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Minor League Free Agents Finding Major League Deals

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40-man roster spots are a precious commodity in Major League Baseball.  Many of the transactions on MLB Trade Rumors stem from this fact, as teams decide which players will occupy those last few spots.  The roster squeeze prevents many recognizable free agents from securing a Major League contract each offseason, from useful veterans like Jason Kubel, Shaun Marcum, and Jamey Carroll to former top prospects like Trevor Crowe and Taylor Teagarden.  Those players, despite a decent amount of name value, signed minor league deals.  However, a new trend emerged this offseason, as eight players with scant Major League experience signed Major League deals: Francisco Pena (Royals), Kelvin De La Cruz (Orioles), Edgmer Escalona (Orioles), Erik Cordier (Giants), Francisco Peguero (Orioles), David Cooper (Indians), Angel Castro (Cardinals), and David Adams (Indians).  Four of the players have no Major League experience at all, while none of the eight have more than 100 innings or 226 plate appearances in the bigs.

Upside As A Separator

The average age of these eight players is about 27 years old, significantly younger than a standard free agent who signs a Major League deal.  Many of these seven come with top prospect pedigrees.  Peguero, an outfielder signed by the Giants out of the Dominican Republic in 2005, was ranked as the team's fourth-best prospect prior to the 2011 season by Baseball America.  As recently as last year, Peguero was ranked eighth by BA, who said he "still has the most exciting combination of speed and power in the system, along with perhaps the best bat speed."  He went on to hit .316/.354/.408 in 70 Triple-A games to earn his second big league call-up with the Giants, though he received only six starts in September.

The Giants were faced with a difficult situation.  With Peguero having used his four minor league options, they risked losing him to a waiver claim if they weren't willing to put him on the 25-man roster out of spring training in 2014.  The Giants decided to remove Peguero from the 40-man roster by designating him for assignment in late November, cutting ties by non-tendering him five days later.  As agent Dan Rosquete tells it, "The minute the Giants said 'Hey, we're taking him off the roster,' they backed it up with, 'Well, we want him back, what's it going to take?'"  After Peguero's frustration from the lack of opportunity at the end of the season with the Giants, Rosquete's primary goal was to secure playing time for his client in 2014.  Interestingly, the Giants designated Peguero for assignment in part to make room for Cordier, a big arm who had become a six-year minor league free agent after pitching in relief for the Pirates' Triple-A team.  Cordier is one of four six-year minor league free agents this offseason to sign a Major League deal with no Major League experience.

The Orioles swooped in with an appreciation for Peguero's tools, an opportunity for playing time, and a Major League offer.  Orioles executive vice president of baseball operations Dan Duquette "could tell me more about my client than I knew about him," jokes Rosquete.  "Dan Duquette called me and said 'Listen, I'm looking at everything and I can see this guy as an everyday outfielder.'"  In an email, Duquette tells MLBTR Peguero "has good talent as he is a lifetime .300 plus hitter in the minors and [is a] very good defensive player."  As a group, these eight Major League signings possess upside rarely found affordably in free agency. For example, the Indians landed a former first round draft pick in first baseman Cooper, the Orioles added a strikeout lefty who has touched 94 miles per hour in De La Cruz, and the Giants picked up a power reliever who can touch 97 in Cordier.  Plus, all of them are considered to be near big league ready.  

Contracts Dictated By Strong Markets

The majority of the eight players were six-year minor league free agents, with a handful of non-tenders mixed in.  Ultimately, teams wouldn't give Major League deals and the accompanying 40-man roster spot to this level of player unless it was necessary to get the deal done.  Duquette, who authored three of these eight big league deals with Peguero, De La Cruz, and Escalona, notes, "In each case other clubs were offering Major League contracts, so you could say that the Major League contract was required by the market."  

The only way for an agent to really know what it will take is to let the market play out.  Paul Kinzer represents the 24-year-old Pena, who became a six-year minor league free agent after 2013 when the Mets decided not to add him to their 40-man roster.  "I don't know if anybody expected the kind of response we got on him," says Kinzer of Pena.  Kinzer says the strong demand for catchers worked in Pena's favor.  Three teams were close on the player, and the Royals had to offer a Major League deal to separate themselves.  Cooper signed a minor league deal with the Indians in August after recovering from career-threatening herniated disk in his chest cavity.  He opted for free agency at the end of the month, and demand was strong enough that the Indians re-signed him to a Major League deal.  The Rays put pressure on the Tribe by also reportedly making a Major League offer.

