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Diamond Dollars
NYU Case 2013

Syracuse University
Greg Ackerman, James DiDonato, Matt Filippi, Jeremy Losak, Zack Potter
Player Profile: Brian McCann
Age: 29
Bats/Throws: L/R
Height/Weight: 6-3/230
Position: C
Previous Contract:
$26.8M / 6 Years (2007-2012)
+ 1 Option Years
McCann’s Contract Projection

5 years/$85 million
Offensive Stats
Season

G

HR

ISO

OBP

wOBA

WAR

2010

143

21

.184

.375

.362

5.1

2011

128

24

.195

.351

.350

3.9

2012

121

20

.169

.300

.300

1.7

2013

102

20

.205

.336

.347

2.7

Steamer

113

21

.193

.334

.339

3.6

*Stats according to Fangraphs

TRENDS:
• Durable, since 2006 averaged 131 games per year

• Playing through torn labrum in 2012 resulted in big dip in stats
• Missed first 30 games in 2013 and rebounded nicely with comparable
power numbers and WAR to previous years
Defensive History

*Graphic via Fangraphs - 2012

*Graphic via Getting Blanked
- Through August of 2013 Season -
Intangible Qualities
• On September 11th, 2013 game against Miami Marlins, Jose
Fernandez appeared to show up Paul Maholm after hitting a
homerun. McCann was confronted Fernandez to defend his
teammates
• 2 weeks later against the
Milwaukee Brewers,
McCann physically
prevented Carlos Gomez
from touching home plate
after he presumably
disrespected Paul Maholm
during his homerun trot

Other Consideration:
• Strong possibility McCann will move to first base during latter
part of contract. AL team may give him time at DH to hinder
transition
WAR Projection
Data projected using McCann’s 2014 Steamer projected 3.6 WAR and
subtracting half a win (accounting for being a catcher)
Average Annual Value (AAV): $17M
•
•
•
•
•

2014: 3.6 WAR * $6 million= $21.6 million
2015: 3.1 WAR * $6 million= $18.6 million
2016: 2.6 WAR * $6 million= $15.6 million
2017: 2.1 WAR * $6 million= $12.6 million
2018: 1.6 WAR * $6 million= $9.6 million

*Projection holds 1 win be valued at $6 million on open market
- Similar value to what the Phillies paid Carlos Ruiz
Catcher Aging Curve

According to Dave Cameron of Fangraphs:
“A +3 WAR player heading into his age-35 season shouldn’t be
expected to be demonstrably worse in the next season than a +3
WAR player headed into his age-31 season. A more important
variable in a player’s expected future production is the player’s
estimated production for the upcoming season, not his age in
that season.”
Comparable Contracts
1.
2.
3.
4.

Miguel Montero - 5 years/$60 million (After age 28)*
Yadier Molina - 5 years/$75 million (After age 29)*
Victor Martinez - 4 years/$50 million (After age 31)^
Carlos Ruiz - 3 years/$26 million (After age 34)

* - Signed an extension while under contract
^ - Received qualifying offer tied to draft pick
compensation
Victor Martinez
• Signed 4 yr/$50 million contract with Detroit Tigers
following age 31 season in 2010
• Signed as catcher, played mostly as a DH due to poor
defensive performance
Stat

Martinez – 2010

McCann - 2013

OBP

.351

.336

ISO

.191

.205

wOBA

.364

.347

WAR

3.5

2.7
*Stats according to Fangraphs
Miguel Montero
• Signed extension during 2012 regular season for 5 yr/$60M
**Signed off the open market**
• Age 29 when he signed extension
• Montero has not demonstrated consistency
Stat

Montero – 2012

McCann - 2013

OBP

.391

.336

ISO

.152

.205

wOBA

.364

.347

WAR

4.6

2.7
*Stats according to Fangraphs
Yadier Molina
• Signed extension during 2012 season for 5 yr/$75M taking
effect for his age 30 season. **Signed off the open market**

Stat

Molina - 2012

McCann - 2013

OBP

.373

.336

ISO

.186

.205

wOBA

.375

.347

WAR

6.2

2.7
*Stats according to Fangraphs
Market Conditions
• Competition: Jarrod Saltalamacchia, A.J. Pierzynski, Kurt Suzuki

