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Dead Money: Paying Players To Play Elsewhere

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Eating money in trades or by releasing players is far from an ideal business practice, but sometimes it's a necessary evil. The Mets believe they are better off paying Oliver Perez and Luis Castillo a combined $18MM not to be on their team this year, and released the two just last month. David Wharton of The Los Angeles Times wrote about the concept of "dead money" today, speaking to Dodgers GM Ned Colletti, sports economist J.C. Bradbury, and Scott Boras.

With some help from Cot's Baseball Contracts, let's look at the teams that are paying players to be anywhere but on their roster this season…

This doesn't include money the Braves owe Kenshin Kawakami ($7.4MM) or the Yankees owe Kei Igawa ($4MM). Both Japanese imports remain in the organization, but they've since been banished to the minor leagues. It also doesn't include all the money the Mets famously owe Bobby Bonilla for the next two decades.

Yuniesky Betancourt is the only player collecting paychecks from three different big league teams at the moment, but Carlos Silva could join him if he's called up by the Yankees. Gary Matthews Jr. could also be in that mix if he catches on somewhere this summer.

Discussion: Los Angeles Dodgers

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Ever since the news of Frank and Jamie McCourt's divorce proceedings broke last October, Dodgers fans have been wondering (and dreading) if the ownership dispute would impact the team's operations.  The first two months of the offseason have been quiet enough in L.A. to make it look like the Dodgers are themselves also still waiting to see how things will play out with the McCourts and have thus been in a holding pattern in regards to next season's payroll.

This isn't to say that Los Angeles hasn't been active.  The Dodgers traded Juan Pierre to the White Sox, were involved in the Roy Halladay sweepstakes, tried to acquire Aaron Harang from Cincinnati and signed utilityman Jamey Carroll.  But, as Ken Rosenthal of Fox Sports pointed out today, the club is playing even-steven with its offseason moves in order to steady the budget.  For instance, the Dodgers saved $8MM over the next two seasons by dealing Pierre, and spent $3.85MM of those savings to sign Carroll.  Acquiring another notable free agent (such as Rosenthal's example of Joel Pineiro) would require L.A. to make another move to free up the cash to sign the right-hander.

We've already seen a bit of penny-pinching from the team this winter when they didn't offer arbitration to any of their free agents, passing on the chance to acquire compensatory draft picks for Type A free agents Orlando Hudson and Randy Wolf out of fear that Hudson or Wolf might accept the offer.  The bright side for Dodgers fans is that the team is at least keeping the payroll stable, rather than shifting into outright cost-cutting mode.  Rosenthal notes that there are no plans to deal any of L.A.'s young stars before their arbitration years — trading the likes of Andre Ethier, for example, would be "counter-productive" given Ethier's reasonable arbitration number and Manny Ramirez's slight decline. 

This stand-pat strategy will force Dodgers general manager Ned Colletti to be creative in filling the holes on a club that has lost the NLCS to Philadelphia in each of the last two seasons.  Rosenthal said that George Sherrill is "a candidate to be traded," but L.A. wouldn't save much money from the deal and getting rid of Sherrill would weaken their bullpen. There is also a need to sign a veteran like Pineiro to anchor the otherwise young starting rotation.

White Sox Acquire Juan Pierre

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FRIDAY, 12:57pm: The Dodgers will obtain Ely and Link to complete the deal, tweets MLB.com's Scott Merkin.

TUESDAY, 11:44am: The Dodgers will choose two pitchers from a list of arms that could contribute in the majors next year, according to ESPN.com's Jayson Stark. The teams will complete the trade on or before January 7th, 2010, according to a Dodgers press release.

11:31am: The Dodgers have officially announced the deal, according to Hernandez. Jon Paul Morosi of FOX Sports hears that John Ely and Jon Link are heading to the Dodgers. The Tigers and Pirates also had interest in Pierre, according to Morosi.

10:43am: The White Sox will pay $3MM of Pierre's salary in 2010 and $5MM of it in 2011, according to ESPN.com's Buster Olney. That means the Dodgers will pay the remaining $10.5MM.

10:28am: Dylan Hernandez of the LA Times says the Dodgers will acquire two players to be named later.

