Extension Candidates

Extension Candidate: Justin Turner

By Jeff Todd | September 2, 2015 at 1:57pm CDT

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.

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

By charliewilmoth | August 30, 2015 at 6:11pm CDT

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.

If 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

By Jeff Todd | March 17, 2015 at 5:40pm CDT

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.

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

By charliewilmoth | March 15, 2015 at 9:44pm CDT

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.

Ross 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.

Extension Candidate: Josh Donaldson

By charliewilmoth | March 9, 2015 at 8:35am CDT

Over the last two seasons, Josh Donaldson has quietly been one of the best players in baseball, finishing third in fWAR among position players in the last two years, behind only Mike Trout and Andrew McCutchen. That doesn’t mean, however, that his new team, the Blue Jays, should rush to sign the MVP Sports Group client long-term.

As a Super Two player, Donaldson’s salaries through 2018 will be determined by the arbitration process, and the Blue Jays’ victory over Donaldson in his first arbitration case this winter was a crucial one. Not only was there a significant gap between the number Donaldson camp proposed ($5.75MM) and the Blue Jays’ proposed figure ($4.3MM), but the arbitator’s decision in favor of the Blue Jays will affect not only Donaldson’s 2015 salary, but his salaries from 2016 through 2018 as well.

Donaldson’s statistical profile (offensive numbers that are very good but not obviously spectacular, combined with superb defense) likely made him somewhat underpaid this time through the arbitration process. That effect might wear off somewhat in coming seasons as he moves to a much more homer-friendly ballpark in Toronto than the one he had in Oakland — he hit .255/.342/.456 with 29 homers and 98 RBIs in 2014, and bumping those numbers up somewhat would help him as he enters arbitration for a second time. Still, Sportsnet.ca’s Ben Nicholson-Smith tweeted that a source estimated Donaldson’s arbitration loss this winter might cost him a full $6MM over the next three years. That guess might, if anything, be low.

On top of that, the Blue Jays already control Donaldson throughout what could well be the rest of his prime. Since he got off to a late start to his big-league career, he won’t be eligible for free agency until after his age-32 season. Any extension beyond that would only buy out seasons beginning with age 33. In other words, the Blue Jays have a very good situation with Donaldson, and they have little reason to press their luck with an extension unless it’s a very favorable one. Donaldson isn’t a 23-year-old superstar who figures to be in his prime in his first free agent seasons. He’s a 29-year-old superstar who’s very likely in his prime right now.

If the two sides were to begin discussing a deal, finding a close comparable for a Super Two player like Donaldson would be difficult. We can begin, however, with his likely arbitration salaries through 2018, which might total somewhere around $35MM-$40MM if he maintains impressive offensive totals. Donaldson’s camp could point to Kyle Seager’s recent seven-year, $100MM extension as a possible model for a Donaldson deal, and that wouldn’t be entirely unreasonable, given that Seager’s deal began in what would have been his first year of arbitration salary, and with a salary of $4MM (although Seager, not being a Super Two player, was a year closer to free agency than Donaldson is). For the reasons mentioned above, though, that seems like a lot of risk for the Blue Jays to assume.

The Blue Jays, then, could hypothetically look at recent deals for Jason Kipnis and Matt Carpenter that each guaranteed about $52MM for six years. Both those deals occurred when the players had between two and three years of service time, but neither Kipnis nor Carpenter were Super Two players, so their arbitration years would likely have been less lucrative than Donaldson’s figure to be. That would likely mean that a Donaldson extension would either require a somewhat higher total, or give away fewer years of free agency.

Perhaps something along those lines could work, although it might be hard to find an equilibrium where the Jays felt like they were taking on an appropriate amount of risk and Donaldson’s camp felt like he was getting a large enough total to forgo free agency following the 2018 season, which might be his only attempt at a significant free-agent payday. Then there’s the fact that Donaldson and the Jays already went to an arbitration hearing — hearings can be tough for some players to take, and could make future extension talks difficult. As Braves assistant GM John Coppolella recently told MLBTR’s Steve Adams, “If you look at the history of players who have gone to arbitration hearings, for whatever reason, very few remain with the same team for the long term. I don’t think the hearings are contentious per se, but the process isn’t exactly friendly and heartwarming.”