A Possible Trend

Though we don't have complete data on the number of inexperienced players signing Major League deals each offseason, the eight such contracts from 2013-14 is definitely the highest number in recent years.  Kinzer, who by his recollection has done three or four of these types of deals in his career, "absolutely" sees a trend toward more of them.  He explains, "Teams can go out and spend a little more on these guys and sometimes get a better return on their money than going with an older, veteran guy."  By "spend a little more," Kinzer is referring to the cost of a roster spot, since none of these contracts were for more than $75K above the $500K league minimum.  The going rate for a veteran backup catcher this winter has been in the $1-3MM range.

Teams are continually trying to find outside-the-box means of acquiring younger talent.  Showing a greater willingness to barter with a 40-man roster spot in November and early December, when most clubs are not near capacity, seems savvy.  The trend could truly explode if more success stories emerge.

The biggest recent success story is the signing of lefty Jose Quintana by the White Sox after the 2011 season.  Quintana was signed by the Mets out of Colombia for $40K in 2006, and signed with the Yankees about a year later after the Mets released him due to a violation of the Minor League Baseball drug policy.  Baseball America never ranked Quintana among the Yankees' top 30 prospects, and he became a six-year minor league free agent after '11.  GM Brian Cashman told Joel Sherman of the New York Post in June 2012, "We looked at him as a fringy prospect. We offered him a minor league contract to stay, but not a 40-man roster position. We didn’t feel he was ahead of other guys we gave spots to. It was a numbers game, but right now it does not look like a good decision."  White Sox scouts Joe Siers and Daraka Shaheed "made him stand out on the six-year free-agent list," then-assistant GM Rick Hahn told Sherman, and the Sox and GM Kenny Williams separated themselves from the pack by offering Quintana a Major League deal.  Fresh off 200 innings of 3.51 ball in 2013, Quintana is a scouting success for Chicago and the best recent example of a Major League deal paying off big for a player with no experience at the game's highest level.  

Quintana, who would go a long way toward stabilizing the Yankees' current rotation, is one that got away.  The team had a firsthand look at the southpaw for five years, but preferred to keep the roster spot open when he reached minor league free agency.  Of the eight who signed this offseason, seven landed with new clubs.  Time will tell whether the Mets, Dodgers, Pirates, Rockies, Giants, and Yankees will regret letting these players go, but if more credible big leaguers emerge from the group, it's likely we'll continue to see an increase in Major League deals for minor league free agents.

Pablo Sandoval’s Agent Forms New Agency

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Gustavo Vasquez, agent for Pablo Sandoval, Salvador Perez, Luis Avilan, and others, left Morgan Advisory Group last year to form his own agency, MLBTR has learned.  Vasquez's new agency, SPS Sports Group, also represents Jeanmar Gomez, Miguel Socolovich, Edwin Escobar, Armando Galarraga, Victor Garate, Mauricio Robles, Adys Portillo, and Gorkys Hernandez.

Sandoval, 27, spent some time on the DL in June for a foot strain, but still managed his highest games played total since 2010 by appearing in 141 contests.  Sandoval hit .278/.341/.417 with 14 home runs in 584 plate appearances on the season, with the lowest isolated power mark of his career.  Having signed an extension in January 2012 covering only his arbitration years, Sandoval is in position to reach free agency after 2014 as a 28-year-old.  With a healthy campaign and offensive production closer to his career marks, Kung Fu Panda would be well positioned on the open market, though it's certainly possible the Giants will retain him.

For the latest on player representation, be sure to check MLBTR's agency database.

