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Extension Candidates

Extension Candidate: Aaron Nola

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The Phillies have scrupulously maintained their future balance sheets, preferring not to make any commitments that might tie their hands in future seasons. But the organization has already made one exception, inking Odubel Herrera last winter, and could explore yet more extensions with core players this winter.

Aaron Nola | Derik Hamilton-USA TODAY Sports

One could probably make a case for a very early strike with one of the team’s less-experienced would-be stars — chief among them, Rhys Hoskins. But by far the likeliest candidate for a long-term deal is righty Aaron Nola, who was selected with the seventh overall pick of the 2014 draft and has since established himself as one of the game’s better young starters.

Nola, 24, reached the majors after just 30 minor-league appearances, showing quite well in his 13-start debut at just 22 years of age. Last year, though, he faded after a strong opening and ended the season facing injury questions. Nola ultimately avoided surgery for some UCL and flexor tendon issues and was able to rehabilitate through the problem over the offseason.

It’s easy to forget now, but entering the current season, nobody was quite sure what to expect from Nola. He responded with 168 innings of 3.54 ERA ball. Nola also racked up 9.9 K/9 against 2.6 BB/9 along with a 49.8% ground-ball rate in his 27 starts, showing career-best numbers in average fastball velocity (92.5 mph) and swinging-strike rate (10.8%).

Looking at Nola’s overall body of work, it’s hard not to be impressed. While he did struggle to keep runs off the board in 2016, advanced metrics have basically loved him from day one. Through 356 2/3 MLB frames, he carries a 3.38 FIP, 3.33 xFIP, and 3.52 SIERA.

The hugely positive outlook on his future makes Nola a bargain, as Fangraphs’ Dave Cameron suggested when ranking him 49th in all of baseball on his top 50 trade value rankings. Because he didn’t reach the Majors quite soon enough back in 2015, Nola will fall shy of Super Two qualification, meaning he’ll play at (or near) the league minimum in 2018 before reaching his three years of arbitration eligibility.

While Nola did take home over $3MM to sign out of LSU, he has another year to wait for significant Major League earnings. That means risk aplenty, which is true of any pitcher but perhaps especially so for Nola, given his prior injury scare. He and the team are aware of the details of the medical situation and thus can adequately account for the risk it entails, but that factor could also push him in the direction of weighing a contract extension.

It’s tempting to speak abstractly about a possible discount for the injury questions. In truth, though, the more interesting question is just what framework might be utilized as a starting point for talks. To this point, no pre-arbitration starter has scored a guarantee of over $40MM. Even Corey Kluber, a 2+ service-class pitcher like Nola, was promised $38.5MM over five years (while giving up two option years) in his 2015 contract. Kluber was more than five years older than Nola is now but also was coming off of a Cy Young Award at the time.

The Kluber deal largely fell in line with prior pre-arb starter contracts, though, and even moved the standard up a bit. Chris Sale ($32.5MM), Derek Holland ($28.5MM), and Trevor Cahill ($30.5MM) are a few of the prior 2+ service hurlers that took five-year deals with similar structures.

Though Nola has staked out a claim as a top-quality young starter, it’s hard to argue that he has shown more to this point than had Sale or Madison Bumgarner (who signed his own five-year, $35MM deal as a 1+ service-class player). Considerations of inflation could be somewhat offset by Nola’s health record, though his representatives would surely argue that his avoidance of surgery and a 2017 season free of arm issues render that a largely moot point.

Provisions could be worked in that would protect the team in the event of an elbow flare-up, such as the addition of cheap option years at the end of the pact. (For example, both Felix Hernandez and John Lackey have previously agreed to clauses that add a league-minimum option to the end of their deal in the event of Tommy John surgery) Or, perhaps the wealthy Phils would be willing mostly to look past Nola’s elbow questions in the hunt for upside, reasoning that the overall risk is minimal and that the open-market price for pitching has steadily risen in recent years and figures to do so between now and the point at which Nola himself would reach the open market.

The previously mentioned five-year structure would run through Nola’s age-29 season and buy out one free-agent year. That’s still a lucrative age at which to reach the open market, though the Phils may seek to add a club option or two that’d further delay his path to the open market. Reaching free agency in advance of his age-31 season would leave Nola with plenty of earning capacity, though tacking on a second club option (and thus delaying his free agency by three full years) could be a tough sell. Generally speaking, Nola and his reps at Paragon Sports would be weighing whether an immediate guarantee is worth forgoing the opportunity to reach free agency before his age-29 season — an age at which he’d almost certainly be one of the youngest starters on the market.

With a number of factors for both sides to weigh, it’ll be an interesting situation to watch if the Phillies and Nola do indeed sit down this winter. Nola could well become the latest Phillies player to secure a long-term commitment as part of the organization’s hopeful contending core, but his proximity to arbitration should reduce his urgency to take a deal to some extent.

Photo courtesy of USA Today Sports Images.

Extension Candidate: Carlos Martinez

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We know that the Cardinals are interested in exploring an extension with righty Carlos Martinez, though there’s no news of progress (or even earnest engagement) to this point. But new contracts are often sorted out during the spring, and the sides will need to discuss money one way or another since Martinez is entering his first season of arbitration eligibility.

Only 100 days past his 25th birthday, Martinez is young enough to believe he has plenty of good years ahead of him. He’s also among the game’s hardest-throwing starters. Though his average fastball velocity took a slight step back in 2015, it bounced back to a robust 96.5 mph in his most recent campaign. And the results have followed, as Martinez posted a combined 3.02 ERA over the last two seasons. That combination of age, the liveliness of his arm, and results make the Octagon client an appealing candidate for an investment for a St. Louis club that has faced a few questions in its still-talented rotation of late.

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Of course, the arbitration process provides an important starting point for weighing Martinez’s value. MLBTR and contributor Matt Swartz project him to earn $5.3MM in his first season of eligibility, a rather lofty sum for a first-year-eligible starting pitcher. (Dallas Keuchel set a new record last year with a $7.25MM deal, blowing away the long-standing $4.35MM record held by Dontrelle Willis and David Price.) If Martinez continues his current trajectory, he could follow Price in landing some truly significant arb salaries, though unlike the talented lefty, he won’t be able to build off of a Super Two campaign.

