Matt Swartz | MLB Trade Rumors

Arbitration Breakdown: Cody Bellinger

By Matt Swartz | January 7, 2020 at 5:43am CDT

Over the coming days, I am discussing some of the higher profile upcoming arbitration cases. I rely partly on my arbitration model developed exclusively for MLB Trade Rumors, but will also break out some interesting comparables and determine where the model might be wrong. 2020 projections are available right here.

Cody Bellinger seeks to break the record for first-time eligible players in 2020, after putting up an MVP campaign in his platform season to tack onto a resume that already has a Rookie of the Year award. Bellinger hit 47 home runs and knocked in 115, while batting .305 and stealing 15 bases through 661 plate appearances. For his career, that gives Bellinger 111 HR, 288 RBI, a .278 average, and 39 steals in 1841 plate appearances. That immediately puts him in rarified air.

In recent memory, only three players have entered arbitration for the first-time with both an ROY and an MVP award. Ryan Howard smashed the first-time eligible arbitration record way back in 2008 with these accomplishments. He had also hit 47 home runs in his platform season, but had batted only .268 (although he did knock in 136 runs). His 129 career home runs and 353 career RBI, plus his .291 career average, led to a $10MM salary after he beat the Phillies in arbitration (who had filed for only $7MM).

It took five more years for another player to reach arbitration with an ROY and MVP, and that was Buster Posey. Posey had only hit 24 HR in his platform year though, and 46 in his career, and ended up with a less remarkable $8MM.

It was not until Kris Bryant again accomplished that combination in 2018 that we saw Ryan Howard’s decade-old record fall as Bryant earned $10.85MM. Bryant is the most obvious comparable for Bellinger here. Bryant had a .295/29/73 platform in 665 PA, which is definitely weaker than Bellinger’s .305/47/115 in 661 PA—especially because Bellinger stole 15 bases to Bryant’s seven. For career numbers, Bryant also fell short in HR (94 versus 111), RBI (274 versus 288), and SB (28 versus 39), but he did have a .288 average to Bellinger’s .278. Of course, batting average has historically been far less important than power numbers for arbitration cases, so it stands to reason Bellinger should top Bryant’s $10.85MM. My model estimates $11.6MM, which may be on the low side.

Finding other comparable players is quite challenging. Two other players have received eight figure salaries in their first year of eligibility. Mookie Betts in 2018 had a .264/24/102 platform year, but had 26 stolen bases that season as well as a career .292/78/310 line and 80 total stolen bases. He got $10.55MM, and Bellinger’s case also looks favorable to his. Last year, Francisco Lindor had a platform .277/38/92 campaign with 25 SB, along with .288/98/310 career along with 71 SB. Lindor received $10.55MM. Again, Bellinger’s case compares favorably.

Overall, this seems likely to just be a matter of how much Bellinger will break Bryant’s record by. I think the floor is probably the $850K difference that the model projects (at $11.6MM), and I could easily see Bellinger landing north of $12MM or perhaps even $13MM.

Arbitration Breakdown: Francisco Lindor

By Matt Swartz | January 6, 2020 at 10:37am CDT

Francisco Lindor enters his second year of arbitration eligibility coming off a $10.55MM salary in 2019, yet another solid campaign. Lindor hit .284 with 32 home runs and 74 runs batted in, stole 22 bases, and accumulated 654 plate appearances on the way to his fourth straight All-Star appearance and his second Gold Glove. My model projects Lindor earn $16.7MM, good for a $6.15MM raise.

It is very difficult to find comparable players for the talented shortstop. Looking for middle infielders from the past half-decade who hit 25 home runs going into their second year of eligibility provides only two names. Both players are second basemen and have much weaker cases than Lindor. In 2017, Jonathan Schoop batted .293 with 32 home runs and 105 runs batted in, stealing just a single base. The same year, Scooter Gennett hit .295 with 27 homers, 97 runs batted in and just three stolen bases. They got raises of $5.0 and $3.2 million, respectively. Considering Lindor stole way more stolen bases and plays a more premium position, he clearly has a better case. He should earn north of the $5MM raise that Schoop received three years ago.