9:52am: The White Sox acquired Juan Pierre from the Dodgers for two minor league pitchers, according to Yahoo's Tim Brown (and confirmed by Ken Rosenthal). The Dodgers will take on roughly half of Pierre's salary. The outfielder has $18.5MM remaining on his deal ($10MM next year and $8.5MM in 2011), so the Dodgers are taking on about $9MM.

Pierre, 32, hit .308/.365/.392 in 425 plate appearances for the Dodgers last year. He stole 30 bases and played well in the outfield, according to UZR (though we don't want to draw sweeping conclusions from 750 innings of work).

The White Sox had shown interest in Scott Podsednik and Brett Gardner, but they appear set with their new addition. If Pierre performs close to last year's levels, the White Sox will have themselves a bargain (depending on the pitchers they give up).

White Sox May Be Finished With Offseason Shopping

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MLB.com's Scott Merkin reports that White Sox manager Ozzie Guillen seems satisfied to stand pat with the current composition of his roster, a decision that would leave Chicago without the everyday DH that seemed to be the club's top priority this winter.

Guillen tells Merkin that he likes the idea of using several different players (such as Andruw Jones, Paul Konerko, Mark Kotsay, Jayson Nix, or even Omar Vizquel) as a designated hitter depending on matchups or, in Konerko's case, to rest him without taking him out of the lineup altogether.

Chicago GM Kenny Williams doesn't sound entirely convinced with this plan, but seems to be willing to acquisece to Guillen on this front.  Williams told Merkin, "I don't want to do anything that conflicts with what my manager wants….Regardless if I think there might be a need for another left-handed bat in middle of the lineup, he's the one in there, and I fully support how he sees the situation fitting and piecing it together."

It's not like the Southsiders haven't been active this offseason — they acquired Mark Teahen and Juan Pierre in trades and signed Jones, Vizquel and J.J. Putz.  But given all of the high-profile designated hitter options on the market this winter, it's safe to say that White Sox fans were counting on a bit more than just Jones and Vizquel as DH upgrades.  Do you think that Williams should, in fact, look to acquire that left-handed bat or do you agree with Guillen and think the Sox roster is fine as it is?

Stark On Halladay, Bradley, Lackey, Gonzalez

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The Blue Jays are still demanding nearly as much for Roy Halladay as they were this summer, according to ESPN.com's Jayson Stark. The Angels, Phillies and Yankees appear to be "the only realistic destinations" for Halladay at this point. The Angels would apparently want Halladay to sign an extension if they traded for him, but the Jays don't appear to be close to dealing their ace away. Here are the rest of Stark's rumors:

  • One GM would be shocked if the Angels don't sign Jason Bay or John Lackey. The Angels haven't shown any indications that they're ready to offer Lackey A.J. Burnett money ($82.5MM).
  • The Yankees are focused on adding a free agent starter and determining whether Johnny Damon will return.
  • If the Cubs and Rays can figure out the money, Milton Bradley could still end up in Tampa Bay.
  • The Red Sox will have a hole at first or third if and when the Mike Lowell deal goes through, but you can count out Adrian Gonzalez. Stark says the Padres just have no motivation to move the hometown slugger.
  • The Red Sox are "clearly infatuated with" Adrian Beltre.
  • Dan Uggla, Francisco Cordero, Luis Castillo, Lyle Overbay, Kerry Wood, Kyle Farnsworth, Gary Matthews Jr., Juan Pierre, Jose Guillen and Eric Byrnes were all being shopped this week.
  • Stark notes that the market for starting pitchers hasn't been bad so far, pointing to Randy Wolf and Andy Pettitte as examples.

