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Orioles Sign Nelson Cruz

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The Orioles continued what has been an incredibly busy seven-day span by announcing the signing of slugger Nelson Cruz to a one-year deal. Cruz's contract contains a base salary of $8MM, plus $750K in incentives — a disappointing outcome for a player who declined a $14.1MM qualifying offer from the Rangers and at one point reportedly sought a four-year, $75MM deal. ESPN's Jerry Crasnick tweets that Cruz rejected two- and three-year offers this offseason, although the timeline of those offers is unclear. Cruz is represented by the Wasserman Media Group.

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Cruz, 33, hit .266/.327/.506 in 456 plate appearances in 2013. A 50-game suspension for his connection to the Biogenesis scandal shortened his season. As MLBTR's Steve Adams noted in profiling Cruz in early November, however, that didn't stop Rangers manager Ron Washington from offering praise for Cruz as a teammate and a clubhouse presence.

The Rangers will now receive what is currently the No. 30 overall pick in the 2014 draft as a result of Cruz signing elsewhere. The Orioles, meanwhile, will sacrifice the No. 55 pick. Losing the No. 17 pick when they struck a deal with Ubaldo Jimenez likely made it easier for the Orioles to sign Cruz, since they would no longer have to give up a first-round draft choice in order to do so. In addition to Cruz and Jimenez, the Orioles have also signed Korean righty Suk-min Yoon to a three-year deal in the past week.

The Cruz deal is another win-now move for the Orioles, who are trying to build on an 85-win 2013 season and string together more wins before the potential departures of Chris Davis and Matt Wieters following the 2015 season. Cruz will serve as the Orioles' primary designated hitter, and he will also likely occasionally see time in the outfield. The transition to Camden Yards and the other hitter-friendly parks of the AL East should be a good move for Cruz, whose drastic home/road splits have drawn some criticism this offseason.

Of the remaining free agents, Cruz's pact with the Orioles most obviously affects Kendrys Morales. The Orioles reportedly had interest in Morales, so now the already-small number of interested bidders for Morales appears to be even smaller. Also, Cruz signing for one year and $8MM will likely make it even more difficult for Morales, a similar player, to get a sizeable deal.

The size of the deal will also likely increase skepticism throughout baseball about the qualifying offer process. That Cruz received so little was surely due in part to the fact that he had draft-pick forfeiture attached, and one year and $8MM is by far the smallest contract to which a qualifying offer player has agreed.

Enrique Rojas of ESPN Deportes first reported that the two sides had reached an agreement after CBS Sports' Jon Heyman reported that they were closing in on a deal.

Steve Adams contributed to this post. Photo courtesy of USA Today Sports Images.

Orioles Notes: Hardy, Cruz, Chen, Santana

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Let's take a look at a few notes out of Orioles camp to start out the day:  …

  • Late last week, Baltimore had an in-person meeting with J.J. Hardy's agent regarding the initiation of extension discussions, reports Eduardo Encina of the Baltimore Sun (via Twitter). Though both sides have indicated an interest at keeping the shortstop off of next year's free agent market, Hardy said recently that no talks had taken place.
  • Baltimore is expected to announce later today that Nelson Cruz has signed a one-year deal and passed his physical, reports Roch Kubatko of MASNsports.com. A press conference is likely to occur tomorrow.
  • Southpaw starter Wei-Yin Chen, who inked a three-year deal out of Taiwan before the 2012 season, is set to become a free agent after either 2014 or 2015, says Kubatko. (His deal contains a $4.75MM club option with a $372K buyout for 2015.) Though Chen's Baseball-Reference page indicates that he would qualify for arbitration beginning next year, and stay under club control through 2017, that is not the case.
  • Multiple sources tell Kubatko that the O's are not in on free agent starter Ervin Santana. The club would need only sacrifice its third-round pick to ink Santana or one of the other remaining free agents tied to draft compensation (Kendrys Morales and Stephen Drew), having already given up its first and second to land Cruz and Ubaldo Jimenez.

