Latest On Dodgers’ Debt Situation
The Dodgers are engaged in an ongoing process with Major League Baseball regarding the team’s compliance with the league’s debt-service rule, according to reports from Bill Shaikin of the Los Angeles Times and ESPN.com’s Doug Padilla. The organization is said to be carrying hundreds of millions in debt as it nears the conclusion of a five-year waiver from those debt requirements, which went into effect when the current ownership group purchased the club.
Baseball teams are subject to a rule that “limits debt to no more than 12 times annual revenue, minus expenses,” writes Shaikin. In the case of the Dodgers, the large amount of debt is offset by a massive television rights agreement – reportedly worth $8.35B over 25 years – along with the ticket sales from league-best attendance (among other sources of revenue). Of course, the club has also committed more in payroll ($1.181B, including $112MM in luxury-tax payments) since the sale than any other organization.
While the Los Angeles Times report suggests that there is a league mandate for the Dodgers to reduce their debt ratio, that’s not the team’s interpretation. “There is no mandate,” president/CEO Stan Kasten tells Padilla. “There is no problem with our debt and we continue to work on the same program we have been working on from the day we walked in here in 2012.”
More broadly, Kasten emphasized, “business for the Dodgers is very strong and very healthy.” While the team has focused more on obtaining and developing young talent than on continuing to take on huge salary commitments, top organizational figures say that’s all part of the original plan rather than a reflection of some mounting debt problem.
From the league’s perspective, it seems, Los Angeles remains on track to comply with all applicable standards. Teams in violation of the debt-service rule can be subject to discipline, with a variety of measures at the disposal of commissioner Rob Manfred, which can even include the requirement of approval of expenditures or suspensions to ownership and/or team executives. But Manfred suggests that he does not see any likelihood of formal action being taken by the league – or even any significant change in operating philosophy.
“I think the Dodgers will be in a position that they can comply with our expectations in terms of the debt service rule, without any dramatic alteration in the kind of product they have been putting on the field,” he told Shaikin. Manfred added that “the Dodgers have always had a plan that would give them financial stability over the long haul.”
The commissioner also made clear that the organization would not be forced to trim payroll to ease its debt burden, as Padilla reports. Under the league rule on debt servicing, he said, “non-compliant clubs are asked to submit a plan demonstrating a path to compliance,” explaining that “clubs are evaluated on an ongoing basis relative to that plan.” Manfred further emphasized that “there are various ways to achieve compliance and there is no mandate to cut payroll.”
All told, it does not appear as if there is any particular reason to believe that the Dodgers’ immediate offseason decisions will be impacted by the debt issue – at least, that is, beyond the prior planning that has already been undertaken. But it remains to be seen just how much the organization will be willing to spend this winter with several holes to fill and notable free agents including closer Kenley Jansen, third baseman Justin Turner, lefty Rich Hill, and second baseman Chase Utley.
Los Angeles does have a rather substantial slate of current payroll commitments, including several to players who are no longer on the 40-man roster. The team concluded 2016 with a payroll in the $258MM neighborhood and already has upward of $193MM in commitments for next year, Jason Martinez of MLBTR and Roster Resource estimates. They’re on track to exceed the luxury-tax threshold again in 2017, then, even though it could increase from $189MM in the current CBA to around $200MM in the next agreement. There’s also already over $130MM committed to 2018 payroll, though the standing obligations draw down rather rapidly from that point forward.
Despite their debt situation, the Dodgers have made many sizable commitments on the international market and have not been dissuaded from some notable, mid-range free agent signings. We’ll soon learn how much appetite the organization has for similar, or even larger, agreements in advance of the 2017 season. The Dodgers are reportedly interested in pursuing reunions with all of their free agents, and have also been tied to prominent open-market players such as closer Aroldis Chapman. The trade market may provide an alternative; Los Angeles has recently expressed interest in reasonably priced standouts like J.D. Martinez, Ian Kinsler, Brian Dozier and Logan Forsythe — all of whom are under contract for two or fewer years — though acquiring any of them would presumably weaken their farm system.
A prior version of this post mistakenly suggested that the Dodgers would be forced to cut payroll in order to comply with MLB’s debt-service rule.
Angels Sign Ryan LaMarre, Designate Gregorio Petit
The Angels have announced the signing of a one-year, major league deal with outfielder Ryan LaMarre. He’ll receive $50K above whatever the league minimum salary ends up being, per SB Nation’s Chris Cotillo (via Twitter). The club designated infielder Gregorio Petit for assignment to clear roster space.
