About Spending…

In Major League Baseball, Other Topics, Transactions by Rice Cube26 Comments

I know AC (and others) are very antsy for the Cubs, and anyone in MLB for that matter, to stop their faux collusion and start spending already, but the calendar is the calendar and both the agents/players and the owners/front offices are in a staring contest at the moment before the Winter Meetings in a couple weeks. I was going to set up a roster rundown, but then I realized it was a fool’s errand if the Cubs actually make blockbuster trades and signings, plus the Rule 5, so I’m going to wait on that until after the Winter Meetings are over. In the meantime, we know a few things about the payroll going forward.

Thanks to Cots Contracts and MLBTR’s arbitration projections, plus the league minimum of $720K for next year for the pre-arb guys, we have a pretty good idea of how much the Cubs have to spend before they hit the first luxury tax threshold, give or take a few million dollars, even with Jason Heyward’s dead contract on the books. The payroll breakdown shows a sharp drop in salary obligations after 2023, pending extensions to Ian Happ and/or Nico Hoerner, so there’s room to add for sure. Since the luxury tax threshold rises to $233MM next season, the math suggests that the Cubs have anywhere from $90MM to $105MM before they hit that mark, and depending on how creatively the deals are structured, even if they bust through that first tax level, they can quickly reset the year after. And despite the biblical losses and Marquee not being as big of a success etc etc, the Cubs probably have the money to throw around should they choose to, and we should hold them accountable to do so.

I couldn’t find Mau’s original tweet but this is pretty solid

One of the caveats of free agency is of course the qualifying offer, which most players including Willson Contreras declined. At this time there are still 10 unsigned players who rejected the QO:

  • Dansby Swanson
  • Willson Contreras (Cubs would obviously get him if they re-sign him, and a comp pick if someone else does)
  • Trea Turner
  • Carlos Rodón
  • Chris Bassitt
  • Jacob deGrom
  • Brandon Nimmo
  • Xander Bogaerts
  • Nathan Eovaldi
  • Aaron Judge

Should the Cubs decide to sign someone from this list, they’ll forfeit their second round pick for the 2023 Draft and $500K in international pool money. Given the handshake deals they’ve probably made with prospects already but the fact that they can pick anywhere from 1st through 6th to 12th through 14th depending on the draft lottery, the prospect of them going for a QO free agent like they did before 2016 seems slim, especially since they’ll probably have less than the $10MM they got last draft while picking 7th in each round. Then again, if Willson signs a contract greater than $50MM overall, the Cubs might snag a pick after the 1st round, but at worst they’ll snag a pick just before the third round, and someone will have to help me with draft temporal mechanics because I’m not sure if the pick surrendered by signing someone else who declined a QO means they’ll lose that pick anyway (first round is protected).

My guess is that the Cubs will maximize that $100MM or so of buffer between their current obligations and the luxury tax threshold, and do so with non-QO guys like Carlos Correa, and hopefully others like Justin Verlander, but perhaps that’s a bit too eye-in-the-sky? But they certainly have the money to make it work!

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  1. Author
    Rice Cube

    They do a bit about the whole “Cubs might be outcompeted if they aren’t quite win now” but as the Rangers showed recently, if they offer the most money, people will sign

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  2. Author
    Rice Cube

    Probably still relevant:

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  3. Author
    Rice Cube

    I was thinking that the “small market” teams checking in on marquee free agents is like a small school like Davidson hoping to recruit a top player but lucking into a Stephen Curry instead (i.e. developing their own talent in a way).

    Later on, perhaps there is some mini-collusion going on in how the Pirates know they’ll get curb stomped more often than not, but also knowing they’ll get a third of the road gate and whatever they earn to break even at home. It’s kind of like Random State University getting a million dollars to get destroyed by Alabama in an early season tune up game before conference play starts.

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  4. andcounting

    Rice Cube,

    There are several teams whose payrolls are less than what they get from TV money and that’s without any ticket sales or revenue sharing dollars factored in. “Small market” teams are just stealing money when they tank.

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  5. Author
    Rice Cube

    Lessons from the early free agency drips:

    1. A reclamation project pitcher (Clevinger) costs a bit less than $9MM

    2. A middle of the road starter (Anderson) costs $13MM

    3. A washed up 1B (Santana) costs a bit less than $7MM

    These are AAVs albeit two of those three are on one year deals

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  6. dmick89

    Rice Cube,

    Looking at some of the news over the last month, I’m even more convinced the Cubs won’t be making any major moves. They’ll do the bare minimum so that they can market it as an attempt to contend, which is probably just signing a 3/4 starter, a reclamation outfielder to a multi year deal with a team buyout after the first year and an old, washed up 1st baseman.

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  7. andcounting

    Abreu may have been the best value available, though. I haven’t seen the contract amount, but he was the guy most likely to improve from last season. Just as sure a bet to produce as you’re going to find.

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  8. Author
    Rice Cube

    I think a lot of folks are trying to rationalize this, but there are a few possibilities:

    1. The Cubs do nothing and we wait another year (boo)
    2. The Cubs do sign a couple big names but have obvious gaps that might be filled by prospects or midseason trades
    3. The Cubs go for it, sign the guys in #2 and then some, in which case we need to look at the list again and figure out who’s still available (probably all of them since collusion)

    I have to say that #1 would be unforgivable so I’m hoping for something around #2 or #3, preferably #3 since it’s not like they have a lot of payroll commitments at this time

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  9. Author
    Rice Cube

    andcounting,

    I suppose the thought exercise here is (and we’ll use an example) how many years you’d give a Carlos Correa and how many of those years you expect him to actually not suck? The AAV is the AAV and you’re obviously paying for those good years and absorbing the price for the bad years.

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  10. dmick89

    Rice Cube,

    I’d probably give him more than the next best offer. Heywood sucked for a long time, but that contract was still a win. The Cubs got a little luckier with the Lester contract and he was good throughout.

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  11. Author
    Rice Cube

    Rice Cube,

    I kind of want to write about this but I don’t think I’d do it justice, there’s just the balance between “stupid money” that you spend to get a guy you need when he is available, and then STUPID money where it’s unreasonable by all objective measures to pay the guy that much. We’re still waiting to see if the Cubs have the capacity for either level of stupid.

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  12. berselius

    Maybe the Cubs will do something heterodox and sign someone like Alcides Escobar to play 1b. Wasn’t he part of that all light-hitting shortstops infield that the Brewers rolled out a decade ago? As noted on the podcast, he is available!

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  13. berselius

    Rice Cube:
    Rice Cube,

    I kind of want to write about this but I don’t think I’d do it justice, there’s just the balance between “stupid money” that you spend to get a guy you need when he is available, and then STUPID money where it’s unreasonable by all objective measures to pay the guy that much. We’re still waiting to see if the Cubs have the capacity for either level of stupid.

    Albert Pujols said:
    I don’t know what you’re talking about here.

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