If Donaldson and the Blue Jays were to have interest in an extension, then, it wouldn’t be impossible to negotiate one, but it would be tricky. And given Donaldson’s age and years of control remaining, the Jays shouldn’t have much urgency to negotiate a deal.

Photo courtesy of USA Today Sports Images.

Extension Candidate: Chris Tillman

By charliewilmoth | January 9, 2015 at 8:51pm CDT

With his youth, solid performance, strong health record and history of eating innings, righty Chris Tillman certainly seems like the kind of player who ordinarily would get extension consideration. It comes as no surprise, then, that the Orioles are interested in extending the Beverly Hills Sports Council client. It doesn’t sound like discussions have gotten very far, however, and it’s not clear where they’ll end up once they do.

Tillman has pitched over 200 innings in each of the last two seasons, establishing himself as a workhorse at the relatively tender age of 26. After struggling through half-seasons in the big leagues in 2010 and 2011, he’s gotten above-average results. What’s not immediately obvious, however, is why he’s gotten those results. Tillman’s K/BB numbers (6.5 K/9 and 2.9 BB/9 in 2014; 6.8 K/9 and 3.0 BB/9 for his career) are fine but nothing special, and he also isn’t a ground ball pitcher. He’s posted very low BABIPs (.221, .269 and .267) in each of the last three seasons, and he’s stranded runners at a very high rate in each of the last two. Unsurprisingly, Tillman’s xFIP and SIERA figures have run well behind in his ERAs in each of those years, suggesting a back-of-the-rotation type who looks better than he is thanks to the Orioles’ excellent defense. His velocity has also dropped in each of the past two seasons.

Tillman does benefit from the fact that it’s nearly impossible to steal bases against him, however, which doesn’t turn up in peripheral numbers. Also, it’s possible he turned a corner at some point last season — he posted a 4.11 ERA in the first half, then a 2.33 in the second half, with 7.7 K/9 and 1.8 BB/9. That kind of decisive improvement might be mostly variance (Tillman also pitched significantly better in the second half in 2013, but didn’t carry that improvement into the first half of 2014), but it’s also possible he simply got better as the season went on, particularly given his age. Tillman changed his release point as 2014 progressed, perhaps suggesting that at least a portion of his improvement is sustainable. And even if Tillman reverts to his career norms next year, his ability to soak up innings has value. Exactly how good Tillman is can be debated, but if he keeps pitching 200 innings a season, extending him has limited downside (at least by the standards of multi-year pitcher contracts) even if he’s merely average.

It’s difficult to find precedents for a Tillman extension that don’t come with significant caveats. Tillman has between three and four years of service time, and via MLBTR’s Extension Tracker, most recent extensions for starting pitchers with that much service are either very short (two years each for Mat Latos and Clayton Kershaw, for example) or out of date (Johnny Cueto got a four-year deal plus an option prior to the 2011 season, while Ervin Santana got four plus an option two years before that). A long-term deal for Tillman would potentially recalibrate the market for pitchers with similar service time.

So to map out a Tillman extension, we’ll begin with his likely salary heading into his first year of arbitration. Matt Swartz’s model for MLBTR projects that Tillman will get $5.4MM in his first arbitration season, but as Swartz noted last week, that figure is probably unlikely. The current record for a one-year deal for a pitcher eligible for arbitration for the first time is $4.35MM, and Swartz thinks Tillman would approach or match that figure rather than crashing through it.