MLBTR Originals

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A look back at the original reporting and analysis found on MLBTR the past seven days:

  • Charlie Wilmoth opines it may be harder for sluggers like Nelson Cruz and Kendrys Morales (ranked #17 and #28, respectively, on MLBTR's 2014 Top 50 Free Agents list) to take advantage of the riches of today's free agent market because their solid-but-not-elite bats are offset by their limited defensive value and being tied to draft pick compensation.
  • Charlie asked MLBTR readers which team will sign Stephen Drew (#14 on MLBTR's 2014 Top 50 Free Agents list). More than 75% of you believe his next team will either be the Red Sox or Mets.
  • Tim Dierkes was the first to report the financial terms ($775K) of the one-year deal right-handed reliever Jesse Chavez signed with the A's to avoid arbitration.
  • Zach Links revisited some of the notable transactions which have occurred on January 8th in recent years.
  • Steve Adams hosted the weekly live chat.
  • There are many ways to enjoy MLB Trade Rumors. Here's a refresher on how to use the apps, features, and functions on MLBTR.

MLBTR Originals

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A look back at the original reporting and analysis found on MLBTR this past week, as 2013 became 2014:

Dennis Gilbert Reflects On His Career As Top Agent

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Scott Boras may have the most impressive client list of any agent in baseball today, but it wasn’t long ago that he shared that title with Dennis Gilbert.  From the early 80s until his retirement in 1999, Gilbert was in charge of negotiations for some of the biggest names in the game, from George Brett to Jose Canseco to Barry Bonds.  He built a reputation for getting top dollar for his players and churned out record-smashing deals for his top clients.  Ultimately, however, Gilbert sold his powerful Beverly Hills Sports Council at a young age, then got back into the game a couple years later as a special assistant to White Sox chairman Jerry Reinsdorf.

Throughout his career, there’s been one constant for Gilbert: the life insurance business.  When a friend of his who worked as a baseball agent passed away unexpectedly, Gilbert took over for some of his clients and quickly built his business from there.  Still, he never left the insurance industry and juggled both by surrounding himself with the right people in both worlds.  It was an impressive feat, given the amount of attention and hours that being a baseball agent requires.

In 1993, Tom Verducci of Sports Illustrated wrote a tremendous piece comparing Boras and Gilbert when they were both at the top of the business.  The consensus from around the game was that the two men achieved their success quite differently.  “One guy’s a salesman, and the other’s a warrior,” Reinsdorf told Verducci. “Dennis is smooth. While he’s taking your money, he makes you very happy.”

It may be a cliche, but Gilbert is one of a kind.  He still greets people with warmth and a few card tricks, and he tends to make lasting impressions.  There was no one in his field in the 1980s or ’90s who had a comparable demeanor, and there’s no one now either, nearly 15 years after he transitioned out of the business.

“I don’t have a ton of interaction with agents on a daily basis, but I don’t think any of them do.  My approach was unique and I built some strong relationships during that time,” Gilbert tells MLBTR.

Gilbert had a strong rapport with executives around the league, but he had more than one client who rubbed folks the wrong way.  Canseco was viewed as a brash and arrogant; Bonds’ rep was as a standoffish individual who didn’t care for the media.  Of course, the stain of steroids didn’t help either player’s image.  To hear Gilbert tell it, most people didn’t have a full idea of what either man was about and chose only to zero in on the more odious aspects of their personalities.

“The part of Jose that I know about was when he had money he gave his money to his father, mother, sister, brother and a lot of friends around him and he just took care of a lot of people.  He had a very big heart and I think that’s a part that people never saw,” Gilbert says.  “Barry did a lot of things under the radar also. Going to children’s hospitals, signing dozens of bats every year and handing them out and doing a lot of things that people weren’t cognizant of.  They both had soft sides to them.”

Gilbert’s relationships with certain people in baseball continued even after he sold off the BHSC.  He was Mike Piazza’s agent during much of his Dodgers prime, and even though Gilbert was no longer representing the catcher towards the end of his stay there, he was “in the room” around the time when Piazza was traded to the Marlins.  Once again, in Gilbert’s mind, public perception didn’t quite match reality.  As most Dodgers fans understand it, the new FOX ownership group was reluctant to pay the All-Star catcher fair market value on his next contract, necessitating the trade to Florida.  On the contrary, Gilbert says that Rupert Murdoch’s baseball arm did everything it could to make things work.

