Padres Sign Matt Carpenter
2:00pm: The Padres have officially announced the signing.
12:52pm: The Padres added some punch to their lineup Tuesday, reportedly agreeing to a two-year, $12MM contract with veteran infielder/outfielder Matt Carpenter. Carpenter, a client of SSG Baseball, can opt out of the contract after the 2023 season by declining a 2024 player option. The contract pays Carpenter a $3MM signing bonus and $3.5MM salary for the 2023 campaign, and he’ll have to decide on a $5.5MM player option next winter. He can also reportedly earn $500K bonuses for reaching each of 300, 350, 400, 450, 500 and 550 plate appearances in both seasons of the contract.
Carpenter, who turned 37 years old last month, enjoyed one of the more remarkable rebound campaigns in recent memory this past season. A three-time All-Star with the Cardinals, Carpenter looked to be on the downswing when he posted a combined .176/.313/.291 batting line in 418 plate appearances with St. Louis from 2020-21.
Last offseason, Ken Rosenthal of The Athletic detailed the manner in which Carpenter reinvented himself, taking a data-driven approach to hitting and enlisting feedback from the likes of Joey Votto, Matt Holliday and a private hitting coach as he revamped his swing and his entire approach at the plate. The Rangers were intrigued enough to sign him to a minor league contract.
We often see stories of veterans making changes late in their careers, but few have found the level of success enjoyed by Carpenter. After hitting .275/.379/.613 in 21 games with the Rangers’ Triple-A affiliate, Carpenter was released by Texas (oops) and signed a Major League deal with the Yankees, for whom he posted a borderline comical .305/.412/.727 slash. Carpenter mashed 15 home runs in just 154 plate appearances, and while he was surely aided to an extent by the dimensions of Yankee Stadium, he still popped six of those round-trippers and batted .253/.333/.506 on the road.
Simply put — and in rather stunning fashion — Carpenter was baseball’s best hitter on a rate basis in 2022 (min. 100 plate appearances). He led all of baseball in slugging percentage, isolated power (slugging minus batting average) and wRC+ (217), ranked second to only Aaron Judge in terms of on-base percentage, and posted the 12th-best batting average of any player in the game. Carpenter’s rate of “barreled” balls (as defined by Statcast) was elite, and his average exit velocity and hard-hit rate both clocked in comfortably north of the league average. There’s no realistic way to expect him to sustain that pace, but Carpenter has clearly put himself back on the map as a viable big league slugger.
Unfortunately for both team and player, the revitalized Carpenter fouled a ball into his foot in early August, resulting in a fracture that wiped out the remainder of his regular season. A predictably rusty Carpenter jumped directly back onto the Yankees’ playoff roster but went just 1-for-12 with an alarming nine strikeouts between the ALDS and the ALCS.
With the Padres, Carpenter becomes the favorite for DH work, though the Yankees played him at both corner infield slots and in both corner outfield positions in 2022. He’s also logged more than 1900 innings at second base in his career, though defensive metrics on his limited work there in 2021 were unsightly, to say the least. Still, he could potentially serve as an option there in an emergency.
The agreement with Carpenter pushes the Padres to more than $246MM in actual cash payroll for the 2023 season and bumps their luxury-tax ledger to nearly $267MM, as projected by Roster Resource. The Padres are already well into the second tier of penalization and, given that they’re entering their third straight season over the luxury line, are being taxed at a 62% rate on every dollar in the second bracket ($253MM to $273MM). As such, Carpenter will cost them an additional $3.72MM in taxes for the 2023 campaign.
AJ Cassavell of MLB.com first reported the two sides had agreed to a deal with a 2024 player option. Ken Rosenthal of The Athletic reported the terms and financial details (Twitter links).
Padres, Pedro Severino Agree To Minor League Deal
The Padres are in agreement on a split contract with catcher Pedro Severino, reports Robert Murray of FanSided (Twitter link). The deal will pay him $1.95MM if he’s in the majors and contains an additional $550K in performance bonuses, according to Murray. Severino will not secure an immediate spot on the 40-man roster, according to Jeff Sanders of the San Diego Union-Tribune.
Severino, 29, has appeared in the majors in each of the past eight seasons. He broke in as a depth player with the Nationals, suiting up in 35 combined games between 2015-17. The backstop got a fair amount of action over the next four seasons, which he split between the Nats and Orioles. While he struggled mightily during his final season in Washington, he posted respectable offensive numbers for a catcher during his three years in Baltimore.
