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Transaction Analysis

Rangers, Tigers Address Multiple Issues With Fielder-Kinsler Swap

By Tim Dierkes | November 21, 2013 at 8:51am CDT

The Rangers and Tigers shook up their lineups and payrolls Wednesday night, as the Tigers sent slugger Prince Fielder and $30MM to Texas for second baseman Ian Kinsler.  Here's my take from each team's point of view.

Kinsler, 32 in June, slipped offensively to .266/.334/.418 over the last two seasons.  Is he still above average defensively at second base?  A stat like UZR says no, while The Fielding Bible's defensive runs saved says yes.  In fact, The Fielding Bible's panel of ten experts considers Kinsler the sixth-best defensive second baseman in the game, with half of the panel ranking him fourth or better.  Out of the five players who topped Kinsler defensively, he outhit all except Dustin Pedroia and Ben Zobrist in 2013.  Kinsler might not be the player he was in his mid-20s, which is normal, but he's still close to a top ten second baseman.

Kinsler also has four years and $62MM remaining on his contract, and in a sabermetric sense, he has a decent chance of returning that much value.  Wins above replacement puts a large premium on playing a position like second base decently, as it should, but I don't think the market of 29 other MLB teams viewed Kinsler as a $15.5MM player for each of the next four years.  When the market undervalues your asset, the best move is to keep it, but the Rangers have Jurickson Profar.  21 in February, Profar is MLB-ready and highly regarded around the game, and the Rangers intend to slot him in as their regular second baseman.  The upside is huge, but there's no guarantee he'll be as good as Kinsler over the next couple of years.  He will, however, play at the league minimum.

In Kinsler, the Tigers get a second baseman to replace Omar Infante, who is currently a free agent.  GM Dave Dombrowski indicated last night that Infante was as good as gone regardless of this trade, which is surprising.  Even a three-year, $30MM contract for Infante would have been acceptable value, and the Tigers had that option available to them.  It seems likely the Tigers' motivation in last night's trade was more about getting out from Fielder's contract than acquiring Kinsler.  Fielder is signed through 2020, and with a seven-year, $168MM commitment, the fact that the Tigers had to send $30MM to the Rangers to trade him for a neutral-value asset suggests Fielder had significantly negative trade value.

If the deal was mostly about payroll flexibility, did the Tigers have better options to achieve it?  Could they have signed Infante for $30MM and included $42MM to send Fielder packing for a different, cheaper player such as a quality late-inning reliever?  Such a move could have afforded the Tigers over $90MM in new payroll flexibility, rather than the $76MM they added.  They still would have seen the benefit of moving Miguel Cabrera across the diamond.  However, trading Fielder for a reliever or something similar would have been a tough sell to fans, and even at Jayson Werth money for Fielder it's not as if the Tigers would have found a dozen suitors.

Fielder will play next year at age 30, and had a seven-year, $168MM commitment remaining.  With a disappointing platform year and a draft pick cost attached, could agent Scott Boras have gotten him that contract this offseason?  Add in the fact that Fielder seems much closer to a permanent DH role than he did two years ago, and I think Boras would have fallen short.  It's more plausible that Fielder could have gotten $138MM over seven years, though, and the Rangers didn't have to give up a draft pick.  Plus, even if they overvalue power, the free agent and trade markets didn't offer a first baseman like Fielder this offseason.  Fielder's off-year was about as good as Mike Napoli's 2013 season, which might be Napoli's peak.  Fielder was an elite hitter as recently as 2012, and the Rangers expect him to bounce back closer to that level in 2014.

Fielder serves as a big offensive upgrade for the Rangers at first base, though it's likely they lose offense at second base if they go with Profar.  They've still got flexibility at an outfielder corner, catcher, and designated hitter to add more offense.  I wonder if Brian McCann becomes less viable for them, as the oft-cited general plan to move McCann to DH around the fourth year of his contract may be hampered by the Rangers' need to put Fielder there.