For Martinez to max out his earning capacity, though, he’ll need to extend his outings. He topped 180 innings for the first time in 2016, ending up with 195 1/3 frames on the ledger. Durability will be a key consideration for the Cards. Though there haven’t been any significant health concerns to date, Martinez’s combination of youth and propensity for relying on hard pitches gave him a somewhat elevated Tommy John risk profile in the study completed earlier this year by MLBTR contributor Bradley Woodrum (see here for an explanation; here for individual player results).

All told, there’s plenty of reason for confidence in Martinez’s outlook. Increased confidence and usage rates in his changeup — the only one of his four pitches that didn’t score as a top-level offering in 2016 — has allowed him to make strides against lefties, who battered him in 2014. Though he still surrendered a .256/.342/.387 batting line to opposing southpaws in 2016, that’s enough to make him a high-quality starter when combined with his dominating work against right-handed batters (who hit just .204/.270/.269).

Though he lost over one strikeout per nine as against his prior season’s results in 2016, and his swinging-strike rate dwindled a bit to 9.4%, Martinez posted a career-best 56.4% groundball rate. He also worked in the zone more than he had in the preceding two years, though his walk rate has remained relatively consistent. Martinez continues to be tough to take deep — he has allowed 0.6 dingers per nine for his career — and has given up hard contact on less than three of ten balls put in play against him in every one of his seasons in the majors.

So, assuming that St. Louis is prepared to do what’s reasonably necessary to make a deal, what kind of contract might we be looking at? It has been quite some time since we saw a reasonably comparable pitcher in the 3+ service class strike a long-term deal. Johnny Cueto got $27MM over four guaranteed seasons while giving up one option year, but that was way back in 2011, and his platform wasn’t as impressive. Before that, Ervin Santana earned $30MM in a similarly situated deal.

Those numbers seem well shy of what Martinez can command in a market where top-end starters have earned increasingly significant sums. Indeed, the Cards recently reached an arb-only deal with fellow righty Lance Lynn, who took a similarly compelling case into his first year of arbitration eligibility ($5.5MM projection), that priced his arb years at $22MM. For Martinez to give up any free-agent seasons, particularly by way of option, St. Louis will need to up the ante.

Expanding the search a bit, there are some other contracts worth considering. Corey Kluber landed $38.5MM over five years, with two options attached, on the cusp of his age-29 season. He was coming off of a Cy Young campaign, and would have qualified for Super Two status after the season in which he signed his deal (which came in early April of 2015). The contract valued Kluber’s bought-out free-agent years at $13MM and between $13MM and $17MM (depending upon escalators). Before that, Chris Sale took down a $32.5MM guarantee on an identical structure. Sale was just 23 years old at the time, and already pitching like an ace; his contract could well represent the tail end of an old model rather than a truly relevant mark going forward. Looking at 4+ service deals, and excepting ace-level performers (Justin Verlander and Felix Hernandez), Matt Harrison owns the high bar in recent contracts at five years and $55MM (plus an option). He was 27 years of age at the time that deal was struck.

In Martinez’s case, a five-year arrangement (including the 2017 season) would put him under contract for two would-be free-agent years and take him through at least his age-29 campaign, with options perhaps extending the Cards’ control into his early thirties. Taking Lynn’s $22MM and adding another $25MM or so to cover two free agent years — with Martinez’s age roughly balancing off Kluber’s advantage in quality in pricing those seasons — would put the total guaranteed value to roughly the midpoint between Kluber’s and Harrison’s contract. Arguing for a guarantee that reaches or exceeds Kluber’s could represent a sticking point in and of itself. On the other hand, the Cards have perhaps been more willing to spend big in extensions than have the budget-minded Indians, while Kluber’s meteoric rise at a relatively advanced age made him a unique case. Plus, Martinez can reasonably argue that his age-28 and 29 seasons can be expected to earn him much greater sums than even the numbers just noted; relatively youthful free-agent starters such as Jordan Zimmermann have commanded over $20MM annually.

That’s all just a spitball range, of course, and it’s certainly plausible to imagine any number of creative scenarios, including escalators, opt-outs, and options that could play a significant role in determining the final value. Regardless, it’s somewhat uncharted territory; the sides figure to have plenty to talk about over the coming months.

Photo courtesy of USA Today Sports Images.

Extension Candidate: Jake Arrieta

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The Cubs reportedly plan to discuss a new, long-term contract with star righty Jake Arrieta early in 2017. Prior talks failed to produce much apparent traction, but there’s new urgency if a deal is to be found. Arrieta, after all, will reach the open market after the season.

If nothing else, Chicago will need to sort out Arrieta’s final arbitration salary with agent Scott Boras. After a huge raise following his monster 2015 season, Arrieta took down $10.7MM last year. And though he wasn’t as good in 2016, there’s another hefty boost coming; MLBTR projects to earn a $16.8MM payday.

Jake Arrieta

So, aside from nailing down that number, just what might the sides talk about when they sit down in the coming weeks? Expectations, perhaps, represent the most important ingredients in this particular extension scenario, because valuing Arrieta’s post-2017 seasons without the knowledge of his 2017 output is particularly difficult.

Arrieta’s story is well known, and need not be repeated in full here. Suffice to say, his career renaissance in Chicago has been spectacular and complete. Over 2014-15, the righty provided 358 2/3 innings of 2.08 ERA pitching over 58 starts. He was dominant, especially, in the latter of those two seasons, when he posted 9.3 K/9 against just 1.9 BB/9 and allowed a league-low 5.9 hits per nine while spinning four complete games. After filling up 229 innings and taking home the National League Cy Young award, a course was set for a huge free-agent contract.

The early portion of 2016 largely represented a continuation; though his walk rate was up, the results remained dominant. By early June, though, the earned runs began to catch up as Arrieta’s typically excellent suppression of walks and home runs began faltering. Ultimately, he fell just shy of 200 innings and ended the year with a 3.10 ERA to go with 8.7 K/9 and 3.5 BB/9. Beyond the jump in walk rate, Arrieta also paced the league with 16 wild pitches.

To be sure, all the signs weren’t concerning. Arrieta continued to induce grounders on about half of the balls put in play against him, didn’t show any worrying changes in velocity, mostly maintained his swinging-strike rate (10.5%, down from a personal best 11.1%), and continued to suppress BABIP in a consistent manner suggestive of skill, not merely good fortune. But hitters chased out of the zone slightly less frequently and made somewhat more hard contact in 2016, while also managing a few more home runs (16).

