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Duquette: O’s Unlikely To Surrender Draft Pick For Free Agent

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The Orioles have been connected to free-agent right-hander Yovani Gallardo for much of the winter, but general manager Dan Duquette said today in an appearance on MLB Network Radio that the team’s preference is to retain its first-round pick — the No. 14 overall selection (links to Twitter). Asked by Jim Bowden about Gallardo, specifically, Duquette replied, “The question for us is ’Are we willing to give up our first-round pick?’ and so far that answer has been no.” Speaking more generally about free agents tied to draft pick compensation, Duquette said, “I think we’re going to hang onto that pick.”

Plans can, of course, change in the event that the asking price of Gallardo comes down, but Duquette’s comments would be a blow to Gallardo’s market, as the right-hander hasn’t been connected to a large number of teams of late. The Orioles and Astros have been the two most frequently mentioned club’s in connection to Gallardo, although his representatives will reportedly meet with the Rockies soon. The Blue Jays have also at least checked in on Gallardo, although there’s no indication that their interest extends beyond due diligence at this point.

Duquette’s comments would also rule out Dexter Fowler, and while the switch-hitter hasn’t been concretely linked to Baltimore, he did appear to be a speculative fit in the outfield (as Jeff Todd and I discussed on yesterday’s MLBTR Podcast). Ian Desmond and Howie Kendrick are the other two remaining free agents that rejected qualifying offers, although neither has a clear fit on the Baltimore roster anyway, due to the presence of J.J. Hardy and Jonathan Schoop.

Furthermore, Bowden adds (links to Twitter) that Duquette confirmed some interest in Doug Fister but said the Orioles are not in the mix for free-agent lefty Cliff Lee. “Fister is interesting, bounceback candidate,” said Duquette. “I can’t say we’ve made an offer, but we’ve been monitoring his market.” Fister is said to be eyeing a two-year deal worth a total of $22MM, but the Orioles are said to be uninterested at that price. As for Lee, he’s looking for a one-year deal this season if he pitches at all; his agent recently told MLB Network Radio that Lee would need a “perfect fit” in order to make a comeback attempt, though it’s not clear exactly what would constitute that fit.

Free Agent Notes: Gallardo, Indians, Nationals, Webb, Fister, Bell

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As the Rockies search for upgrades to their rotation and bullpen, the team is now considering a run at right-hander Yovani Gallardo, tweets Jon Heyman. SB Nation’s Chris Cotillo tweets that the two sides haven’t had any extensive discussions yet but are expected to meet in the near future. Asked about the reports linking his team to Gallardo, Rockies GM Jeff Bridich downplayed the interest on MLB Network Radio (Twitter link), saying: “I’m not sure where that came from. It’s no different than checking in on just about everybody.” Many expect the Rockies to address their rotation, although the common belief is that they’ll do so by trading from their outfield surplus. There’s enough uncertainty in the current rotation that Colorado could do both, though, and it’s worth noting that the team’s first-round pick is protected by virtue of its finish in the 2016 standings. Then again, convincing any free-agent pitcher to spend a considerable amount of time calling Coors Field his home park is a difficult task.

A few more odds and ends pertaining to the remaining free agent market…

  • The Indians are still open to adding a free agent at the right price, tweets Ken Rosenthal of FOX Sports. Both Juan Uribe and David Freese are potential fits, but there’s no momentum toward a deal at this time. Cleveland could certainly use a bat at either third base or in the outfield though, as Jeff Todd and I discussed on today’s MLBTR Podcast. (Specifically, Austin Jackson strikes me as a nice speculative fit for Cleveland.)
  • Regardless of what happens with Yoenis Cespedes, the Nationals do not appear to be done trying for improvements, as Heyman tweets that the club is still looking to add to the bullpen. Moving Drew Storen for Ben Revere obviously lessened the team’s relief depth, and it’s not hard to see the rationale for continuing to stockpile (if not also to add another late-inning arm).
  • The Rays are among the teams with interest in righty Ryan Webb, according to Marc Topkin of the Tampa Bay Times (via Twitter). Webb, who’ll soon turn 30, had an odd transactional year as the Orioles and Dodgers used his contract to facilitate other moves. But he ended up putting up 50 2/3 solid frames for the Indians, working to a 3.20 ERA with 5.5 K/9 and 2.1 BB/9 to go with an excellent 59.2% groundball rate, and he’s generally been quite a solid reliever over his seven-year career.
  • While there’s some merit to the idea of Doug Fister as a Yankees target, the club does not appear inclined to go past one year on a deal, Jack Curry of the YES Network tweets. Notably, too, owner Hal Steinbrenner told Jon Heyman yesterday (Twitter link) that he doesn’t see much room to add even this year: “I’m not comfortable with the payroll being too much higher than it is now.”
  • Cuban outfielder Alexei Bell has established residency in Mexico and is applying tomorrow for free agency, MLB.com’s Jesse Sanchez reports on Twitter. It’s not yet clear what kind of market the veteran will find for his services, but he is obviously leaving his home island in hopes of making an impact at the major league level.