I'm sure Boras will have plenty to say about this deal.  He probably would suggest the Rangers righted a wrong in acquiring Fielder, since they were not able to finish a free agent deal with him two years ago (perhaps due to objections from Nolan Ryan).  While the move creates more opportunity for the Tigers to do a historic pitching contract with another Boras client, Max Scherzer, I think that matters to the agent only in that he can count the Tigers as a more viable suitor once Scherzer reaches free agency after the 2014 season.  

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Detroit Tigers Texas Rangers Transaction Analysis Ian Kinsler Prince Fielder

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Discounted Josh Johnson Is Low Risk, High Reward For Padres

By Tim Dierkes | November 19, 2013 at 11:29pm CDT

The Padres have long held a competitive advantage in that San Diego is a desirable place to play baseball, specifically with a large, pitcher-friendly ballpark.  They can often sign free agent starting pitchers without making the highest bid, as was the case with their one-year, $8MM deal for righty Josh Johnson.

Johnson was limited to 16 starts for the Blue Jays in 2013 due to triceps tightness and a forearm injury, which resulted in arthroscopic elbow surgery in early October.  As explained in our free agent profile, Johnson has had only three healthy seasons in the last five, and the gold standard contract for a pitcher coming off an injury is Ben Sheets' $10MM deal with the Athletics nearly four years ago.  It seems possible Johnson and agent Matt Sosnick could have gotten close to that $10MM mark had they focused on the highest bidder, but the pitcher preferred San Diego for personal reasons.  The Padres got a discount approaching 20%, just for being the Padres.  

Johnson was already a low-risk proposition, since he targeted a one-year deal from the outset as a means of rebuilding value and re-entering free agency after 2014.  The Padres further lowered their risk a bit by acquiring a $4MM club option for 2015 in the event Johnson makes fewer than seven starts in 2014, according to Yahoo's Jeff Passan.  We saw a more drastic version of this clause play out with the Red Sox and John Lackey, as Lackey's league minimum option went into effect when he missed significant time with surgery for a pre-existing elbow injury.  Most likely, Johnson will make at least seven starts in 2014, as he has each season since 2007, when he had Tommy John surgery.  If he doesn't, something serious will have gone wrong, and the Padres may not want to guarantee Johnson even $4MM for 2015.  It would be nice to have the option, though.

Johnson hasn't had an ace-caliber, healthy season since 2010, which is why I think his upside is something closer to 2012's 3.81 ERA rather than the type of season that gets Cy Young votes.  There's still considerable upside for the Padres in this deal, though, as Johnson's earnings top out at $9.25MM for 2014.  The going rate for a #3-4 type starter is around $14MM, and Johnson certainly has that capability for the Padres.

The best part about signing Johnson for the Padres is that they are not relying on him.  As Passan explains, they've got a surplus of starters with Ian Kennedy, Andrew Cashner, Eric Stults, Tyson Ross, and others, so if Johnson goes bust it won't ruin their chances of having a good rotation.

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San Diego Padres Transaction Analysis Josh Johnson

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Giants Gamble On Injury To Secure Hudson Below Market Value

By Steve Adams | November 18, 2013 at 4:10pm CDT

If we could rewind to the start of the eighth inning of the Braves' 8-2 victory over the Mets on July 24 and see that Tim Hudson would agree to a two-year, $23MM contract with San Francisco (as he did earlier this afternoon), we'd assume that the Giants had a relative steal on their hands. Fast forward a few minutes, and the reason for the perceived bargain would become clear; Hudson suffered an ankle fracture that inning that ended his season and cast some doubt on his readiness for 2014.

Hudson has since had a surgical screw removed from the ankle, hopes to be running by the end of the month. While he comes with a great deal of uncertainty, Giants general manager Brian Sabean and his staff have decided to roll the dice on Hudson's health, knowing that should his ankle hold up and be ready for Opening Day, they'll have a bargain on their hands.

Consider that this time last offseason, Ryan Dempster received a two-year, $26.5MM contract coming off a season that saw him finish with a 5.09 ERA (4.08 FIP) in the 69 innings he spent with the Rangers. Had Hudson finished the year as strongly as he'd been pitching (2.73 ERA over his previous 10 starts), he could have been in line for $30MM over the next two seasons or even a three-year deal — a goal that Bronson Arroyo has been rumored to have a shot at reaching. From Opening Day 2010 through the date of his injury, Hudson had topped Arroyo in terms of innings pitched while turning in better ERA, strikeout and ground-ball numbers. Hudson's a year older, but he'd be in the conversation to match or exceed Arroyo's eventual contract, and that figures to greatly exceed $23MM.