Today, he’s on call for “anything that Jerry Reinsdorf needs” in his role with the White Sox and says that he’s optimistic that the club will have a quick turnaround after a down 2013.  He’s considered team ownership, with exploratory talks to purchase the Rangers and, most recently, the Dodgers.  One might think that he’s wistful for his days as one of the very top agents in the game, but that’s not exactly the case.  Gilbert says that he enjoyed negotiating the contracts and “the baseball part” but isn’t wild about some of the outside stuff the job also calls for.  His future could take him in a number of directions, but it’s safe to say that he won’t be sitting opposite of Reinsdorf at the negotiating table again.

MLBTR Originals

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A look back at the original reporting and analysis found on MLBTR this past week as we wind down 2013:

  • Zach Links details how agents and front office personnel alike find time to squeeze in some business between opening presents and eating 12 grapes while popping champagne corks to a chorus of Auld Lang Syne. 
  • With only 15 of MLBTR's 2014 Top 50 Free Agents unsigned, Steve Adams asked our readers to re-rank those still on the market. Just under 74% of those surveyed chose Masahiro Tanaka as the most desirable free agent. Nelson Cruz and Matt Garza were next with approximately 6%.
  • Charlie Wilmoth asked MLBTR readers who will sign Tanaka. Nearly 39% of you say the 25-year-old right-hander will be wearing pinstripes.
  • Mark Polishuk opines teams not willing to bid on Tanaka for any reason other than they feel he cannot pitch effectively in MLB are being short-sighted.
  • Steve asked MLBTR readers to name the best nine-figure free agent contract this offseason. You split your support between Jacoby Ellsbury and Shin-Soo Choo.
  • Aaron Steen asked MLBTR readers to voice their opinion on the Rangers' offseason to date. More than 72% of you approve of the moves made by GM Jon Daniels. 
  • Zach was the first to report five teams are bidding for the services of outfielder Sam Fuld. All five teams have proposed minor leagues deals with an invitation to Spring Training.
  • Tim Dierkes was the first to learn reliever Jim Hoey is looking to hook on with a MLB team after spending the bulk of 2013 with the Somerset Patriots of the independent Atlantic League.
  • Zach compiled the latest edition of Baseball Blogs Weigh In.
  • MLBTR has a roster of regular features. Here's the schedule and a brief synopsis of each.

MLBTR Originals

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A look back at the original reporting and analysis found on MLBTR this past week, as we check our list to see who's been naughty or nice in the waning hours before St. Nick's arrival:

MLBTR Originals

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A look back at the original reporting and analysis found on MLBTR, as we went 24 hours during the Winter Meetings this past week:

  • Zach Links and Luke Adams anchored our around-the-clock coverage providing a daily recap (Day 1, Day 2, and Day 3) of the hard news and rumors with Tim Dierkes and Jeff Todd reporting live from Orlando. Steve Adams meanwhile covered the Rule 5 Draft.
  • In a preview of the Winter Meetings, Jeff predicted the wheeling and dealing could lead to some interesting and opportunistic maneuvers. 
  • Jeff attended the joint press conference with the GMs involved the three-team Mark Trumbo trade and posted their reactions to the deal.
  • Jeff asked MLBTR readers which team benefitted the most from the four trades engineered during the Winter Meetings. More than 32% of you who responded to the survey believe the Angels helped themselves the most with the aforementioned Trumbo deal. 
  • Tim was first with the details of Roberto Hernandez's contract with the Phillies: a one-year, $4.5MM guarantee with an additional $1.5MM in incentives based on innings pitched. Tim also heard the Cubs had been competitive on Hernandez.
  • MLBTR was the first to report 12 teams have expressed interest in right-hander Jason Hammel and all are exploring one-year deals.
  • Tim broke the news 10 teams are in pursuit of infielder Justin Turner and that Astros outfielder L.J. Hoes is now being represented by MVP Sports Group.
  • Tim heard the Cubs offered Edward Mujica a one-year contract to be their closer before he signed with the Red Sox and 8-10 teams have inquired about right-hander Jerome Williams. 
  • Marlins GM Michael Hill told Tim the decision to non-tender reliever Ryan Webb was simply a reallocation of the club's financial resources and the team's top priority is acquiring a third baseman.
  • Tigers President/CEO/GM Dave Dombrowski told reporters, including MLBTR's Steve Adams, the perception the franchise needs to slash payroll is not true and the signing of Joba Chamberlain is the last move he's looking to make.
  • Jeff opines the impetus for the Tigers' roster reshaping can be traced to the suspension of Jhonny Peralta.  
  • The Mets will receive value in excess of the $20MM they will pay Bartolo Colon over the next two years and were able to negotiate such a reasonable price because of his age and history, according to Tim.
  • Tim wonders if the Pirates still have payroll space for A.J. Burnett after signing Edinson Volquez.
  • Jeff examined the market for Kendrys Morales (#28 on MLBTR's 2014 Top 50 Free Agents list).
  • Jeff suggests the Nationals' trade for Doug Fister looks even better now than it did at first glance.
  • Mike Napoli told Zach there were a lot teams interested in his services, but it ultimately came down to his wanting to return to Boston.
  • Charlie Wilmoth listed the best remaining first base options available on the trade market and in free agency.
  • Former first round draft choice Brian Anderson, whose switch to pitching was derailed by injuries, told MLBTR, "I'd love to get back on the field again."
  • MLBTR was the first to learn infielder Adam Kennedy, who didn't play in 2013, is planning a comeback and will work out for teams during the second week of January.
  • Zach gathered the best the baseball corner of the web had to offer in Baseball Blogs Weigh In. 

MLBTR Originals

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A look back at the original reporting and analysis found on MLBTR the past seven days:

  • Jeff Todd analyzed how the free agent spending this offseason compares to the previous six years. With the Winter Meetings beginning tomorrow, Jeff notes almost half of MLBTR's 2014 Top 50 Free Agents remain on the open market, which will further increase the overall free agent spending levels.
  • MLBTR was the first to learn more than 15 teams have expressed interest in right-handed reliever Andrew Bailey, who was non-tendered Monday.
  • Tim Dierkes was the first to report the two-year deal Scott Kazmir signed with the A's did not include any options.
  • MLBTR was first with the details of the one-year contract right-hander Fernando Rodriguez signed with the A's to avoid arbitration: $600K plus award bonuses.
  • Tim examined the free agent signings of Kazmir and Phil Hughes.
  • Tim also weighed in on the moves the Tigers have made to reshape their bullpen.
  • Jeff opined the Tigers sold short on Doug Fister by obtaining a collection of relatively non-scarce pieces from the Nationals.
  • Scott Feldman spoke with Zach Links about his reasons for signing with the Astros and his optimism for the future of the franchise which has posted baseball's worst record three years running.
  • Diamondbacks GM Kevin Towers told Zach the financial flexibility obtained in the three-way trade with the Rays and Reds will be used to add starting rotation and bench depth and to acquire a corner outfield bat.
  • With the flurry of free agent signings this week, Jeff updated the status of the players who are tied to draft pick compensation after declining a qualifying offer. 
  • Tim imagined Luke Gregerson would have fetched more for the Padres than Seth Smith.
  • MLBTR has released its 2014 Arbitration Tracker displaying all arbitration eligible players, with fields for team, service time, player and team submissions, the midpoint, and the settlement amount. The 2014 Arbitration Tracker can also be filtered by team, signing status, service time, Super Two status, and whether a hearing occurred.
  • MLBTR has a separate tender/non-tender tracker with the results from Monday's non-tender deadline. 
  • Steve Adams explained how the non-tender system works.
  • Charlie Wilmoth profiled John Axford as a non-tender candidate who could obtain a two-year deal on the open market. Axford will now have that opportunity as the Cardinals did indeed non-tender the right-handed reliever. 
  • Steve hosted the MLBTR live chat this week.
  • Zach put together the best of the baseball blogosphere in Baseball Blogs Weigh In.

MLBTR Originals

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A look back at the original reporting and analysis found on MLBTR this past week scattered amongst the Thanksgiving leftovers, Black Friday shopping bags, and Cyber Monday ads:

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