Orioles Re-Sign Chris Davis

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It took a team record, as expected, but the Orioles have officially re-signed Chris Davis to a seven-year deal. The Scott Boras client will reportedly receive $161MM over that span, though there’s more to it than adding up the annual salaries.

Davis will receive $17MM per season over the life of the contract. He will then receive $3.5MM a year from 2023 through 2032, then $1.4MM a year from 2033 through 2037. And there will be no interest on that $42MM total in deferred money.

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The length of the deferrals in Davis’ contract is unusual, calling to mind the Mets’ 25 years in deferred payments to former star Bobby Bonilla. Obviously, though, their effect is that they reduce the present-day value of Davis’ contract, even though he will, in fact, receive a total of $161MM.

There’s other value in the deal for Davis, though. He doesn’t gain an opt-out opportunity, but will pick up a partial no-trade clause. And as USA Today’s Bob Nightengale notes (via Twitter), Davis could also receive a large tax break on the deferred $42MM since Texas is one of seven states without an income tax. (Of course, it’s impossible to predict if that will persist through 2037 or even if Davis will continue living in Texas.)

The deal represents a huge investment for the Orioles — as CSNmidatlantic.com’s Rich Dubroff notes, it’s almost twice as large as the team’s largest previous commitment to a single player (Adam Jones’ current $85.5MM contract). It’s also the fourth-largest contract handed out this offseason, behind those of David Price, Zack Greinke and Jason Heyward. As Rosenthal notes, the $23MM average annual value of Davis’ deal matches Heyward’s, although Heyward received an extra guaranteed year and an opt-out.

Out of context, that Davis would receive such a lucrative deal is perhaps not so surprising. In November, MLBTR’s Tim Dierkes ranked Davis the fifth best free agent available this offseason, behind those three players and Justin Upton, who remains unsigned. But the Orioles had previously reportedly offered Davis a $150MM deal, and there had been few or no indicators that other teams were serious suitors for Davis. Late this week, it emerged that the Orioles had offered another top free agent bat, Yoenis Cespedes, a five-year deal worth around $90MM. That offer might have helped motivate Davis’ camp to hammer out a deal with the O’s, and given the circumstances, perhaps it’s a bit surprising Davis was able to get significantly more than the team had reportedly previously offered.

In agreeing to terms with Davis, the Orioles will, of course, be retaining one of the game’s most prolific power hitters, and one who, at age 29, could have many productive seasons left. Davis has led the AL in home runs in two of the last three seasons, and his 126 homers over those three years are a tremendous total in an era largely dominated by pitchers. Davis does have his drawbacks as a hitter, and those will be worth watching as his contract progresses — he’s always struck out frequently, but in 2015 he topped himself by whiffing 208 times (although he did actually reduce his strikeout rate from 33.0% in 2014 to 31%). He has generally been able to keep his batting averages at reasonable levels despite his very high whiff rates, mostly because he hits nearly everything hard — his hard contact percentage last year was fourth among MLB hitters, behind only J.D. Martinez, David Ortiz and Matt Kemp. But some big sluggers with high strikeout rates have struggled as they’ve aged, with Ryan Howard as a prime example. Davis’ new contract will carry him through his age-36 season, the same age Howard is now.

Davis is a better and more versatile defender than Howard was, though, insuring him somewhat against a precipitous decline. (In addition to his work at first base, Davis fared reasonably well in 30 games in right field last season, and he’s played a bit of third in the recent past.) And for the time being, Davis is a tremendously valuable part of the Orioles’ lineup. The O’s were -34 runs last season in FanGraphs’ Offensive Runs Above Average statistic; that total would have been scarily low were it not for Davis and Manny Machado, who combined for about 65 runs above average between them. Davis ranked first on the Orioles in home runs, RBI, walk rate, on-base percentage, and slugging percentage.

Davis’ deal makes Upton and Cespedes the clear best hitters remaining on the free agent market, and could help clear the way for Upton and Cespedes to find deals of their own. A report from earlier this week had indicated that the impasse between Davis and the Orioles was stunting the development of the rest of the top of the market for power bats.