AL East Notes: Cruz, Capuano, Ortiz, Yankees

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Nelson Cruz isn't a popular figure in some circles for his PED history, but Nick Markakis won't hold it against him.  "It doesn't change my opinion toward anything,'' the Orioles outfielder said, according to Peter Schmuck of the Baltimore Sun. "I got to be a teammate, and no matter if you disagree or agree with your teammates, they are still your teammates. He’s going to be welcome here and we are going to play as one. That’s for sure."  More out of the AL East..

  • Chris Capuano was nearly traded to the Red Sox three years ago when they were desperate for someone to win a game in the final week of the regular season, writes John Tomase of the Boston Herald.  Ultimately, however, Boston couldn't reach a deal with the Mets.  “(The Mets) actually knew about it earlier, but kind of waited until the last minute to tell me so it wouldn’t be a distraction. I didn’t have a whole lot of time to think about it. It was just a couple-day conversation that didn’t end up happening, but I was excited at the prospect of pitching for the Red Sox," said the veteran.
  • David Ortiz has few precedents when looking at what an extension might look like, writes Alex Speier of WEEI.com.  Speier looked at players who had ten or more seasons in an organization who signed deals that covered at least their age 39 seasons within a year of their free agency.  That short list includes Derek Jeter, Chipper Jones, and Mariano Rivera.
  • The Yankees have questions but no major concerns heading into spring training, writes Barry Federovitch of the Star-Ledger.  Among the question marks, however, will be whether Masahiro Tanaka can make the transition to four or five days’ rest.
  • Jorge Castillo of the Star-Ledger spoke with Yankees reliever Matt Thornton, who inked a two-year, $7MM deal this offseason, about what he expects his role to be with his new team.

Quick Hits: Bonds, Kipnis, Brewers, Zimmermann

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Barry Bonds will work with the Giants as a special instructor in spring training next month, Alex Pavlovic of the San Jose Mercury News reports. Bonds has not had an official relationship with the Giants since 2007, his last season in the big leagues, so his presence could make quite an impression in Giants camp. Here are more notes from around the big leagues.

  • The Indians will "soon make a serious push" to extend second baseman Jason Kipnis, Terry Pluto of the Plain Dealer writes. Kipnis is eligible for free agency following the 2017 season, and Pluto notes the Indians would likely try to sign Kipnis to at least a five-year deal, picking up at least one free-agent season. MLBTR recently suggested Kipnis could make $30MM-$35MM over the course of a five-year deal.
  • The Brewers will likely have a team-record payroll, and owner Mark Attanasio expects to win this season, Tom Haudricourt of the Journal Sentinel reports. "We’re at the point now where we’re well into the top half of payrolls in the major leagues. We have more pitching depth than we’ve had, really, in 10 years. As I’ve explained to everybody, as investors you wouldn’t make that decision to lose," Attanasio says. "The ownership group felt like this was the year to invest (more) in the team. I think we’re going to surprise people this year." After an offseason that featured the high-profile addition of Matt Garza, the Brewers have $86MM committed to 12 players, which could give them a higher payroll than they had in 2012, when their opening-day figure was $101.2MM.
  • The signing of Ubaldo Jimenez has had a dramatic impact on Orioles fans, MASNsports.com's Steve Melewski writes. The Orioles' offseason had been very quiet, but suddenly they've landed Jimenez and now have Nelson Cruz as well.
  • Nationals pitcher Jordan Zimmermann is happy with his two-year, $24MM contract, and isn't concerned about the recent Homer Bailey extension, reports MLB.com's Bill Ladson. Zimmermann and the Nationals tried to negotiate a long-term deal, but ultimately couldn't find enough common ground. "They came to us with a two-year deal. Let's get this out of the way, so we don't have to worry about arbitration for the next two years," Zimmermann says. "We felt it was right, and I think it was fair for both sides, and we got the deal done."
  • Arbitration-eligible players received an average raise of 117 percent this offseason, with their average salaries rising from $1.78MM to $3.86MM, the Associated Press reports. The heftiest raise went to Freddie Freeman of the Braves, who went from $560K in 2013 to a multiyear deal with an average salary of $16.875MM.

