Jose Bautista’s Arbitration Case

This piece was first published on MLBTR on October 13th, 2010.

Arbitration Expert Breaks Down Bautista’s Value With MLBTR

A glance at the all-time single season home run leaders tells you all you need to know about Jose Bautista’s 2010 campaign. Barry Bonds, Mark McGwire, Sammy Sosa, Roger Maris, Babe Ruth, Jimmie Foxx, Hank Greenberg, Ryan Howard, Luis Gonzalez, Alex Rodriguez, Ken Griffey Jr. and Hack Wilson are the only players who have ever hit more home runs in a season. 

Needless to say, Bautista is due for a raise. 

Bautista, who heads to arbitration for the fourth and final time this offseason, earned $2.4MM last year, and will make far more in 2011. It’s a question of how much more and the answer isn’t easy to determine. 

The problem is, few careers resemble Bautista’s. He played for four teams in 2004, played five positions in 2006 and seemed destined for a career as a utility man when the Blue Jays acquired him in 2008. And in 2010? He made the All-Star team and led the major leagues in extra base hits and home runs.

If your head is spinning, imagine how arbitrators – the decision-makers responsible for settling salary disagreements between teams and players –  would feel after considering Bautista’s case for a few hours. The Blue Jays have a history of avoiding arbitration, so there seems to be a good chance that they don’t go to a hearing this time, but the potential for one will shape the sides’ discussions.

The Blue Jays can argue that Bautista deserves a limited raise, but they have to be careful, according to one longtime arbitration consultant.

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Votto, Lozano Make Smart Deal

Joey Votto has nothing to lose. He and agent Dan Lozano avoided arbitration and worked out a deal with the Reds that's worth $38MM in guaranteed money. And Votto doesn't hit free agency a minute later than he was originally scheduled to. Cincinnati gets cost certainty, but no free agent years and no visible discount. One agent says the Reds took on all the risk.

"The team paid him as if he was going to be a .350-40-120 player the next two years" the agent said.  "Had the team gone year to year to protect against diminished productivity or injury, would they have ever had to pay him more money than $38MM over three years?"

Recent history says the answer is no. Votto will earn more over the course of his first three arbitration years than Miguel Cabrera ($33.7MM), Albert Pujols ($32MM), Mark Teixeira ($27.9MM) or Justin Morneau ($22.5MM) did. Votto's money is now guaranteed, so the 2010 NL MVP will be cashing his checks even if he has an off-year or gets injured.

Ryan Howard ($44MM) is the one first baseman who earned more than $38MM for his first three arbitration seasons. The Phillies slugger pocketed $44MM for that chunk of his career, but one MLB insider says Howard set himself up for a bigger payday than Votto by posting better power numbers in his pre-arbitration seasons.

"Where Howard beats him is in terms of home runs," MLBTR's source said. "He had 129 to Votto’s 90. And Howard had 353 RBI to Votto’s 298. Qualitatively in terms of their rates with batting average and on-base plus slugging, they’re very, very close. The difference really is the home runs and the RBI."

The gap in power numbers would likely have been enough to keep Votto's 2011 salary in the $7-8MM range on a one-year deal. In other words, Pujols, Cabrera and Teixeira were attainable targets for Votto, but he wasn't going to approach Ryan Howard money in his three arbitration years.

This isn't to say that Reds GM Walt Jocketty was wrong to lock up his first baseman. The 2010 Sporting News Executive of the Year could look back on this deal as one that saved him money. His eight-year extension with Pujols and Lozano worked tremendously well, but that deal bought out five of Pujols' free agent seasons. 

This time the Reds guaranteed Votto more than fellow-MVPs Pujols and Morneau without obtaining the rights to any of his free agent seasons. The team gets cost certainty, but they are not getting a discount. Lozano and Votto secured a massive win that guarantees the first baseman more than most of his peers and allows him to hit free agency as a 30-year-old.

Players To Avoid Arbitration: Monday

Teams and players exchange arbitration figures tomorrow if they haven't already come to terms for 2011. That means plenty of players will likely avoid arbitration today. We'll keep track of them all right here and with our Arbitration Tracker; the latest updates are at the top of this post:

Pujols Eyes A-Rod Money; Cards Are Hesitant

It doesn't sound like Albert Pujols’ representatives are going to be shy in their negotiations with the Cardinals. There are early indications that Pujols and agent Dan Lozano have used Alex Rodriguez’s ten-year $275MM contract as the lone point of reference in discussions for a potential extension, according to Jon Heyman of SI.com.  

However, the Cardinals “are said to have initially suggested a contract that would guarantee Pujols at least a bit less than $200MM,” Heyman writes. Heyman’s sources believe the Cardinals would prefer not to guarantee Pujols more than seven years. One person said the Cards could offer a seven-year, $196MM deal. Other insiders suggest the team could agree to a $30MM annual salary or a ten-year deal, but not both.

Most people Heyman surveyed suggest Pujols won’t top $250MM if he signs an extension, since he is not negotiating on the open market and since the Yankees and Red Sox have established first basemen. 