From 2019-21, Severino hit .249/.315/.397 through 938 plate appearances. He connected on 29 home runs with roughly league average strikeout and walk numbers. Nevertheless, the Orioles non-tendered him in lieu of a projected $3.1MM arbitration salary last offseason.
While partially motivated by the forthcoming arrival of Adley Rutschman, the O’s decision also reflected Severino’s defensive shortcomings. Public metrics have pegged him as a well below-average defender behind the dish. He routinely rates as a worse than average pitch framer, per Statcast, which pegged him as 10 runs below par in that regard in 2021. Severino was behind the plate for 10 passed balls and 66 wild pitches in 883 innings during his final season with the Orioles. That was the second-highest total in MLB in both categories, and while the pitching staff surely shoulders some of the responsibility, it didn’t reflect especially well on his work as a receiver.
After being cut loose by Baltimore, he caught on with the Brewers on a $1.9MM free agent deal. Before the season started, Severino tested positive for the performance-enhancing drug Clomiphene. He attributed the result to an unintentional byproduct of fertility treatments he’d undergone in the Dominican Republic.
Severino was suspended 80 games. In the immediate aftermath of that ban, Milwaukee acquired Víctor Caratini from the Padres to pair with Omar Narváez. The Brewers reinstated Severino in July, but he appeared in just eight games as the team’s #3 catcher before being designated him for assignment. He went unclaimed on waivers and played out the season at Triple-A Nashville, where he hit .308/.349/.496 with four homers over 126 plate appearances.
The right-handed hitter qualified for minor league free agency at year’s end. He finds a new landing spot in San Diego, the fourth organization of his career. The Friars presently have Austin Nola, Luis Campusano and Brett Sullivan (coincidentally part of the trade package for Caratini) as backstops on the 40-man roster. Severino slides in behind that group as a depth option.
Dodgers, Padres Among Teams Pursuing Seth Lugo
Former Mets righty Seth Lugo has drawn interest from a wide range of clubs this winter, hoping to land an opportunity as a starting pitcher wherever he signs. Jon Heyman of the New York Post reports that the Dodgers and Padres are the likeliest landing spots at this point, though the Nationals have been involved to a lesser degree. Ken Rosenthal and Fabian Ardaya of The Athletic, meanwhile, reported over the weekend that the Dodgers are in the mix for Lugo and would indeed likely build him up as a starter.
Between Los Angeles and San Diego, the latter has a clearer path to rotation innings, if the Padres indeed have interest in giving Lugo a look as a starting pitcher. Joe Musgrove, Yu Darvish, Blake Snell and Nick Martinez are expected to occupy the top four spots in the rotation, but the No. 5 spot is generally unsettled. Former top prospect Adrian Morejon seems the likeliest option, but Ryan Weathers, Pedro Avila and Jay Groome are all on the 40-man roster as well.
Over in Los Angeles, it’s a slightly more crowded situation. Clayton Kershaw re-signed on a one-year deal, rejoining Julio Urias, Tony Gonsolin and Dustin May in a projected rotation that was largely rounded out by the Dodgers’ recent signing of Noah Syndergaard. That said, both May and Gonsolin missed substantial time due to injury in 2022. May missed the first three-plus months recovering from 2020 Tommy John surgery, while Gonsolin was slowed late in the year by forearm troubles. He still made 24 starts and tallied 130 1/3 innings, but May logged just 30 regular-season frames and will probably have his workload monitored. Prospects like Ryan Pepiot, Bobby Miller and Michael Grove could provide depth even without an additional veteran signing, though.
As for the Nats, while Heyman suggests they’re no longer prominent players for Lugo, he’d be a similar signing to their recent addition of Trevor Williams. Beyond the fact that both Williams and Lugo pitched for the Mets this past season, both have been used as relievers recently but carry a starter’s repertoire, making them intriguing buy-low options in that regard. That said, the Nats now have Stephen Strasburg, Patrick Corbin, Williams and youngsters MacKenzie Gore, Josiah Gray and Cade Cavalli all as rotation options.
