewers. Dierkes noted that 40 percent of Major League free agent deals issued by the Brewers over the past five seasons have come in January or later, and this contract boosts that number to 42 percent (11 of 26). This instance is different than all others, however, as the club will give Garza the largest guarantee it has ever made to a free agent.
Garza will not cost the Brewers draft pick compensation, as will be the case for fellow top arms Ervin Santana and Ubaldo Jimenez. Given the draft-pick drag on their value, Garza's deal could temper expectations for those two starters.
MLBTR's Steve Adams profiled Garza after the 2013 season, predicting that he would land four years and $64MM on the open market. While he got the years, Garza fell $3MM per year short of that salary target. In the end, Garza will receive only a $3MM greater guarantee than that given to Ricky Nolasco by the Twins for the same term. He lands an identical pact (in terms of dollars and years, at least) to the contract Edwin Jackson signed last year with the Cubs.
Garza's strong track record on the hill has been accompanied by injury questions that presumably limited his value on the open market. As Adams detailed, Garza suffered a stress fracture in his right elbow as well as a lat strain. All said, Garza has only pitched 259 innings over the last two years.
Previously, however, Garza had been a workhorse. Over the 2008-11 period, Garza made at least 30 starts and threw at least 184 2/3 innings a season. His cumulative ERA over that stretch was 3.72, and he averaged 7.6 K/9 against 3.0 BB/9. Since that time, though his innings are down, Garza has largely prevented runs at the same level. (He has a 3.86 ERA across the 2012-13 period.)
Garza will add to a Brewers rotation that already featured Yovani Gallardo, Kyle Lohse, Marco Estrada and Wily Peralta. Each of those pitchers is controllable beyond the 2014 season (Gallardo's contract contains a $13MM option with a $600K buyout), meaning that Melvin and his staff may have effectively set the Brewers' rotation for the next two seasons by inking Garza. Though they'll face steep competition in the form of the Cardinals, Reds and Pirates, the Brewers figure to boast a solid rotation with full seasons from Ryan Braun and Aramis Ramirez, meaning they should fare significantly better in 2014 than they did in 2013.
MLB.com's Brewer Nation blog first reported Milwaukee's interest in Garza. Ken Rosenthal of FOX Sports was the first to report the agreement, pending a physical (via Twitter). The Brewers then issued a statement to say the deal was not quite finalized before Attanasio announced the sigining on Jan. 26. Rosiak relayed the info of Attanasio's announcement, and his colleague Tom Haudricourt tweeted the news of the fifth-year option and its role in delaying the deal. McCalvy tweeted the financial details, and Jon Heyman of CBS Sports tweeted that Garza will earn $12.5MM annually.
Steve Adams and Edward Creech contributed to this post. Photo courtesy of USA Today Sports Images.
Reds Avoid Arbitration With Aroldis Chapman
The Reds have avoided arbitration with All-Star closer Aroldis Chapman by agreeing to a one-year, $5MM contract, according to Joel Sherman of the New York Post (on Twitter).
Chapman, a client of Hendricks Sports, agreed to a deal that is valued at the midpoint of the respective $5.4MM and $4.6MM figures that he and the Reds submitted. The flamethrowing left-hander agreed to a six-year, $30.25MM contract with the Reds back in January 2010, but that contract was unique in its structure. Chapman was paid a $16.25MM signing bonus with guaranteed salaries of $1MM (2010-11), $2MM (2012-13) and $3MM (2014) with a $5MM player option.
However, Chapman's contract contains a clause stating that were he to become arbitration eligible prior to the 2014 season, the $3MM guarantee would be converted to a signing bonus in order for him to head to arbitration. That proved to be the case, as the Cuban hurler has accumulated three years, 34 days of Major League service time.
Following the completion of the 2014 World Series, Chapman will have five days to decide whether or not to exercise his $5MM player option. Given his $5MM salary in 2014, he's a lock to decline that option and seek a significant raise in his second time through arbitration.
Chapman, who turns 26 a month from today, has cemented himself among the ranks of elite closers over the course of the past two seasons. Averaging 98 mph on his fastball and 15.6 strikeouts per nine innings in that time, Chapman has made a pair of All-Star teams and totaled 76 saves while holding opponents to a combined .152/.246/.249 batting line.
As shown in MLBTR's Arbitration Tracker, Chapman and Homer Bailey were the only two Reds players to exchange figures with the team, and Bailey is now the only unresolved case on GM Walt Jocketty's plate.
