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Explaining Non-Tenders And Tonight’s Deadline

By Steve Adams | December 2, 2013 at 9:18am CDT

The free agent market has shrunk over the past few weeks, with names ranging from Brian McCann to Brayan Pena coming off the board (MLBTR's Free Agent Tracker can be used to see all of the action to this point). However, the free agent class figures to grow substantially today, as 11:00pm CT marks the deadline for teams to tender contracts to arbitration eligible players.

That, of course, means that it is also the deadline for teams to non-tender players that they feel are set to become too expensive via the arbitration process. As MLBTR's Charlie Wilmoth pointed out last night, John Axford is a prime example of a non-tender candidate. The former closer projects to earn roughly $5MM in 2014. The Cardinals could feel that's too steep a price to pay for a pitcher who won't close for their club, especially considering the wealth of relief options they have available.

A player's first trip through the arbitration process is usually fairly inexpensive (and the ones that are expensive are typically worth the price), but upon reaching arbitration for the second, third and fourth times, prices can begin to make teams uncomfortable. By non-tendering a player, the team is allowing him to become a free agent. It's certainly not unheard of for a player to be non-tendered and re-sign with his former club, however, as was the case with Jeff Karstens and Geovany Soto last year.

Players may also be non-tendered for injury concerns or due to the fact that a team simply feels it has a surplus at a position and doesn't want to commit a 40-man roster spot to a potentially superfluous player. Also, players who are not yet arbitration eligible can be non-tendered.

While many non-tendered players are borderline Major Leaguers that don't go on to have meaningful careers, there are others who provide large boosts to their new clubs. Nate Schierholtz and Manny Parra are two examples from last year's crop of non-tenders that thrived in new settings. Should a non-tendered player sign with a new team, that team secures control of his remaining arbitration seasons until free agency. For example, Schierholtz had four-plus years of service time last offseason and now has five years, 78 days, so the Cubs control him through arbitration this offseason before he accumulates six years of service time and hits the open market next winter.

The non-tender deadline also means that many players will simply avoid arbitration with their clubs today. We're still quite a ways from the deadline to do so, but several players have already avoided arb and a few more figure to see their 2014 contracts agreed upon and locked into place today.

Of course, we'll be keeping track of all the non-tender action here at MLBTR today. I'll be keeping track of non-tenders in a pair of posts (one for the American League, one for the National League), and you can follow along using MLBTR's Non-Tender Tracker as well. Also of use today could be MLBTR's Arbitration Tracker. First and foremost, though, is MLBTR's list of non-tender candidates, which includes most of the names to watch with regard to tonight's deadline.

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MLB And MLBPA Release 2013 Report On PED Testing

By Jeff Todd | November 30, 2013 at 11:08am CDT

Yesterday, MLB and the MLB Player's Association released the 2013 public report on the Joint Drug Prevention and Treatment Program (commonly referred to as the JDA). The report was compiled by Dr. Jeffrey M. Anderson, the Independent Program Administrator.

The report addresses drug testing over the period between the start of the 2012-13 off-season and the end of the 2013 post-season. A total of 5,391 drug tests were conducted, 4,022 of which were urine samples analyzed for PEDs and/or stimulants. The remaining 1,369 instances were blood samples tested for human growth hormone (hGH).

Of the samples analyzed, eight resulted in "an adverse analytical finding that resulted in discipline," all of which were for the stimulants Adderall or Methylhexaneamine. The report also notes thirteen "non-analytical positives" that resulted in discipline. In addition, the league granted 122 therapeutic use exemptions, the vast majority of which were for Attention Deficit Disorder.

Comparison to last year's report shows marginal increases in overall testing numbers. In 2012, there were 5,136 samples taken, 3,955 of which were urine tests and 1,181 of which were for blood. That means that, along with 67 more of the former, there were an additional 188 instances of blood testing this time around. Therapeutic use exemptions remained relatively constant. The most interesting fact, perhaps, is that no positive PED tests were identified, down from seven last year. Instead, this time around, we saw the thirteen suspensions based upon Biogenesis-related investigation rather than testing. 