• Possible Suitors: Yankees, Red Sox, Rangers, Blue Jays, Dodgers
What it means:
Several large market, high budget teams willing to spend money on
free agents to fill catching vacancy
Draft picks are mostly mid to late 1st round
Playoff contenders in “win now mode”

Conclusion: With limited options available at catcher and high
competition to sign McCann, his value will be inflated as
teams will be more willing to spend the money on McCann
Carlos Ruiz
•
•
•
•

Age: 35 – entering 2014 season
Signed 3 yr/$26M contract with Phillies last week
Suspended 25 games during 2013 season for using amphetamine
McCann ranked 6th in Catcher Defense Rating, Ruiz was ranked
14th -- *According to Matt Klaaseen (the defense chart)*

*Graph via Fangraphs
Contract Value at Six Years
Projected Contract: 6 yr/$92.6M

 Presumably worth less value and money for that projected year.
•
•
•
•
•
•

2014: 3.6 WAR * $6 million= $21.6 million
2015: 3.1 WAR * $6 million= $18.6 million
2016: 2.6 WAR * $6 million= $15.6 million
2017: 2.1 WAR * $6 million= $12.6 million
2018: 1.6 WAR * $6 million= $9.6 million
2019: 1.1 WAR * $6 million= $6.6 million

Smaller value would decrease total AAV for the contract.
Contract Value at Four Years
Projected Contract: 4 yr/ $70M
•
•
•
•

2014: 3.6 WAR * $6 million= $21.6 million
2015: 3.1 WAR * $6 million= $18.6 million
2016: 2.6 WAR * $6 million= $15.6 million
2017: 2.1 WAR * $6 million= $12.6 million

Lowest value is removed from the average, causing the
AAV to rise.
2005-2008 MLB Drafts
Probability of Majors by 23
0.9
0.8
0.7
0.6
0.5
0.4
Probability of Majors by 23
0.3
0.2
0.1
0
11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
WAR By Draft Pick
Average WAR by Selection
•
•
•
•
•
•
•

1990-2010: Selections 11-30
Average War of All Picks 11-30: 4.115
Picks 11-15: 6.125
Picks 16-20: 5.7
Picks 21-25: 3.4
Picks 26-30: 1.32
My guess of what MLB Front Offices value these picks at: 4-6
Wins Above Replacement.
• Flawed? Players who do not make the majors are valued at a WAR
of 0, when they should be valued below replacement level.
Draft Pick = Stock
• Pick given a monetary value to allocate throughout draft
rounds.
• Ability to Draft a player with potential
• Trade Asset after at least one calendar year
• Drew Pomeranz (1-5-2010) traded from Indians in a package for
Ubaldo Jimenez in 2011.
Competitive Balance
• Favors teams with Protected 1-10 selections and later first
round selections
• Teams with Protected 1-10 Selections can still choose in the
first round and sign a free agent with Qualifying Offer

• Prime Example: Michael Bourn – Indians had a protected
pick, Mets had 11th 1st Round selection. According to my
model, this seemed to be the right decision by the Mets, as
the odds of adding a solid player is high. The Indians were
able to add a short-term asset in Michael Bourn and still select
a player at a draft position with a high probability of success
McCann Contract Value Having Not
Received Qualifying Offer
Average Annual Value: $18M for 5 yr/$90M
McCann will benefit slightly, gaining an
additional $5M in guaranteed money
• His market value will not be drastically affected
due to his demand from large market and
competitive teams
Player Profile: Ubaldo Jimenez
Age: 29 (Entering season at 30)
Bats/Throws: R/R
Height/Weight: 6-5/210
Position: P
Contract:
$10M / 4 Years (2009 – 2012)
+ 2 Option Years
Salary Projection

3 years/$45 Million
Previous Stats
Season

G

IP

K/9

BB/9

ERA

FIP

WAR

2010

33

221.2

8.69

3.74

2.88

3.10

6.5

2011

32

188.1

8.60

3.73

4.68

3.67

3.3

2012

31

176.2

7.28

4.84

5.40

5.06

0.1

2013

32

182.2

9.56

3.94

3.30

3.43

3.2

Steamer

32

182.0

8.71

3.88

3.64

2.7

TRENDS:

3.74

*Stats according to Fangraphs

• Very durable. Since 2008, started 30+ games and pitched 170+ innings
• Enigmatic career, big stat fluctuation after trade in 2011 leading to
poor 2012
• Rebounded with much Improved 2013 season
Pitching Velocity
Season Team

vFA

vFT

vFC

vFS

vSI

vSL

vCU

vCH

91.7

86.0

75.8

86.0

86.1

78.0

86.3

2008

Rockies

95.4

90.0

2009

Rockies

96.0

91.2

2010

Rockies

95.8

96.3

89.1

86.3

78.7

87.0

2011

Rockies/
93.9
Indians

93.7

89.3

83.4

78.6

86.6

2012

Rockies

92.5

92.7

90.6

83.7

83.0

77.7

84.5

2013

Rockies

92.1

91.6

90.1

84.1

83.6

77.6

84.2

94.7

94.3

90.1

88.0

84.8

77.6

85.5

Total

---

90.0

*Stats according to Fangraphs

Fastball velocity significantly down from 95.4 MPH in 2008
to 92.1MPH in 2013
2010 Pitch Selection

*Graphic via Brooks Baseball
2013 Pitch Selection

*Graphic via Brooks Baseball
Comparable Free Agents
1.
2.
3.
4.

Edwin Jackson – 4 years/$52 million
Anibal Sanchez – 5 years/$80 million
Jorge De La Rosa – 4 years/$43 million
Kyle Lohse – 3 years/$33 million^

^- Received qualifying offer tied to draft pick
compensation
Edwin Jackson
Signed 4 yr/$52M contract following his age 28, 2012 season
Edwin Jackson

Ubaldo Jimenez

Season

FIP

Season

ERA

FIP

2009

3.62

4.28

2010

2.88

3.10

2010

4.47

3.86

2011

4.68

3.67

2011

3.79

3.55

2012

5.40

5.06

2012

Contract Year

ERA

4.03

3.85

2013

3.30

3.43

Contract Year

*Stats according to Fangraphs

• Jimenez’s Projected 2014 WAR: 2.7
• Jackson’s Projected 2013 WAR: 2.8

*Stats according to Fangraphs
Jorge De La Rosa
• Received contract guaranteeing 2 yr/$21.5M following 2010
season
• Included two additional player/team options that could potentially
raise total contract value to 4 yr/$43M

Statistic

De La Rosa – Age 29

Jimenez – Age 29

WHIP

1.32

1.33

BB/9

4.07

3.94

K/9

8.36

9.56

WAR

1.8

3.2
*Stats according to Fangraphs
Anibal Sanchez
• Received 5 yr/$80 million after age 28 season.
Stats

Sanchez – Age 28

Jimenez – Age 29

FIP

3.53

3.43

ERA

3.86

3.30

K/9

7.68

9.56

BB/9

2.21

3.94

WAR

3.7

3.2
*Stats according to Fangraphs

• Each pitcher is very durable, having thrown more than 150
innings each of the previous 3 seasons.
Market Conditions
• Competition: Ervin Santana, Matt Garza, Ricky Nolasco, Phil Hughes
• Possible Suitors: Blue Jays, Angels, Yankees, Indians, Phillies,
Cubs, Giants and others
What It Means:
 Several teams looking to bolster starting rotation
 Multiple comparable pitchers to Jimenez in this years class
 Several do not have qualifying offers (Garza, Nolasco, +
Hughes), potentially making them more valuable to teams
Conclusion: Similar to Kyle Lohse last offseason, the market for Jimenez may
take time to develop. As starters are signed, Jimenez’s asking price
will respond appropriately to the market
Kyle Lohse
• After age 33 season, received 3 yr/$33M deal following 2012
season **Received qualifying offer prior to contract**

• Lohse had incredible 2012 season leading into free agency.
• Contract likely diminished due to loss of daft pick tied to signing.
- Many teams weary to sign him, didn’t sign until March 25th
Lohse 2012 Season

ERA

2.86

FIP

3.51

K/9

6.10

BB/9

1.62

WAR

3.4

*Stats according to Fangraphs
Ubaldo’s Odd Year
• Latest year is most important when a player hits free agency

• Many assert Jimenez’s 2013 season started poorly and
significantly improved as season prolonged
• We believe bad fortune played role in his early poor starts.
Month (s)

HR/FB%

March/April

20%

May

16%

June

10.8%

July

8.3%

August

3.8%

September/October

0%

*Stats according to Fangraphs

Ubaldo’s career average HR/FB%:
8.7%
WAR Projection
• Same process used with Ubaldo as performed with McCann
- Ubaldo’s Steamer projects a 2.7 WAR.