Looking for a shortstop is clearly not a fruitful endeavor, though. The largest ever raise for a second-time-eligible shortstop was $2.83MM for Brandon Crawford in 2016. But he only hit .256, belted just 21 home runs, and stole a mere six bases. His case then was clearly inferior to Lindor’s now.

If we expand to look at other positions beyond the middle infield, some other potential names emerge. George Springer got a two-year deal when he had a similar .283/34/85 performance two seasons ago—although only with five stolen bases—but he had filed for a $6.6MM raise, while the Astros offered a $4.6MM increase. His two-year agreement probably assumes the midpoint. If nothing else, the $4.6MM figure is a floor if Schoop’s $5 million was not.

Justifying the model’s estimate of a $6.15MM raise is harder. But some of the players who have landed raises in that neighborhood had stronger performances. Khris Davis got a $5.5MM raise two years ago after belting 43 home runs and knocking in 110 runs. Davis hit at his standard .247 clip, but his power numbers may make him a ceiling for Lindor. Of course, the positional adjustment is hard. Marcell Ozuna picked up a $5.5MM raise in 2018, too, after he hit .312/37/124 as an outfielder. Still, one could argue that Lindor’s .284/32/74 line is inferior.

I think that somewhere between $5MM and $5.5MM is a reasonable guess for Lindor, which would put him around $15.5MM to $16MM. The model is clearly struggling to find where Lindor’s salary as is, just like we have done in this article, but I do think it landed high.

Arbitration Breakdown: Jonathan Villar

By Matt Swartz | January 6, 2020 at 12:19am CDT

Jonathan Villar is projected for a hefty raise in his third year of arbitration eligibility in 2019, thanks to a significant improvement over his performance the prior two years. Villar hit for a career-high 24 home runs and 73 runs batted in last season, while also hitting .274 and stealing 40 bases. Villar appeared in all 162 of the Orioles’ games, accumulating 714 plate appearances. After Villar earned $4.825MM in 2019, my model projects him to more than double that amount, with a $5.575MM raise to a $10.4MM salary for 2020. However, there really are not many useful comparables to work with in Villar’s case.

Very few players with Villar’s service time have similar profiles in terms of home runs and stolen bases. There is only one such player who had more than half as many of each in the last five years — Eduardo Nunez, who also stole 40 bases and hit 16 home runs back in 2016, while batting .288 and knocking in 67 runs over 141 games and 595 PA. Other than VIllar’s eight extra home runs, Nunez does look similar, albeit with fewer plate appearances (119 less than Villar) and games played (21 less). Nunez only got a $2.7MM raise, so add in some inflation and the effect of the extra home runs and extra games, and maybe Villar could get close to a $4MM raise, but that is still far short of the model’s $5.575MM raise estimate.

Looking for players with over 700 PA in the last two years, we find Cesar Hernandez from last year and Charlie Blackmon from two years ago, though Blackmon isn’t a comparable since his case relies more on overall hitting numbers than power and speed (.331 average, 34 homers, 104 RBI, 14 steals for Blackmon in 2017). Hernandez got a $2.65MM raise last offseason coming off a 2018 campaign that saw him post a .253 average, 15 home runs, and 60 RBI, to go along with 19 steals. This is an obvious floor for Villar, as he should clearly exceed this range.

Also from last year, Didi Gregorius may be a more realistic floor for Villar. He got a $3.5MM raise after hitting .268 with 27 HR and 86 RBI — all similar to Villar — but only stealing 10 bases. Of course, Gregorius only had 569 PA, far less than Villar’s 714 PA. Villar should certainly clear $3.5MM as well.

My best guess is Villar gets a raise of around $4MM to $4.5MM. The model may be estimating high because it is rewarding him heavily for his 714 plate appearances. Although the model has clearly established that the average effect of more plate appearances really compounds, there may be exceptions in cases like these. I do not think Villar reaches the $5.575MM raise estimate, so he should land closer to $9MM than the $10.4MM the model forecast.