Reactions To The Nelson Cruz Deal

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Nelson Cruz signing with the Orioles for $8MM highlights the "absurdities" in Major League Baseball's qualifying offer system, notes ESPN's Keith Law (Insider-only). Law writes that MLB seems uniquely adept at "crafting policies that create unintended consequences." A team that loses its first-round pick as a result of signing a player who had rejected a qualifying offer has a greater incentive to sign a second one, since the penalty for signing the second one is reduced. This policy incentivizes spending sprees by richer teams, at the expense of poorer ones. Here are more reactions to the Nelson Cruz deal.

  • Despite his flaws — his age, defensive defiencies, and unimpressive performance away from Arlington — Cruz is a good deal for the Orioles at $8MM, CBS Sports' Dayn Perry writes. It's only a one-year deal, and Cruz fills an obvious hole in Baltimore's lineup. Perry also notes that Cruz is a good fit in Camden Yards.
  • The Mariners had concerns about Cruz's PED history and with how he would perform at Safeco Field, CBS Sports' Jon Heyman tweets. They preferred Kendrys Morales to Cruz, Heyman notes.
  • Mets GM Sandy Alderson says he's happy to have Chris Young at $7.25MM rather than Cruz at $8MM, reports Newsday's David Lennon (Twitter links). Alderson says that Cruz "brings power to the table … Doesn’t bring the defense. Doesn’t really have our approach, necessarily."

Ervin Santana Has Serious Interest From Three Teams

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At least three teams — the Orioles, Rangers and an NL West club — have strong interest in Ervin Santana, ESPN Deportes' Enrique Rojas tweets. Rojas also notes that the Blue Jays could still be a possibility (although a recent report indicated the Blue Jays would not sign a free-agent starting pitcher). The identity of the NL West team is unclear, although the Rockies have been connected to Santana.

The Orioles have interest despite their recent signing of Ubaldo Jimenez. Santana would still upgrade their rotation, and with their first-round draft pick no longer a factor, there is less disincentive for them to sign a free agent like Santana who has a qualifying offer attached. The Orioles would only have to give up the No. 90 overall pick — their third-rounder — to sign Santana. The Rangers would have to sacrifice the No. 30 overall pick they are about to receive as compensation for Nelson Cruz signing with Baltimore.

Orioles Close To Deal With Nelson Cruz

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9:11am: Cruz and the Orioles have mostly been discussing the possibility of a one-year deal, ESPN's Jayson Stark tweets.

7:02am: The Orioles are close to a deal with slugger Nelson Cruz, reports Jon Heyman of CBS Sports.  Heyman adds, "There are still a couple issues to be resolved, according to sources, though a deal looks extremely likely."

Cruz was one of 13 players to receive and turn down a one-year, $14.1MM qualifying offer in November.  Signing such a player requires the forfeiture of a draft pick, which contributed to slow markets for Cruz, Ubaldo Jimenez, and the still-unsigned Ervin Santana, Stephen Drew, and Kendrys Morales.  The Orioles signed Jimenez on Monday to a four-year, $50MM contract, a franchise record for a pitcher.  The O's sacrificed the 17th overall pick in the June draft to do so.  At the trade deadline last year, the Orioles dealt their Competitive Balance Lottery Round A pick to the Astros in the Bud Norris deal, currently #33 overall.  That means their next available pick to sacrifice for a qualifying offer free agent is #52, so the penalty to sign Cruz is less pronounced.  The Rangers will receive a supplemental first round pick for their loss.

On Friday, Ken Rosenthal of FOX Sports tweeted that the Orioles were in talks with both Morales and Cruz, and a deal with one could happen soon.  In Cruz, they'll get a 33-year-old right-handed bat who hit .266/.327/.506 with 27 home runs in 456 plate appearances in 2013.  The overall line is reflective of Cruz's recent body of work: good power, not too many walks.  His home run total ranked second among free agents, even though he was suspended 50 games for a connection to Biogenesis.  Cruz explained in an August statement that a gastrointestinal infection led to "an error in judgment that I deeply regret" weeks before he was to report in spring training 2012.  It appears that the draft pick attached to Cruz affected his market more than the 2013 suspension, with Jhonny Peralta scoring a $53MM contract in November after serving an in-season Biogenesis suspension.