Average Annual Value (AAV): $15M
• 2014: 2.7 WAR * $6 million= $16.2 million
• 2015: 2.2 WAR * $6 million= $13.2 million
• 2016: 1.7 WAR * $6 million= $10.2 million
Contract Value at Four Years
Projected Contract: 4 yr/$48.6M
•
•
•
•

2014: 2.7 WAR * $6 million= $16.2 million
2015: 2.2 WAR * $6 million= $13.2 million
2016: 1.7 WAR * $6 million= $10.2 million
2017: 1.2 WAR * $6 million= $7.2 million

With the smaller projected $7.2M in final year, the
AAV would decrease.
Contract Value for Two Years
Projected Contract: 2 yr/$29.4M
• 2014: 2.7 WAR * $6 million= $16.2 million
• 2015: 2.2 WAR * $6 million= $13.2 million
Ubaldo’s AAV would increase because the year in
which he is valued the least (final year of
contract) would presumably be removed
Jimenez Contract Value Having Not
Received Qualifying Offer
• Average Annual Value: $14M for total of 4 yr/$56M
• AAV decreases by $1M, however, Jimenez receives an
additional year and more guaranteed money
• Without having to give up a draft pick and draft pool
money, teams will be more willing to pay Jimenez
• Similar to Edwin Jackson 4 yr/$52M deal with Cubs

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2013 NYU Diamond Dollars Case Competition Presentation