In the aggregate, Arrieta is still exceedingly difficult to square up and seems to be about as good a bet as anyone to deliver 200 or more innings from a health perspective. Even the less-dominant version is still a high-quality pitcher. Heck, he even managed to add real value with the bat last year (.262/.304/.415). And Arrieta showed up in the postseason — the World Series, especially, where he allowed just three earned runs on five hits over 11 1/3 innings in two starts.

Still, it’s hard to say that Arrieta’s current standing matches his status at this time last year. If Arrieta isn’t a true ace — which, at least, is in doubt — then the conversation is somewhat different. Valuing his future is more about projections and comps than it is a question of just how much a team can really spend on a single pitcher. And reaching agreement on an extension poses questions such as: Will the team will ascribe added value to the possibility of a return to full dominance? Will the player forego perhaps greater potential earnings to sell away the risk of another less-than-excellent (or worse) season?

If Arrieta isn’t a true ace, then pedestrian considerations such as age — he turns 31 in March of 2017, and will turn 32 before the start of the 2018 season — rise in importance. That means Arrieta will hit the market at nearly the same age (just a few months younger) as Zack Greinke did last winter. Greinke’s massive contract (six years, $206.5MM) isn’t exactly a bad sign for Arrieta, but it’s tough to see Chicago valuing the latter’s free-agent years as highly as the D-Backs did the former’s (over $34MM). That contract always seemed a reach, and came on the heels of Greinke’s historic 2015 season.

Perhaps a more reasonable current comp is pitching alongside Arrieta in the Cubs’ rotation. Jon Lester, who was a younger free agent than will be Arrieta, got $155MM over six years. But even that could be rich. Johnny Cueto, one of the game’s most accomplished hurlers, landed shy of Lester (six years, $130MM, albeit with an opt-out) heading into his age-30 season. His late-2015 scuffles — which weren’t, perhaps, all that dissimilar from Arrieta’s — seemed to put a real dent in his value.

The most direct comparables, of course, are drawn to players who sign extensions just before hitting the market. Stephen Strasburg got seven years and $175MM from the Nationals in the middle of the 2016 season. Before him, Homer Bailey took home $105MM over six seasons (including his arb year) from the Reds. Neither pitcher is a clean comp — Strasburg, due to age; Bailey, due to performance — but those deals are still illustrative. Strasburg’s signing, in particular, shows that an extension can’t be ruled out, even for a market-leading starter repped by Boras. Both contracts show the need for compromise as well as the inherent risk in a late-arb pitching extension. Injuries slowed both Strasburg and Bailey not long after their new deals were inked. In both of those cases, they wisely (in hindsight) sold away the chance at perhaps even greater earnings to lock in contracts with their existing organizations.

It is ultimately difficult to know whether there’s a realistic chance of the Cubs and Arrieta reaching a deal. The relative lack of upper-level, high-quality starting pitching prospects in the Chicago system suggests an ongoing need. And the Lester signing shows that the team will sign a long-term deal with a starter in the right circumstances. But it seems likely there’ll be some cap to the team’s willingness to add guaranteed years and boost the AAV in Arrieta’s case. Just where those lines will be drawn by both the team and its once (and future?) staff ace remain to be seen. Is Strasburg’s $25MM AAV a fair market point, perhaps over a shorter term? Does Cueto’s combination of a lower AAV and opt-out provide a guide? Or will Arrieta hold out for a chance to chase Greinke?

Just for kicks … let’s see how likely a deal is, in the estimation of MLBTR’s readers:

Photo courtesy of USA Today Sports Images.

Extension Candidate: J.D. Martinez

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The Tigers discussed a long-term contract with J.D. Martinez last offseason before settling on a shorter multi-year pact.  Martinez’s two-year, $18.5MM deal allowed the two sides to avoid arbitration, settling the outfielder’s salaries for both his second and third years of arbitration eligibility.  With Martinez now just over a year removed from free agency in the 2017-18 offseason, Tigers GM Al Avila will surely re-engage Martinez’s agents at RMG Baseball about an extension that will keep the slugger in the Motor City for years to come.

Martinez missed just under seven weeks due to a fracture in his right elbow, a somewhat fluky injury that interrupted an otherwise outstanding season.  He entered Wednesday’s action hitting .317/.384/.556 (all of which would be career highs) with 21 homers over 469 plate appearances, plus his 151 wRC+ ranks among the top ten hitters in the sport in that metric of total batting productivity.  He is also on pace for a career-best walk rate, as well as his lowest strikeout rate in four years.  Since joining the Tigers as an unheralded minor league signing during Spring Training 2014, Martinez has done nothing but rake, delivering a .907 OPS over 1606 PA in a Detroit uniform.

J.D. MartinezMartinez expressed an interest in being “a Tiger for life” last winter, though his asking price has surely gone up in the wake of his third straight huge season.  He has extra leverage in the form of financial security (over $21.5MM in career earnings by the end of next season) and the fact that he’d be in line for a monster contract in the 2017-18 free agent market.  If he duplicates his 2014-16 numbers, JDM will have the most earning potential of any hitter in that year’s free agent class.  Carlos Gonzalez has a longer track record but he is two years older than Martinez and hasn’t been as impressive of late; the Royals trio of Lorenzo Cain, Eric Hosmer and Mike Moustakas can’t be considered locks for huge money based on their problems in 2016; Justin Upton has also struggled this season and may not choose to opt out of his own contract with the Tigers next winter.

Upton’s situation looms as a major factor in the talks between Martinez and the Tigers.  Upton has only recently started to hit after a dreadful first half, so he’d need a big rebound year in 2017 to consider opting out.  If he chooses to remain in his contract, the Tigers will owe Upton $88.5MM through the 2021 season.  That is a sizeable chunk of payroll that, based on this year’s numbers, Detroit would surely prefer to allocate towards keeping Martinez in the fold.

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Extension Candidate: Jose Bautista

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In the wake of Jose Bautista’s breakout 2010 season, the Blue Jays signed the right fielder to a five-year, $65MM extension that covered his final year of arbitration eligibility and first four free agent seasons.  (It also included a $14MM club option on the 2016 campaign.)  This extension generated quite a bit of controversy at the time.  An MLBTR poll revealed that over 72 percent of readers polled felt the deal was unwarranted, and several pundits felt the Jays should’ve sold high on Bautista rather than gamble that his out-of-nowhere slugging prowess wouldn’t just as suddenly disappear.