Free Agent Faceoff: Nelson Cruz vs. Kendrys Morales
Yesterday, I took a side-by-side look at right-handers Ubaldo Jimenez and Ervin Santana, asking MLBTR readers who they preferred between the prominent early-30s hurlers, as each has seen his free agent stock weighed down by draft pick compensation. Today, let's take a look at another pair of players who are languishing on the free agent market due to their ties to draft pick compensation: Nelson Cruz and Kendrys Morales.
While Cruz, unlike Morales, is an outfielder by trade, neither is known as a solid defensive player. Rather, each is valued primarily for his bat, and teams/fans can make the case that each is best suited for a DH role at this point in his career (the players and their agents, of course, would strongly disagree).
Cruz, 33, entered the offseason as one of the top right-handed power bats on the open market — a rare trait among free agents. No remaining free agent, not even Morales, can claim to match Cruz's power. He batted .266/.327/.506 with 27 homers in 2013 in just 109 games (446 plate appearances). However, the reason for the shortened campaign wasn't injury, but rather a 50-game suspension for his ties to the Biogenesis PED scandal. Cruz can argue that he's served his time and state that his violations took place in 2012 (via the L.A. Times' Mike DiGiovanna) as he recovered from a rare illness that caused him to lose roughly 40 pounds, thereby indicating that his 2013 numbers were legitimate. Interested teams don't appear as likely to write off the suspension, however.
Morales comes with his own baggage, though his in the form of injury history. The 30-year-old switch-hitter fractured his leg in 2010 while celebrating a walk-off grand slam and missed the better part of two seasons recovering from that freak accident. Morales has posted solid offensive numbers since returning (.275/.329/.457), but his production hasn't come close to matching that which he showed in 2009-10 (.303/.353/.548 in 203 games) prior to his injury.
Neither player is considered much of a defender, though Morales is limited to first base while Cruz can man a corner outfield spot, even if defensive metrics don't speak highly of his outfield play. Even at his best, Morales' isolated power (slugging minus batting average) from 2009-10 was .246 — roughly the same as the .241 mark Cruz has averaged over the past six years. However, Morales is a switch-hitter who strikes out far less often and is also three years younger than Cruz. He's also succeeded in pitcher-friendly environments, whereas Cruz's .912 OPS at Rangers Ballpark dwarfs his career road mark of .734.
Clearly, each player has some flaws. Cruz likely offers more power and can be played a more valuable defensive position, but he's older, strikes out more and comes with troubling home/road splits. Morales has yet to prove that he can replicate his monster 2009 season, and he's even more defensively limited than Cruz, as all but 31 of his games last season came as a DH. Either would bolster the majority of Major League lineups, but (assuming both would fit on your team) if you had to choose just one…
Which Hitter Would You Rather Sign?
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Nelson Cruz 50% (8,709)
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Kendrys Morales 50% (8,699)
Total votes: 17,408
Rosenthal’s Latest: D-Backs, Tanaka, Brewers, Colvin
In his latest column over at FOXSports.com, Ken Rosenthal reports that the Diamondbacks' pursuit of top free agents Masahiro Tanaka, Shin-Soo Choo and Carlos Beltran stemmed from the fact they'll soon be completing a new television deal with FOX Sports that will be worth at least $90MM per season for a span of 15 to 20 years (beginning in 2016). He notes that while comparing TV deals is difficult because of differing equity stakes negotiated by each team, but the contract should still top the Rangers' recent TV deal, which pays them $80MM per season. More highlights from Rosenthal…
- The Cubs' offer to Masahiro Tanaka did not include an opt-out clause, according to Rosenthal. Knowing that they might not compete until 2016, the Cubs were wary of including a clause that would allow him to opt out shortly after their next competitive club hit the field.
- Their recent signing of Matt Garza will allow the Brewers to move trade acquisition Will Smith (received in exchange for Norichika Aoki) to the bullpen. Milwaukee could still add another reliever this offseason, but they also want to take a look at Rule 5 lefty Wei-Chung Wang.
- After missing out on a Major League deal with the Orioles due to concerns over his back, Tyler Colvin is weighing a number of minor league offers.
- The Marlins and Rockies are both interested in former Reds right-hander Nick Masset, who has missed each of the past two seasons due to shoulder injuries.
Reds To Sign Chris Nelson
TUESDAY: Nelson's deal allows him to opt out on March 28 if he has not been awarded a roster spot by that time, according to Chris Cotillo of MLB Daily Dish (on Twitter).
