Jays Exercise Encarnacion’s Option, Decline Rauch’s

The Blue Jays announced that they exercised their 2012 option for Edwin Encarnacion and declined their option for Jon Rauch. Encarnacion obtains a $3.5MM salary instead of a $500K buyout and Rauch obtains a $250K buyout instead of a $3.75MM salary.

Encarnacion, 28, posted a .272/.334/.453 line and hit 17 home runs in 2011. I explained at the beginning of September that the Blue Jays were likely to pick up his option because of his strong final four months.

Rauch, 33, posted a 4.85 ERA with 6.2 K/9 and 2.4 BB/9 in 52 innings for Toronto in 2011, finishing the season on the 15-day disabled list with a right knee cartilage tear. Although he is a Type B free agent, an offer of arbitration from the Blue Jays seems unlikely.

Rays Exercise Option On James Shields

The Rays exercised James Shields' $7.5MM option, according to Marc Topkin of the St. Petersburg Times. Shields would not have been eligible for free agency if the Rays had declined the option. Instead, Tampa Bay would have gone to arbitration with Shields and he would have obtained a salary in excess of $7.5MM.

Picking up Shields' option was an easy decision, even for the low-payroll Rays. The right-hander posted a 2.82 ERA with 8.1 K/9 and 2.3 BB/9 in 249 1/3 innings in 2011, leading the league with 11 complete games and four shutouts. He would have extremely high trade value, though Rays executive VP of baseball operations Andrew Friedman has said he wants to preserve Tampa Bay's pitching depth.

The Rays still face decisions on Kyle Farnsworth and Kelly Shoppach.

Royals Exercise Joakim Soria’s 2012 Option

The Royals announced that they exercised their 2012 option for closer Joakim Soria. Soria will earn a $6MM salary, rather than a $750K buyout. Soria would not have been eligible for free agency if the Royals had declined the option. Instead, Kansas City would have gone to arbitration with Soria and he would have obtained a salary in excess of $6MM. “This decision was more of a formality,” Royals GM Dayton Moore said. 

Soria, 27, posted a 4.03 ERA with 9.0 K/9 and 2.5 BB/9 in 60 1/3 innings in 2011. It was an up-and-down campaign for the 27-year-old, who lost his closing job after a rough stretch in late May.

Reds Exercise Phillips’ Option, Decline Cordero’s

The Reds announced that they exercised Brandon Phillips' 2012 option and declined their option for Francisco Cordero (Twitter link). The Reds will pay Cordero a $1MM buyout instead of a $12MM salary and they'll pay Phillips a $12MM salary instead of a $1MM buyout.

Phillips, 30, hit .300/.353/.457 with 18 homers in 674 plate appearances for Cincinnati in 2011. He has made his desire for an extension clear, stating in September that it would feel like “a slap in my face” if the Reds pick up the option without talking long-term deal. But if the sides do discuss an extension, don't expect a hometown discount "There’s no homeboy hookup. That ain’t going to work," Phillips said.

The Reds discussed an extension for Cordero, a Type A free agent, toward the end of the regular season. MLBTR's Tim Dierkes explained in his recent offseason outlook article that the Reds "can't afford to commit $5MM a year for two more seasons of Cordero."

Padres Notes: Byrnes, Bell, Hoyer, McLeod

The Padres officially named Josh Byrnes their general manager today, so the two-year-long Jed Hoyer era is over in San Diego. Here's the latest on the Padres as they prepare for their first offseason under Byrnes…

  • Byrnes says San Diego will likely offer Heath Bell arbitration, according to Dan Hayes of the North County Times (on Twitter). Bell is a Type A free agent, as MLBTR learned earlier today. If he declines arbitration to sign elsewhere, the Padres will obtain two draft picks in 2012. However, Bell has indicated that he will accept.
  • Padres CEO Jeff Moorad explained in a statement that he holds Byrnes' predecessor in high esteem. “Thanks to Jed Hoyer’s leadership, we are in a far better position to win consistently in the future than we were two years ago." The Padres played to a 161-163 record in two seasons under Hoyer, though that's just one imperfect measurement of his contribution to the team.
  • Jason McLeod, who left the Padres for the Cubs along with Hoyer, told Tom Krasovic of Inside the Padres that leaving San Diego is bittersweet in a Q&A about his time with the team.
  • The Cubs offered Hoyer a five-year contract, which the Padres declined to match, according to Krasovic.

Offseason Outlook: Boston Red Sox

Longtime GM Theo Epstein is gone and recently-appointed replacement Ben Cherington will try leading the Red Sox to their first playoff appearance since 2009 by improving the pitching staff and tinkering with the offense.

Guaranteed Contracts

Arbitration Eligible Players (estimated salaries)

Contract Options

  • Dan Wheeler, RP: $3MM club option with no buyout (Type B)
  • Marco Scutaro, SS: $6MM club option/$3MM player option with a $1.5MM buyout (Type B)

Free Agents

To fully understand the challenges the Red Sox face this offseason, we must review the events of the past two months. Red Sox fans already know the unpleasant details, so I'll be brief: since the beginning of September, the Red Sox — a franchise no longer accustomed to losing — lost 20 games and their seemingly unshakable grip on a postseason berth. Days after the collapse, they lost their manager and within weeks their longtime general manager left, too. Now, they're about to see their designated hitter and closer hit free agency along with franchise icons Tim Wakefield and Jason Varitek.