Instead, that extension turned out to be one of Alex Anthopoulos’ canniest moves as Toronto’s general manager.  Bautista has averaged a .933 OPS over the last five seasons, and he leads all players with 173 home runs over that same span.  Needless to say, that $65MM deal has turned into one of the largest bargains in the sport, and the club’s decision to pick up Bautista’s $14MM option for the coming season was the easiest of no-brainers.Jose Bautista

With this track record under his belt (and in the wake of a certain instantly-iconic postseason blast), Bautista has a lot of negotiating power on his side if the Jays want to negotiate an extension this offseason.  That being said, there are a large number of factors to consider in this particularly interesting extension case, as if Bautista and the Jays were to reach a new deal, it would very likely set a new contractual precedent.

Bautista is still hitting at an elite level as he enters his age-35 season, and thus he doesn’t really have any comparables among past players with at least 6 years of service time who signed multi-year extensions.  Looking at veteran sluggers who have signed big free agent deals in recent years, Bautista has out-performed the likes of Victor Martinez, Nelson Cruz or Carlos Beltran and also lacks major baggage like Cruz’s PED suspension history or the torn ACL that cost Martinez his entire 2012 season.  Since V-Mart was limited to DH-only duty and still received a $17MM average annual value, Bautista and agent Jay Alou can certainly make the case that Bautista’s superior hitting numbers and added defensive value deserves a $20MM+ AAV.

It may sound like a big salary for a player in his mid-30’s, yet power is a valuable commodity.  Tim Dierkes predicts that five of this winter’s free agents (Jason Heyward, Chris Davis, Justin Upton, Yoenis Cespedes, Alex Gordon) will all find deals with an AAV north of $20MM per season; add Bautista to that group, and he and Davis topped them all by each posting a 147 wRC+ in 2015.  There’s enough interest in Ben Zobrist that he could also conceivably find a four-year deal entering his age-35 season, and while Zobrist far outpaces Bautista in defensive versatility, Bautista is also the far superior hitter.  To sum up, if Bautista hit the open market this winter, he’d very likely find a four-year deal in the $80MM-$100MM range.

This is the price tag the Blue Jays will need to approach in order to extend their star.  If they’re open to meeting this price, it might be a smart move to tear up Bautista’s 2016 contract and essentially start the extension next season by giving him a raise to at least $20MM and then three more $20MM+ seasons through 2019 (with possibly a vesting option for 2020).  Starting a four-year extension in 2017 would mean the Jays are on the hook for a big salary in 2020 when Bautista would be entering his age-40 season.  If I’m the Jays, I’d much rather pay Bautista a $20MM+ salary next year than I would for 2020 since the team is obviously much more confident that Bautista will still be a top run producer in the short term.

We’ve already looked at the pros of a Bautista deal, so now let’s focus on the cons.  Despite Bautista’s consistency, guaranteeing big money to any slugger in his mid-30’s carries a lot of risk.  Of the three veteran free agents I cited earlier, Martinez and Beltran both struggled through injury-plagued down years in the first seasons of their latest contracts.  Bautista’s 2012 and 2013 seasons were both shortened by injuries — a bad wrist that required surgery after the 2012 campaign and a bruised hip that led the Jays to shut Bautista down in late 2013.

He also played through a shoulder injury for much of 2015 that didn’t much affect his hitting, though it weakened his usually-strong throwing arm and may have contributed to his subpar defensive metrics (-3 Defensive Runs Saved, -12.5 UZR/150).  Bautista’s defensive numbers in right field have fluctuated over the years, though it also wouldn’t be a surprise if his 2015 stats are the first sign of a permanent downswing.

So if the Blue Jays were to extend Bautista, it would be under the assumption that he might only be a couple of seasons away from permanent first base/DH duty.  It’s this scenario that poses the biggest question mark to a Bautista extension, as the Jays already have Edwin Encarnacion as a full-time 1B/DH.  Encarnacion is also eligible for free agency after the 2016 season, is 26 months younger than Bautista and he’s posted slightly better numbers in some notable stat categories since the start of the 2012 season.

Bautista: 2266 PA, 130 HRs, 355 runs, .261/.377/.522, .387 wOBA, 146 wRC+, 18 fWAR

Encarnacion: 2431 PA, 151 HRs, 352 runs, .274/.371/.549, .391 wOBA, 149 wRC+, 16.3 fWAR

In Russell Martin and Troy Tulowitzki, Toronto already has two major salaries on the books for the next four and five years, respectively.  Another big long-term commitment will be added if the club extends Josh Donaldson.  It’s hard to see the Blue Jays committing over $40MM per season in additional salary through the rest of the 2010’s to two more players, especially two players in their mid-30’s who would be locked into the first base and DH spots.

Unless Bautista or Encarnacion could somehow be talked into another team-friendly deal, the Jays may well have to choose which of the two franchise cornerstones they want to keep in the fold.  Encarnacion is younger but Bautista is the better athlete of the two.  In terms of pure dollars, Bautista’s age makes him slightly cheaper to extend since Encarnacion would likely push for another guaranteed season or two.  Then again, if the Jays are willing to spend big money to retain a slugger, going with the younger option makes more sense if they feel all else is equal or if they feel Encarnacion will age better over the next few years.

Optics will also play a big role in a Bautista extension.  The Blue Jays organization already took a PR hit with its revived fanbase this offseason given the awkward nature of Anthopoulos’ departure.  It wouldn’t help public perception of new president/CEO Mark Shapiro or the Rogers Commnications ownership group if a new deal couldn’t be worked out with the face of the franchise.  Bautista hasn’t been shy about expressing his opinions on the club’s business over the years, and one suspects he would speak up if he doesn’t feel the Jays are making a concerted effort to extend him.

From Bautista’s perspective, an extension would allow him to remain in a familiar spot, keep him playing for a contender if the Jays keep up their 2015 form and, in all likelihood, spend the rest of his career in Toronto.  Given all of the factors that will go into Bautista’s extension case, it will fascinating to see if the two sides can reach a new deal or if Bautista will be tossing a bat while wearing another team’s uniform in 2017.