Arbitration Breakdown: Josh Bell

By Matt Swartz | January 5, 2020 at 7:48am CDT

Josh Bell established himself as a formidable power hitter just in time for his platform year, leading into his first time through the arbitration process. The first baseman hit 37 home runs and knocked in 116 while batting .277—all career highs. Despite being a far less productive hitter prior to 2019, Bell still accumulated some decent career numbers as well thanks to playing full-time for three consecutive seasons. He totaled 78 home runs and 287 RBIs, along with a .265 average. My model projects Bell to earn $5.9 million his first time through arbitration.

The model does not explicitly pick comparables when generating its projection, but it will logically place Bell near some of his most similar hitters while compensating for some salary inflation. Bell’s arbitration case is pretty well-established—he is a hitter who had an elite power year in his platform with solid but non-elite performance prior to that.

Ideally, a comparable player is somebody who plays the same position. But looking for hitters who already play first base full-time before reaching arbitration is challenging.

Chris Carter had similar power numbers when he entered arbitration in 2015, but a far inferior batting average and was also a DH for most of his platform season. He earned $4.18MM after hitting 37 home runs and knocking in 88 his platform season, a totaling 85 HR and 216 RBI in his career. But his platform batting average was only .227 and his career average was .222. This is obviously a likely floor for Bell, who five years later has bested Carter in each of these categories.

Wil Myers obviously played a few positions by the time he entered arbitration in 2017, but commonly played first base. He hit .259 with 28 home runs and 94 runs batted in during his platform year, but stole 28 bases. He only hit 55 home runs in his career though, far less than Bell’s 78. So Myers’ $4.5MM salary seems likely to be low as well.

If we expand to other positions on the diamond, I can find four other infielders in the last five years who hit at least 30 home runs in their platform year and batted at least .250, but did not have 90 home runs in their career, putting them in a similar position to Bell. Each of the four players earned between $5.0MM and $5.2MM and has similarities to Bell.

Last season, Javier Baez entered arbitration with a .290/34/111 platform but stole 21 bases, and had .267/81/269 career numbers to go along with 49 steals. The numbers are certainly similar to Bell, if a little bit better, and Baez plays a harder position. Baez’s $5.2 million could be a benchmark for determining Bell’s 2020 earnings.

Trevor Story also had a similar case going into last season, with a .291/37/108 line in his platform year, and a .268/88/262 line for his career. Story plays a harder position and steals bases at a regular clip as well—27 in his platform year. Story’s $5.0MM could also be a solid benchmark for Bell.

Going back to 2016, we also find a couple third basemen with similar batting numbers to Bell. Both Manny Machado and Nolan Arenado got $5.0MM. Machado hit .286/35/86 platform and .281/68/215 career, while Arenado had a .287/42/130 platform and a .281/70/243 career. Machado had stolen 20 bases in his platform as well. Both arguably had better cases than Bell, but being four years old, these cases are a bit stale.

I think that the model could be a little high on Bell, projecting him for $5.9MM when he may land closer to $5.0MM. It is clear that he should outearn other recent first basemen who got salaries in the low-to-mid $4MM range, but not clear enough that some of the 3B and SS who earned $5.0MM to $5.2MM have weaker cases at all. Salary inflation could push him past them, but I suspect he will land right around $5 million.

Arbitration Breakdown: Khris Davis

By Matt Swartz | November 29, 2018 at 9:44am CDT

Over the last few days, I have been discussing some of the higher profile upcoming arbitration cases. I rely partly on my arbitration model, developed exclusively for MLB Trade Rumors, but will also break out some interesting comparables and determine where the model might be wrong. 2019 arbitration projections are available right here.

Khris Davis enters his third year of arbitration under somewhat familiar conditions—with a .247 average (matching his exact batting average in each season from 2015 through 2017) and at least 40 home runs in his platform season. Coincidences aside, my model sees him getting his biggest raise ever, a $7.6MM bump, good for an $18.1MM salary projection. Last year, he got a $5.5MM raise from his initial $5MM salary in his first year of arbitration.

With career highs of 48 home runs and 123 runs batted in, it is pretty logical that Davis is projected to get his biggest raise yet. On top of that, the same type of performance in the third year of arbitration eligibility is typically associated with a larger raise than it would in the second year of eligibility.