For the Orioles, Cruz could play both left field and designated hitter, as they're not locked into an established or expensive player at either position.  Cruz has played 384 2/3 innings in left in his career, though his defense is generally considered below-average.

Back in November, before the plight of certain qualifying offer free agents was fully established, MLBTR's Steve Adams predicted a three-year, $39MM contract for Cruz.  He's represented by Adam Katz of Wasserman Media Group.

Clearly, the Orioles signing Cruz would remove a suitor for Morales.  According to Heyman, Morales has been working out for a month at the Boras Sports Training Institute on the campus of St. Thomas University in Miami Gardens.  Morales could still return to the Mariners, and Boras has pitched him as a potential first baseman for the Pirates.

AL Notes: Fister Trade, Jimenez, Hardy, Correia

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Dave Cameron of Fangraphs has ranked the ten best and worst transactions of the offseason. The number one spot on both lists goes to the trade that sent Doug Fister to the Nationals and returned Robbie Ray, Steve Lombardozzi, and Ian Krol to the Tigers. Cameron argues that the deal is "the most lopsided trade we've seen in years," and notes that many observers are at a loss to understand it from Detroit's perspective. While the return for Fister certainly seems light, I tried to make some sense of the swap back in December, writing that the deal was a part (albeit a questionable one) of a massive overhaul of the club's future commitments that saved as much as $150MM in down-the-line salary while maintaining most of its present on-field quality.

  • Tigers GM Dave Dombrowski endeavored to explain the trade from his perspective in an interesting interview with Ken Rosenthal of FOX Sports. He made clear that the team decided to deal one of its veterans for a good, young arm. "You can see that young pitching right now is very difficult to acquire," said Dombrowski. "We had a list of about 15 pitchers that we would consider in various deals. [Ray] was one of the 15. The other 14 people said no. And [the Nationals] said no at first." Nationals GM Mike Rizzo confirmed that the club was hesitant to part with Ray, even with Fister being dangled, saying that was "why the trade took 2 1/2 weeks to consummate."
  • Dombrowski rejected the claims made by other executives that they had not known of Fister's availability, saying instead that he encountered a hesitant market. "That couldn't be further from the truth," he said. "We had our list of around 15 guys. We went to every one of those clubs: 'Would you trade this guy? Would you trade that guy?' And none of them would trade one." When the deal started to take shape, Dombrowski said he decided to grab Ray while he could. "We thought: Do we make this deal now, which we like? Or do we wait and see what else becomes available? But then does Washington do something else? Does [the trade] end up not taking place?" As I wrote at the time, the timing of things seemed to play an important role in how the deal came together; indeed, the Tigers went on to sign Joe Nathan the very next day, adding a two-year commitment at slightly more than Fister figures to earn in that stretch.
  • The groundwork for the Orioles' signing of Ubaldo Jimenez was laid at the Winter Meetings when the starter and his agent met with new pitching coach Dave Wallace, executive VP Dan Duquette, and others, reports Dan Connolly of the Baltimore Sun. "Right there, I knew," said Jimenez. "They're really humble, really down-to-earth guys, and I knew it was going to be special to be in this organization. RIght there, I was like, 'Pretty much, this is the team I want to be with.' It's going to be a big part of my future for me and my family. The city is great and they have a competitive team. Those guys in the clubhouse look like they are great guys." Jimenez backed up his expressions of commitment by revealing that he would move his whole family — including his parents and sister — to Baltimore, as Bob Nightengale of USA Today tweets.
  • Though he is heartened by the club's moves and remains happy in Baltimore, Orioles shortstop J.J. Hardy says that he has heard nothing about an extension beyond what has been reported publicly, writes Rich Dubroff of CSN Baltimore. "Even after FanFest, I thought something was going to happen right away because I think you guys were asking Dan [Duquette]," said Hardy. "He came up to me and said something about how we're going to start talking extension, but really nothing has happened. I don't know. Maybe they were waiting to do some of these other moves or something." Hardy, who could test the market next year, says that he is still interested in a new deal: "If they come to me with an extension, we'll definitely be open with trying to work that out."
  • Meanwhile, righty Kevin Correia of the Twins says that he would be interested in continuing to pitch in Minnesota when his two-year, $10MM deal expires after the season, reports Mike Berardino of the St. Paul Pioneer Press. But, said Correia, he has not had any talks about an extension to date. "They had a pretty busy offseason with the pitching staff, so we haven't really talked," he said. "I enjoy playing here. We talked to the effect of how my experience was here, how I enjoyed the team and the coaching staff and everything, but that's about as far as we've gotten." Correia, 33, does not offer much upside but delivered solid results for the Twins last year, logging 185 1/3 innings of 4.18 ERA ball. Of course, as Berardino notes, with three new starters under contract and several prospect arms expected to reach the bigs in short order, the veteran may not fit into the club's plans after this year and could become a mid-season trade piece.