If Tillman were to make $4.35MM next year, that would still set him up to clear $20MM in his arbitration seasons, depending on his development. If Tillman’s contract were to match the Cueto and Santana deals in structure (four years plus an option), that would put him between $32MM and $40MM. That figure seems low, given more recent extensions for pitchers with slightly less service time, like Chris Sale (who had between two and three years of service time when he got $32MM guaranteed for five years, plus two options) and Derek Holland (who had roughly the same service time as Sale and got $28.5MM guaranteed for a five-year deal with two options). Julio Teheran signed for six years and $32.4MM last offseason despite having just over a year of big league service.

Of course, Tillman and the Orioles could aim longer. For five years guaranteed, Tillman could perhaps ask for the five years and $55MM given to Matt Harrison, who had a year more service at the time of his extension than Tillman has now. Phil Hughes’ recent deal gave up three years of free agency eligibility at $14MM per season, and a five-year deal for Tillman would give up two. Given what Tillman is set to make in arbitration, a $55MM total, or perhaps a bit less, for the next five years makes sense. Alternately, the two sides could strike a two- or three-year deal, although that would likely be done purely on Tillman’s arbitration projections and probably wouldn’t contain any options.

Given the money Tillman is already set to make in arbitration, it would be hard to blame him for aiming high in extension discussions. The question is whether the Orioles would want to pay $50MM or more for a pitcher with so many sabermetric question marks. If a large percentage of Tillman’s success is due to the Orioles’ defense, it doesn’t make sense for the Orioles to pay a premium for him going forward. Unless Tillman is willing to take a substantial discount, the Orioles’ best route might be to take him year-to-year.

Photo courtesy of USA Today Sports Images.

Extension Candidate: Jason Heyward

By charliewilmoth | December 30, 2014 at 10:06am CDT

New Cardinals outfielder Jason Heyward only has one season remaining before free agency, and St. Louis likely has the financial flexibility to sign him long term. It’s not surprising, then, that there’s been some discussion in the St. Louis media about the possibility that the Cardinals would extend him. For the right price, Heyward (who’s already set to make $8.3MM in 2015) would be an exceptionally strong extension candidate.

Heyward won’t turn 26 until next August, and he has an excellent all-around game that includes plus defense to go with good on-base ability, reasonable power and above-average baserunning. He might also be able to retain his value as his defense declines, too — his control over the strike zone and toolsy profile suggest he might still have headroom as a hitter.

Of course, the same factors that make Heyward a good extension candidate would also make the Casey Close client a very attractive free agent. The fact that free agency is so near makes an extension a different proposition than it was when MLBTR’s Tim Dierkes examined Heyward’s candidacy early in the 2013 season.

Perhaps the best precedents for an extension for a top position player with between five and six years of service time are those of Matt Kemp (eight years, $160MM) and Adrian Gonzalez (seven years, $154MM). Heyward isn’t, or isn’t yet, the offensive player that Kemp or Gonzalez were — Kemp was coming off a .324/.399/.586 season at the time of his extension, while Gonzalez had just hit .298/.393/.511 in pitcher-friendly San Diego. But average salaries have skyrocketed throughout the game since those contracts were signed in 2011 (the average MLB salary jumped 12 percent just last year), and we should expect extensions to keep pace.

Also, Heyward is two years younger than Kemp was and more than three years younger than Gonzalez at the times of their contracts, a significant matter when the contract would begin with the player heading into his age-25 season (or age-26, depending on how one wants to look at it) rather than his age-27 season (Kemp) or age-29 season (Gonzalez). And Heyward is a far better defensive player than either Kemp or Gonzalez, with a UZR of 24.1 last season and of at least 12 for three seasons straight. Historically, that’s not an attribute that figures to get Heyward paid like huge power numbers would, but it makes it that less likely that his next contract will be a bust — Heyward’s on-base ability and excellent defense significantly limit his downside.

Jacoby Ellsbury’s seven-year, $153MM deal with the Yankees, signed as a free agent after the 2013 season, provides a recent precedent for a contract for a star-caliber, left-handed outfielder with defensive value. Again, though, Heyward is far younger than Ellsbury, an enormous point in his favor.