Davis’ case obviously hinges on his power numbers, which is certainly a fortunate skill to possess when it comes to arbitration; power is the skill the arbitration system favors most heavily. Looking for appropriate comparables for Davis is going to require looking for other players who have had significant tallies of the right counting stats, so we should restrict our search to prominent sluggers.

Somewhat surprisingly, in the past decade, only one player has hit 40 home runs going into his third year of arbitration: Todd Frazier, two years ago. Frazier only hit .225 that year and fell just short of 100 RBIs with 98. Davis hit eight more home runs than Frazier did, too. Putting that together, we get an absolute floor of the $3.75MM raise from Frazier’s case.

Even if we soften the home run requirement to 35 and require 100 RBIs, we only get one player in the past five years: Charlie Blackmon, last year. He got a $6.7MM raise for hitting .331 with 37 home runs and 104 runs batted in. There was some debate last year about whether that was enough of a raise, with some rival agents taking shots through the media claiming he should have gotten more. If applied back to Blackmon’s case, the current iteration model does project his 2017 season to support a larger raise of $7.8 million. That also means that the model slightly prefers that season, with its lofty batting average but lesser power stats, to the one just turned in by Davis. All things considered, Blackmon seems like a pretty solid overall comparable, one that either side in the Davis case could argue off of.

It is difficult to come up with other comparables in recent years, but if Davis and the A’s go further back, they might want to look for someone who led the league in home runs like Davis did going into his third year of arbitration. That would be Matt Kemp, who got a $5.05 million raise for his .324/39/126 season in 2011. That is obviously very stale, but it makes it plausible that Davis could get a similar kind of raise with inflation, although his batting average was obviously worse.

With so few plausible comparables, it is difficult to know what Davis could command. In such situations, I would lean towards the model, especially without much evidence that the number was too high or too low. Regardless, in the current era with so many home runs being hit league wide, it will be interesting to see how this affects future cases for guys like Davis who hit so many home runs. Of course, we may not get to see a one-year settlement. The relationship seems to be working for both sides and all involved surely remain mindful of the open market’s devaluation of sluggers, so it would not be surprising to see a multi-year agreement of some kind.

Arbitration Breakdown: Mookie Betts

By Matt Swartz | November 28, 2018 at 12:49pm CDT

Over the last few days, I have been discussing some of the higher profile upcoming arbitration cases. I rely partly on my arbitration model developed exclusively for MLB Trade Rumors, but will also break out some interesting comparables and determine where the model might be wrong. 2019 projections are available right here.

After the first year of arbitration, it is typical for arbitration salaries to be rewarded as raises on top of previous year’s salaries, based on platform year performances. That sets Mookie Betts up for quite a hefty salary in 2019, since he nearly had a record high $10.5 million salary last year and had quite an accomplished 2018 campaign.

Mookie Betts won the MVP Award with a .346 average and 32 home runs. Batting out of the leadoff spot, he only had 80 RBI, but entering arbitration with the MVP Award, my model projects him to get an $8.2 million raise and earn $18.7 million. That would easily set a record for second time eligible salaries (Ryan Howard got $15 million way back in 2009), but would fall short of the record raise for second time eligible players. Bryce Harper set the latter mark in 2017 with $8.63 million riase. Harper’s case was atypical, though, because it came following a two-year deal. Other than that, Betts is projected for the largest raise ever—which does make sense following an MVP season.

In the last decade, only two players have entered their second year of arbitration coming off an MVP season—Josh Donaldson in 2016 and Josh Hamilton way back in 2011. Not only is Hamilton a stale comp at this point, but both received multi-year deals that might make them less likely to be used as comparables. While Donaldson’s $7.35 million raise would therefore not typically be a useful comparable, both he and the Blue Jays filed numbers in a tight band ($7.05 million and $7.5 million) that were also quite close to the actual result. Given that the comp is a few years out of date, it seems reasonable for Betts to argue that the Donaldson salary point represents a clear floor. Since Donaldson hit .297 with 41 HR and 123 RBI, his performance was more power-centric. But it certainly suggests roughly an $8 million raise for a reigning MVP is close to the right price.