Twitter Rumors: Smoltz, Damon, Mulder, Felix, Counsell

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Twitter madness…

  • Surprisingly, Ken Davidoff of Newsday writes of an "increasing expectation around MLB" that the Yankees will eventually re-sign Hideki Matsui.
  • Crasnick talked to one exec who says Scott Boras wants three years and big money for outfielder Rick Ankiel.
  • The Royals talked to the Dodgers about Juan Pierre, writes ESPN's Jerry Crasnick, but the Dodgers would have to eat too much money to make it work.
  • ESPN's Jayson Stark says the Phillies are now looking hard at John Smoltz as a possible "back-of-the-bullpen weapon."  Smoltz's agent apparently told the Phils that the pitcher has no problem with Citizens Bank Park.
  • ESPN's Buster Olney heard "the Yankees are in the process of negotiating with Johnny Damon's camp."  He adds that the Yanks "intend to use market forces to pressure Damon to make a decision quickly."  I'm sure Scott Boras will love that.
  • Brewers GM Doug Melvin plans to visit free agent lefty Mark Mulder in January to discuss a possible contract, says Tom Haudricourt of the Milwaukee Journal-Sentinel.
  • Jon Paul Morosi of FOX Sports says there have been no Felix Hernandez negotiations this week after an initial four-year offer from the Mariners.
  • Dodgers GM Ned Colletti told Dylan Hernandez of the L.A. Times that they'll tender contracts to all of their arbitration-eligible players.  No big surprise, though it's a large group of players.
  • Scott Lauber of the News Journal talked to Phillies GM Ruben Amaro Jr., who said Astros GM Ed Wade stole Brandon Lyon from the Phillies.  The Astros committed three years and $15MM to Lyon despite holes at shortstop and third base.
  • MLB.com's Adam McCalvy says the Brewers upped their offer to Craig Counsell this morning and GM Doug Melvin is confident they'll get it done.  The Reds are still in the mix for Counsell, says MLB.com's Mark Sheldon. 
  • La Velle E. Neal III of the Minneapolis Star-Tribune heard last night that Twins infielder Alexi Casilla is available.

Odds & Ends: Livan, Cameron, Matsui, Mulder

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Time for another round of links…

Twitter Rumors: Capps, Felix, Harden, Pierre

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A fresh batch of Twitter rumors, for those of you with extra-short attention spans…

  • MLB.com's Jenifer Langosch learned that the Pirates plan to tender a contract to Matt Capps.
  • Stubborn Dodgers GM Ned Colletti says he has no regrets about not offering arbitration to Randy Wolf, reports Dylan Hernandez of the L.A. Times.  Hernandez also notes that the Dodgers are considering Ronnie Belliard, Craig Counsell, Juan Uribe, and Jamey Carroll as second base options.  The Reds also like Carroll, says MLB.com's Mark Sheldon.
  • Yahoo's Steve Henson says the Rockies are open to re-signing Jason Marquis at a reduced number (less than the $9.875MM he made in '09).
  • SI's Jon Heyman believes Felix Hernandez is seeking six years and $100MM, while the Mariners are thinking four years plus an option at less than $50MM.  That phrasing makes a possible divide seem larger than it is, since those last two years of the deal would be the most expensive (more than $15MM per year).  At any rate, Shannon Drayer and Mike Salk learned that no numbers have been exchanged on Felix yet.
  • La Velle E. Neal III of the Minneapolis Star-Tribune says White Sox manager Ozzie Guillen wants Mike Redmond to back up A.J. Pierzynski.
  • MLB.com's Steve Gilbert says the Rangers may have interest in arbitration-eligible D'Backs infielder Augie Ojeda.  The Rangers added Joe Inglett off waivers, but were said to still be looking at utility infield candidates.
  • Morosi tweets that Rich Harden is "willing to sign a one-year deal with a lot of incentives."  Will he exceed Brad Penny's $7.5MM base salary?  Morosi names the Red Sox, Yankees, and Mariners as the most serious suitors. 
  • Jon Paul Morosi of FOX Sports says the Tigers have interest in Juan Pierre, and are "looking for a third team to supply the pitcher L.A. needs."  Odd, since the Tigers have more bad pitching contracts than anyone.  The Tigers apparently prefer to unload Carlos Guillen.
  • Dejan Kovacevic of the Pittsburgh Post-Gazette says the Pirates are not interested in bringing back Brian Giles.
  • ESPN's Jayson Stark says the Red Sox "have two or three teams they could trade Mike Lowell to right now" if they'd take a similar contract back.  Looking at our Bad Contract Swap Meet I don't see any obvious matches for one year and $12MM.
  • There's been some tire-kicking with the Phillies and Ron Mahay, writes Andy Martino of the Philadelphia Inquirer. The Red Sox were linked to Mahay by Michael Silverman on Monday.  Martino also says the Phillies met with John Smoltz's agent this morning, "but discussions remain informal."
  • Bob Dutton of the Kansas City Star characterizes the White Sox and Red Sox interest in Coco Crisp as "low-level," but says that's still more than the Royals have shown.  Jon Paul Morosi of FOX Sports says the White Sox would consider Crisp, Mike Cameron, and Marlon Byrd. ESPN's Mike Salk notes that the Mariners spoke to Byrd's agent.
  • Dutton also has the Red Sox eyeing Ryan Shealy on a minor league deal.
  • Ken Rosenthal of FOX Sports names the most asked-about Padres: Heath Bell, Kevin Kouzmanoff, and Adrian Gonzalez (in that order).  He says the Padres are "not hearing anything compelling on Bell."  MLB.com's Corey Brock says about eight teams inquired on Kouzmanoff.  Surprised not to see Kevin Correia mentioned by Rosenthal.  He'd be a great affordable option for a team like the Brewers.  ESPN's Buster Olney heard from rival execs who expect the Padres to get second-line prospects for Kouzmanoff and Correia.
  • The Mets appear to find a Luis Castillo deal unlikely, says Joel Sherman of the New York Post.
  • ESPN's Jayson Stark says the Yankees are shopping their #1 pick in tomorrow's Rule 5 draft, which they acquired for Brian Bruney.  If they don't trade the pick, Yahoo's Steve Henson says the Yankees could use it on pitcher Arquimedes Caminero.