Sabean's contract for Tim Lincecum (two years, $35MM) drew some flak that seemed to be well-deserved at the time, but the prices for starting pitching on the open market are clearly going up. Pitchers such as Ricky Nolasco seem destined to easily eclipse $50MM, while Ervin Santana, who was little more than a salary dump a year ago at this time, could be in line for $75MM or more. Sabean decided to retain Lincecum at a rate that may end up being in line with market value and elected to use a non-arm injury to acquire Hudson at a rate that's likely below what even last season's market value would have been.

There's certainly risk in adding a 38-year-old starter coming off season-ending ankle surgery, but weighed against the risk of adding an inconsistent starter such as Nolasco, Santana or Ubaldo Jimenez on four- or five-year deal, this seems to be a chance worth taking for the Giants. By adding Hudson and retaining Lincecum for a combined $58MM over the next two seasons, the Giants have risked a similar total to what Nolasco will command over four years and solidified the No. 3-4 spots in their rotation over a shorter term in the process.

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San Francisco Giants Transaction Analysis Tim Hudson

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Phillies Pay Premium To Retain Ruiz Early

By Tim Dierkes | November 18, 2013 at 2:37pm CDT

The Phillies made an aggressive strike today, agreeing to a three-year, $26MM contract with catcher Carlos Ruiz.  From the point of view of Ruiz and agent Marc Kligman, this is a clear win and an offer they were unlikely to beat if they waited.  I felt that with Ruiz turning 35 in January, a third guaranteed year was unattainable unless they made a major sacrifice on average annual value.  However, the $8.67MM AAV is strong and in line with what some thought Ruiz might get on a two-year deal.  I am surprised to see Ruiz top Russell Martin's deal from last winter in both years and AAV, especially since Martin was five years younger and coming off a better year.  It's too early to say whether the Ruiz contract is an anomaly, a trend toward rising salaries for catchers, or even a sign that most of the top free agents will beat expectations.

The contract is acceptable for the Phillies in terms of dollars per wins above replacement, as Ruiz is still at least an average regular.  Dollars per WAR isn't the right metric on which to judge a free agent contract, however, especially since the free agent market generally doesn't pay full price for catchers.  How far beyond the runner-up did the Phillies go?  Ideally, you'd only go a little bit beyond the runner-up, especially with a player who had a strong preference to remain in Philadelphia.  According to ESPN's Jayson Stark, the Phillies guaranteed the third year and hiked the AAV to get the deal done with Ruiz.  If the Phillies were the only team willing to guarantee three years, and it does seem that way, then a hardline stance would have been with a reduced AAV, perhaps around $7.5MM.  Something like three years and $23MM was probably possible, which would have made the third year less painful since Ruiz might have approached $20MM on a two-year offer from the Red Sox, Rockies, Blue Jays, or Yankees eventually.

It's easy to say Phillies GM Ruben Amaro Jr. should have played hardball with Ruiz to save $3-4MM, and that might have been possible.  Still, Ruiz is worth more to the Phillies because of his familiarity with their pitching staff, and Amaro would have faced limited alternatives had he tried to wait Ruiz out.  Brian McCann would have required a much larger commitment, and it appears Jarrod Saltalamacchia will get more than $30MM.  McCann, Saltalamacchia, and A.J. Pierzynski all bat left-handed, and the Phillies likely sought a right-handed bat for lineup balance even after signing Marlon Byrd.  That basically leaves Dioner Navarro, a switch-hitter who hasn't been a regular since 2009.  The trade market is even more questionable, and the Phillies don't have good internal options at catcher.  The Phillies paid a premium to lock up Ruiz this early in the offseason, but the contract is still acceptable.  The Winter Meetings are still three weeks away, and Amaro has already addressed two major holes in his lineup.

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Philadelphia Phillies Transaction Analysis Carlos Ruiz

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