Of course, the JDA provides careful parameters for testing. Every player is subject to a urine test upon reporting to Spring Training and is subject to an additional random urine test at some point between the commencement of Spring Training and the end of the championship season (i.e., the conclusion of the regular season). The JDA allows 1,400 additional random tests, 200 of which were allowed to be performed during the off-season in the 2012-13 testing period. As for blood testing for hGH, every player must provide a sample at an unannounced point during Spring Training and a sample can also be taken in conjunction with an off-season urine test. The JDA also provides for further testing based upon reasonable cause as well as follow-up testing for disciplined players.

In large part, of course, the figures released yesterday confirm that the testing program took the form that the JDA contemplated. Last year, about 4.5 tests were performed for each of MLB's 1,200 available roster spots. (Of course, roster spots aren't always all full, and a good number of players cycle through them in a given season.)

But a good portion of the testing is not truly unpredictable, as it takes place at the start of or during the six-week Spring Training period. Assuming that the MLB testing figures reflect a relatively low number of reasonable cause and follow-up tests, something in the vicinity of 3,000 tests were essentially random. With about 320 non-Spring Training days on which those tests could theoretically have fallen, and 1,200 MLB roster spots available on a given day, the percentage of "player-days" that see some kind of surprise PED test is a comfortable bit less than 1%. 

Depending upon how baseball plans to implement and report its in-season hGH testing program, those testing rates stand to remain essentially constant through the life of the current JDA, which expires on December 1, 2016. So, is that sufficient, at least for the time being? 

As MLB COO Rob Manfred has explained, the frequency and randomness of testing is critical. Discussing minor league testing back in 2010, he said: 

"We not only incrased the number of tests conducted this year in the [Dominican Republic], but significantly altered the pattern of testing. And, whenever we do that, we get a spike. Major League, Minor League, in the DR, whenever we change the pattern so that it's not predictable, we get a spike."  

These old-but-illuminating comments are especially interesting in light of the fact that the testing system registered no PED hits this season after logging seven in 2012. It would seem naive to assume that the shift reflects a sudden and drastic reduction in PED use. But if it instead constitutes a step back for testing efficacy, what is the solution? Unless a numerical increase in tests can be negotiated, Manfred's past statement indicates that the league may need to get creative with its process to ensure that baseball's PED testing protocol adequately supports its disincentive system.

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Managers And GMs Entering Their Contract Years

By Mark Polishuk | November 28, 2013 at 9:02pm CDT

The 2014 season will be a big one for some of these managers and general managers entering the final years of their current contracts.  For a few, it's just a matter of time until they get extensions; for others, 2014 is their last chance to prove they belong in their current jobs.  This post may not include every eligible skipper or GM, as some clubs don't make management contract terms available to the public.  Thanks to the invaluable Cot's Baseball Contracts for providing many of the contract details.

* Angels.  There were rumors throughout the summer that GM Jerry Dipoto or manager Mike Scioscia could be fired given the Halos' underachieving performance in both 2012 and 2013, but both men will be back in 2014.  Scioscia, of course, is under contract through 2018 but Dipoto is entering the last guaranteed year of his deal.  The Angels have options for both 2015 and 2016 on Dipoto's services, though if the team doesn't contend this season, it seems very likely that Dipoto won't be retained.

* Mariners.  GM Jack Zduriencik had his contract extended through the 2014 season, a move that angered some Seattle fans given the club's run of four consecutive losing seasons.  The team's pursuit of free agent sluggers has been described as "desperate" by some industry sources, which is a long-term danger for a team being led by a general manager who is only focused on his short-term job security.  Zduriencik will be judged harshly if he doesn't obtain a top hitter, but the Mariners simply need to top (or at least approach) the .500 mark for Zduriencik to have any chance to continuing in his current role.  The recent retirement of Mariners president and COO Chuck Armstrong also hints at larger changes coming to the franchise's management structure.

* Astros.  GM Jeff Luhnow and manager Bo Porter both signed multiyear deals when they were respectively hired after the 2011 and 2012 seasons, and those deals could almost be up since the lengths of the contracts aren't known.  It's almost impossible to believe that the club would abandon its vaunted long-term rebuilding plan by letting Luhnow go, of course, and ditching Porter after two years would also seem like an odd move.  Wins and losses won't dictate Porter's fate, as he'll be judged by how the Astros' young talent continues to develop at the Major League level.