Lugo, 33, has been shuttled between the Mets’ rotation and bullpen multiple times in his career but has been primarily a reliever in 2021-22. He’s notched a solid 3.56 ERA with a 26.6% strikeout rate, 7.9% walk rate and 44% ground-ball rate in that time, averaging 94.4 mph with his fastball and generally sitting at or near the top of the league in terms of spin rate on his curveball. More broadly, Lugo has long been a quality member of the relief corps in Queens; he’s totaled exactly 300 innings out of the bullpen and boasts a 2.91 ERA in that time.
That said, Lugo has a four-seamer, sinker, curveball, slider and seldom-used changeup — a deep arsenal for a relief pitcher that could lend itself to a return to the rotation. He was hit hard working out of the rotation in the shortened 2020 season, but Lugo has a 4.35 ERA in 194 career innings as a starter. He’s missed more bats out of the bullpen, as one might expect, but his walk rate as a starter is slightly better than as a reliever and Lugo’s opponents haven’t seen dramatic spikes in production when facing him for a second or even third time in a game.
In addition to the Dodgers, Padres and Nats, Lugo has also reportedly drawn at least some degree of interest from the Angels, Red Sox and Tigers.
Padres, Max Schrock Agree To Minor League Deal
The Padres have agreed to a minor league contract with free-agent infielder Max Schrock, reports Jon Morosi of MLB.com. The Icon client received an invitation to Major League Spring Training.
Shrock, 28, has spent parts of three seasons in the Majors, batting a combined .236/.292/.359 with four homers, seven doubles, a pair of triples, a 20.2% strikeout rate and a 5.1% walk rate in 237 trips to the plate between the Cardinals and Reds. The lefty-swinging Schrock has played second base, all four corner positions and even tossed a few innings of mop-up relief in his big league career thus far, though second base has been far and away his most frequent position (with third base the only other spot he’s seen more than occasional playing time).
Though he had a rough stretch in his first look at Triple-A as a 23-year-old back in 2018, Schrock has been productive there in 2019, 2021 and 2022; in that trio of Triple-A seasons he’s slashed .284/.354/.411 through 514 plate appearances.
The Padres’ starting infield is likely set, with Manny Machado at third base, Xander Bogaerts at shortstop, Ha-Seong Kim at second base and Jake Cronenworth likely sliding to first base. Fernando Tatis‘ Jr.’s eventual return will further deepen that mix, either pushing Kim to a utility role or creating a carousel where an infielder is slotting in at designated hitter most days. That said, the Padres’ bench is lacking in veteran options with MLB experience, so there could be some backup roles up for grabs. In that sense, Schrock’s experience at multiple spots and his left-handed bat (on a team with more righty-swinging starters) could work to his benefit.
Padres Were Finalists For Chris Bassitt
Chris Bassitt agreed to a three-year, $63MM deal with the Blue Jays earlier this week, but Jon Heyman of The New York Post reports that the Padres were in on the bidding and were one of the finalists. It’s not known if they made a formal offer or what it looked like, but the fact that they were somewhat close is nonetheless noteworthy.
The Padres were never really a financial powerhouse in the baseball world but they have changed that reputation in the past few years. They had never run an Opening Day payroll reaching $110MM, per Cot’s Baseball Contracts, until they shot up to $174MM in 2021 and $211MM in 2022, effectively doubling their previous franchise highs. It appears that we still don’t know where their limit is, as they have continued spending this winter.
After aggressive overtures to Aaron Judge and Trea Turner were turned down, the club pivoted and gave Xander Bogaerts a deal worth $280MM over 11 years. That’s brought the club’s payroll up to $235MM for next year, per Roster Resource, already more than $20MM beyond last year’s mark.
Perhaps more importantly, the club’s competitive balance tax figure is at $255MM, already beyond the second luxury tax tier of $253MM. The Padres paid the CBT in both 2021 and 2022, setting them up to be third-time payors in 2023. There are escalating penalties for teams that pay in consecutive seasons, with the Padres already looking at a 50% tax on all spending beyond $233MM with greater penalties at the three subsequent tiers that go up in $20MM increments. Going beyond $253MM, which they are already lined up to do, comes with a 62% tax while going beyond $273MM would come with a 95% tax hit and see their top pick in next year’s draft moved back ten spots.