  • 1. Diamond Dollars NYU Case 2013 Syracuse University Greg Ackerman, James DiDonato, Matt Filippi, Jeremy Losak, Zack Potter
  • 2. Player Profile: Brian McCann Age: 29 Bats/Throws: L/R Height/Weight: 6-3/230 Position: C Previous Contract: $26.8M / 6 Years (2007-2012) + 1 Option Years
  • 4. Offensive Stats Season G HR ISO OBP wOBA WAR 2010 143 21 .184 .375 .362 5.1 2011 128 24 .195 .351 .350 3.9 2012 121 20 .169 .300 .300 1.7 2013 102 20 .205 .336 .347 2.7 Steamer 113 21 .193 .334 .339 3.6 *Stats according to Fangraphs TRENDS: • Durable, since 2006 averaged 131 games per year • Playing through torn labrum in 2012 resulted in big dip in stats • Missed first 30 games in 2013 and rebounded nicely with comparable power numbers and WAR to previous years
  • 5. Defensive History *Graphic via Fangraphs - 2012 *Graphic via Getting Blanked - Through August of 2013 Season -
  • 6. Intangible Qualities • On September 11th, 2013 game against Miami Marlins, Jose Fernandez appeared to show up Paul Maholm after hitting a homerun. McCann was confronted Fernandez to defend his teammates • 2 weeks later against the Milwaukee Brewers, McCann physically prevented Carlos Gomez from touching home plate after he presumably disrespected Paul Maholm during his homerun trot Other Consideration: • Strong possibility McCann will move to first base during latter part of contract. AL team may give him time at DH to hinder transition
  • 7. WAR Projection Data projected using McCann’s 2014 Steamer projected 3.6 WAR and subtracting half a win (accounting for being a catcher) Average Annual Value (AAV): $17M • • • • • 2014: 3.6 WAR * $6 million= $21.6 million 2015: 3.1 WAR * $6 million= $18.6 million 2016: 2.6 WAR * $6 million= $15.6 million 2017: 2.1 WAR * $6 million= $12.6 million 2018: 1.6 WAR * $6 million= $9.6 million *Projection holds 1 win be valued at $6 million on open market - Similar value to what the Phillies paid Carlos Ruiz
  • 8. Catcher Aging Curve According to Dave Cameron of Fangraphs: “A +3 WAR player heading into his age-35 season shouldn’t be expected to be demonstrably worse in the next season than a +3 WAR player headed into his age-31 season. A more important variable in a player’s expected future production is the player’s estimated production for the upcoming season, not his age in that season.”
  • 9. Comparable Contracts 1. 2. 3. 4. Miguel Montero - 5 years/$60 million (After age 28)* Yadier Molina - 5 years/$75 million (After age 29)* Victor Martinez - 4 years/$50 million (After age 31)^ Carlos Ruiz - 3 years/$26 million (After age 34) * - Signed an extension while under contract ^ - Received qualifying offer tied to draft pick compensation
  • 10. Victor Martinez • Signed 4 yr/$50 million contract with Detroit Tigers following age 31 season in 2010 • Signed as catcher, played mostly as a DH due to poor defensive performance Stat Martinez – 2010 McCann - 2013 OBP .351 .336 ISO .191 .205 wOBA .364 .347 WAR 3.5 2.7 *Stats according to Fangraphs
  • 11. Miguel Montero • Signed extension during 2012 regular season for 5 yr/$60M **Signed off the open market** • Age 29 when he signed extension • Montero has not demonstrated consistency Stat Montero – 2012 McCann - 2013 OBP .391 .336 ISO .152 .205 wOBA .364 .347 WAR 4.6 2.7 *Stats according to Fangraphs
  • 12. Yadier Molina • Signed extension during 2012 season for 5 yr/$75M taking effect for his age 30 season. **Signed off the open market** Stat Molina - 2012 McCann - 2013 OBP .373 .336 ISO .186 .205 wOBA .375 .347 WAR 6.2 2.7 *Stats according to Fangraphs
  • 13. Market Conditions • Competition: Jarrod Saltalamacchia, A.J. Pierzynski, Kurt Suzuki • Possible Suitors: Yankees, Red Sox, Rangers, Blue Jays, Dodgers What it means: Several large market, high budget teams willing to spend money on free agents to fill catching vacancy Draft picks are mostly mid to late 1st round Playoff contenders in “win now mode” Conclusion: With limited options available at catcher and high competition to sign McCann, his value will be inflated as teams will be more willing to spend the money on McCann
  • 14. Carlos Ruiz • • • • Age: 35 – entering 2014 season Signed 3 yr/$26M contract with Phillies last week Suspended 25 games during 2013 season for using amphetamine McCann ranked 6th in Catcher Defense Rating, Ruiz was ranked 14th -- *According to Matt Klaaseen (the defense chart)* *Graph via Fangraphs
  • 15. Contract Value at Six Years Projected Contract: 6 yr/$92.6M  Presumably worth less value and money for that projected year. • • • • • • 2014: 3.6 WAR * $6 million= $21.6 million 2015: 3.1 WAR * $6 million= $18.6 million 2016: 2.6 WAR * $6 million= $15.6 million 2017: 2.1 WAR * $6 million= $12.6 million 2018: 1.6 WAR * $6 million= $9.6 million 2019: 1.1 WAR * $6 million= $6.6 million Smaller value would decrease total AAV for the contract.