[RELATED: Updated Angels Depth Chart]
LaMarre, who just turned 28, saw brief action in each of the last two seasons at the major league level with the Reds and Red Sox. He quietly produced his best season as a pro at Triple-A last year with the Boston organization, batting .303/.369/.445 over 358 plate appearances.
The former second-round pick, a right-handed hitter, also swatted ten home runs and swiped 17 bases for Pawtucket. He’s capable of playing center field, increasing his function as a possible fourth outfielder.
Petit, meanwhile, saw his most extensive major league action last year with the Halos. Over 223 plate appearances, he slashed .245/.299/.348. Soon to turn 32, the journeyman has spent time at second, short, third, and (briefly) the corner outfield in parts of five MLB campaigns.
Brewers To Non-Tender Chris Carter
The Brewers have decided to non-tender power-hitting first baseman Chris Carter, according to Bob Nightengale of USA Today (Twitter link). MLBTR had projected Carter to earn $8.1MM in arbitration.
Carter, 29, signed on with Milwaukee after he was non-tendered last winter by the Astros, agreeing to a one-year, $2.5MM pact. He rewarded the club with a .222/.321/.499 batting line and a league-leading 41 home runs over 644 plate appearances.
It’s certainly somewhat unusual to see a forty-homer bat set loose despite ongoing control. In fact, Carter has another year of arb eligibility beyond 2017. But it isn’t as if his prodigious power output came as a surprise; he swatted 37 dingers back in 2014.
The trouble with Carter is that he has never managed to reach base consistently. He also led the National League with 206 strikeouts last year. Then there’s the fact that he’s rather limited in the field. Carter’s days in the outfield are probably numbered, and he drew negative metrics last year at first.
MLBTR’s Charlie Wilmoth recently broke down the arbitration decision facing the Brewers, explaining that it was a tougher call than it seemed at first glance. While more than three quarters of MLBTR readers who participated in a poll felt Carter should be tendered, that wasn’t the course pursued by Milwaukee GM David Stearns.
All signs point to a move back to the American League, where Carter can spend time at DH while perhaps occasionally stepping in at first. Beyond the pure home run output, he has managed to maintain a lifetime 112 OPS+, even if it comes with a cringe-worthy batting average (.218) and OBP (.314). Carter owns a career 33.1% strikeout rate, and that probably won’t change, though he has managed to draw walks at a solid 11.6% clip. And it’s worth noting, too, that he has not traditionally carried very pronounced platoon splits.
[RELATED: Brewers Depth Chart]
Milwaukee, it seems, decided against committing that much cash to a one-dimensional player who would’ve been forced onto the field. The team isn’t exactly bristling with replacement options. The Brewers just claimed and then designated Adam Walker — a younger, cheaper player who carries Carter’s general profile at the plate — and could perhaps give him a chance if he clears waivers. Prospect Jacob Nottingham could also get a look, though perhaps the odds are that the rebuilding club will end up looking outside the organization to fill its needs at first base for 2017.
The Brewers surely would’ve preferred to find a trade partner for Carter, but his salary was likely a deterrent. And the open market is full of power options this winter, with players like Mike Napoli, Brandon Moss, Carlos Beltran, Matt Holliday, Pedro Alvarez, and Steve Pearce all expected to be available for one or two-year commitments.
Photo courtesy of USA Today Sports Images.
Braves Acquire Alex Jackson
The Braves have struck a deal to acquire outfield prospect Alex Jackson from the Mariners, per club announcements. Righties Rob Whalen and Max Povse are headed to Seattle in the deal, in which Atlanta will also pick up a player to be named later. The Mariners designated righty Ryan Weber to create 40-man roster space.
Jackson, the sixth overall pick in the 2014 draft, is still just twenty years old and has only played two professional seasons. But GM Jerry Dipoto — who wasn’t at the helm in Seattle when Jackson was selected — evidently didn’t see enough evidence of his future potential.
Despite a tough 2015 debut year, Jackson received some top-100 leaguewide billing entering the 2016 campaign. He did show some improvement at the Class A level, but ended with a relatively meager .243/.332/.408 batting line and 11 home runs over 381 plate appearances. Jackson also went down on strikeouts 103 times while drawing 34 walks.