* Rangers.  Ron Washington is entering his last year under contract but GM Jon Daniels wants to keep his manager in the fold beyond 2014.  Washington has previously signed a pair of two-year extensions with Texas, though those deals weren't signed until Washingon had already completed his final season.  It's possible the Rangers could again wait to extend their skipper, and despite Daniels' comments, the club might consider a change if it again fails to make a significant postseason run.  Then again, the "wait-and-see" strategy with Washington in the past could have been inspired by former club president Nolan Ryan, and with Ryan gone and Daniels now with more power in the organization, the Rangers may not wait to extend Washington.

* White Sox.  Speaking of "wait-and-see," Robin Ventura took that same tack himself when he turned down a contract extension during Spring Training.  The Pale Hose manager wants to complete his original three-year deal before discussing his future with the team, though Ventura says he's eager to return.  Another 99-loss season, of course, will likely inspire GM Rick Hahn to make a change in the dugout.

* Indians.  This is another situation where details are murky, as GM Chris Antonetti is known to have had his contract extended beyond his original five-year deal with the Tribe that ran out in 2012.  His extension could possibly be up this season, though the odds are Antonetti was locked up for more than just two extra years.  In any case, it's a moot point since Cleveland's playoff appearance last season has certainly given Antonetti more job security.

* Royals.  GM Dayton Moore is entering the final year of his contract and he could be an extension candidate this winter given that the club is coming off its first winning season of Moore's tenure.  The Royals have long been aiming to become legitimate contenders in 2014, so it's possible upper management will see what Moore does this offseason and perhaps what the team does over its first couple of months before locking the general manager up to a new deal.  There's quite a bit of pressure on Moore this season since another dip below the .500 mark could cost him his job.

* Twins.  Terry Ryan's contract specifics aren't known, the Minnesota GM has been rumored to have virtually unlimited job security.  You'd wonder if another 66-96 season would test that security, as the Twins have posted identical losing records in the two full seasons since Ryan returned as the club's general manager.  Given the strong state of the Twins' minor league system, I'd guess that Ryan will be given more time (if he even is a contractual lame duck) to rebuild the franchise even if the Major League team isn't doing well, though the signing of Ricky Nolasco is a sure indicator that Ryan wants better results.

* Blue Jays.  There was speculation that John Gibbons would be fired even before the midway point of the Jays' disappointing 2013 campaign, and while he's still in charge in Toronto, another poor season will surely lead the team to decline their 2015 option for the manager.  GM Alex Anthopoulos' contract status isn't confirmed but he's rumored to be locked up beyond 2014 — if not, however, he could also be facing some heat if the Jays don't contend.

* Red Sox.  Ben Cherington is another GM whose contract tenure isn't known, though in the wake of a World Series title, Boston isn't going to let him go anywhere.

* Yankees.  Brian Cashman is entering one of the most important offseasons of his tenure as New York's general manager, and the fact that Cashman is entering the last year of his deal only adds to the pressure.  Brian McCann is the first major signing of what should be a busy winter for the Yankees, though if Cashman's additions don't get the Yankees back into the playoffs, his job will be in serious jeopardy.

* Braves.  Both manager Fredi Gonzalez and GM Frank Wren are entering the final year of their contracts.  Consecutive playoff appearances bode well for one or the both of them to receive contract extensions before Opening Day.

* Mets.  Sandy Alderson is facing pressure to upgrade the Mets lineup this offseason, though any hopes of contending in 2014 probably went down the drain thanks to Matt Harvey's Tommy John surgery.  The Mets hold an option on Alderson for 2015 that I'd expect them to exercise (perhaps as soon as this winter) given his reputation in baseball, though adding a big bat or two would certainly cement Alderson's case.

* Pirates.  The club holds options on both manager Clint Hurdle and GM Neal Huntington for 2015, which will surely be exercised in the wake of Pittsburgh's breakthrough playoff season.  You can probably expect discussions about longer-term deals for both men as well this winter.

* Reds.  Dusty Baker's firing hints at some impatience in Cincinnati, as the Reds failed to advance past the NLDS in 2010 and 2012, and then lost the NL wild card game last season after spending just under $107MM in payroll (a club record).  With one change already made at manager, you wonder if GM Walt Jocketty could also be on the hot seat as he enters the final year of his deal.