Click here to vote on Pujols’ future, which will unfold within the next month or so. Lozano set a Spring Training deadline for a possible extension. If the sides don’t reach a deal, the three-time MVP will hit free agency after the coming season. As I explained here, A-Rod money is not an unreasonable target for Pujols.

Teams Continue To Search For Pitching

Teams are still hunting for pitching even as the free agent pool continues to shrink. The Padres, Cardinals, Pirates and Mets are looking for arms, according to Jon Heyman of SI.com (on Twitter). ESPN.com's Jerry Crasnick notes that the Rays and Nationals have not stopped shopping, either (Twitter link).

Two AL East clubs, the Orioles and Yankees have some interest in Freddy Garcia, according to Heyman.

Over in the NL East, the Nationals and Mets have made progress on deals for pitchers today. The Nationals are set to acquire Tom Gorzelanny from the Cubs and the Mets are nearing a deal with Chris Young.

Blue Jays Sign Jon Rauch

The Blue Jays announced that they signed Jon Rauch to a one-year deal that pays the reliever $3.5MM in 2011 and includes a club option for $3.75MM in 2012. There's a $250K buyout for the 2012 option, so the deal is worth a total of $3.75MM in guaranteed money, according to Jon Heyman of SI.com (on Twitter).

Rauch posted a 3.12 ERA with 7.2 K/9, 2.2 BB/9 and a 37.7% ground ball rate in 57 2/3 innings for the Twins last year. The 32-year-old has always been a fly ball pitcher and the Blue Jays play in homer-friendly Rogers Centre. The combination isn't ideal, but the Blue Jays needed dependable arms after losing Kevin Gregg and Scott Downs to free agency. Rauch has made 50 appearances or more in each of the last five seasons.

The Blue Jays have already added Carlos Villanueva and Octavio Dotel to their bullpen this offseason.

The Twins did not offer the Type B free agent arbitration after the season, so they will not receive a pick for losing the 6'11'' hurler. The Blue Jays do not forfeit a pick for signing Rauch.

Rockies, Lindstrom Agree To Two-Year Deal

The Rockies agreed to a two-year deal with Matt Lindstrom, avoiding arbitration, according to the team (on Twitter). The $6.6MM deal includes a club option for a third year, according to Troy Renck of the Denver Post (Twitter links). Lindstrom will earn $2.8MM in 2011 and $3.6MM in 2012 with a club option for $4MM in 2013, according to Renck.

Lindstrom was arbitration eligible for the second time after earning $1.63MM in 2010. This extension covers his two remaining seasons as an arbitraiton eligible player and the option covers his first season of free agency.

The Rockies acquired the right-hander from the Astros this winter after he posted a 4.39 ERA with 7.3 K/9 and 3.4 BB/9 in 53 1/3 innings. Along with Lindstrom, Matt Belisle (who also avoided arbitration with the Rockies), Huston Street and Rafael Betancourt provide manager Jim Tracy with a number of proven late-inning options.

Ian Stewart, Felipe Paulino and Jason Hammel are the team's remaining unsigned arbitration eligible players, as MLBTR's Arb Tracker shows.

Rockies To Re-Sign Jason Giambi

The Rockies announced that they have agreed to a minor league deal with Jason Giambi (Twitter link). The agreement, which is pending a physical, includes an invitation to big league camp for the WMG client. Giambi will earn $1MM in 2011 if he makes the team, according to Jon Heyman of SI.com (Twitter link).

Giambi hit .244/.378/.398 with six homers and 35 walks in 222 plate appearances for the Rockies last year. The 40-year-old left-handed batter isn't a natural complement to first baseman Todd Helton, or a viable defender at this point in his career. The Rockies have already added infielders Jose Lopez and Ty Wigginton this offseason, but Giambi will provide the team with depth.

AL East Links: Pettitte, Cashman, Chavez, Red Sox

The latest on the AL East, as teams turn their attention to arbitration eligible players and possible bargains on the free agent market

Nationals To Sign Alex Cora

The Nationals agreed to sign Alex Cora to a minor league deal worth $900K plus $600K in incentives, according to Adam Kilgore of the Washington Post (on Twitter). MLB.com's Bill Ladson first reported that the Nats were in serious talks with the Scott Boras client.

Cora played all four infield positions in 2010, though most of his big league experience has come at second and short. The 35-year-old hit .210/.266/.278 with the Mets and Rangers last year, before Texas released him in September.

The Mets finalized a deal with former Nationals utility player Willie Harris today, so the NL East rivals are swapping utility players in a way. Harris was a member of the Nationals from 2008-10 and Cora suited up for the Mets from 2009-10.

As Kilgore points out (on Twitter), at least nine Boras clients are in the Nationals organization. Cora joins Ivan Rodriguez, Rick Ankiel, Danny Espinosa, Jesus Flores, Alberto Gonzalez, Stephen Strasburg,  Bryce Harper and Jayson Werth.