We don’t know what kind of offer the Padres made to Bassitt, but if it was competitive enough to get near what he accepted from the Jays, it was likely at least near the $20MM range in terms of average annual value. That shows that the club has at least some willingness to add that kind of money to their payroll and CBT figure. Signing Bassitt, or any other player, to a $20MM salary would lead to the Padres also paying over $12MM in taxes.
If they do have that kind of money to spend, the fact they are considering a rotation upgrade is not surprising. They have a strong front three in Joe Musgrove, Yu Darvish and Blake Snell, but the back end is a bit less certain. The club re-signed Nick Martinez, who began 2022 in the rotation but was eventually bumped to the bullpen, where he proved to be more effective. He posted a 4.30 ERA as a starter and a 2.67 as a reliever. There’s also Adrian Morejon, though he’s an unknown commodity after undergoing Tommy John surgery in April of 2021. He returned in 2022 and tossed 34 innings over 26 relief appearances, which is encouraging but might make it hard for him to suddenly jump to 150 innings or more next year. There’s also the long-term picture to consider, as both Snell and Darvish are set to reach free agency after 2023, leaving Musgrove as the only true building block of the rotation. Adding a reliable starter makes plenty of sense for now and for the future.
Though Bassitt got away, the Padres still have options in free agency. If they truly want to go wild with the spending, Carlos Rodón is the top free agent pitcher available. Aside from him, other options include Nathan Eovaldi, Noah Syndergaard, Michael Wacha, Corey Kluber, Drew Rucinski, Johnny Cueto, Drew Smyly and others.
Padres, Anderson Espinoza Agree To Minor League Deal
The Padres are in agreement with right-hander Anderson Espinoza on a minor league contract, reports Jeff Sanders of the San Diego Union-Tribune. The Friars have also agreed to non-roster pacts with outfielder Preston Tucker and reliever Drew Carlton, Sanders reports (Twitter link).
Espinoza returns to an organization where he spent a half-decade. Acquired from the Red Sox in the 2016 deadline deal that sent Drew Pomeranz to Boston, Espionza was regarded as a possible top-of-the-rotation starter at the time. Baseball America named him the #1 prospect in the San Diego system the following winter. Unfortunately, a series of injuries prevented the 6’0″ hurler from getting a chance to make good on that immense promise. Espinoza felt some elbow soreness at the start of the 2017 season, and he underwent Tommy John surgery. After two years of rehab, he suffered another elbow injury that required a second TJ procedure.
The successive surgeries cost him a staggering four years of game action, as he didn’t throw a single professional pitch from 2017-20. Midway through the ’21 campaign, San Diego dealt him to the Cubs for Jake Marisnick. Espinoza closed out the 2021 season in Double-A, but he briefly got to the majors for the first time this year.
Through seven relief appearances, he worked his first 18 1/3 MLB innings. He allowed 11 runs on 14 hits and a staggering 16 walks, and his work in the minors wasn’t much better. Between Chicago’s top two affiliates, Espinoza pitched to a 7.55 ERA in 70 1/3 frames. He fanned a decent 24.6% of opponents but walked a massive 13.9% of minor league batters faced. At year’s end, the Cubs placed him on waivers. He went unclaimed and qualified for minor league free agency.
Espinoza is certainly no longer regarded as an elite young talent, but there’s no harm for the Padres in rolling the dice to see if he can better hone his strike-throwing as he moves another year removed from the devastating series of injuries. He’s yet to turn 25 despite having been a well-known prospect for nearly a decade. The Venezuela native averaged just under 94 MPH on his fastball during his MLB work with the Cubs, relying on a low-80s breaking ball as his top secondary pitch.
Tucker, the older brother of Astros star Kyle Tucker, is a former Astros outfielder himself. He hit .222/.281/.403 in 221 MLB games with Houston, Atlanta and Cincinnati from 2015-18. After three seasons in South Korea, Tucker returned to the U.S. on a minor league deal with the Braves in May. The 32-year-old had a decent showing with their top affiliate in Gwinnett, hitting .267/.347/.426 in 75 games.
Carlton, 27, has made nine relief appearances with the Tigers over the past two seasons. The right-hander has allowed six runs in 12 1/3 career innings, striking out eight with four walks. The Florida State product doesn’t throw especially hard, sitting in the low 90s with his fastball. He’s shown excellent control throughout his minor league tenure, though, and he punched out an above-average 27.3% of opponents through 58 1/3 innings with Detroit’s top affiliate in Toledo this year. Owner of a 3.90 ERA in 110 2/3 innings at the top minor league level, he’ll presumably battle for a bullpen spot in Spring Training.