Betts also won the batting title, which also calls back to Charlie Blackmon and Dee Gordon in recent years. The latter had only four home runs in 2015, so he is a weak comparable. Blackmon is a little stronger since his 2016 numbers — .324/29/82 — delivered some of the punch that Betts did at .346/32/80. That earned him a $3.8 million raise, which was actually well shy of what the model predicted. If there’s any added boost for the batting title, then, it’s tough to gauge.

Meanwhile, the Red Sox can certainly try to point to the Blackmon comp if they want to hold Betts’ salary down, but the Donaldson raise seems like a more compelling precedent since he won the MVP Award. And it probably does not hurt Betts’s negotiating position that he scored a major win over the Sox last year in a hearing. All things considered, I suspect Betts will get a record raise and earn quite close to his 2019 projection.

Arbitration Breakdown: Trevor Bauer

By Matt Swartz | November 27, 2018 at 10:59am CDT

Trevor Bauer enters his third year of arbitration following a career year, in which he had a 2.21 ERA and struck out 221 hitters in 175 1/3 innings. Although he only recorded 12 wins and started 27 games, Bauer is still projected for a sizable $5.075MM raise to propel him from $6.525MM in 2018 to $11.6MM in salary for the 2019 season.

Bauer’s season is somewhat tricky in that his ERA is extremely low and quite rare for an arbitration-eligible pitcher in his service class. However, he also didn’t throw many innings compared to the few pitchers in this class who posted similarly low ERAs. Among pitchers in his service class over the past five years, Max Scherzer and Jeff Samardzija both had ERAs just below 3.00. However, with 214 1/3 and 219 2/3 innings, respectively, they had considerably larger workloads. Scherzer won 21 games en route to a Cy Young back in 2013, so that netted him a service-class record $8.8MM raise. Samardzija got a $4.46MM raise — lower than Bauer’s projected raise — but he also only won seven games back in 2014. As such, it makes sense that Bauer would be projected for a larger raise. Clayton Kershaw actually had an ERA of 1.83 going into his third year of arbitration, but he signed a multi-year deal and is probably not a relevant comp for that reason.

The most relevant may be Doug Fister in 2015, who had a 16-6 record (four more wins than Bauer at 12-6) and a 2.41 ERA (similar to Bauer’s 2.21). Importantly, Fister’s 164 innings from that season are only 11 1/3 fewer than Bauer threw in 2018. That was four years ago, and it was good for a $4.2MM raise. The big advantage that Bauer has over Fister is that he struck out more than twice as many hitters. Fister fanned a mere 98 batters, while Bauer recorded a third strike against a whopping 221 hitters. It seems like this should make Fister’s raise a floor, although the four fewer wins could prove important. Still, I think the $5.075MM raise my model projects for Bauer is a defensible one.

If we step away from ERA to find reasonable comparables other than Fister, we find a couple interesting starters who recently had 200-plus strikeouts in fewer than 200 innings. Tyson Ross got a $4.38MM raise in 2016 after a 10-12 season with a 3.26 ERA, in which he whiffed 212 men in 196 frames. Michael Pineda racked up 207 strikeouts in 175 2/3 innings the following season, though he only received a $3.1MM raise thanks to an ugly 6-12 record and decidedly sub-par 4.82 ERA. Ross is the more logical comp, but with Bauer producing an ERA a full run lower, he should land north of Ross’ raise.

Jake Arrieta is another somewhat interesting and relevant comp. Two years ago, the right-hander struck out 190 batters in 197 1/3 innings, with more wins (18) than Bauer but an inferior ERA (3.10). Arrieta received a $4.94MM raise.

Between Fister, Ross, and Arrieta, we have three starters who received raises between $4.2MM and $4.94MM when they were in this service class. All three fall short of Bauer in one category or another. With natural salary inflation, I think the model is probably in the right neighborhood for Bauer for his 2019 salary forecast.

Arbitration Breakdown: Nolan Arenado

By Matt Swartz | November 26, 2018 at 10:40pm CDT

Nolan Arenado already earned $17.75 million in 2018, and put together another storied season. He led the league with 38 home runs, and hit .297 while knocking in 110 runs. He won yet another Gold Glove, yet another Silver Slugger, made the All Star Game, and again finished in the Top 5 of MVP Voting. That makes for his sixth, fourth, fourth, and third consecutive season in each of those accomplishments.