Overnight Links: Myers, Castillo, Verlander, Padres

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As we gear up for another long night, here's some links to take a look at if you're still awake:

  • Paul Hagen questions the Phillies' logic when refusing to look at bringing Brett Myers back. The Phils are looking for an inexpensive fifth starter candidate; Myers fits the bill and brings plenty of upside. Do they feel he's just not worth the trouble anymore?
  • Ben Shpigel explains why, in spite of a resurgent season from Luis Castillo, and in spite of the Mets' feeling that his contract is better than that of Milton Bradley, Pat Burrell, Juan Pierre, and Gary Matthews Jr., they're still looking to move him.
  • Michael Rosenberg of the Detroit Free Press feels the Tigers must do whatever it takes to keep Justin Verlander in Detroit for as long as possible. Rosenberg makes the interesting point that with one more dominant season, Verlander could put the Tigers in a similar position that Johan Santana put the Twins, though he concedes that Verlander's not as good. At least not yet.
  • Corey Brock tells us that new Padres GM celebrated his 36th birthday by kicking off the Winter Meetings and fielding calls on about "half a dozen" of his players, including Heath Bell, who could be due as much as $5MM through arbitration. Still, Brock suggests the Padres would prefer to keep Bell.
  • The Phillies payroll for 2010 will likely be around $140MM, says David Murphy. He also quotes Ruben Amaro Jr., implying that Chad Durbin and Clay Condrey will be tendered contracts.
  • Paul Hoynes of the Cleveland Plain Dealer says that the Indians could look to trade Kerry Wood during the Winter Meetings, but then discusses why it might be smarter to wait until midseason.
  • MLB.com's Brian McTaggart feels that Jose Valverde's probable departure is probably for the best, given the economics of the situation. 
  • Danny Knobler at CBS Sports explains why the Pirates would even bother showing interest in Juan Pierre, whom they were linked to last night.
  • Mark Gonzales of the Chicago Sun-Times says White Sox GM Kenny Williams declined to comment on the Roy Halladay sweepstakes, and implies that Hideki Matsui may not be a fit for the South Siders, even if Carlos Quentin moves to right field. Scott Podsednik, however, may still fit.
  • Aaron Gleeman looks at what it means to the Twins to have Carl Pavano back for 2010. Gleeman says Pavano's a better fit than past veteran starters the Twins have tried, as well as a safer bet than signing Jarrod Washburn to multiple years.

Dodgers Notes: Sherrill, Pierre, Payroll, Torre

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Dylan Hernandez of the L.A. Times spoke to Dodgers GM Ned Colletti; here's the latest.

  • Colletti shot down the FOX Sports report that the Dodgers are shopping set-up man George Sherrill.
  • The Dodgers would want pitching in return for Juan Pierre.  The White Sox and one other team are apparently interested.
  • Colletti suggested that, for now, the Dodgers aren't planning on decreasing payroll.
  • Colletti finds it unlikely that the Dodgers will make a signing at the Meetings.
  • Hernandez says the Dodgers "are talking to Joe Torre about extending his contract by one year and having him move into a role in baseball operations in 2012."
  • The Dodgers have had more discussions with Brad Ausmus than with any of their other free agents.
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