Photo courtesy of Kim Klement/USA Today Sports Images

Extension Candidate: Shelby Miller

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Signing young players to extensions has been the backbone of John Hart’s long career as a baseball executive.  Since taking over the Braves last year, Hart has primarily focused on acquiring new young talent for the rebuilding club rather than locking up existing players. Now that some new pieces are in place, though, Hart and GM John Coppolella will surely look into extending some players that project to be part of the next Braves winning team.

Shelby Miller may well be at the front of that list, as the right-hander is coming off a very solid (albeit unusual) 2015 season.  Miller posted a 3.02 ERA, 7.5 K/9 and 2.34 K/BB rate in his first year in Atlanta, tossing a career-high 205 1/3 innings and reaching his first All-Star team.  Unfortunately for Miller, these numbers didn’t translate into many wins since he received a near-record low amount of run support (2.64 runs per game) from the anemic Braves offense.  This lack of support culminated in an astounding 24-start winless stretch that saw Miller go 0-16 despite a solid 3.83 ERA over that stretch.

While “baseball card stats” are a big part of the arbitration process, Miller’s rough 6-17 record shouldn’t hurt him too much as he enters his first year of eligibility this offseason.  MLB Trade Rumors projects Miller will earn a healthy $4.9MM salary in 2016, and the Braves could look to get some cost certainty over Miller’s two arb years and possibly even a free agent year or two.

"<strongA note about that $4.9MM figure: it would actually set a new record for a starting pitcher in his first year of arbitration eligibility, topping Dontrelle Willis’ $4.35MM figure from 2006.  Last year, Matt Swartz wrote about how that $4.35MM record has somewhat unexpectedly stood the test of time, though MLBTR’s projections have three pitchers beating the mark this winter — Matt Harvey at $4.7MM, Miller at $4.9MM and Dallas Keuchel at $6.4MM.

As we see from the MLBTR Extension Tracker, four starters with 3+ years of service time have signed extensions since the end of the 2012 season.  (I feel comfortable cutting it off there since Kyle Kendrick and Clayton Kershaw aren’t ideal comparables as, respectively, a Super Two player and a reigning Cy Young Award winner.)  Let’s see how Miller compares to these four pitchers using extension size, their MLBTR arbitration projection, notable stats and ERA predictors…

Mat Latos:  Two years/$11.5MM before age-25 season, $4.6MM arbitration projection.  639 IP, 3.41 ERA, 8.42 K/9, 2.8 BB/9, 43.7% ground ball rate, 11.5 fWAR (3.47 FIP, 3.60 xFIP, 3.59 SIERA)

Wade Miley: Three years/$19.25MM (with $12MM option for 2018) before age-28 season, $4.3MM projection.  638 2/3 IP, 3.79 ERA, 7.03 K/9, 2.76 BB/9, 48.6% ground ball rate, 7.4 fWAR (3.80 FIP, 3.72 xFIP, 3.90 SIERA)

Lance Lynn: Three years/$22MM before age-28 season, $5.4MM projection but it was an unusual situation, as noted earlier in Matt Swartz’s piece.  616 IP, 3.46 ERA, 8.75 K/9, 3.26 BB/9, 44.4% ground ball rate, 10.5 fWAR (3.34 FIP, 3.64 xFIP, 3.65 SIERA)

Miller: Heading into age-25 season, $4.9MM projection.  575 1/3 IP, 3.22 ERA, 7.56 K/9, 3.24 BB/9, 42.3% ground ball rate, 6.9 fWAR (3.82 FIP, 4.07 xFIP, 4.16 SIERA)

Jhoulys Chacin: Two years/$6.5MM before age-25 season, $1.6MM projection.  411 1/3 IP, 3.68 ERA, 7.57 K/9, 4.18 BB/9, 49.7% ground ball rate, 5.0 fWAR (4.17 FIP, 4.06 xFIP, 4.17 SIERA)

Miller just turned 25 last week, putting him in the Latos/Chacin age bracket.  Miller is clearly a step behind Latos and Lynn WAR-wise (they have an edge in strikeouts and innings) and you can make a case that Miley was also a better pitcher than Miller at this stage of both pitchers’ careers.

Since Miller is three years younger than Lynn and Miley were at the time of their extensions, however, his ultimate price tag is going to be bigger.  If he keeps up his current form through his arbitration years, hitting the open market as a durable and productive 28-year-old arm could mean something in the range of five (or even six) years in the $85MM range.

With this in mind, would Miller even be interested in an extension?  He already banked one nice payday when he signed for a $2.875MM bonus with the Cardinals after being drafted in 2009, and he’ll earn something in that $4.9MM range next year.  Miller is on pace to get healthy raises in his final two arbitration years anyway, so he could very well decide to bet on himself with an eye towards free agency and avoid a long-term commitment.  If the CAA client betters his current form and makes the leap from very good pitcher to full-blown ace, Miller would be costing himself some money by locking himself into an extension now.

The Braves would have to make it worth Miller’s while, therefore, for him to sign away one or two of his free agent years.  A straight club option for 2019 likely wouldn’t be enough unless it had an easily-reachable vesting option.  Corey Kluber’s extension with the Indians could be a model in this regard.  The two club option years that cover what would’ve been Kluber’s first two free agent seasons can rise in value by up to $4MM based on performance escalators, turning a potential extra $27.5MM for Kluber into as much as $35.5MM over those two seasons.

Lynn’s extension paid him $7MM in 2015 and he’s owed $7.5MM in each of the next two years, while Miley’s deal escalated from $4MM last season to $6MM in 2016 and $8.75MM in 2017.  If we mark Miller for $4.9MM this season, it would make sense for Atlanta to boost his salary in 2016-17 once Nick Swisher and Michael Bourn are (in all likelihood) fully off the books.  So at something like $4.9MM in 2016, $7.4MM in 2017 and $9.5MM in 2018, that gets Miler to $21.8MM over three years.  If there’s a 2019 club option, I would guess it would have to be in the $13MM range and, like Kluber’s contract, subject to rise via escalator bonuses.