No, Cherington's first offseason in the GM's office won't be an easy one. But unlike his predecessor, Cubs president of baseball operations Theo Epstein, Cherington doesn't face anything resembling a rebuilding process. Despite the chaos of the past eight weeks, Boston is well-positioned for success in 2012 and beyond.

It starts with the search for a new manager: someone who can restore order in a clubhouse that apparently featured more than its share of beer and fried chicken in 2011. Boston's search is in its early stages, with the team set to conduct first-round interviews soon.

The September version of the Red Sox played roughly at the level of the 1962 Mets or 2003 Tigers. A whole lot went wrong down the stretch, so it would be unfair to put all the blame on Boston's starting rotation. But make no mistake — Cherington must obtain starting pitching this winter. Pencil Jon Lester, Josh Beckett and Clay Buchholz in and you have three above-average starters leading the rotation, as long as Buchholz recovers from the lower back stress fracture that sidelined him at the end of 2011. John Lackey and Daisuke Matsuzaka will be recovering from Tommy John surgery, which leaves two openings in Boston's rotation.

Reinforcements could come internally, where the Red Sox have Andrew Miller, Kyle Weiland and Felix Doubront. They could re-sign Wakefield, since the knuckleballer contributes every season and was his usual self in 2011, even as a 45-year-old. Cherington will be looking for more.

At his introductory press conference, the new GM suggested he'll search for buy-low starters. Perhaps this means the Red Sox will offer veteran starters one-year deals and hope for better results than John Smoltz and Brad Penny provided in 2009. Roy Oswalt could be an option, if the Red Sox believe his back is healthy. 

As usual, the Red Sox and Yankees engaged in a bit of gamesmanship at the other's expense last offseason. Boston expressed interest in Mariano Rivera and New York drove up the price for Carl Crawford. Boston should inquire on C.C. Sabathia if he hits the open market this offseason. Sabathia could help the Red Sox and interest from Boston would at least drive the price up for the Yankees, if they successfully re-sign him. While the Steinbrenners spend more than any owners in the game, there's no harm in making the Yankees pay more than they'd like to.

Cherington hasn't publicly ruled out the pursuit of other top free agent starters and until he does, the Red Sox will be linked to the likes of Yu Darvish, C.J. Wilson and Edwin Jackson. The team could also try luring Hiroki Kuroda to Boston, though he appears to favor Los Angeles. 

The Red Sox could inquire on any number of trade candidates, including Fausto CarmonaJonathan Sanchez, Ricky Nolasco and White Sox starters Gavin Floyd and John Danks. Though Orioles right-hander Jeremy Guthrie and all the Rays' starters are likely off-limits, the Red Sox should check in on the best arms available on the trade market. Unfortunately for them, the Yankees will be doing exactly the same thing. Depending on how the Red Sox approach their offseason, Jed Lowrie, Ryan Lavarnway, Ryan Kalish and Josh Reddick could all be viewed as expendable in trade talks.

Jonathan Papelbon has anchored Boston's bullpen since 2006 and he recorded the final out of Boston's 2007 World Series championship. However, it's no secret he wants to follow the money and the Red Sox have a ready-made replacement in Daniel Bard, who should be fine in 2012, despite his awful September. Boston will surely offer Papelbon arbitration, as he's a Type A free agent, but I'll be surprised if he reports to Fort Myers with the Red Sox next Spring Training.

Like the rotation, the bullpen requires some offseason work. Bard, Alfredo Aceves and Franklin Morales will return and the Red Sox can hope for more from Bobby Jenks in 2012. Dan Wheeler, a valuable yet replaceable reliever, projects as a Type B free agent, so the Red Sox could decline his option and offer arbitration. This would assure them of one of two acceptable results: a draft pick or one more year of Wheeler at an affordable rate. Cherington will likely pursue relief pitching even if Wheeler and non-tender candidates Miller and Matt Albers return.

Lost in the drama of the past two months has been Boston's impressive offensive output. The Red Sox scored more runs than any team in baseball in 2011 and with most of their core players returning, there's no reason to believe they won't have one of the league's best offenses again. The Red Sox are likely to exercise Marco Scutaro's option for $6MM. This would give Jose Iglesias more time to develop and relegate Lowrie to the bench. The rest of Boston's infield is set, with Adrian Gonzalez at first, Dustin Pedroia at second and Kevin Youkilis at third.

The outfield features the American League's most surprising player this side of Mike Napoli and its most disappointing player this side of Adam Dunn, in Jacoby Ellsbury and Carl Crawford, respectively. Likely joining the two as starters is Reddick, who hit .280/.327/.457 in roughly half a season of playing time. The Red Sox may explore an extension for Ellsbury, not that negotiating with a Scott Boras client coming off of an MVP-caliber season would be easy.