Three Possible Landing Spots For Christian Vázquez
Fresh off his second World Series title, long-time Red Sox catcher Christian Vazquez is a free agent for the first time in his career. With Willson Contreras inking a five-year, $87.MM deal with the Cardinals, Vazquez is arguably the top free agent catcher left on the board, rivaled by Sean Murphy in the trade market. This position has left Vazquez with a lengthy list of suitors, including the Twins, Padres, D-Backs, Guardians, Diamondbacks, and Giants.
Vazquez, a career .261/.310/.386 hitter, had a two-sided 2022 season. In Boston, the righty hit .282/.327/.432 with eight homers and 20 doubles. However, after being traded to Houston, Vazquez struggled, hitting a weaker .250/.278/.308 while splitting time with Martin Maldonado. Nevertheless, from 2019-2022, the backstop hit a solid .271/.318/416 (95 wRC+). Additionally, Vazquez has been solid behind the plate, having thrown out 34% of runners since his debut in 2014, ranking in the 71st percentile pop time to second base during the 2022 season, and has drawn plus framing marks from publicly available metrics via Statcast, FanGraphs, and Baseball Prospectus. With this solid season and a strong overall career, MLBTR predicts that Vazquez will earn a contract in the three years, $27MM range.
As for Vazquez’s free agent preferences, the 32-year-old has told reporters that a starting role and contending are at the forefront when determining his next home. With those two factors in mind, along with his strong history, here are some potential landing spots for the veteran.
Beginning with one of the more active teams during this year’s free agent period: the Padres. San Diego primarily relied on a tandem of Austin Nola and Jorge Alfaro in 2022, with Friars’ backstops hitting a combined .249/.303/.350 with a middle-of-the-pack wRC+ (88). With the Padres opting to non-tender Alfaro, the club is currently projected to start the 2023 season with Nola and Luis Campusano behind the dish. Neither player should necessarily be a roadblock to surveying the market for a team as aggressively motivated to win now as San Diego.
More importantly, the Padres have not been afraid to open their wallet, most recently signing former Red Sox teammate Xander Bogaerts to a colossal 11-year, $280MM deal. San Diego also offered Aaron Judge $400MM and Trea Turner $342MM, before the two players signed with other clubs. A win-now team searching for a catching upgrade, the Padres appear a logical candidate to pique Vazquez’s interest while simultaneously outbidding competitors.
Cleveland is another potential landing spot for the veteran, with Austin Hedges reaching free agency and leaving the unproven Bryan Lavastida and Bo Naylor as the only backstops on the 40-man roster. Naylor is a highly-regarded prospect, but turning everyday reps behind the dish over to a 23-year-old could be too risky for a team looking to defend their AL Central title. The Guardians posted the second-lowest combined wRC+ for catchers last season (55), utilizing a soft-hitting duo of Austin Hedges and Luke Maile, although Hedges is regarded highly for his defensive work. Vazquez’s addition would improve offensive output while maintaining a high defensive level for the club.
The Guardians have already made one significant free agent addition this offseason, signing Josh Bell to a two-year, $33MM deal with an opt-out after the first season. The team also made an offer for first baseman Jose Abreu, but couldn’t reach the $60MM threshold that the Astros closed in on. A team known for their low budget, the Guardians are also heavily involved in the Murphy trade market but will likely remain a player for Vazquez’s services if his price is not out of their comfort zone.
A third potential (wildcard) team for the backstop is a former AL East rival, the Tampa Bay Rays. Tampa Bay primarily relied on Francisco Mejia, who was widely considered one of baseball’s top minor leaguers, ranked as high as fifth in Baseball Prospectus’ top-100 prospect ranking prior to the 2018 season, during the 2022 season. However, after a solid 2021 season (.260/.322/.417), Mejia struggled in 2022, hitting a meager .242/.264/.381. Poor performance and injuries led Tampa Bay to acquire Christian Bethancourt from Oakland in early July. Bethancourt would perform marginally better, hitting .255/.265/.436 in 151 plate appearances with the Rays.