Entering his fourth year of arbitration, it stands to reason that Arenado will earn more than any player ever has in arbitration. After all, Josh Donaldson currently holds that record at $23 million just last year. Since the arbitration system generally awards raises based on platform year performance (except for in the player’s first year of arbitration eligibility), Donaldson’s level of pay would only reflect a $5.25 million raise, which is frankly too small for Arenado.

Indeed, the model predicts a big move up to $26.1MM for Arenado, which would represent a raise of over $8MM from his 2018 salary. Notably, too, there is some uncertainty present, since he earned $17.75 million last year only as part of a two year deal. Players do sometimes get treated differently in the event of returning to arbitration following multi-year deals. In the industry, this is often termed a “re-slot.” Probably the most recent notable example of such was Bryce Harper. In 2017, he received an $8.625 million raise from $5 to $13.625 million after a two-year deal. In that case, Harper had won the MVP Award in the first year of the two covered by the earlier agreement, and may have been treated as someone who would be re-slotted. In this case, if we were to estimate what Arenado would have earned in arbitration in 2018 based on his 2017 performance, we might have guessed $20.7 million rather than $17.75 million.

So, if anything, we would probably expect Arenado to argue for more than $26.1 million based on a re-slotting. Already in uncharted waters in terms of salary, that may or may not be a hard sell. After all, at that point, we would be looking at a “Kimbrel Rule” situation. That “rule” is named after Craig Kimbrel, and basically describes the maximum amount that we should expect a player to break the record raise for his service class. This rule exists because Craig Kimbrel’s first year of arbitration eligibility was so unique that my model had him earning significantly more than any closer had ever earned. We therefore capped his projection. The Kimbrel rule as applied to Arenado would give him a $26.75 million maximum, not much different than his $26.1 million projection.

If we look for comparables, it’s hard to find any for Arenado regardless of the method used to evaluate him. Donaldson would actually be a floor in my estimation. He hit .270 with 33 HR and 78 RBI in 2017, but in just 496 PA. With Arenado stepping up to the plate a whopping 673 times, and hitting .297 with 38 HR and 110 RBI, he will surely not command a smaller raise than Donaldson’s $6 million.

One potential comparable for Arenado could be teammate Charlie Blackmon, who produced .331/37/104 the year before last, and got a $6.7 million raise. We might expect that to be a rather close match for Arenado, although Blackmon’s ultimate raise was called into question by other agents at the time. Still, if we think that Arenado would come in at about a $6.7 million raise, that would land him at a $24.45 million salary — less than his $26.1 million projection. On the other hand, if Arenado’s Gold Gloves or higher service time factor in, we may still be north of that and closer to his projection.

Arenado will be an interesting, record-breaking case this year. With several complicating factors impacting his case, there’s a fairly large spread of dollars theoretically open for discussion. Ultimately, I suspect that the model is pretty close, but I could see being off by a couple million in either direction.

Arbitration Breakdown: Jacob deGrom

By Matt Swartz | November 15, 2018 at 9:28pm CDT

Over the next couple weeks, I will be discussing some of the higher profile upcoming arbitration cases. I rely partly on my arbitration model developed exclusively for MLB Trade Rumors, but will also break out some interesting comparables and determine where the model might be wrong. 2019 projections are available right here.

The most interesting arbitration case of 2019 is probably Jacob deGrom. The arbitration system is an antiquated method of player compensation. While teams on the free agent market bid based on innovative stats, other numbers that reflect more accurate player valuations, and detailed scouting assessments, the arbitration system still uses stats like wins, saves, and RBI that teams have since discarded in their player evaluation. The stats remain important because a couple hundred players become eligible for arbitration every year, and everyone knows what criteria the system uses.

But arbitration also rewards hardware. An MVP or Cy Young Award can weigh heavily on the ultimate salary a player will take home, and until recently those awards were often based on antiquated statistics like wins. The press was a few steps behind front offices in innovation—after all, that’s probably how it should be.