After yet another productive season, David Ortiz is the top designated hitter available on the free agent market. He posted a .309/.398/.554 line, and even though he turns 36 this November, he seems well-positioned for a generous contract. Will the Red Sox finally provide him with the long-term deal he's been seeking for years? Maybe. They'll probably start by offering arbitration, an advisable move given Ortiz's power. But there's no sense in overcommitting to a positionless player who may be approaching his decline phase, so expect the Red Sox to be prepared to walk away. Other free agent DHs are available and Lavarnway is an internal candidate for the job, so Boston isn't bound to Ortiz. 

When he introduced Boston's new general manager, Red Sox president and CEO Larry Lucchino pointed out that Cherington will not have the luxury of a peaceful start. “He will hit the ground running, in full stride, and no one will outwork him,” Lucchino said. The way the 2011 season ended, there's no other choice.

Angels Name Jerry Dipoto GM

2:51pm: Dipoto's deal is for three guaranteed years followed by two option years, clarifies Mike DiGiovanna of the L.A. Times on Twitter.

SATURDAY, 9:45am: The team announced that Dipoto received a five-year contract to be GM in a press release. His introductory press conference will be held at noon PT today.

FRIDAY, 10:34am: The Angels' exhaustive search for a new general manager is over. They will name Jerry Dipoto of the Diamondbacks their next GM, according to Ken Rosenthal of FOX Sports (on Twitter).

The 43-year-old was the top name on MLBTR's list of GM candidates. He emerged as one of the game's top executives after a successful stint as Arizona's interim GM, but he told Tim Dierkes in August that he's always looking for more knowledge.

"The day I feel like I've stopped learning about baseball is the day I should go home," he said. "Every single day you're going to learn something new and start to adjust your lines of thinking.  It's an ongoing education.  Every person I meet in the game, my first instinct is to learn something from them.  My mentor is the game."

Dipoto, a former Major League reliever, was Arizona's senior VP of scouting and player development before landing the Angels job. After an eight-year playing career that included stints with the Indians, Mets and Rockies, Dipoto joined Colorado's front office. Later, he worked in Boston's front office and was with the Red Sox for their 2004 title, before returning to the Rockies and then leaving for Arizona.

The Angels are far from the only team affected by the move. Rays executive Andrew Friedman — apparently owner Arte Moreno's top choice — won't be going to Anaheim. The Orioles, who had interviewed Dipoto for their GM opening, lost their chance to hire Dipoto. Meanwhile, Tony LaCava of the Blue Jays, De Jon Watson of the Dodgers and John Stockstill of the Orioles have improved chances of becoming Baltimore's GM.

The Angels also considered Thad Levine of the Rangers, Damon Oppenheimer and Billy Eppler of the Yankees, former GMs Dan Evans and Omar Minaya,  Kim Ng of MLB and Rick Hahn of the White Sox. The Angels won't announce the move before Saturday, since MLB prohibits major announcements during the World Series.

MLBTR's Transaction Tracker offers a look back at the moves Dipoto made while running the Diamondbacks last summer. He acquired Daniel Hudson from the White Sox and obtained Joe Saunders and prospects Tyler Skaggs and Patrick Corbin from the Angels.

Mets To Let Other Teams Set Market For Reyes

The Mets intend to allow other clubs to set the market for Jose Reyes this offseason, according to Andy Martino of the New York Daily News. Mets officials have suggested that the Nationals, Marlins and Angels could bid heavily on the free agent shortstop this offseason and the Mets would prefer that others clubs establish the market for him. 

Joel Sherman of the New York Post suggested a week ago that the Mets don't want to offer Reyes more than four years and Matt Cerrone of MetsBlog hears from team sources who give him the same impression. If that’s the case, there’s a strong chance Reyes’ best offer will come from another organization. The 28-year-old finished the season well and may have a case for a $100MM contract.

Latest On Orioles’ GM Search: Brown, LaCava

The latest on Baltimore's search for a new GM:

  • The Orioles could interview one more candidate and probably won't conduct a second round of interviews, according to Dan Connolly of the Baltimore Sun (Twitter links). If the Orioles conduct another interview, it would probably take place early next week.
  • Dan Connolly of the Baltimore Sun weighs in, pointing out that Dipoto wasn't necessarily Baltimore's preferred candidate.
  • De Jon Watson has met with the Orioles three times and had dinner with manager Buck Showalter on Wednesday, according to Yahoo's Tim Brown (on Twitter).
  • The Orioles are "very likely" to hire Tony LaCava for their general manager job, according to Jon Heyman of SI.com (on Twitter). The Angels are about to hire Jerry Dipoto, one of Baltimore's four candidates, as their next GM. This leaves LaCava, De Jon Watson of the Dodgers and John Stockstill of the Orioles in the mix for the Baltimore job.
  • LaCava is Toronto's vice president of baseball operations and assistant General Manager. He oversees player development and Latin American operations for the Blue Jays and has also worked for the Angels, Braves, Expos and Indians. He interviewed for GM jobs in Pittsburgh and Seattle in the past. Here's my piece on LaCava for MLBTR's GM Candidates series.