* Brewers.  Ron Roenicke is contracted through 2014 and the Brew Crew hold an option on their manager for 2015.  You could argue that the Brewers' poor record last season was due to factors beyond Roenicke's control (i.e. injuries and the Ryan Braun PED suspension) but the club will definitely need to show some improvement if Roenicke is to continue in Milwaukee.

* Diamondbacks.  Kirk Gibson and Kevin Towers share the same contract situation; both the manager and general manager are signed through 2014 with club options for 2015 and 2016, and the D'Backs have reportedly declined to pick up those options.  While the options could be exercised at a later date, between that news and the shakeup of Arizona's coaching staff, it appears as if Towers and especially Gibson have little wiggle room.  Both men need the Snakes to take a step forward after finishing with consecutive 81-81 records.     

* Dodgers.  It's been a roller-coaster season for Don Mattingly, who was seemingly on the verge of being fired in June before the Dodgers went on an incredible hot streak to win the NL West and advance to the NLCS.  That NLCS appearance triggered a vesting option that gave Mattingly another year under contract for 2014, though the manager has been quite open about his desire for a long-term commitment.  While Mattingly and the club are negotiating that extension, expectations are high enough in Los Angeles that Mattingly will need at least another NLCS appearance to keep his job past this season.

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MLBTR Apps, Features, Functions

By Zachary Links | November 28, 2013 at 4:59pm CDT

An explanation of the many ways to enjoy MLB Trade Rumors:

  • Be sure to pick up the MLBTR apps for the latest news and rumors, for iPads, iPhones, and Android devices.
  • If you want only the hard news in the form of transactions, our transactions page is the ticket.  You can also get only the transactions via Twitter or RSS. 
  • To return to the main page at any time, just click on the title or the Home button on the navigation bar below the title. 
  • The navigation bar will cover many of your needs.  Use the About dropdown to learn about this site or any of its writers. 
  • The Contact button takes you to a page where you can write an email message to the MLBTR writers.  If you have a link to a rumor we've missed, please send it in through the Contact page!  Also use the Contact page to inquire about advertising on MLBTR.
  • The Archives dropdown shows you 15 months worth.  If you need to go back further, click on Site Map at the very bottom of the page.  Site Map also lists out every MLBTR post category, including players, teams, and features.
  • The Tools dropdown takes you to a number of different places. The MLBTR Widget allows website owners to easily add a constantly updated box with all of MLBTR's headlines to their sites.
  • Also under the tools tab is our Transaction Tracker, which enables you to search about anything and everything to do with baseball trades, signings and extensions. 
  • Our DFA Tracker helps you monitor the many players who are designated for assignment throughout the year.
  • We also have an Extension Tracker, with details on all contracts that include at least one arbitration year.
  • MLBTR's Agency Database lets you know which agencies represent which players. It's searchable by team, agency or player, so be sure to check it out.
  • Follow Teams is a very useful dropdown.  Hover over it to see all 30 teams.  Click on the team name to bring up a page of every post containing information about that team, with the latest on top.  These are the same pages you'll find if you go to the Rumors By Team section on the sidebar and select A's Rumors, Angels Rumors, etc.  
  • Also under the Follow Teams dropdown, you'll find RSS and Twitter buttons.  Those links allow you to follow a single team's rumors via RSS or Twitter.  Did you know we have a separate Twitter account for each of the 30 teams?  For example you can follow @mlbtrtigers, where you would get the latest Tigers updates.
  • You can also follow Tim Dierkes on Twitter for more MLBTR content.
  • On the far right of the Navigation bar, you'll see buttons for Twitter, Facebook, and RSS.  MLBTR has over 301,000 Twitter followers, over 79,000 Facebook fans, and over 61,000 RSS subscribers.  Sign up for these and you'll be the first to receive all of our posts.
  • Be sure to check out your favorite team's MLBTR page on Facebook so you can receive and comment on the latest rumors.
  • On to the sidebar.  It begins with a list of our Top Stories, which our writers update any time major hard news occurs.  Go here for a quick update on the most important stories.  Below that is the site's Search Box, where you can type in any player's name and get the latest on him. 
  • MLBTR Features has all kinds of goodies, including our free agent lists.  Many of the MLBTR Features are constantly updated by our writers, so be assured that our free agent lists are always fresh. 
  • Below Features you've got headlines for all the Recent Posts, in case you'd rather not scroll to see all the headlines.  Then there's a box for our Mailing List, where you can sign up to receive a daily email containing MLBTR's posts.  Use this option if you don't need the news as soon as possible.
  • Next we have Featured Posts, where you'll find original work from MLBTR writers we consider noteworthy.
  • If the main site doesn't load perfectly on your cell phone, try the more mobile-friendly mlbtraderumors.mobi.  It's a simple page that shows you just the headlines and lets you click through to what you want to read.
  • MLBTR is available on the Kindle as well.
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Reactions To The Freese-Bourjos Trade