MONDAY: The Reds have agreed to a minor league deal with infielder Chris Nelson, reports MLB.com's Mark Sheldon. ESPN's Jerry Crasnick reported earlier today that Cincinnati was closing in on a deal with the Williams & Connolly client. Nelson told Sheldon's colleague, Thomas Harding, that he is excited about the opportunity:
"I think it’s a great opportunity, especially being in the National League. I have a chance to be a utility man, and with the double-switches there could be a chance for playing time. It could be a good fit for me."
As Sheldon writes, there will be a familiar face in camp for Nelson, as second baseman Brandon Phillips is at times one of his offseason workout partners. The 28-year-old Nelson slashed .301/.352/.458 in 377 plate appearances with the Rockies in 2012, but that line was propped up by a .374 batting average on balls in play that was predictably not sustainable. Regression in his BABIP and a 29 percent strikeout rate in 2013 saw the 2004 No. 9 overall draft pick's production fall to .227/.273/.327. Though he can handle both second and third base, he's not considered a plus defender at either position.
Nelson will look to catch on as a reserve for both Phillips and third baseman Todd Frazier, though the Reds have reserve options at each position in the form of Skip Schumaker and Jack Hannahan, each of whom is on a guaranteed contract for the 2014season.
Free Agent Notes: Angels, Phillies, Yankees
Draft pick compensation is hanging over the market for several prominent, unsigned free agents — namely, Ervin Santana, Ubaldo Jimenez, Stephen Drew, Nelson Cruz, and Kendrys Morales. Ken Rosenthal of FOX Sports looks at the draft pick situations of some of the clubs that might consider adding one of those names. As we finish a quiet Monday, let's round up some notes on free agent rumors from around the league:
- The Angels do not seem to be operating with much urgency to add a free agent pitcher, tweets Mike DiGiovanna of the Los Angeles Times. If the club does add to its rotation with an open-market contract, says DiGiovanna, it is more likely to go after Jason Hammel or Chris Capuano than Bronson Arroyo or Paul Maholm.
- Phillies GM Ruben Amaro Jr. said today that the club does not have any outstanding offers for guaranteed MLB deals, tweets Matt Gelb of the Philadelphia Inquirer. As MLBTR's 2014 Free Agent Tracker shows, Philadelphia has not entered such a pact since inking Roberto Hernandez on December 18.
- After committing a cool half-billion dollars through free agency (if you count Masahiro Tanaka and his release fee), the Yankees appear to be done adding significant salaries for the offseason, reports Andy Martino of the New York Daily News. New York seems to be following through on GM Brian Cashman's statements that the club would not pursue Drew, says Martino, and the team is not currently trying to work out a deal to bring Chase Headley over from the Padres.
Latest On Johan Santana: Timetable, Twins, Mets
Still in the midst of recovering from his second major shoulder surgery, one-time Twins and Mets ace Johan Santana could still be half-a-year away from taking the hill in a major league game, Mike Berardino of the St. Paul Pioneer-Press reports. Discussing Santana at the Twins' winter fan event yesterday, Minnesota GM Terry Ryan said that Santana will "be held back" and "won't be ready to go probably … [until] the summer at some point."
That does not mean, however, that the Twins and other clubs are not keeping an eye on the 34-year-old southpaw. "We do have some interest in him," said Ryan. "Whether or not he wants to sign with us will be up to him." Ryan said that Santana "would be a good fit" for a Twins organization that made three significant free agent rotation additions over the offseason.
Meanwhile, a return by Santana to his more recent home — the Mets — does not appear to be in the cards. As Andy Martino of the New York Daily News reports, with Daisuke Matsuzaka and John Lannan now added to the club's fifth-starter competition, Santana's time in Queens is now all but certainly over.
Though he never again dominated at his 2004-2006 levels, the Venezuelan native remained quite valuable over his first three years in New York, authoring a 2.85 ERA over an even 600 innings between 2008 and 2010. Over the final three years of his $137.5MM deal, however, Santana threw only 117 innings of 4.85 ERA ball. Unsurprisingly, the Mets declined their $25MM option for Santana's services for the 2014 season, instead paying him a $5.5MM buyout.
Santana figures to be available on a minor league deal given the extent of his injury issues, though the Grady Sizemore signing suggests that a guaranteed deal is not an impossibility. At a minimum, the changeup artist will surely draw plenty of interested onlookers when he decides to audition. After all, it was only two summers back that Santana — returning from his first shoulder surgery — no-hit a potent Cardinals lineup and ended the month of June with a 2.76 ERA over 98 innings (only to see things fall apart thereafter).