Given Heyward’s youth, it isn’t hard to see an extension heading toward at least eight years rather than seven — a nine-year extension would only go through his age-33 season, and even a deal of ten years or more doesn’t seem ridiculous. Heyward isn’t likely to reach the same stratospheric heights as Giancarlo Stanton ($325MM) or Miguel Cabrera ($248MM), but those head-spinning deals should help keep the market trending upward, and it isn’t hard to see Heyward clearing $200MM, as Fangraphs’ Dave Cameron proposed last month. Heyward could also seek an opt-out clause, like Stanton, and like fellow Close clients Zack Greinke, Clayton Kershaw and Masahiro Tanaka.

Or maybe the idea that Heyward is a $200MM player after a .271/.351/.384 season simply won’t add up, regardless of his youth and defense. But perhaps, from Heyward’s perspective, not matching the Stanton or Cabrera deals doesn’t mean he can’t come out ahead in the end. Heyward is so young that he could play his way through a nine-figure extension and still be young enough to land another.

Seen from that angle, a shorter deal, perhaps modeled on Mike Trout’s six-year, $144MM contract, might make sense. Heyward isn’t as young or as good as Trout, but he might be able to land only a similar total over six years because Trout’s contract began with three pre-free-agency seasons and Heyward’s would only begin with one. That way, Heyward could hit free agency heading into his age-31 season, at which point he would still be young enough to hit it big. A nine-year deal, say, would be much more lucrative, but would probably leave him too old to net another huge contract after it’s over.

That route is probably unlikely, however. Heyward is only one year from free agency and has little reason to give the Cardinals a discount, and he was not particularly motivated to sign an extension with the Braves. That might suggest Heyward could either sign a huge deal for eight-plus years, or hope for a big season, test the free agent market and perhaps wind up with a contract that’s even longer. When you’re as young and as good as Heyward, there are few bad choices.

Photo courtesy of USA Today Sports Images.

Extension Candidate: Josh Harrison

By Steve Adams | September 11, 2014 at 8:36pm CDT

Asked to create a list of candidates for the 2014 NL batting title five months ago, few would have seriously suggested Pirates utilityman Josh Harrison. However, it’s September 11th, and the .318 mark that Harrison carried into the day paced the National League. A decline in performance for Pedro Alvarez and an eventual season-ending injury for the slugging third baseman have opened the door for Harrison to serve as the club’s everyday option at the hot corner down the stretch — an opportunity on which he has capitalized. Though the 27-year-old Harrison had never even topped 276 plate appearances prior to this season, he’s tallied 472 and should finish the season well north of 500.

The Pirates acquired Harrison with little fanfare in the 2009 trade that sent Tom Gorzelanny and John Grabow to the Cubs and watched him produce steady batting average and on-base percentage marks as he ascended the minor league ranks. However, while his glovework graded out favorably heading into the season, he also carried a career slash line of just .250/.282/.367 into 2014.

Harrison hasn’t drastically changed his approach at the plate — his swing and contact rates are similar to his previous marks — but he’s slightly increased his walk rate, cut down on his pop-ups and laced line drives at a career-high rate. On top of that, Harrison has found some power despite never hitting more than six homers in a minor league season. He’s swatted 13 long balls and posted a .196 isolated power mark even though he plays at PNC Park, which is known to significantly diminish right-handed pop. The end result has been an outstanding .318/.351/.514 batting line to go along with those 13 homers, 17 steals and strong defensive marks.

Harrison has cleared three years of Major League service time now and will be eligible for arbitration this offseason. Clearly, an NL batting title, 15 or so homers and 20 or so steals will help his agents at Millennium Sports Management make a strong case. However, first-time arb salaries are based on a player’s entire career to that point, unlike second- and third-time arb salaries which are based more on a player’s most recent season. With the agents likely touting an elite platform season and the team likely pointing to earlier seasons to drive the cost down, a multi-year contract might be worth examining. Pittsburgh would get cost certainty, while Harrison would receive financial security in the event that he does not replicate his brilliant 2014.