Unlike Keuchel and Harvey (his fellow would-be arbitration record-breakers), Miller hasn’t quite shown that he’s a frontline ace.  Don’t forget, however, that Miller is just a few years removed from being a consensus top-10 prospect, so it’s very possible that his best is yet to come.  Even at Miller’s current level of production, a four-year deal that could max out in the $38-$39MM ballpark isn’t a bad price to pay for a 25-year-old who’s averaged 187 innings a year since 2013.  It could end up being yet another canny John Hart extension if and when the Braves begin to turn things around.

Image courtesy of Mark J. Rebilas/USA Today Sports Images

Extension Candidate: Justin Turner

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Every winter, we cover a host of seemingly minor signings — veteran utility players, swingmen, platoon outfielders, etc. — as teams fill out their rosters by adding depth and competition in areas of uncertainty. It’s unusual for such deals to have truly significant impact.

But minor league signings can be hugely important. The Tigers, for instance, have rightly received ample attention for their immensely beneficial decision to bring in late-blooming slugger J.D. Martinez, who engineered a hard-to-predict turnaround through carefully thought-out changes in his swing mechanics and approach.

As good as Martinez has been, though, there’s an argument to be made that Justin Turner was the more insightful breakout signing of the winter of 2014. Turner languished on the market until February, when the Dodgers — then still under the command of Ned Colletti — swooped in with a minor league deal that ultimately paid out just $1MM.

July 12, 2015; Los Angeles, CA, USA; Los Angeles Dodgers third baseman Justin Turner (10) during a stoppage in play in the ninth inning against the Milwaukee Brewers at Dodger Stadium. Mandatory Credit: Gary A. Vasquez-USA TODAY Sports

At the time, Turner was a 29-year-old utility infielder who carried an approximately league-average batting line. He profiled as a solid-enough defender at third who delivered usable, but inferior, glovework up the middle.

It looked like a nice get for the Dodgers, who committed nothing but a spring invite, but hardly seemed a game-changing addition. With two more years of arb control, there was some added value since Los Angeles effectively picked up option years at values that would be dictated by his performance.

What seemed to be solid value has turned into an unbelievable bargain. Over 672 plate appearances in Dodger blue, Turner owns a .314/.379/.501 slash line with 22 home runs and eight stolen bases. There were some questions whether he could keep things up this year after posting a .404 BABIP in 2014, but Turner has thrived by increasing his power output even as his batting average on balls in play has fallen back to normal levels.

It’s questionable, to be sure, whether he can maintain the power surge that has pushed his isolated slugging mark to over .200. Turner’s 15.6% home run per flyball rate in 2015 may be unsustainable — that’s a career-best by a significant margin — but he has obviously learned something about driving the ball that seems likely to stick. Building off improvements in his contact profile that were evident in his 2013 numbers with the Mets, the 2015 version of Turner makes hard contact in approximately one third of his plate appearances while generating the same soft contact rate (10.8%) as Paul Goldschmidt and Miguel Cabrera.

On the defensive side of the ledger, Turner continues to receive fairly poor defensive metrics when playing at second and short. But he’s spent most of his time at the hot corner, and both UZR and Defensive Runs saved value him as an above-average defender there over the last two years.

Needless to say, the aggregate package is quite good. Fangraphs and Baseball-Reference credit Turner with about 6.5 to 7 wins above replacement since the start of 2014. That’s all the more impressive given his somewhat limited plate appearances — he was a part-timer last year and missed time with injury this year — meaning it was accrued in about a full season’s worth of regular playing time. And it’s not as if Turner has succeeded because he’s been limited to situations with the platoon advantage; he’s actually delivered significantly better numbers against right-handed pitching this season and over his career.

It’s not clear whether the Dodgers’ new front office will pursue a new deal with Turner, but this coming offseason presents an obvious opportunity to do so. Howie Kendrick, Jimmy Rollins, and Chase Utley will all be free agents after this year, assuming the team declines Utley’s option. While the organization has some immediate options — Corey Seager, Enrique Hernandez, and Jose Peraza chief among them — none have had the chance to establish themselves fully at the big league level. Hector Olivera, of course, has already been cleared out of the picture with a mid-season trade.

From Turner’s perspective, too, there are some good reasons to consider such an arrangement. He earned a relatively meager $2.5MM in 2015, and will be in line for a significant raise. But Turner will still be a great value for next season, will remain a year away from the open market, and will then be signing in advance of his age-32 season.

If the sides choose to chat, it will be difficult to find comparable players. Late-career breakouts are hardly unheard of, but even premium players such as Jose Bautista and Corey Kluber have signed extensions at rather reasonable prices with shorter track records to work from.

And there is one obvious comp: Martin Prado, a similarly-profiling defender, who inked a four-year, $40MM pact with the Diamondbacks the winter before he would have reached free agency. Prado was then entering his age-29 season and had a longer history of good offensive production and strong defensive work around the field. But he was also just one year removed from a down season and had not shown the same offensive ceiling that Turner has established.

All told, that contract seems to provide a useful starting point for talks between the Dodgers and Turner’s representatives at the Legacy Agency. Of course, whether or not an extension can be reached (or will even be pursued) depends on the motivations of all involved, but a big new contract for Turner seems a reasonably plausible scenario.

Photo courtesy of USA Today Sports Images.

Extension Candidate: Jake Arrieta

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In the midst of a second straight exceptional year, Cubs starter Jake Arrieta appears likely to sign a big contract at some point, whether that’s an extension with the Cubs or a free-agent deal following the 2017 season. The Cubs, however, have not begun extension discussions with Arrieta (as Gordon Wittenmyer of the Chicago Sun-Times recently reported) and it’s not clear whether they’ll do so. Arrieta is already under team control for two more seasons, and the Cubs might feel that adding additional pitching talent this offseason is a higher priority than signing a pitcher they already have.

USATSI_8706115_154513410_lowresIf the Cubs did want to sign Arrieta, they would have a tough task ahead of them, though perhaps not an impossible one. Via CSNChicago.com’s Patrick Mooney, agent Scott Boras strongly suggests Arrieta won’t be cheap, comparing him to Max Scherzer and arguing that Arrieta’s relatively low innings totals (he’s pitched 740 1/3 in his career) make him a good bet to age well. Arrieta’s arm is “kind of ideal for the free-agent dynamic,” Boras says. But Arrieta himself said last season that he would be interested in staying in Chicago and that he wouldn’t ask for an “astronomical amount of money.”

