Recent Extensions For Pre-Arb Eligible Players
As players approach free agency, they generally gain leverage in contract negotiations with their teams. That’s how Joey Votto and Matt Kemp, two superstars within striking distance of free agency, obtained two of the offseason's most lucrative contracts.
But when players sign extensions early on in their careers, the deals take a different shape. Low-revenue Major League teams can’t afford $200MM mistakes, so they often choose to commit tens of millions to relatively unproven players in exchange for extended team control at a manageable rate. These teams are investing less money in a commodity that’s less certain to pay off.
This offseason has already featured 11 extensions for pre-arbitration eligible players, as MLBTR’s Extension Tracker shows. The group – Andrew McCutchen, Derek Holland, Jon Niese, Alcides Escobar, Cameron Maybin, Sergio Santos, Jonathan Lucroy, Carlos Santana, Cory Luebke, Salvador Perez and Matt Moore — includes some players who have already become stars. Here are some more observations about the deals:
- Club options are a must. Teams have obtained at least one option on each extension.
- These contracts are the domain of small market teams. The Padres (30th in Opening Day payroll), Royals (27th in payroll), Pirates (26th in payroll), Rays (25th in payroll) and Indians (21st in payroll) are responsible for seven of these 11 extensions.
- WMG was the lone agency to broker more than one of these deals (Santana, Escobar).
- Teams seem to prefer up the middle position players. Three catchers, two center fielders and a shortstop populate the list of pre-arbitration position players who signed this offseason.
- Starting pitchers can also cash in early; they obtained four of the 11 contracts.
- Santos, a late bloomer who became a pitcher years into his professional career, is one of two players on this list who's over 25. Santana, who celebrated his 26th birthday on Sunday, is the other.
These deals seem to be on the rise. We saw five extensions for pre-arbitration eligible players last offseason and seven the previous year. Perhaps teams are drawing inspiration from the Rays, who have retained star-caliber players affordably with some successful early-career extensions.
Phillips, Reds Progress Toward Extension
The Reds have agreed in principle to a six-year, $72.5MM extension with Brandon Phillips, Jim Bowden of ESPN.com and MLB Network Radio reports (Twitter links). However, the agreement is pending approval from ownership and the deal remains unconfirmed.
The Reds are prepared to guarantee six years and $72.5MM, Bowden writes. The former Reds GM predicts the sides will complete a deal within 24 hours. Ian Kinsler’s recent deal may figure in as a comparable contract.
Phillips would be eligible for free agency following the 2012 season if the Reds don't lock him up. The ACES client posted a .300/.353/.457 line with 18 home runs and 38 doubles in 675 plate appearances last year. He won his third Gold Glove in 2011, and advanced assessments of his fielding confirm he is a strong defender.
Rangers Re-Sign Brad Hawpe
The Rangers re-signed Brad Hawpe to a minor league contract, Anthony Andro of FOXSportsSouthwest.com reports (Twitter link). Hawpe, who was released by the Rangers last week, will open the season with Double-A Frisco.
Hawpe posted a .231/.301/.344 line in 216 plate appearances with the Padres in 2011, playing first base and right field. The 32-year-old underwent Tommy John surgery on his throwing elbow last June. He owns a .284/.380/.493 line in 2,678 career plate appearances against right-handed pitching, so he's a possible weapon against righties.
Quick Hits: Fontenot, Rays, Carpenter
It’s Opening Day, part IV. Enjoy these links as the season openers continue around the Major Leagues…
- Henry Schulman of the San Francisco Chronicle hears the Blue Jays or Phillies could be a landing spot for free agent infielder Mike Fontenot (Twitter link).
- Rays owner Stuart Sternberg told Jon Heyman of CBSSports.com that the Rays have considerable off-field issues, though the team is an annual contender (Twitter link). "Winning hasn't cured the ills," Sternberg said.
- The Cardinals aren't close to having a timetable on injured right-hander Chris Carpenter, Danny Knobler of CBSSports.com tweets. As long as Roy Oswalt’s a free agent, he’ll be an option for the Cardinals.
Orioles Release Armando Galarraga
The Orioles have released right-hander Armando Galarraga, Roch Kubatko of MASNsports.com tweets. The move creates Triple-A roster space for left-hander Dana Eveland.