Of course, from the Pirates’ point of view, they may look at Harrison as a player whose most consistent attributes are defense and baserunning — two aspects that, while valuable, are not highly rewarded in arbitration. While he does have a career-high in homers, the Pirates could also look to Harrison’s average fly-ball distance of 279.98 feet — 136th in the Majors according to BaseballHeatMaps.com — and the fact that seven of his 13 homers fall into the “just enough” category on ESPN’s Hit Tracker. Those two stats suggest that he may have difficulty sustaining this level of power, which would subsequently deflate his arb prices in future cases. A low-payroll team like the Pirates may express hesitancy at over-committing in the event that his power numbers won’t stay this high.

As such, Harrison and the Pirates may have trouble reaching common ground should either side look to pursue a long-term deal that buys out free agent years. The Pirates will cite Harrison’s short track record and reliance on defense and baserunning to provide value. Harrison’s agents, meanwhile, will likely position him as a breakout player and could point to five- or six-year pacts signed by other infielders in the past year or so. However, even a similar late bloomer like Matt Carpenter had an excellent 2012 season and a fourth-place MVP finish in 2013 before signing his six-year, $52MM contract. Harrison has just one elite season.

While Harrison isn’t the first player to jump from utility player to All-Star (though the feat certainly isn’t common), few, if any players have found themselves in his situation and his service bracket and ultimately inked a long-term deal. A look at extensions for infielders with three to four years of service time shows few deals that serve as comparables. Pablo Sandoval signed a three-year, $17.5MM to buy out his arb years at the same stage of his career, but he had a much better offensive profile at that point. Elvis Andrus’ original three-year, $14.4MM extension was signed when he had an even three years of Major League service. He lacked an offensive season in the vein of Harrison’s excellent 2014, but he had a longer track record of providing value.

The Pirates are one of baseball’s most cost-conscious teams, and as such there would seem to be some benefit to securing Harrison’s arbitration paydays, and for a player with no track record prior to 2014, I’d think that holds some appeal to him as well. Perhaps the two sides could work out a three-year deal in the $15-16MM range to provide Harrison with a lifetime of financial security but still position him to hit free agency at a relatively young age in search of a significant payday. While Pittsburgh would undoubtedly have interest in adding a club option that could push the total value of the contract into the Michael Brantley range (four years, $25MM) if exercised, that doesn’t seem to be a worthwhile trade-off for player and agent, even if the buyout was fairly significant.

Beyond Harrison’s three arbitration years, the situation feels to this writer like one in which the team’s lack of margin for error (due to payroll constraints) makes betting on Harrison’s surprise breakout a bit too risky to pay him like the late-blooming star he could very well be. Of course, there’s risk for the team to pass on a long-term deal as well; if Harrison is capable of sustaining something close to this level of production, his price tag on a long-term deal a year from now could exceed that of Carpenter.

Photo courtesy of USA Today Sports Images.

Extension Candidate: Kole Calhoun

By charliewilmoth | August 20, 2014 at 10:05pm CDT

The Angels’ farm system hasn’t won much praise recently, but it seems to have produced a hit in Kole Calhoun. The outfielder sped through the minors despite a relatively modest pedigree (he was an eighth-round pick as a college senior in 2010), skipping Double-A and making it to the big leagues in two years. Last season, in his first extended shot in the Majors, he hit .282/.347/.462 in 222 plate appearances, and this year he’s proven that was no fluke, hitting .294/.349/.485 so far. Offensively, Calhoun combines high batting averages with good power, and he also provides reasonable baserunning and corner outfield defense.

Since he’s already nearly 27, Calhoun’s opportunities to cash in on his early-career success might be somewhat limited. He can’t become a free agent until the 2019-2020 offseason, by which point he’ll be 32. With so much time remaining before free agency, and after receiving a very modest $36K signing bonus out of college, it would probably behoove Calhoun to consider the security of a long-term deal. A pre-free agency extension might represent the best chance for Calhoun and his agent, Page Odle, to land a big contract.