By Jeff Todd | November 22, 2013 at 9:10pm CDT

Now that the dust has settled, let's take a look around at some reactions to today's important deal sending third baseman David Freese and righty Fernando Salas to the Angels in exchange for center fielder Peter Bourjos and outfield prospect Randal Grichuk. 

  • For a broad account of the deal, including some reactions from participants, see this piece from MLB.com's Jenifer Langosch. Cards' GM John Mozeliak emphasized that the club pulled the trigger to add speed and center field capability, while noting that Grickhuk's inclusion was a "critical" factor in getting the deal done.
  • Though Mozeliak said that a veteran second bagger could still be brought in, he also indicated that the club was prepared to rely primarily on Kolten Wong. Meanwhile, top prospect Oscar Taveras could see time in right field and play a bench role, leaving the club with what Mozeliak calls "more flexibility moving forward," reports Derrick Goold of the St. Louis Post-Dispatch (via Sulia). 
  • While the two sides discussed including shortstop Erick Aybar, writes Goold, the asking price was too steep for Mozeliak to bite. With both the Orioles and now the Angels having dangled a shortstop at St. Louis from a position of strength, and the expected free agent money for the few attractive options going higher by the day, Goold says we are seeing a clear seller's market at the position. His Post-Dispatch colleague Bernie Miklasz says that the Angels were eyeing Shelby Miller, making Mozeliak's refusal understandable.
  • Miklasz was among the many who liked this deal for the Cards. As he put it: "Mozeliak did a good job here. It's as simple as that. He received plus value and added youth, speed and defense — and saved payroll – in moving an expendable player in Freese."
  • From the Halos' perspective, GM Jerry Dipoto said that his club "feel[s] like we're getting one of the most productive third base bats in baseball over the last three years," tweets the Los Angeles Times' Bill Shaikin. As Shaikin later noted, Freese does rank tenth in composite OPS out of the 21 players with at least 1,000 hot corner plate appearances since 2011. Dipoto also said that Freese "knows how to drive in the important run" and "provides what we think is a more-than-acceptable solution" to the team's third base hole, as MLB.com's Alden Gonzalez reports in his write-up of the deal. Looking back, Mozeliak explained that Freese's magical 2011 run of success raised expectations to an unsustainable point and makes a fresh start a good idea, MLB.com's Gonzalez reports via Twitlonger.
  • With relatively little open salary space and a major starting pitching void in Anaheim, Shaikin indicates that this deal carries a lot of risk for Dipoto. Other trade candidates like Mark Trumbo and Howie Kendrick have not sparked interest from other teams that would consider parting with young starting pitching, Shaikin says, and Aybar was not enough (yet, at least) to get St. Louis to budge on one of its prime young arms. Yet by sending out Bourjos, whose low cost, good defense, and fairly high floor would have appealed to a wide range of other clubs, the Angels have parted with a player that could have been a significant piece in a deal for a new arm.
  • Even while casting doubt on Bourjos's ability to replicate his 2011 campaign at the dish, ESPN.com's Keith Law (Insider link) likes it for the Cards, though he notes that Freese has enough power upside that the deal could ultimately turn out well for the Halos.
  • For Dave Cameron of Fangraphs, who rates Bourjos as at least a three-win player while noting that his career Isolated Slugging mark is higher than that of Freese, the swap is a clear win for St. Louis. His takeaway: "The Angels needed a third baseman, I guess, but they traded a good player for a worse player who costs more."
  • MLBTR's Steve Adams nicely summed up the trade: "All told, the Angels are dealing three years of Bourjos and one of their top prospects for two years of Freese and three years of Salas in addition to agreeing to take on roughly $4MM in additional salary in the 2014 season." From that perspective, particularly given that the Cards got the younger players, it is tough not to like it for St. Louis — even if you are relatively high on Freese as a bounceback player and think that Bourjos has a limited ceiling. (For what it's worth, 2014 Steamer projections expect 2.3 WAR for Freese over 535 plate appearances and 2.6 WAR over 493 plate appearances for Bourjos.) It is worth noting that the low likely starting point for Bourjos's arbitration salary, along with his generally meager home run and RBI output, mean that he will very likely be on a lower arbitration salary arc than Freese for the rest of his years of eligibility.
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Michael Weiner Passes Away