[RELATED: Updated Braves & Mariners Depth Charts]
Whalen, 22, received his first five major league starts last year, allowing a 18 earned runs and a dozen walks but also limiting opposing batters to twenty base hits while compiling a healthy 25 strikeouts. He was much better in his first attempt at the upper minors, too. Across 120 total frames split between Double-A and Triple-A, Whalen compiled a 2.40 ERA with 8.4 K/9 and 3.3 BB/9. The righty originally came to Atlanta from the Mets along with John Gant in the 2015 deadline deal for Kelly Johnson and Juan Uribe.
Though Whalen figures to play a role in Seattle’s pitching depth, Povse may be the real get here for the M’s. The 23-year-old is a consistent strike thrower despite his 6’8 frame. Working last year at the High-A and Double-A levels, he ran up 158 innings of 3.36 ERA pitching with 7.9 K/9 against 1.7 BB/9 — though his strikeout numbers drooped following his promotion.
In adding two players to their roster, the Mariners had to clear a spot. That will mean exposing the 26-year-old Weber to waivers. Actually, Weber landed in Seattle from Atlanta earlier this month through a waiver claim after providing 64 2/3 innings to the Braves over the last two seasons. Though he’s also a low-walk hurler, having averaged just 1.5 free passes per nine in the majors, he has managed only a 5.15 ERA in the bigs while logging 5.8 K/9. Weber has posted sub-3.00 earned run averages in the upper minors in each of the past two seasons, while working mostly in a relief capacity.
Yankees Release Nathan Eovaldi, Two Others
The Yankees have released veteran right-hander Nathan Eovaldi, per a club announcement. Also cut loose were southpaw Joe Mantiply and righty Nick Rumbelow. All three pitchers were designated for assignment ten days ago, and obviously no trades or claims were in the offing.
With the move, the 26-year-old Eovaldi will be available to the highest bidder for the first time in his career. It’s surely not how he envisioned reaching free agency — Tommy John and flexor tendon surgery made him a clear non-tender candidate in his final year of arbitration eligibility — and he won’t exactly be lining up a monster payday. But there figure to be plenty of interested teams given his intriguing pitching arsenal and young age.
It’s not yet clear what kind of deal Eovaldi will seek. Some players elect to rehab on their own and then throw before signing, as reliever Greg Holland is doing at present. Others ink multi-year deals that lock in some guaranteed money but provide upside to the signing team, as pitchers such as Kris Medlen have done in recent years.
It’s at least somewhat surprising that New York released Mantiply. He had been claimed off waivers just ten days before he was designated, seemingly suggesting that the organization hoped he’d be a candidate to be stashed upon his removal from the 40-man roster. Instead, the 25-year-old will hit the open market.
Rumbelow also just turned 25. He moved quickly through the minors and had a solid debut in the majors in 2015. But he went down early in the 2016 season and ultimately underwent a TJ procedure of his own. Rumbelow figures to draw interest from organizations intrigued at the possibility of gaining cheap control over a useful reliever in the event that his rehab is successful.
Reds Claim Juan Graterol, Gabriel Guerrero Off Waivers
The Reds have claimed catcher Juan Graterol off waivers from the Angels and claimed outfielder Gabriel Guerrero off waivers from the Diamondbacks, the team announced today. In order to clear room on the 40-man roster, the Reds have designated right-hander Keyvius Sampson and catcher Ramon Cabrera for assignment.
The 22-year-old Guerrero is the nephew of former Major League superstar Vladimir Guerrero and long rated as one of the top prospects in the Mariners’ system before being traded to Arizona in last year’s Mark Trumbo/Welington Castillo trade. Guerrero posted strong numbers as recently as 2014 in Class-A Advanced — .307/.347/.467 with 18 homers and 18 steals in 530 plate appearances — but his production has plummeted upon reaching the upper levels of the minors. He hit just .223/.258/.346 between his two organizations’ Double-A affiliates in 2015 and struggled similarly this year, hitting .234/.281/.383 between Double-A and Triple-A.
Graterol, 27, made his Major League debut and tallied 15 PAs with the Halos this past season. The former Royals farmhand spent the 2015 season in the Yankees organization before inking a minors pact with the Halos last offseason. He’s a career .274/.306/.338 hitter in parts of three seasons (95 games) at the Triple-A level and has halted stolen base attempts at a very strong 38 percent clip in the minors. Baseball Prospectus gives him average pitch-framing grades in the minors as well.
Sampson, 25, pitched 39 1/3 innings with the Reds this year across 18 games — two starts, 16 relief appearances — and logged a 4.35 ERA with 9.6 K/9 against 6.2 BB/9. Control has long been an issue for Sampson, who has walked 53 men, hit two batters and also rattled off seven wild pitches in his 91 2/3 big league innings. The former Padres farmhand pitched well in the minors up through Double-A but began to struggle at Triple-A (5.18 ERA in 231 innings) and clearly hasn’t fared much better in the Majors, where he owns a collective 5.60 ERA.