As a team, Rays’ catchers hit a combined .224/.248/.373 with a below-average wRC+ (78). Vazquez represents an offensive upgrade to these two players, albeit with a higher price point than both Bethancourt and Mejia, who are both on their rookie deals. Nevertheless, Mejia still has one MiLB option remaining, and Vazquez and Bethancourt have experience, although limited, in the field with Bethancourt playing 249 innings at first base during the 2022 season. Admittedly, this landing spot is the least likely of the three.
While the Padres and Guardians present more logical landing spots for Vazquez, competitive teams, like the Rays, may look to shuffle their roster to add a proven veteran backstop talent. Minnesota recently offered Vazquez a contract, and there are sure to be many teams involved in free agent discussions with the catcher as the offseason continues.
Chaim Bloom Discusses Xander Bogaerts, Rafael Devers, Extensions
Xander Bogaerts signed with the Padres on the final day of the Winter Meetings, agreeing to a huge 11-year, $280MM deal. Despite speculation that the Red Sox were coming closer to re-signing the shortstop, “that was definitely not what our impression was throughout the day and even the day before,” Sox chief baseball officer Chaim Bloom told MassLive.com’s Chris Cotillo.
The signing officially ended Bogaerts’ time with the Red Sox, a tenure that began when Bogaerts was an international signing in August 2009 and lasted through 10 Major League seasons, two World Series championship teams, and four All-Star appearances for the shortstop. Bogaerts signed a six-year, $120MM contract extension with the Sox prior to the 2019 season, but chose to exercise his opt-out clause after the first three years of the extension, thus paving the way for his departure from Boston and his new home in San Diego.
Last spring, the Red Sox both signed Trevor Story to a long-term free agent deal and offered Bogaerts only a one-year extension (worth $30MM) on his contract, which were both widely interpreted as signs that the Sox weren’t counting on Bogaerts remaining beyond the date of his opt-out. Bloom publicly said several times that the Red Sox did indeed want to retain Bogaerts, and reiterated that stance even in the aftermath of the shortstop’s deal with the Padres.
“We wouldn’t have said that if we didn’t mean it,” Bloom said. “I think it became clear to us as things went on that this [Bogaerts’ price tag] was going to go to a point that we just weren’t, irrespective of how we prioritize things, it just wasn’t something that we should do. It’s hard because of how much we love him. But it’s just the reality of the situation.”
In fairness to the Red Sox, nobody expected Bogaerts to receive anything near a $280MM contract, and it is understandable why the organization didn’t want to reach that far. That said, reports suggested the Red Sox offered Bogaerts six years and around $160MM, which didn’t match the seven-year, $189MM deal MLBTR projected Bogaerts would land on the open market. In addition, the Sox have obviously had exclusive negotiating rights with Bogaerts for years, and could’ve more aggressively pursued an extension at any point before Bogaerts reached free agency.
Bogaerts joins Mookie Betts and Jon Lester as homegrown Red Sox stars who left the team (Bogaerts in free agency, Betts and Lester in trades) after extension talks didn’t materialize into a longer-term deal. Of course, as Bloom noted, Bogaerts did already ink one extension with the team, putting him “at a different place in his career.” The Sox have signed relatively few extensions in recent years and only three extensions since Bloom took over the front office following the 2019 season. Bloom told Cotillo that the team may change how it approaches extension candidates, perhaps with more of a focus on extending players to contracts before they reach salary arbitration.
“Anytime you have a situation where you have a homegrown player who wants to be here and we want him here and it doesn’t happen, I think those are fair questions to ask and those are questions we certainly need to ask ourselves,” Bloom said. “We haven’t, as an organization, always found a way to come together in those situations. I think it’s something to think about and assess.”
Rafael Devers presents the next big question for the Red Sox in this regard, as the star third baseman is set to reach free agency following the 2023 season. In a separate piece, a source close to Devers told Cotillo that “Bogaerts’ decision would not make it more likely that Devers would want to leave Boston,” as much as Devers would be “disappointed” at no longer playing with his longtime friend.
Bloom reiterated his team’s interest in keeping Devers, saying that “Raffy, for sure, is somebody we want to build around.”