By charliewilmoth | November 21, 2013 at 6:46pm CDT

MLBPA executive director Michael Weiner has died of brain cancer, Diamondbacks pitcher Brad Ziegler tweets. Weiner was 51.

Weiner joined the union staff as a lawyer in 1988 and replaced Don Fehr as its executive director in 2009. In 2011, Weiner led the union to agree to the Collective Bargaining Agreement that currently governs Major League Baseball. Weiner will likely be remembered in part for paving the way for punishments for the use of PEDs throughout the game. But he also helped negotiate the addition of a second Wild Card team, the move of the Houston Astros to the American League, the expansion of instant replay, and changes in team compensation for departing free agents.

In August 2012, it was reported that Weiner was being treated for a brain tumor, which turned out to be inoperable. He continued to work despite the diagnosis, keeping a full schedule even during the 2013 season. Weiner is survived by his wife, Diane, and three daughters.

Former MLB first baseman Tony Clark was Weiner's deputy executive director. He will become MLBPA's acting executive director.

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40-Man Roster Counts

By Tim Dierkes | November 21, 2013 at 2:30pm CDT

Many players were added to 40-man rosters with yesterday's deadline, as seen here.  Current counts by team:

AL East

  • Orioles: 36
  • Red Sox: 39
  • Yankees: 39 (does not include Brendan Ryan)
  • Rays: 37
  • Blue Jays: 39

AL Central

  • White Sox: 39
  • Indians: 40 (does not include David Murphy)
  • Tigers: 39
  • Royals: 40 (does not include Jason Vargas)
  • Twins: 39

AL West

  • Astros: 37
  • Angels: 40
  • Athletics: 39
  • Mariners: 38
  • Rangers: 38

NL East

  • Braves: 40
  • Marlins: 39
  • Mets: 40
  • Phillies: 38 (does not include Carlos Ruiz)
  • Nationals: 40

NL Central

  • Cubs: 39
  • Reds: 40 (does not include Skip Schumaker)
  • Brewers: 40
  • Pirates: 40
  • Cardinals: 36

NL West

  • Diamondbacks: 40
  • Rockies: 39 (does not include LaTroy Hawkins)
  • Dodgers: 34
  • Padres: 40
  • Giants: 40 (does not include Javier Lopez)
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MLB Owners Approve Replay Funding

By Steve Adams | November 14, 2013 at 2:28pm CDT

2:28pm: Brian Costa of the Wall Street Journal reports that once the umpires' and players' unions approve the system, a separate vote to enact the rule changes will take place when the owners meet in January.

The new challenge system will be verbal. Beyond that, if managers walk on the field to protest a call, they will no longer be able to challenge it. Costa quotes Manfred: "What we'd like to have is a trade-off. We no longer spend time arguing, and in return, you have a right to challenge. What we want to avoid is arguing for a while and then you challenge."

According to Manfred, umpires will still be able to initiate replays even after a manager has exhausted his challenges. That is still one of the details to be discussed by umpires.

NOV. 14, 11:05am: : ESPN's Jerry Crasnick tweets that MLB owners have approved funding for replay expansion in 2014. The system will still need to be approved by the players' and umpires' unions, though their approval is fully expected, tweets Ken Rosenthal of FOX Sports.

MLB COO Rob Manfred confirmed to reporters, including Shi Davidi of Sportsnet, that the new replay system will be based on manager challengers (Twitter link). Rosenthal adds that there will be a maximum of two challenges per team, per game, regardless of inning. Davidi also tweets that managers will lose their second challenge if they are incorrect on the first one.