Of course, if Arrieta were to ask for an astronomical amount of money, he’d be more likely to get it now than he was then. He finished ninth in NL Cy Young voting in 2014 and has followed up that breakout season with an even better one, pitching more innings per start and posting a career-high ground-ball rate (53.9%) while maintaining his strong peripherals (9.2 K/9, 2.2 BB/9). He currently ranks first in the league in wins (16), second in ERA (2.22) and fourth in strikeouts (178), setting him up for a huge raise on his $3.63MM salary through the arbitration process this winter.

Finding precedents for an Arrieta extension is difficult. Extensions for pitchers who are already arbitration eligible frequently only buy out arbitration seasons and do not delay free agency, as with recent extensions for Lance Lynn, Jordan Zimmermann and Mat Latos. (It’s certainly possible that the Cubs could sign Arrieta to a two-year deal in a similar mold, but that wouldn’t change much about his future with the organization.) Wade Miley gave up a year of free agency eligibility in his recent deal with the Red Sox, although Arrieta is obviously a much better pitcher. Matt Harrison’s $55MM deal with the Rangers is probably the clearest comparable for Arrieta, particularly given that Harrison was coming off his first arbitration season and made a salary similar to Arrieta’s ($2.95MM). Arrieta is also better than Harrison was, though, and Harrison’s deal is almost three years old.

Using Harrison’s deal as a potential precedent is tricky for another reason, too. Harrison was only 27 at the time of his deal and figured to have another shot at a significant payday even after it was over. Arrieta is older, and if he were to agree to a long-term deal now, it would likely be the only significant multi-year contract of his career.

Then you have to factor in the escalation in salaries of starting pitchers since Harrison’s extension. Homer Bailey received a nine-figure deal from the Reds, and his best seasons prior to the deal were nowhere near as good as Arrieta’s last two. Bailey was a year closer to free agency than Arrieta is, but given the raise Arrieta is likely to receive this offseason, he could easily make $20MM-$25MM total in his last two years before free agency eligibility anyway. Beyond that, he could credibly ask for $20MM per season, and that might even be slightly undershooting it. Rick Porcello’s four-year, $82.5MM deal with the Red Sox strongly suggests Arrieta ought to be worth more than $20MM a year, even though Arrieta doesn’t have youth on his side as Porcello did.

A five-year deal for Arrieta, then, could get close to the $100MM mark, and a six-year deal could push past the nine-figure mark. It seems unlikely that Boras would settle for anything less than five years, and probably even six, given that signing an extension that delays free agency by only a year or two likely wouldn’t provide Arrieta with enough of a financial incentive to put off seeking a big free-agent contract.

There’s also the problem of how a five- or six-year deal would work for the Cubs. A five-year deal would still be on the books in 2020, by which point the Cubs look somewhat likely to be dealing with significant arbitration raises for key younger players like Kris Bryant, Addison Russell, Kyle Schwarber, and others. They will probably also wish to extend at least some of those players. They’ll also likely still be dealing with the contracts of Jon Lester, Anthony Rizzo and any pitcher they sign this offseason.

That isn’t to say that a deal for Arrieta would be impossible. It seems likely that the Cubs’ budget will be significantly larger in 2020, with more money coming in from a new TV deal. If it is, the fuss over whether they can afford Arrieta might end up being mostly irrelevant. But, given that they already control Arrieta through his age-31 season, could be in line for a draft pick if he signs elsewhere, and that Boras is surely highly curious about the free-agent market, perhaps it isn’t surprising that the two sides haven’t struck a deal.

Photo courtesy of USA Today Sports Images.

Extension Candidate: Gerrit Cole

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The Pirates have recently been amongst the game’s most aggressive teams in pursuing early-career extensions. Since taking the GM seat in Pittsburgh back in the fall of 2007, Neal Huntington has locked up deals with ten players for a total of 37 years and $182.9MM. Only two of those contracts went to players with four or more years of service.

Among the team’s most recent efforts were successful pacts with star outfielders Andrew McCutchen (six years, $51.5MM) and Starling Marte (six years, $31MM), with the former inking with 2.123 years of service and the latter signing with just 1.070 years to his credit. While those deals haven’t all been successful — neither Jose Tabata nor Nate McLouth, for instance, delivered value on their deals, though neither did they hamstring the club — the aggregate benefit to the organization is undeniable.

Pittsburgh, riding high on two straight postseason appearances, spent a relatively large amount through free agency this last offseason and seems in good position to stay competitive for years to come. The team has continued to explore ways to add value to its player assets through extensions: in particular, it made a long-term offer to then-untested outfielder Gregory Polanco last year, though those negotiations seemingly stalled. In spite of their relatively meager spending capacity, the Pirates appear to have plenty of future flexibility, with less than $12MM on the books for 2018 and even less thereafter.

While another run at Polanco obviously remains possible, it is fair to wonder whether the team might turn its sights elsewhere this spring. Josh Harrison remains an intriguing possibility, as MLBTR’s Steve Adams discussed last fall. Beyond that, there is one obvious potential candidate who brings immense upside — and, given the nature of his craft, risk: young ace Gerrit Cole.

MLB: Pittsburgh Pirates at Cincinnati Reds

Cole, 24, has done exactly what the Bucs hoped when they made him the first overall pick in the 2011 draft, reaching the bigs in 2013 and establishing himself as a quality starter off the bat. To date, he has thrown 255 1/3 big league innings with a 3.45 ERA and 8.4 K/9 against 2.4 BB/9. Advanced metrics suggest he’s been even better, as he owns a career 3.09 FIP, 3.20 xFIP, and 3.28 SIERA. Cole consistently works in the mid-90s with his fastball and has averaged a strong 49.1% groundball rate thus far. Needless to say, the outlook is positive.

If there is one red flag on Cole, it is health. First and foremost, he is a pitcher; as we are constantly reminded, any arm is at risk of injury at any time. But there is some additional cause for concern in his case, as Cole missed significant time last year owing to shoulder issues. He returned and posted good results late in the season, and does not have any significant history of problems prior to 2014. And he has reportedly worked to smooth out his mechanics and incorporated exercises to maintain his shoulder health.

With just 1.111 years of service to his name entering the 2015 season, Cole will not qualify as a Super Two and is set to hit arbitration eligibility in 2017. That means he will not reach free agency until 2020. Despite his rapid ascent to the bigs, Cole will reach the open market at age 29 — still relatively young, but not as early as some quick-to-the-bigs phenoms. Those factors, along with the risk of injury and performance, generally transfer significant leverage to a team, of course.