“I’ve said it, and I know we haven’t demonstrated this to the degree that we’ve hoped to, but we believe in building around homegrown talent. You want to do it in the right way,” Bloom said. “It’s certainly something we want to do as often as we can….[Devers] has been somebody that we love and want right at the center of everything we hope to accomplish, obviously in 2023 but more importantly, in the years beyond, because those are the years he’s not under our control. We’re hoping to change that.”
Padres Still Want Starter, Corner Bat
Even after adding Xander Bogaerts to an eleven-year, $280MM deal, the Padres are looking for more, and Jon Heyman of the New York Post reports they’re keen to bring in a starting pitcher and a corner bat.
The Padres have been busy this winter, signing Bogaerts and getting deep in the markets of Aaron Judge and Trea Turner before they signed elsewhere. They have seen starters Mike Clevinger and Sean Manaea depart in free agency (although Manaea is still available), while they weakened their depth a bit by dealing MacKenzie Gore to Washington in the Juan Soto trade, so it makes plenty of sense that they’ll now focus on bolstering their rotation.
Yu Darvish, Joe Musgrove and Blake Snell are currently lined up in San Diego’s rotation, while the re-signed Nick Martinez is expected to start the 2023 season there too (although he wound up in the bullpen after ten starts in 2022). Adrian Morejon is an option as a starter, but he only appeared out of the bullpen last year after returning from Tommy John surgery. There’s every chance the Padres still view him as a starter, but given he has two options remaining it wouldn’t hurt for them to add another starter to give them another option.
The Padres luxury tax payroll is projected at around $254MM now, just shy of the second tier of luxury tax penalties. That’d seem to make it unlikely that they’d pursue someone like Carlos Rodon – the top free agent starter available – but then again, it’d be foolish to rule San Diego out of anything at this point. The Padres did meet with Koudai Senga last month, and were reported to have interest in Seth Lugo as well, but either of those two or options like Nathan Eovaldi and Chris Bassitt could make sense. They could also look to the trade market where someone like Pablo Lopez could be available, but having pulled off some big trades in recent years they may be reluctant to part with more prospects.
A corner bat seems like less of a need for the Padres. It’s not entirely clear how the team will align defensively after bringing in Bogaerts, but there seems a good chance that Fernando Tatis Jr. (when he returns from suspension) and Soto handle the outfield corners, and Manny Machado and Jake Cronenworth take the infield spots, especially after AJ Preller said (via The Athletic) Bogaerts would at least begin as their everyday shortstop. Tatis will return in late-April so they won’t be without him long, but the team may want to rotate some of their starters through the DH spot and so a utility-type free agent addition could make some sense there.
Latest On Padres’ Pursuit Of Aaron Judge
The Padres were known to have made a spirited run at Aaron Judge between their pursuit of Trea Turner and eventual agreement with Xander Bogaerts. Bob Nightengale of USA Today suggested this week the Friars were prepared to put forth an offer around $400MM (Twitter link). Ken Rosenthal of the Athletic wrote they never formally made such an offer, but it’s clear the San Diego front office had at least contemplated a proposal that would have topped the offers made by both the Giants and Yankees.
Jon Heyman of the New York Post added some clarity on the matter last night, reporting the Padres were preparing an offer to Judge that’d have reached or exceeded $400MM over a whopping 14-year term. However, Heyman further hears Major League Baseball would have been prepared to veto such an arrangement if the sides had agreed upon it. Of course, it proved to be a moot point once Judge decided he wanted to return to the only organization he’s ever known.
MLB vetoing a record-breaking contract would’ve made for a fascinating story. The league’s justification for doing so would’ve been the contract length was an artificial means for the team of working around the competitive balance tax. A team’s luxury tax number is calculated by adding the average annual values of their commitments (plus player benefits and teams’ contributions to the pre-arbitration bonus pool). The luxury tax hit of any contract is evenly dispersed over the course of the deal regardless of the actual payout of the salaries or bonuses.
If we assume the Padres’ prepared offer was for exactly $400MM over 14 years, the deal would’ve come with an AAV around $28.57MM. That’s true no matter if the money were evenly distributed, frontloaded or backloaded. A $400MM guarantee would have handily topped the $365MM Mookie Betts received on his Dodgers extension and the $360MM in new money on the Mike Trout deal, establishing itself as the largest guarantee in MLB history. Distributing it over a 14-year term, however, would put the $28.57MM average yearly salary outside the top 20 in history.