AUG. 15: Major League Baseball is prepared to move forward with a radical expansion of instant replay, but an official announcement will be delayed until November, according to Bob Nightengale of USA Today.

The new replay policy will allow managers to ask for replay reviews in a style that is similar to the NFL's challenge system. Managers will have three challenges — one in the first six innings of the game and two beyond that. Under the new system, which will be phased in starting next season, 89 percent of plays will be deemed reviewable. Should a manager exhaust his three challenges, the umpiring crew can still convene to conduct their own review of a questionable home run.

MLB vice president Joe Torre, former Braves GM John Schuerholz and advisor Tony La Russa presented the proposal to all 30 owners today. Commissioner Bud Selig told Nightengale that the proposal appeared to be widely accepted, and the commissioner called today a "historic" day for the game of baseball. A formal announcement won't occur until after the quarterly owners' meetings on Nov. 13-14.

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Entries Due Tonight For Free Agent Prediction Contest

By Tim Dierkes | November 10, 2013 at 7:58pm CDT

Dust off your crystal ball again, it's time for MLBTR's third annual free agent prediction contest! Predict destinations for our top 50 free agents, with the chance to win fantastic prizes and bragging rights over your friends and the MLBTR writing team.  Last year's winner had 20 correct; can you beat that?

How To Play

  • Click here to make picks for our top 50 free agents.  For each player you can choose any of the 30 teams, as well as Retirement or Japan.
  • A Facebook account is required to participate in this contest.  You can log in with the button up top, or by using the Save Your Picks button at the bottom.
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Future Salary Obligations In Context, Part II

By Jeff Todd | November 9, 2013 at 9:57am CDT

On Wednesday, I pulled together some salary information from Cot's Baseball Contracts in an attempt to give some context to teams' overall future salary commitments. Check out that post for background, and bear in mind we are only talking about post-2014 payroll. With the benefit of receiving comments and thinking about what I wrote, I decided to utilize the information in a few more ways. 

First, as I noted in a comment, simply summing the future obligations only tells part of the story. A better, more complete analysis would discount later-in-time salary to a present value. Dave Cameron had a great piece recently on Fangraphs discussing the way in which contracts for elite free agents have tended to tack on additional years at the back end rather than increasing average annual value for a shorter term. As he noted, baseball payrolls have grown at about 3.5% on average over the last ten years. That kind of inflation — in concert with the time-value of money — makes a future dollar less valuable than a present one. 

The difficulty remains in arriving at an appropriate rate by which to discount the future obligations. While I am not equipped to undertake that complicated and inexact task, it occurred to me that there is another option: simply chart out the different possible rates to show what would occur at a given percentage. I chose to use a range between zero and ten percent because opening day payrolls have increased by around 5-6% over the last two years and because the reported infusion of TV money could theoretically lead to a jump in salaries. Bear in mind, though, that the higher end of the scale is exceedingly unlikely — it is a ten-year period, after all — and is really included for illustrative purposes.

Here are the results, which show how different discount rates would impact each teams' future obligations. You'll need to open the image to view it. 

Discount chart

[All numbers are in millions. An explanation on the columns: "x% discount" shows the present value of a club's future obligations at a given discount rate; "sum saved" shows the difference between the non-discounted obligations and the value as discounted; and "pct saved" shows the relative impact on each team's obligations at each rate. And I'll note that I updated the information to include the Rangers' recent extension of Martin Perez.]

Remember, there is nothing inherently good or bad about taking on, as opposed to avoiding, future obligations. And there are good reasons to backload, or frontload, those commitments. This is just a tool to help understand the numbers. Click below for a closer look at a few salient aspects of this chart, and some additional team-by-team information and observations.

Read more

The most apparent impact of discounting applies, naturally, to teams with the most payroll to be discounted. That does not mean that low-obligation clubs don't care — after all, a low-inflation environment would increase the relative future burden on heavily-committed teams, to their competitve disadvantage — but their pocketbooks are relatively safe from the direct effects. In absolute terms, discounting most diminishes the present value of the down-the-line salary obligations of these clubs:

Largest absolute decrease in present value

Discount impact 3

We'll keep our focus on clubs that have enough in future commitments to make the discount rate bite. You'll note that, as I mentioned in the first post, a greater discount — which, for our purposes, means an expectation of greater salary inflation — would ease the burden on teams whose obligations extend furthest into the future. 