Given that the Angels already control what are likely to be Calhoun’s prime years, an extension need not be such a priority for them. And since he isn’t exceptionally athletic and already plays corner outfield, betting on him continuing to be productive well into his thirties seems excessive, from the Angels’ perspective. Signing Calhoun to an extension would, however, have the benefit of controlling his arbitration salaries while possibly also giving the Angels options to control a year or two more than they do now.

Extensions for players with between one and two years of service time used to be somewhat rare, but they’ve become increasingly common since Paul Goldschmidt and Anthony Rizzo signed deals in Spring 2013. Via MLBTR’s Extension Tracker, seven players with between one and two years of service have agreed to extensions this year: Julio Teheran, Andrelton Simmons, Jose Quintana, Starling Marte, Yan Gomes, Jedd Gyorko and Sean Doolittle.

Since Marte is an outfielder, his six-year, $31MM deal (which also includes two options) is the most obvious precedent that might guide a long-term deal for Calhoun. Before that, the last extensions for outfielders with between one and two years of service time were those of Jose Tabata (2011) and Denard Span (2010). Both contracts are now too ancient to really matter, with contracts for players like Simmons and Freddie Freeman reshaping the extension landscape since then.

The problem with using Marte’s deal as a precedent, though, is that a Calhoun contract would have a slightly different purpose. Marte was a toolsy, high-upside 25-year-old at the time of his deal, so for the Pirates, his contract was about retaining him long term. Calhoun is older and may have already reached his upside. On the other hand, his offense-heavy profile is more likely than Marte’s was to get him paid in arbitration. Therefore, we might expect a Calhoun contract to be a bit shorter than Marte’s, and perhaps a bit less option-heavy. We might also expect Calhoun to make more than Marte in his seasons of arbitration eligibility.

The possibility of Calhoun becoming a Super Two player following the 2015 season is also a factor. Calhoun entered the 2014 season with 130 days of service. This year’s projected Super Two threshold is two years and 128 days of service time, which means Calhoun could end up on either side of the line. Quintana had one year and 133 days of service when he signed his extension before the season, and his contract with the White Sox contains a clause that pays him an extra $5.5MM if he becomes Super Two eligible. Perhaps a Calhoun extension could include a similar clause.

Of course, Super Two eligibility would not affect Calhoun’s free agency timeline. A five-year deal (beginning in 2015) with one team option might make sense for both Calhoun and the Angels — such a deal would buy out all of Calhoun’s pre-free-agency seasons while giving the Angels the rights to his first season of free agency eligibility. Calhoun would become eligible for free agency as a 33-year-old at the latest, potentially giving him another shot at a multi-year deal if he continued to hit.

Given that the Angels already control one or perhaps two of those five years at the league minimum, the total guaranteed figure for a Calhoun extension need not be huge. Marte will make $21MM over the course of his contract if one leaves aside the last guaranteed year (including his signing bonus and a $2MM buyout on his option in 2020). Calhoun might get a little more than that guaranteed over a five-year deal if he is not Super Two eligible (including a buyout on the Angels’ option for a sixth year), perhaps with a clause bumping his contract to $27MM-$30MM if it turns out he is.

Photo courtesy of USA Today Sports Images.

Extension Candidate: Corey Kluber

By Jeff Todd | August 11, 2014 at 10:02pm CDT

The Indians have been active in locking up top young players where possible, with Jason Kipnis, Michael Brantley, and Yan Gomes all receiving lengthy guarantees this spring in exchange for cost savings to the club. But the organization has been much stingier with promising dollars to pitchers. Most recently, the team declined to act on the seemingly reasonable demands of Justin Masterson over the past offseason (before ultimately dealing him away this summer). According to MLBTR’s Extension Tracker, the last time Cleveland promised future money to a big league hurler, Roberto Hernandez was still known as Fausto Carmona. Indeed, he was the last arm to receive an extension from the Indians, way back in April of 2008.