At the beginning of the offseason, Davis rejected the Orioles’ qualifying offer. Because they re-signed him, they will not receive a draft pick as compensation.

Jon Heyman reported the agreement, as well as its length and total guarantee (Twitter links). ESPN’s Buster Olney detailed the deferrals (on Twitter) that FOX Sports’ Ken Rosenthal first reported (Twitter links). Rosenthal (in a tweet) and Roch Kubatko of MASNsports.com (via Twitter) added other details.

 

Photo courtesy of USA Today Sports Images.

Orioles Designate Joey Terdoslavich

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The Orioles have designated infielder Joey Terdoslavich, the club announced. His roster spot goes to slugger Chris Davis, who just officially inked a seven-year contract with Baltimore.

Terdoslavich was claimed only about two weeks ago from the Braves. The 27-year-old has put up a .264/.337/.423 slash in extensive Triple-A action, but hasn’t earned much of a shot in the majors. Part of the issue is that he’s not played at third base for quite a while, and his bat will have to do a lot of work for him to make sense in the majors as a first baseman or corner outfielder.

Latest On Antonio Bastardo

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The market for left-hander Antonio Bastardo — arguably the top remaining free agent reliever on the market — has begun to pick up this week, per Baseball Essential’s Robert Murray. The Dodgers, Orioles, Mets and Blue Jays are all interested in Bastardo’s services, according to the report, which also notes that the Cubs met with Bastardo’s reps from the Legacy Agency at last month’s Winter Meetings.

Bastardo has reportedly been seeking a contract similar to the one secured by fellow free-agent lefty Tony Sipp this offseason. The 32-year-old Sipp landed a three-year, $18MM contract to return to Houston back in December, but the market for Bastardo’s services hasn’t been as aggressive despite the fact that he’s two years younger. While Murray notes that the intensifying market could potentially lead to a three-year pact, it’s difficult to see either the Mets or Blue Jays doling out that type of contract. The Mets are reportedly only interested in one-year deals with the remaining free agent relievers on the market, and the Blue Jays are said to be working with budgetary restrictions as their payroll is set to exceed last year’s mark as it is. The Orioles have been aggressive of late, but the $161MM they recently spent on Chris Davis (plus the $31MM given to Darren O’Day, the $7MM allotted to Korean outfielder Hyun Soo Kim and the $16.1MM going to Matt Wieters via the qualifying offer) calls into question how much more they’ll spend. (It’s also worth noting that with Brian Matusz, T.J. McFarland and closer Zach Britton, the team already has three lefties in the ’pen.)

The Dodgers, to be sure, have virtually unlimited spending capacity, but they’ve taken a surprisingly measured approach to their bullpen shopping this winter. The Cubs, theoretically, could issue that kind of deal, though Murray notes that it’s not clear when the last contact between the two sides even was, and they, too, have three lefties in the ’pen (Travis Wood, Clayton Richard, Rex Brothers).

Bastardo, 30, has been a somewhat quietly excellent performer across the past three seasons with the Phillies and Pirates. In that time, Bastardo has logged a 3.18 ERA with 10.5 K/9, 4.4 BB/9 and a 30.8 percent ground-ball rate. He’s also been effective against both left- and right-handed batters, holding same-handed opponents to a .167/.273/.295 batting line while surrendering just a .204/.310/.314 batting line even when his opponents hold the platoon advantage. Of course, control has been a persistent problem for Bastardo, too, as he’s only averaged less than four walks per nine innings in one season of his career — his debut campaign in 2009, when he tossed just 23 2/3 innings.

Minor MLB Transactions: 1/18/16

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Matt Eddy of Baseball America has the latest minor moves from around the game. Among those that have not previously appeared at MLBTR:

  • Lefty Andy Oliver is headed back to the Orioles, per Eddy. The 28-year-old made some brief MLB appearances years ago, when he was a starter in the Tigers’ organization, but spent last year at Triple-A for the O’s. He posted a 3.79 ERA over 57 Triple-A innings, with 10.4 K/9 against 6.3 BB/9.
  • The Royals have once again united with outfielder Mitch Maier. Originally taken 30th overall back in 2003, Maier is now 33 years old and hasn’t seen the majors since 2012. It’s not immediately clear what his role will be, as he spent last year transitioning into a coaching role with the organization — though he acknowledged at the time that he still had a desire to play.
  • Outfielder Corey Brown is headed to the Dodgers on a minors deal, Eddy adds. The 30-year-old has seen only minimal major league time over the years, but certainly qualifies as another outfield depth piece for Los Angeles. He put up a .248/.324/.445 slash with 17 long balls over 472 Triple-A plate appearances last year in the Rays organization.
  • The Blue Jays added southpaw Daniel Schlereth on a minor league pact. It’s been a while since Schlereth, 29, cracked the bigs — 2012, with Detroit — and he was released by the Cubs last year after a brief stint in the organization. Schlereth was the 26th overall pick in the 2008 draft.