In this case, though, there are some significant offsetting considerations. For one, Cole was signed to an $8MM deal out of college, meaning he has already secured life-changing money. For another, he is represented by agent Scott Boras. Contrary to popular opinion, Boras has overseen pre-free agent deals for his clients, many of those contracts have not sacrificed free agent seasons. And, on balance, he certainly carries a deserved reputation for bringing his players onto the open market in search of huge paydays.

To be sure, it is far from a sure thing that Cole would be receptive to contract talks at this stage. If he is, however, both sides will have plenty of precedent to work from. Looking in at recent extensions for starters with between one and two years of service, one finds a host of comparables. First on the list has to be Madison Bumgarner, who got five years and $35MM from the Giants while giving up two option years back in 2012. More recently, Julio Teheran and the Braves linked up on a six-year, $32.4MM deal that conveyed one option year to Atlanta.

The Bumgarner comp, in particular, appears to be a good one; indeed, he was perhaps slightly more accomplished — and significantly younger — at a similar point in his service timeline, and had already put up a fully healthy season of over 200 frames. Teheran signed before his age-23 season, coming off of a 185 2/3 inning season of the sort that Cole has yet to accomplish. Cole’s representatives would no doubt point to the $200MM+ contracts that have been given to free agent starters in recent years as evidence of salary growth, though Cole’s shoulder concerns and additional age would serve as counterpoints. While it is, perhaps, possible to argue that Cole possesses greater upside than Teheran, or at least more than he did at the time his deal was struck, projection systems seem to hold the two righties in approximately the same regard heading into 2015.

What is most interesting about Cole’s situation, perhaps, is what it could theoretically tell us about where pre-arb extensions are headed. Somewhat unlike other areas of the market, early-career pitching extensions have not exhibited much growth. In addition to the Bumgarner and Teheran examples, which came two years apart, extensions for pitchers with between two and three years of service have largely followed a script for some time: Gio Gonzalez (five years, $42MM, two options) holds the record in that class, but Chris Sale’s 2013 deal (five years, $32.5MM, two options) was not substantially different from, say, the 2011 Trevor Cahill contract (five years, $30.5MM, two options).

As I explained in breaking down last year’s notable Freddie Freeman extension, and as the Mike Trout and Giancarlo Stanton extensions further demonstrate, the position player extension market has seemingly broken out of any molds. On the pitching side, the most significant recent deals have gone to players on the verge of free agency (Clayton Kershaw and Homer Bailey, for instance). Locking up Cole could require a market-resetting deal; it remains to be seen, of course, whether either team or player are willing to make that happen.

Extension Candidate: Tyson Ross

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Since arriving from the Athletics organization in a seemingly minor trade following the 2012 season, starting pitcher Tyson Ross has blossomed in San Diego. He followed a strong 2013 with a terrific 2014 campaign in which he posted a 2.81 ERA, 9.0 K/9 and 3.3 BB/9, with his only obvious blemish coming when he missed his last start due to a slight forearm strain. Ross looks like a starting pitcher the Padres can build around, and at least for now, the Padres seem to agree, declining to trade Ross and Andrew Cashner even though new GM A.J. Preller used the trade market to transform much of the rest of the team this winter.

USATSI_8040282_154513410_lowresRoss posted a 1.88 ERA in the pitcher’s haven of PETCO Park and a 3.79 ERA elsewhere in 2014, but he seems like the sort of pitcher who should be able to succeed in any home ballpark. His strikeout and walk totals are strong, and his 56.2 ground ball percentage over the past two seasons is outstanding, ranking third among pitchers who have thrown at least 300 innings in that time. He also has a mid-90s fastball, although he’s relied on that less in recent years, turning instead to a sinker and a ridiculous slider that help generate all those ground balls. If anything, his exceptional ground ball abilities are somewhat wasted in the dead air of PETCO Park.

The Padres control Ross’ rights through the 2017 season, and already the Wasserman Media Group client has established a fairly high salary baseline as a Super Two player. Ross and the Padres settled for $5.25MM this winter for 2015, his second year of arbitration eligibility. That could put him on pace to make about $25MM from 2015 through 2017, depending on how he performs in the next two seasons.

There haven’t been many recent extensions for pitchers with arbitration situations similar to Ross’. Perhaps the one that comes closest is that of Gio Gonzalez, who signed a five-year, $42MM deal with a team option and a player/vesting option three years ago. At the time of that deal, Gonzalez, also a Super Two player, was heading into his first season of arbitration eligibility, with MLBTR projecting a $4.2MM salary for that year. Ross is one year closer to free agency than Gonzalez was, and salaries have escalated throughout the game since then, so the Padres would likely have to pay more heavily than the Nationals. But a deal for Ross in the $55MM-$60MM range with a structure similar to the Gonzalez contract would seem fair. The end result might look something like Matt Harrison’s current five-year, $55MM deal with the Rangers, which includes one club option.

If Ross has interest in a long-term contract, the circumstances would seem favorable for the Padres to sign him. San Diego has a lucrative new TV deal, and the Padres’ new ownership and seems intent on spending. And while the team has a fairly strong rotation now, they might not have one forever. Ian Kennedy is eligible for free agency after the season, and Cashner after 2016. Even with young or relatively young arms like Odrisamer Despaigne, Robbie Erlin, Matt Wisler and Casey Kelly in the system, signing at least one of Kennedy, Cashner or Ross would seem prudent — the pitcher who remains with the Padres long-term could join James Shields as a veteran rotation anchor.

Of course, with Preller, one never knows. It wasn’t he who traded for Ross, and he hasn’t yet shown strong attachments to players he didn’t acquire. (And he already traded Tyson’s brother Joe to the Nationals in the Wil Myers deal.) Preller could have his mind on something else entirely, particularly given the strong group of starting pitchers available on the free-agent market next winter. There are reasons to be somewhat cautious of Ross, too — he pitched about 60 more innings in 2014 than he did the previous year, and he has unusual mechanics and relies heavily on his slider. All those factors could make him an injury risk. But there’s little else to dislike about him, and if the Padres are comfortable with his health, perhaps the two sides can strike a deal at some point.

Photo courtesy of USA Today Sports Images.

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