All these differing forces crash into each other in 2019, as deGrom enters his third year of arbitration eligibility with a mere 10-9 record, but a Cy Young Award. And it was not just a squeaker he won without real competition —he got all but one first place vote in a year where Max Scherzer won 18 games, had a 2.53 ERA, and struck out 300 hitters. Aaron Nola won 17 games this year with a 2.37 ERA too. There were clearly other contenders, but deGrom won thanks to a more knowledgeable press base that eschewed wins and focused on his sensational overall performance.

Arbitration still uses wins, however. And that could easily downgrade deGrom. In fact, my model—which is backward looking by design, asking what raises players have gotten historically with similar statistics—sees deGrom earning a mere $5.5 million raise, which would bring him up to a $12.9 million salary. Back in 2014, Scherzer himself won a Cy Young with a 21-3 record and a 2.90 ERA, striking out 240 in 214.1 innings. That got him an $8.8 million raise, a record for third time eligible starting pitchers which still stands today. The eleven fewer wins are the main reason the model is more skeptical of deGrom. After all, the strikeouts and innings are similar and deGrom’s ERA was a full point lower.

The model could easily miss here. If a panel decides to ignore wins like the Cy Young voters did, it could easily give deGrom a $9 or $10 million raise (and somewhere around a $17 million salary), possibly setting off a new wave of arbitration cases that could simultaneously give arbitration-eligible pitchers salaries more in line with their relative value, all while forcing the unfortunate arbitration salary modelers of this world to retool their models!

Of course, maybe the model is just right. Maybe the Mets will be able to persuade a panel — or, more likely, persuade CAA Sports (the agency that only recently employed new Mets GM Brodie Van Wagenen) that a panel would be persuaded — that wins will be valued as they have in the past, substantially harming deGrom’s argument. In that case, we would need to look for pitchers with very low win totals and very low ERAs. Only a few names surface.

By far the most interesting is Jeff Samardzija. In 2015, Samardzija went 7-13 with a 2.99 ERA in 219.2 innings, and earned a $4.34 million raise. That seems like an absolute floor for deGrom, who clearly bested Samardzija on every major statistic—even wins. Plus, that was four years ago and is probably a little stale.

There are not even that many very low ERA seasons to look at. Cole Hamels got a $5.5 million raise seven years ago with a 14-9 record and a 2.79 ERA. The model is essentially predicting that deGrom gets Hamels’ raise despite the staleness of that case, and despite the fact that deGrom topped Hamels in every category but wins.

Perhaps another interesting comparable could be David Price, who went 15-12 with a 3.26 ERA in 2015. The most notable aspect of his case though, is the fact that his tally of 271 strikeouts is quite similar to deGrom’s 269. Probably the most compelling aspect of Price’s case, however, was his accumulation of 248.1 innings. That tops deGrom by over thirty frames. Price’s $5.75 million raise could be argued as a ceiling on that front as well. There is a key difference cutting in the other direction, of course, in the form of the extra 1.5 earned runs Price allowed per nine innings.

Whatever deGrom gets, he is sure to set an interesting precedent going forward. Will arbitration panels stop paying as much attention to wins? How will they consider extremely low ERAs? How will Cy Young Awards come into play? The most interesting case of 2019 probably has some light to shine on these questions.

Arbitration Breakdown: Josh Donaldson

By Matt Swartz | January 12, 2018 at 9:22am CDT

Recently, I have been discussing some of the higher-profile upcoming arbitration cases as part of MLBTR’s Arbitration Breakdown series. I rely partly on my arbitration model developed exclusively for MLB Trade Rumors, but will also break out some interesting comparables and determine where the model might be wrong. Full arbitration projections for 2018 are also available.

Josh Donaldson enters his third year of arbitration with an already extraordinarily high $17MM salary. This would already be the highest ever one-year deal signed in arbitration (with the exception of Bryce Harper’s 2018 salary, inked back in May) and Donaldson will certainly command a raise above that. The highest one-year deal ever signed went to Prince Fielder in 2011 at $15.5MM. However, Buster Posey and Ryan Howard earned $20MM during years generally covered by arbitration as part of multi-year deals inked earlier in their careers.