Quick Hits: NL DH, Moss, Adams, Blue Jays, Prospects

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There’s “more momentum” growing towards the designated hitter rule being adopted by the National League, Cardinals GM John Mozeliak tells reporters, including Derrick Goold of the St. Louis Post-Dispatch.  The issue has been more heavily discussed in front offices and ownership levels within “the past year…I’m not suggesting you’re going to see a change but I definitely think the momentum (has changed),” Mozeliak said, noting that he doubts the DH would be implemented by 2017 in concert with the new collective bargaining agreement.  ESPN’s Buster Olney also explores the issue in his latest subscription-only column, noting that adding the DH to the NL could increase offense and cut down on pitcher injuries.  While there are some pros, however, Olney personally hates the idea of losing the extra layer of strategy and roster management that comes with having a pitcher in the lineup.  Here’s some more from around baseball…

  • Also from Olney’s column, he gives his take on the Chris Davis and Ian Kennedy signings.  He calls the Davis contract a “win-win” for both the slugger and the Orioles, as Davis still found a huge guarantee and the O’s got a much-needed big bat.  As for Kennedy, the signing makes sense for several reasons for K.C., including that the Royals moved to add attainable pitching now since next year’s free agent pitching crop is so thin.
  • Brandon Moss and Matt Adams both have something to prove after down years in 2015, as Rick Hummel of the St. Louis Post-Dispatch looks at how the two Cardinals sluggers are looking to rebound and bring some much-needed pop to the Cards’ lineup.  There was some thought that Moss could even be non-tendered given his poor season and big arbitration price tag (he and the Cards avoided arb with a one-year, $8.25MM deal) but Mozeliak tells Hummel that the team feels confident that Moss will be healthier now that he’s more recovered from hip surgery.
  • The Blue Jays have eight players who will be free agents after the 2016 season, including such major names as Jose Bautista, Edwin Encarnacion, Brett Cecil, Drew Storen and R.A. Dickey.  Richard Griffin of the Toronto Star opines that the club needs to re-sign at least some of these players (and/or Josh Donaldson) to extensions to demonstrate that ownership is committed to winning and to win back fans disappointed by the Jays’ offseason moves.  The extra revenue generated by Toronto’s playoff run hasn’t been reflected by any raise in payroll, leading Griffin to wonder if the divide between ex-GM Alex Anthopoulos and the Rogers Communications ownership group perhaps stemmed from Anthopoulos’ desire to go for it in 2016 while Rogers was “more fixated on the [U.S./Canadian dollar] exchange rate and the bottom line.”
  • In a recent appearance on the MLB Network, Baseball America’s Ben Badler (video link available) discusses the Cuban market, including the most recent high-profile signings, some big new talents like Randy Arozarena and Lazaro Armenteros and the current state of Cuban baseball.
  • Several young stars are cited by Baseball America’s J.J. Cooper as he proposes five trades that could solve needs for the involved teams and create playing time for some blocked prospects.  The two most eye-popping of Cooper’s suggestions are trades that would see the Mets deal Steven Matz and Luis Carpio to the Red Sox for Yoan Moncada, and an all-NL Central trade that would see the Pirates send outfielders Austin Meadows and Willy Garcia to the Reds for lefty Cody Reed.

AL Notes: Rays, A’s, Jays, O’s

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The Rays won an important political battle late last week in the St. Petersburg City Council, as Charlie Frago of the Tampa Bay Times reports. Under the deal that the council approved, the ballclub will have the opportunity to explore possible stadium sites in two neighboring counties for the next three years. Team owner Stuart Sternberg suggested that there’s no plan in place for a new location. “We haven’t done it before,” he said. “I don’t know if it takes a week or six months to identify and figure out a site.” But the organization made clear that it is aiming for something more than bare function. “We want to build the first of the next generation of baseball stadiums,” said president Brian Auld.