That track record suggests that, as aggressive as the Indians have been in making investments in position players, the club has been wary of doing so with inherently injury-prone pitchers. But whatever risk the team builds into its internal models, at some point it makes sense to pursue a deal. That is especially true when unique bargaining leverage might be had, as the player might be more inclined to take a relatively modest guarantee rather than rolling the dice on his own health.

The reason for that lengthy introduction? The team’s current ace, Corey Kluber. Where does the righty stand on the year? 2.46 ERA over 171 2/3 innings. 9.8 K/9 against 1.9 BB/9, 49.7% groundball rate. 2.43 FIP, 2.69 xFIP, 2.70 SIERA. 5.2 fWAR, 5.2 rWAR. 28 years old. Expected service time at end of 2014 season: 2.074, good for a first run at arbitration in 2016.

Put simply, these are the kinds of circumstances where an extension could make sense for both sides. Cleveland will no doubt be content letting Kluber go out and prove his worth year-to-year, comforted by the fact that he is controlled through his age-32 season. But arbitration can get expensive, and cost limits (as well as cost certainty) might be attractive. The club’s future commitments drop off after 2016, when the Nick Swisher and Michael Bourn deals are up, leaving plenty of space to add some guaranteed dollars. (As things stand, Cleveland has promised just $18.742MM of salary for 2017.)

Meanwhile, for Kluber, a substantial future guarantee would seem to represent a major attraction. As good as he’s been, he had thrown just over 200 MLB innings coming into the season. His strikeout and walk rates are each better now than they ever were over a full minor league season. As a fourth-rounder back in 2007, he was not a bonus baby. And he is still more than a full season away from being paid a fraction of his actual value through arbitration — let alone reaching the open market. And even then, his advanced age would be a major factor. (I looked at the situation of James Shields a few months back, concluding that he would struggle to reach five years at a $20MM AAV in free agency when he hits the market in advance of his age-33 season.) In many respects, Kluber’s situation is not unlike that of the late-blooming Josh Donaldson, with the major difference that Kluber’s earning capacity depends upon the health of a right arm that is subject to immense strain on a daily basis.

What kind of deal might make sense for team and player? It is difficult to find a direct comparable, given Kluber’s rather unique, suddenly-emergent excellence. Kluber’s value is undeniable: he landed at 42nd on Dave Cameron’s list of the game’s most valuable players. But even apart from his poor bargaining position, his age is a major limiting factor on his ability to command big dollars well into the future.

The most recent extension for a 2+ service time starting pitcher was given to Chris Sale of the White Sox before the 2013 season. Sale received a five-year, $32.5MM deal with two option years — the latest example of an oft-copied extension model. (Somewhat notably, Kluber is represented by Jet Sports Management, according to Baseball-Reference, the agency that negotiated Sale’s contract as well as the recent Charlie Morton extension.) More recently, Julio Teheran was able to command $32.4MM over six years from the Braves, while giving up one option year, despite being a year behind on service time.

Those deals guaranteed at least one free agent year, and Cleveland may not be interested in promising any cash for Kluber’s age-33 season. Might the Indians look to promise four years while obtaining two or even three options at a similar guarantee to those contracts? Could the team look to shave something off of the dollars in those packages, possibly in return for reduced future control? Presumably, the key motivation for the team would not be to extend control, but rather to achieve significant cost savings. There are plenty of possibilities, and creative strategies abound to create a fit.

As usual, a motivated club would be the key to striking a deal. Cleveland is in an enviable position with respect to Kluber, who is producing like an in-prime ace (with the peripherals to match) but doing so for a pittance. That situation also brings the temptation of reaching an even better bargain. And surely Kluber’s camp would have to listen hard to any possibilities of signing up for a life-setting payday that might otherwise require plenty more hard work and good luck to achieve. Needless to say, it would be an intriguing storyline to track if either side looks to kick-start offseason negotiations.

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