The Orioles had signed the 30-year-old SFX client to a minor league deal in January following a difficult 2011 season. Galarraga came within one out of throwing a perfect game for the Tigers in 2010, but the 2011 season wasn't nearly as successful. Galarraga, who was traded from Detroit to Arizona in January of 2011, posted a 5.91 ERA with 5.9 K/9 and 4.6 BB/9 in 42 2/3 innings for the D'Backs last year. He also made five Triple-A starts, allowing 24 earned runs in 23 1/3 innings.
Brewers Notes: Greinke, Melvin, Roenicke
The latest on the Brewers, via Tom Haudricourt of the Milwaukee Journal Sentinel (links go to Twitter):
- Brewers GM Doug Melvin said he talked to Casey Close about Zack Greinke yesterday and will speak to the agent again Monday. There's no deadline for talks between the Brewers and Greinke, Close's new client.
- Melvin doesn't see "major weaknesses" on his team.
- Owner Mark Attanasio suggested the club will have the flexibility to add payroll midseason if necessary.
- Attanasio said the club is progressing nicely toward extensions for Melvin and manager Ron Roenicke. Melvin's contract expires after the 2012 season and the Brewers hold a 2013 option for Roenicke.
- Melvin confirmed extension talks will also continue with closer John Axford, Adam McCalvy of MLB.com reports.
NL West Notes: Padres, Dodgers, Phelps
Three NL West teams — the Giants, Diamondbacks and Rockies — open their seasons today. Here are some links from the NL West…
- The Padres' 20-year TV deal with FOX Sports San Diego is "all but finalized" and should be announced within one or two days, Dan Hayes of the North County Times reports. The deal could be worth $1 billion or more. "Life is good and I'll leave it at that," Padres majority owner John Moores said.
- MLB officials are concerned that the winning bidders for the Dodgers have been slow to produce details about themselves and their bid, Tom Verducci of SI.com reports. Some owners are questioning why the group fronted by Magic Johnson and Stan Kasten hasn't filed a more detailed Purchase and Sale Agreement.
- Bill Shaikin of the LA Times reports that the terms of the Dodgers’ sale are scheduled to be filed in court today.
- The Giants originally requested right-hander David Phelps from the Yankees for catcher Chris Stewart, George A. King III of the New York Post reports. The Yankees ultimately sent right-hander George Kontos to San Francisco.
Latest On Reds, Brandon Phillips
The Reds offered Brandon Phillips a five-year, $60MM contract extension for the 2012-16 seasons, Jim Bowden of ESPN and MLB Network Radio reports (Twitter link). One Reds source believes Phillips would sign if the Reds offer a sixth guaranteed season.
The Reds were already in serious discussions with Phillips when the club got sidetracked by the Joey Votto deal, Jon Heyman of CBSSports.com reports. Cincinnati GM Walt Jocketty said yesterday that he’s optimistic about working out an extension with his second baseman within a week. Bowden heard last night that the Reds had offered Phillips a five-year deal in the $62.5-65MM range.
No Deal Yet For Kinsler, Rangers
Ian Kinsler and the Rangers don't have an agreement on a long-term deal. The second baseman told reporters, including MLB.com's T.R. Sullivan, that the sides got close enough to be “disappointed that it’s not done.”
The sides had been working toward an extension that would have guaranteed Kinsler's 2013 option at $10MM and added five seasons at $14MM or so per year. The proposed six-year total would have been in the $80MM range — close to Chase Utley's record for second basemen.
Kinsler has said he doesn't want to negotiate once the season begins. The 29-year-old repeated today that he doesn't want to be involved if the Rangers continue talking with his representatives at BBI Sports Group. He hit 32 home runs and posted a .255/.355/.477 lin in 723 plate appearances a year ago.
White Sox To Sign Kip Wells
We'll keep track of the day's minor moves right here…
- The White Sox agreed to sign right-hander Kip Wells to a minor league deal, Jon Heyman of CBSSports.com tweets. Wells, 34, last pitched in the Major Leagues in 2009. He broke in with the 1999 White Sox and spent three seasons in Chicago before the White Sox traded him to Pittsburgh. Wells reached 93 mph in a recent workout with the Mets.