Masterson, Indians Put Extension Talks On Hold
Pitcher Justin Masterson and the Indians appear to have "shelved" discussions of a long-term contract extension, reports Paul Hoynes of the Cleveland Plain Dealer. For the time being, at least, the sides will instead focus on dealing with Masterson's arbitration case.
Hoynes reported about two weeks back that player and club were set to negotiate a long-term deal. While both sides are said to be interested in a new contract, Hoynes says that "talks have gained little, if any, traction." Today's news echoes another recent report, from MLB.com's Jordan Bastian, that discussions to date have failed to produce momentum.
Of course, the two parties still have plenty of work left to do on reaching a salary for 2014. Masterson filed at $11.8MM, with the team countering at $8.05MM. The resulting $3.75MM gap is the largest in absolute terms of any of the year's arbitration cases, leaving both sides facing a high-stakes hearing if a settlement cannot be hammered out. Spanning that gulf could be tricky, and GM Chris Antonetti has indicated that Masterson's case (or that of one of his teammates) could go to a hearing. Masterson's hearing is scheduled for February 20th, Bastian tweets, which does leave plenty of time to find a compromise.
Masterson, a 6'6" righty who turns 29 in March, has logged four straight seasons of at least 180 innings for Cleveland. Though he has posted middling earned run averages over two of those campaigns (4.70 in 2010 and 4.93 in 2012), his other two tallies are those of a top-of-the-rotation starter (3.21 in 2011 and 3.45 in 2013). In the aggregate, he was worth 11.7 fWAR in the 2010-13 span, placing him among the top thirty starters in the game during that stretch. MLBTR's Tim Dierkes has pegged Masterson's extension value in the range of $65MM to $85MM over a five year term.
Minor Moves: Chris Leroux, Pete Orr, Blake Davis
Here are today's minor moves and outright assignments from around the league…
- 29-year-old righty Chris Leroux has inked a minor league deal with the Yankees, tweets Ben Nicholson-Smith of Sportsnet.ca. The Canadian hurler has 69 2/3 MLB innings under his belt, all in relief, over which he has maintained a 5.56 ERA and 8.1 K/9 against 4.3 BB/9.
- The Brewers announced that they've signed infielder Pete Orr to a minor league contract. Orr's deal does not contain an invite to Major League Spring Training, but he will report with the rest of the Major Leaguers and invitees on day one of camp, MLBTR has learned. The versatile 34-year-old has appeared in the Majors with the Phillies in each of the past three seasons and has a career .269/.321/.395 slash line at Triple-A. Orr can play shortstop, second base, third base and both corner outfield positions.
- MLBTR's Tim Dierkes reports (via Twitter) that shortstop Blake Davis has inked a minor league deal with the Pirates. Now 30 years of age, Davis was a fourth-round selection of the Orioles in the 2006 draft and got a taste of the Majors in 2011 with Baltimore, batting .254/.323/.390 in 65 plate appearances. He spent 2013 with the Brewers' Triple-A affiliate, where he slashed .256/.297/.352 in 357 PAs.
Indians Sign Elliot Johnson
The Indians have signed infielder Elliot Johnson to a minor league deal with an invitation to Spring Training, according to Jordan Bastian of MLB.com (Twitter link). Chris Cotillo of MLB Daily Dish first connected the Indians to the ACES client yesterday (also on Twitter).
Johnson, 29, was acquired by the Royals as a player to be named later in the blockbuster James Shields-for-Wil Myers trade last offseason. He batted just .179/.218/.241 in 173 plate appearances with Kansas City before finding himself designated for assignment and claimed off waivers by the Braves. Johnson improved at the plate in Atlanta, hitting a more respectable .261/.317/.359 in 102 PAs. He also offers plus speed, as evidenced by his 22 stolen bases in 24 attempts in 2013.
Johnson's best asset is his ability to handle both up-the-middle positions. Ultimate Zone Rating thinks highly of his glove at second base (+7.9 UZR/150), while grading his shortstop defense as passable, though slightly below average (-2.7). Defensive Runs Saved pegs him at +13 in 602 innings at second base and +3 in 1079 innings at short.
While Ryan Raburn is one option to occasionally back up second baseman Jason Kipnis, he saw just 17 innings there last season and is better suited to play right field. Mike Aviles presents another option to back up Kipnis as well as shortstop Asdrubal Cabrera, but Johnson could fight his way into the mix for a utility spot.