Generally, players who are beyond their first year of arbitration are effectively given raises, rather than absolute salaries, and my research has determined that these raises are almost exclusively based on their platform season. That is how my model is set up. In other words, Donaldson is projected to earn $20.7MM because the model projects a $3.7MM raise for a player with his 2017 performance.

However, Donaldson received a two-year deal covering 2016-17, making his case somewhat tricky. We sometimes see players in such circumstances being paid as a “re-slot” case, which means they are slotted back into the arbitration system based on career performance. So it is possible that Donaldson’s performance prior to 2017 will be considered. However, that would probably push his salary even further above the current record and seems unlikely.

Like many others in the league this season, Donaldson could see his case impacted by the record level of home runs that were hit in Major League Baseball in 2017. Big league hitters combined for a total of 6,105 total home runs — a whopping 26 percent increase over the average from the past five seasons. When I look at players with similar home run totals in that span, it isn’t clear if an arbitration panel (or teams and agents that are negotiating in the shadow of what an arbitration panel would say) would treat home runs from Donaldson as similar to other players with the same number as home runs, or as someone with maybe 26 percent fewer home runs.

In recent years, data has shown that run environment is not a big consideration in arbitration, and as such, my model does not adjust for league run environment in this way. Hitters in high-scoring years benefit from being compared to hitters in low-scoring years, and pitchers in low-scoring years benefit from being compared to pitchers in high-scoring years.

Donaldson hit 33 home runs but did so only in 496 plate appearances, and that total was only accompanied 78 RBIs. If we re-adjust his home run baseline to the average of the last five years, that would put us at 26. If we allow for the possibility that a potential panel might consider his home run total to be inflated, we might want to look for other players who hit 25 home runs. But playing time is a huge factor in arbitration, so we would want to look for players who did not play full seasons.

If we even limit to players with 25 home runs and under 600 PAs, we only get five players in the last five seasons. These are actually the same five players who hit 25 home runs but had fewer than 90 RBIs as well. They are Lucas Duda (who got a $2.5MM raise two years ago), Luis Valbuena (who got a $1.9MM raise two years ago), Brandon Moss (who got a $2.4MM raise three years ago), Chris Davis (who got a $1.65MM raise three years ago), and Jarrod Saltalamacchia (who got a $2MM raise five years ago).

All five of these players had batting averages between .196 and .244, so Donaldson at .270 is far above them. They also all hit between 25 and 27 home runs, which means Donaldson’s mark total of 33 will probably place him above that group as well. Valbuena and Saltamacchia are poor comparables because their averages were in the .220s and both had fewer than 60 RBIs. Davis, who hit .196, is probably also low. So we would rather compare Donaldson to Duda (.244/27/73) or Moss (.234/25/81). But it is clear that these are both probably floors, since Donaldson bests them on all major fronts considered in arbitration. That leads me to believe that Donaldson should definitely get a raise above $2.5MM.

If we relax the home run assumption and look for players who had fewer than 600 PAs, we find a couple other recent players who got raises around $2.9MM. Justin Smoak hit .226/18/59 in 328 PAs in 2016, and Steve Pearce hit .293/21/49 in 383 PAs in 2015. Both seem like floors as well. So we have to assume Donaldson probably pulls in above $3MM.

If we relax the playing time assumption, we could arrive at Todd Frazier in 2017. He hit .225/40/98 in 666 PAs, so while his batting average was low, the more-important home run and plate appearance totals put him as a clear favorite. He received a $3.75MM raise last year, so that seems like a plausible ceiling for Donaldson.

All of the players listed here were actually reaching arbitration for only their third year of eligibility and Donaldson is actually entering his fourth year of eligibility (his first year was 2015, before his two-year pact for 2016-17). If we want to strictly adhere to finding a fourth time eligible, we could see Eric Hosmer last year at .266/25/104 in 667 PAs. He got a $4MM raise and could potentially be a good comparable as well.

I think the model is pretty close to accurate for Donaldson in this case. I could see an argument for a raise in the low 3’s rather than the high 3’s, putting him between $20MM and $20.5MM instead of $20.7MM, but I do not think he will go lower than that.

Photo courtesy of USA Today Sports Images.

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