First, let's compare the Rays — who have the highest present value reduction, by percentage, upon discounting — with the Jays, who have one of the lowest. Both teams have about $140MM in post-2014 commitments, but look what the discount rate does to their present value as we increase it:

Rays vs Jays

Clearly, unless we experience salary deflation, the Rays' obligations fall short of those borne by their division foes from up north. Likewise, going in the opposite direction, notice how the Reds' $300MM tab begins to creep down towards the $230MM owed by the Phillies as the discount rate is edged upwards:

Reds vs Phils

Discounting is just one way in which the actual structure of the obligations — as opposed to a simple lump sum — makes a difference. Dollars that must be paid sooner cost more, but they also leave the books quicker. More money committed to fewer players increases risk, but (at least hopefully) reflects higher-quality assets. Likewise, a greater overall average annual value means that more roster spots remain to be filled, with less money available to do so.  

To help continue exploring these comparisons, I thought it would be useful to put together a few more graphs, with teams grouped by division. None of these figures are discounted, since as noted above I do not wish to stake out a specific discount rate. First, let's look at future obligations on a division-by-division basis:

Obligations by division

It is certainly interesting to see the geographical spread, though a big off-season spree along the I-95 corridor could change things pretty quickly.

Now, let's look at each team by division, in descending order of total divisional obligations. I'll offer two charts with each division, the first one showing total obligations by year, and the second showing each club's average commitments per player as well as the average annual value of all its contracts. (Option buyouts count in the guaranteed salary, but do not count as a year for determining AAV.)

NL West

The Dodgers' massive commitments between 2015-18 ramp down rather suddenly, though a Clayton Kershaw extension could change that. The Rockies have one of the game's highest per-player commitments, but Troy Tulowitzki and Carlos Gonzalez are both elite players with plenty of prime years left.

NL West 1

NL West 2

NL Central

The Reds have the longest set of commitments in baseball thanks to the Joey Votto contract. Though the Cubs have a lot of money owed to some fairly risky assets (Edwin Jackson, Starlin Castro, Jorge Soler, Anthony Rizzo), the club maintains a low AAV. Pittsburgh has one of the cleaner sheets in the game; even better, most of its scheduled outflows will be directed to Andrew McCutchen.

NL Central 1

NL Central 2

AL West

The Angels' commitments look imposing when one considers the age and recent history of their most expensive players (Josh Hamilton and Albert Pujols), especially in conjunction with high commitment-per-player and AAV marks. The Rangers have a well-diversified and widely-spread set of obligations compared to most big-spending clubs. Essentially all of the M's commitments go to Felix Hernandez. Looking at the chart, it would be tough to pick out the team that actually won this division the past two seasons.

AL West 1

AL West 2

AL Central

With a series of massive contracts, the Tigers have the league's highest average commitment per player — and that is before new contracts for Miguel Cabrera and/or Max Scherzer come into play. The Twins and Indians provide an interesting contrast between two teams with approximately the same sum of future payroll promises.

AL Central 1

AL Central 2

AL East

These graphs show again the stark contrast between the Blue Jays' and Rays' obligations. Boston's future obligations look remarkably similar to Tampa's in size and structure, and each has a franchise player (Dustin Pedroia and Evan Longoria, respectively) that accounts for most of the hit. Given New York's massive spending capacity, its drastic payroll drop-off affords ample opportunity for backloading deals to free agents.

AL East 1

AL East 2

NL East

We've heard before that the Phillies' big contracts won't prevent them from spending and contending, and these charts show why that could yet be the case. Though the club carries a steep AAV, it will shed salary reasonably quickly. The Braves, dealing with the B.J. Upton and Dan Uggla deals, have perhaps more in common with the Phillies than one might think. Each will try to work through near-term financial crunches of similar proportion (in relation to their likely payroll limits) by relying on a strong organizational asset: money for the Phils and young talent for the Braves.

NL East 1

NL East 2

That's all I have to offer at the moment. I will be interested to see what other observations are reached in the comments.

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