Latest On Kendrys Morales, Nelson Cruz

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Earlier today, a report indicated that the Orioles' pursuit of switch-hitting, first baseman/designated hitter Kendrys Morales had picked up steam in recent days. Here are the latest rumblings on both Morales and fellow bat-first free agent Nelson Cruz, a right-handed-hitting outfielder. Though each of the reports appears to be consistent with the idea that the two players' fates are intertwined, they differ somewhat as to where things stand:

  • The Orioles are talking with both Morales and Cruz, tweets Ken Rosenthal of FOX Sports. A deal with one of the two "could happen soon," Rosenthal adds.
  • Baltimore is divided internally as to which is the better target between Morales and Cruz, MASNsports.com's Roch Kubatko tweets. Regardless, says Kubatko, nothing is imminent.
  • Both the Orioles and Mariners have Morales above Cruz on their target lists, sources tell Jim Bowden of ESPN.com (Twitter link). The two clubs are both chatting with the two sluggers, according to Bowden.
  • Morales and Cruz both declined qualifying offers, meaning that signing clubs will sacrifice a pick to sign them. But both the O's and M's already decided to part with their top, non-protected pick for other signings. So, if Morales and Cruz were to sign with Baltimore and Seattle — regardless of which player signs with which team — the former would give up its second-round choice while the latter would remain neutral. If the Mariners were to sign Morales, they would neither gain nor lose a choice since he turned down their qualifying offer. If they sign Cruz but lose Morales, they would lose each of their two top unprotected picks, which would include the compensation choice otherwise obtained for allowing the latter to walk.

Orioles’ Interest In Kendrys Morales Intensifies

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The Orioles have been oft-connected to free agent slugger Kendrys Morales this offseason, but Dan Connolly of the Baltimore Sun reports that the club's interest in the switch-hitting Scott Boras client has picked up in the past few days.

The reason for Baltimore's heightened interest is twofold, according to Connolly. First, the Orioles' reluctance to part with their first-round pick is no longer a concern, as they forfeited the No. 17 overall selection in order to sign Ubaldo Jimenez earlier this week. Secondly, while Morales had previously been seeking a deal for as many as four or five years in length, Connolly's sources now indicate that Morales and Boras would be willing to settle for a short-term deal with an opt-out clause. Connolly writes that the Orioles may even be able to land Morales on a two-year deal with an opt-out after the first season.

Such a deal is essentially a one-year deal, with a player option tacked on to serve as a safety net in the event that Morales gets hurt or struggles in his first season with Baltimore. Connolly likens the deal to another one-year deal/player option negotiated by Scott Boras — Adrian Beltre's 2010 contract with the Red Sox. Like Beltre, Morales is looking to leave Seattle's pitcher-friendly environment in hope of demonstrating his power skills in a more hitter-friendly setting.

Should a one-year deal and player option be reached, Baltimore would almost certainly make a qualifying offer to Morales were he to opt out, which could restart this entire draft pick compensation cycle for Morales and Boras (in that instance, he would likely be coming off a season with better numbers, however). As such, Connolly looks at the situation as potentially forfeiting a second-round pick in 2014 (No. 55 overall) to move up a round higher in the 2015 draft by adding an additional pick via Morales' departure.

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