A lower-payroll team may prefer to stretch a deal an extra season or two to lower their annual payment, but MLB’s concern is the Padres’ offer would’ve been done specifically as a means of circumventing the luxury tax. The Padres have paid the CBT in each of the last two years, and they’re certain to do so again in 2023. The Padres entered the week with their CBT number for 2023 hovering right around the $233MM base threshold. San Diego is responsible for a 50% tax on their first $20MM above the threshold and 62% of their next $20MM in overages, with further penalties thereafter.
Offering something like the nine-year, $360MM deal to which Judge actually agreed with the Yankees would’ve come with a $40MM AAV that stuck the Friars with approximately $22.4MM in taxes. Conversely, a 14-year, $400MM offer would’ve come with an additional tax bill around $15.3MM. The lower number on that contract would’ve also come into play if San Diego had made further additions to the payroll, with the Friars starting at a lesser CBT figure when calculating the tax hit associated with their subsequent pickups.
It’s understandable MLB would be wary of a blatant workaround to the luxury tax, which is designed to disincentivize spending among teams with already large payrolls. Yet it’s also somewhat curious to hear they’d have stepped in to veto that kind of proposal to Judge considering some large-market teams have already increasingly taken to a variation of this strategy: longer-term deals at comparatively lesser annual salaries to lower the CBT obligations.
The Padres themselves pivoted to something very similar the day after Judge turned them down. Bogaerts’ $280MM contract was spread over 11 years. The week before that, the Phillies (another team that paid the CBT in 2022 and is likely to do so again next year) stretched to 11 years to land Turner on a $300MM deal. A few years ago, Philadelphia went to 13 years to ink a then-record $330MM free agent deal for Bryce Harper.
Those commitments of more than a decade for superstars are the most obvious examples of stretching contracts longer than most had anticipated, but one could argue it sometimes occurs for the next tier of player as well. Brandon Nimmo was generally expected to land a five or six-year guarantee this offseason. The Mets went to eight years and $162MM, dropping the AAV to just above $20MM but pushing the total guarantee beyond the anticipated range. Two offseasons ago, the Yankees stretched a $90MM guarantee over six seasons (a $15MM annual salary that was below general expectations) for DJ LeMahieu, who was entering his age-32 season at the time. MLB has approved or is expected to approve — Nimmo’s deal has technically not yet been announced — all those contracts. The top free agent starter remaining, Carlos Rodón, is reportedly looking for a seven-plus year deal this offseason. It’s possible large-market teams will view a lengthier term as more desirable, if Rodón correspondingly drops his ask on per-year salary, for this reason.
Clubs have also built in workarounds for luxury tax purposes on contracts for role players via low-cost player options. Player options are treated as guaranteed money for CBT purposes. Tacking on a player option at the end of a contract thus adds an extra year with regards to determining its average annual value. Frontloading a contract and then attaching a lower-salaried player option at the end serves as an effective tax end-around as well. The player receives the bulk of the money on the deal during the guaranteed seasons and generally anticipates declining the player option. Injuries or underperformance could change that calculus, but the understanding of all involved at the time of the deal is that one of the purposes of the option year is to lessen the AAV. The Mets (Taijuan Walker), Astros (Jake Odorizzi) and Yankees (Justin Wilson) have all handed out some variation of this contract in recent years. In each instance, MLB has accepted that transaction.
Of course, the league isn’t in position to preemptively create fixed rules to govern how much tinkering with the AAV constitutes luxury tax manipulation. MLB is left to evaluate things on a case-by-case basis. A 13-year deal for Harper that runs through his age-38 season was acceptable, as was an 11-year pact that goes through Turner’s age-40 campaign. A 14-year contract to take Judge through his age-44 season would evidently not have passed muster.
The Judge situation at least raises the possibility of MLB intervening on future deals it considers to be circumventions of the tax. That’d have the potential to lead to a battle with the union. The 2017-21 collective bargaining agreement mandated that all contracts be submitted to the Commissioner’s Office for approval. If the league rejected an agreed-upon deal, the MLB Players Association would have the right to file a grievance challenging the ruling. The new CBA has not yet been released in full, but there’s no indication that provision was altered. It won’t end up mattering in this instance with the defending AL MVP headed back to the Bronx, but it’s an interesting subplot to the negotiations for this winter’s top free agent.