Cabrera, meanwhile, made his big league debut with the Reds in 2015 and played in a career-high 61 games for Cincinnati this season. The 27-year-old received 185 plate appearances due largely to the season-ending injury sustained by Devin Mesoraco and batted .246/.279/.357 with three homers and 10 doubles. He’s a lifetime .274/.327/.343 hitter at the Triple-A level and could end up elsewhere on waivers, though he’s never excelled at throwing out runners (23 percent in the minors) and draws routinely negative framing marks. From that standpoint, it’s not difficult to see why the Reds felt that Graterol was a superior option to function as the third catcher on their 40-man roster, behind Mesoraco and Tucker Barnhart.
Cardinals Release Brayan Pena
NOV. 28: The Cardinals announced today that they’ve granted Pena his unconditional release.
NOV. 21: The Cardinals announced on Monday that they have designated backup catcher Brayan Pena for assignment in order to clear a spot on the 40-man roster for Brett Cecil, whose four-year contract is now official.
Pena, 35 in January, signed a two-year, $5MM contract to serve as the primary backup to Yadier Molina last offseason but was limited to just 14 plate appearances with the Cardinals due to lingering knee problems that persisted after he underwent surgery back in April. Prior to his injury-marred 2016 campaign, Pena was Cincinnati’s backup catcher (though injuries to Devin Mesoraco increased his role). In 739 plate appearances with the Reds, Pena slashed .263/.313/.339 with five homers and prevented 25 percent of stolen bases attempted against him to go along with slightly below-average framing marks. In parts of a dozen Major League seasons, the veteran Pena is a .259/.299/.351 hitter.
Pena, who is owed $2.5MM by the Cardinals next season, figures to clear waivers and become a free agent (though the team can certainly attempt to trade him before exposing him to waivers). At that point, he’ll be eligible to be signed by any club, and his new team would be on the hook only for the league minimum. Any salary he earns with a new team will be subtracted from what the Cardinals owe him, but St. Louis will be on the hook for at least $2MM to Pena in 2017.
Brewers Claim Steve Geltz, Designate Adam Walker For Assignment
The Brewers announced on Monday that they’ve claimed right-handed reliever Steve Geltz off waivers from the Rays and designated minor league outfielder/first baseman Adam Walker for assignment.
Geltz will head to the Brewers, where former Rays director of player personnel Matt Arnold is now serving as the assistant GM. The 29-year-old who recorded a 5.74 ERA in 26 2/3 innings with Tampa Bay this past season but posted a more impressive 3.03 ERA with better than 10 strikeouts per nine innings during his time at Triple-A. He had a solid season out of the Tampa Bay ’pen in 2015 (3.74 ERA, 8.2 K/9, 3.5 BB/9 in 67 1/3 innings) and has a 4.23 ERA in 104 1/3 innings at the big league level dating back to 2012. Milwaukee has some uncertainty in the bullpen after trading both Jeremy Jeffress and Will Smith at the non-waiver trade deadline this past year, and Geltz will give them an experienced arm to add to the 2017 bullpen competition.
Walker, 25, was claimed off waivers from the Twins last week but proved to have a very brief stay on Milwaukee’s 40-man roster. The former third-round pick has massive power, having homered 58 times across the past two minor league seasons, but he also strikes out at a prodigious clip. Walker punched out an incredible 202 times in 531 plate appearances at the Triple-A level this season (38 percent) and whiffed at a 34.8 percent clip at Double-A in 2015. He also lacks any true defensive position, as he’s played left field recently but is projected by most to ultimately function as a first baseman or DH if he ever breaks into the Majors.
NL East Notes: Sale, Ramos, Marlins, Mets
The Nationals are in a strong position to make a move for White Sox ace Chris Sale, opines ESPN’s Buster Olney (Insider subscription required), and GM Mike Rizzo’s track record only strengthens the case. Olney spoke to a peer of Rizzo who plainly stated that Rizzo “doesn’t make bad trades,” and Olney runs down a list of Rizzo’s best moves to demonstrate that he does come out ahead far more often than he comes up short. Rizzo’s acquisitions of Trea Turner, Joe Ross, Gio Gonzalez, Denard Span, Wilson Ramos, Doug Fister and Yunel Escobar all look anywhere from fair to lopsided in the Nationals’ favor and outweigh the occasional misstep (e.g. picking up Jonathan Papelbon), Olney argues. He also notes that with prospects like Lucas Giolito, Victor Robles, Reynaldo Lopez and Erick Fedde, among others, the Nats have the minor league pieces to make a compelling offer for Sale.