  • In other stadium news, Athletics majority owner John Fisher is said to be more involved than usual as his club considers possibilities for a new park, as Phil Matier and Andy Ross of the San Francisco Chronicle report. While managing partner Lew Wolff has traditionally been the public face of ownership, Fisher is believed to control 80% of the shares.
  • Change continues to filter through the Blue Jays organization, which has recently announced two front office hirings. Mike Murov will come over from the Red Sox to serve as the director of baseball operations, in which role (says the team) he’ll “assist in the preparation and analysis of financial, statistical, and contractual information, coordinating contract negotiation and arbitration preparation.” And Toronto also recently added Gil Kim to their organization as well. Formerly the international scouting director for the Rangers, Kim will serve as the Jays’ director of player development.
  • The Orioles have given a promotion to the head of their analytics department, Sarah Gelles, as David Laurila of Fangraphs discusses (among other things) in his Sunday notes column. Now the organization’s Director of Analytics and Major League Contracts, Gelles discusses the development of the club’s analytical efforts, which she helped drive as an intern working for now-Phillies GM Matt Klentak.

More Reactions To And Effects Of The Chris Davis Deal

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Earlier today, we collected a series of reactions to the Orioles’ big re-signing of Chris Davis to a franchise record seven-year, $161MM contract. Here are a few more takes that have piled up throughout the day.

  • The re-signing of Davis is a huge boost to the O’s lineup, writes Richard Justice of MLB.com. It’s about more than his ability to bash 40 to 50 home runs. Davis is among the leaders in hard hit rate as measured by FanGraphs. That was also true in his highly effective 2013 campaign. Hard hit rate not only improves a hitter’s chance to hit a home run, it also help other balls in play to fall. Justice would like the club to find another bat – perhaps Yoenis Cespedes – to support the middle of the lineup. The Orioles were also tied to the Rockies glut of left-handed outfielders. Either Charlie Blackmon or Corey Dickerson would represent a monetarily affordable alternative to add lineup depth.
  • Re-signing Davis was about continuity too, writes Eduardo A Encina of the Baltimore Sun. The O’s have built a good clubhouse culture under manager Buck Showalter. He said, “I think the other thing that [this signing] represents is the continuity we’ve established with our coaching staff and players.” The front office did grow frustrated in their negotiations and nearly walked away as recently as last Thursday. Angelos made one final offer on Friday night, and talks quickly gained momentum. Encina goes on to say Baltimore’s pursuit of Cespedes is over now unless he’s willing to take a two-year deal.
  • Give owner Peter Angelos credit, writes Peter Schmuck of the Baltimore Sun. As has long been reported, he was the driving force in keeping negotiations with Davis alive. While the lineup looks better with Davis, the club still has work to do before finalizing the roster. In particular, Dan Duquette may need to chase pitching on the trade market. Few teams are marketing starters at the moment, with the Rays as the most vocal sellers.
  • Jeff Sullivan of FanGraphs wonders if Angelos was willing to accept a higher team budget if Davis re-signed. We often assume teams have relatively fixed budgets, but the reality of the matter is that they can be player dependent. In Angelos’ mind, a team with Davis on the roster might be worth a larger investment than a team with another slugger. It’s tempting to say that the Orioles could have signed X, Y, and Z with that $161MM, but maybe the alternative only involved $90MM to spend.

Reactions To And Effects Of The Chris Davis Deal

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Here are a few early notes and takes on slugger Chris Davis’ new $161MM deal with the Orioles:

  • With Davis back in the fold, the Orioles need to address their rotation, FOX Sports’ Ken Rosenthal writes. The O’s have had contact with Yovani Gallardo, but one sticking point there could be the qualifying offer — the Orioles would have had eight of the top 100 picks in the draft had Davis and Matt Wieters departed, but those players’ returns will reduce their total to six. That number would further drop if they were to sign Gallardo.
  • Before signing Davis, the Orioles had been in talks with Yoenis Cespedes, but Cespedes was seeking even more money than the $161MM Davis got from the O’s, MASNsports.com’s Roch Kubatko tweets. The Orioles reportedly made an offer to Cespedes in the $90MM range.
  • The Davis deal could be “Scott Boras’ most impressive victory over reason yet,” FanGraphs’ Dave Cameron writes. There was a limited market for first basemen and a number of strong hitters left on the market, and Davis’ profile as a slugging, whiff-prone first baseman about to head into his thirties is a very risky one. Also, Davis alone likely won’t push the Orioles into the playoffs next season, and the Orioles don’t seem well positioned for the next few seasons, when they’re likely to reap the most value from his contract.
  • Keith Law of ESPN’s take (Insider-only) is somewhat similar to Cameron’s — Law notes that it seems unlikely that the strikeout-prone Davis will continue to produce at 2015 levels, and adds that few teams who might have been able to spend heavily on Davis had the hole at first base the Orioles did. Law also provides his take on the Royals’ deal with Ian Kennedy, which he also isn’t a fan of, given Kennedy homer-allowing tendencies and his underwhelming overall track record.
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