Here’s a bit more from the NL East…
- Speaking of Ramos, the free-agent catcher is now six weeks removed from his reconstructive knee surgery and, as MASNsports.com’s Mark Zuckerman points out, recently tweeted a series of video clips to show where he’s at in his rehab program. The Nationals still remain reluctant to make any kind of long-term offer to Ramos in the wake of his torn ACL and meniscus, Zuckerman notes, but Ramos still has time to be patient and further his rehab before seeking to land the lucrative multi-year deal he covets.
- MLB.com’s Joe Frisaro tweets that the Marlins, like many teams, are electing not to make any significant moves until they see how the ongoing collective bargaining negotiations play out. While Miami and its modest payroll needn’t worry about luxury tax considerations, topics such as draft-pick compensation could certainly impact the team’s decision-making process and the offers that the Marlins would feel comfortable extending. Similarly, the possibility of roster expansion could play a role in determining how the organization wishes to structure its pitching staff moving forward. In a full column, Frisaro lists Doug Fister, Ivan Nova, Travis Wood and Edinson Volquez as speculative fits as well as rebound candidates like Justin Masterson, C.J. Wilson and Jon Niese.
- While Yoenis Cespedes is well-known to be the Mets‘ top priority, MLB.com’s Anthony DiComo writes that they’ll also be looking for at least one veteran reliever at next week’s Winter Meetings. The Mets may also kick the tires on some potential Jay Bruce trade partners, as he doesn’t fit on the same roster as Cespedes all that well. Similarly, Kristie Ackert of the New York Daily News wrote last week that the Mets don’t want both Cespedes and Bruce on the same roster but exercised Bruce’s option as a safety net and could look to trade him if they can manage to retain Cespedes.
Twins Hire Torii Hunter, Michael Cuddyer, LaTroy Hawkins As Special Assistants
The Twins announced on Monday that they’ve hired Torii Hunter, Michael Cuddyer and LaTroy Hawkins as special assistants in the team’s baseball operations department. (La Velle E. Neal III of the Minneapolis Star Tribune reported last week that the trio would likely be hired in that very role.) Each of the three will be in Spring Training this year and will serve “as a resource for players and coaches in the mental and fundamental aspects of the game,” according to a team press release. The trio will also be visiting Minnesota’s minor league affiliates throughout the season, where they’ll work in an instructional capacity with the team’s young talent. Hunter, Cuddyer and Hawkins will also work with Twins executives and coaches “to ensure development in player understanding of culture, talent evaluation and organizational vision.”
At the introductory press conference for new chief baseball officer Derek Falvey and new general manager Thad Levine, the latter spoke highly about the impact that former Rangers star Michael Young had on the organization upon joining the Texas front office in a similar capacity to the roles that Hunter, Cuddyer and Hawkins will be taking on with the Twins. While both Falvey and Levine were billed as more modern, statistically savvy executives to help bring the Twins up to speed in that department, the duo also emphasized the importance of veteran leadership and organizational culture in their first formal sit-down with the Twin Cities media. Today’s hirings certainly mesh with those principles.
Each of the three now-former players has retired within the past year, and each was a mainstay on the Twins’ roster at one point in his career. Hunter played parts of 12 seasons with the Twins, beginning with a one-game cameo in 1997. From that point through the 2007 season, Hunter won seven Gold Gloves and made a pair of All-Star Games. He cemented himself as one of the most productive Twins in franchise history along the way, and upon reaching free agency for the final time, elected to sign a one-year deal with the rebuilding Twins to play out the final season of his illustrious career back where it all began.
Cuddyer was a teammate of Hunter’s for most of that first run and enjoyed his own 11-year run with the Twins to open his career before testing free agency following the 2011 season. Cuddyer was a member of each of the Twins’ six American League Central Division Championships from 2002 through 2010 and drew praise in Minnesota, Colorado and New York for his clubhouse leadership as a player before retiring last winter.
Hawkins, whose hiring was first reported by Neal more than a week ago, spent the first nine seasons of his career in a Twins uniform after being drafted by the Twins in the seventh round back in 1991. He struggled as a starter for more than half of that tenure but blossomed as a reliever in the final four years of his time with Minnesota, serving as a dominant setup man for the first two of the team’s division titles.