  • 16. Contract Value at Four Years Projected Contract: 4 yr/ $70M • • • • 2014: 3.6 WAR * $6 million= $21.6 million 2015: 3.1 WAR * $6 million= $18.6 million 2016: 2.6 WAR * $6 million= $15.6 million 2017: 2.1 WAR * $6 million= $12.6 million Lowest value is removed from the average, causing the AAV to rise.
  • 17. 2005-2008 MLB Drafts Probability of Majors by 23 0.9 0.8 0.7 0.6 0.5 0.4 Probability of Majors by 23 0.3 0.2 0.1 0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
  • 18. WAR By Draft Pick
  • 19. Average WAR by Selection • • • • • • • 1990-2010: Selections 11-30 Average War of All Picks 11-30: 4.115 Picks 11-15: 6.125 Picks 16-20: 5.7 Picks 21-25: 3.4 Picks 26-30: 1.32 My guess of what MLB Front Offices value these picks at: 4-6 Wins Above Replacement. • Flawed? Players who do not make the majors are valued at a WAR of 0, when they should be valued below replacement level.
  • 20. Draft Pick = Stock • Pick given a monetary value to allocate throughout draft rounds. • Ability to Draft a player with potential • Trade Asset after at least one calendar year • Drew Pomeranz (1-5-2010) traded from Indians in a package for Ubaldo Jimenez in 2011.
  • 21. Competitive Balance • Favors teams with Protected 1-10 selections and later first round selections • Teams with Protected 1-10 Selections can still choose in the first round and sign a free agent with Qualifying Offer • Prime Example: Michael Bourn – Indians had a protected pick, Mets had 11th 1st Round selection. According to my model, this seemed to be the right decision by the Mets, as the odds of adding a solid player is high. The Indians were able to add a short-term asset in Michael Bourn and still select a player at a draft position with a high probability of success
  • 22. McCann Contract Value Having Not Received Qualifying Offer Average Annual Value: $18M for 5 yr/$90M McCann will benefit slightly, gaining an additional $5M in guaranteed money • His market value will not be drastically affected due to his demand from large market and competitive teams
  • 23. Player Profile: Ubaldo Jimenez Age: 29 (Entering season at 30) Bats/Throws: R/R Height/Weight: 6-5/210 Position: P Contract: $10M / 4 Years (2009 – 2012) + 2 Option Years
  • 25. Previous Stats Season G IP K/9 BB/9 ERA FIP WAR 2010 33 221.2 8.69 3.74 2.88 3.10 6.5 2011 32 188.1 8.60 3.73 4.68 3.67 3.3 2012 31 176.2 7.28 4.84 5.40 5.06 0.1 2013 32 182.2 9.56 3.94 3.30 3.43 3.2 Steamer 32 182.0 8.71 3.88 3.64 2.7 TRENDS: 3.74 *Stats according to Fangraphs • Very durable. Since 2008, started 30+ games and pitched 170+ innings • Enigmatic career, big stat fluctuation after trade in 2011 leading to poor 2012 • Rebounded with much Improved 2013 season
  • 27. 2010 Pitch Selection *Graphic via Brooks Baseball
  • 28. 2013 Pitch Selection *Graphic via Brooks Baseball
  • 29. Comparable Free Agents 1. 2. 3. 4. Edwin Jackson – 4 years/$52 million Anibal Sanchez – 5 years/$80 million Jorge De La Rosa – 4 years/$43 million Kyle Lohse – 3 years/$33 million^ ^- Received qualifying offer tied to draft pick compensation
  • 30. Edwin Jackson Signed 4 yr/$52M contract following his age 28, 2012 season Edwin Jackson Ubaldo Jimenez Season FIP Season ERA FIP 2009 3.62 4.28 2010 2.88 3.10 2010 4.47 3.86 2011 4.68 3.67 2011 3.79 3.55 2012 5.40 5.06 2012 Contract Year ERA 4.03 3.85 2013 3.30 3.43 Contract Year *Stats according to Fangraphs • Jimenez’s Projected 2014 WAR: 2.7 • Jackson’s Projected 2013 WAR: 2.8 *Stats according to Fangraphs
  • 31. Jorge De La Rosa • Received contract guaranteeing 2 yr/$21.5M following 2010 season • Included two additional player/team options that could potentially raise total contract value to 4 yr/$43M Statistic De La Rosa – Age 29 Jimenez – Age 29 WHIP 1.32 1.33 BB/9 4.07 3.94 K/9 8.36 9.56 WAR 1.8 3.2 *Stats according to Fangraphs
  • 32. Anibal Sanchez • Received 5 yr/$80 million after age 28 season. Stats Sanchez – Age 28 Jimenez – Age 29 FIP 3.53 3.43 ERA 3.86 3.30 K/9 7.68 9.56 BB/9 2.21 3.94 WAR 3.7 3.2 *Stats according to Fangraphs • Each pitcher is very durable, having thrown more than 150 innings each of the previous 3 seasons.
  • 33. Market Conditions • Competition: Ervin Santana, Matt Garza, Ricky Nolasco, Phil Hughes • Possible Suitors: Blue Jays, Angels, Yankees, Indians, Phillies, Cubs, Giants and others What It Means:  Several teams looking to bolster starting rotation  Multiple comparable pitchers to Jimenez in this years class  Several do not have qualifying offers (Garza, Nolasco, + Hughes), potentially making them more valuable to teams Conclusion: Similar to Kyle Lohse last offseason, the market for Jimenez may take time to develop. As starters are signed, Jimenez’s asking price will respond appropriately to the market
  • 34. Kyle Lohse • After age 33 season, received 3 yr/$33M deal following 2012 season **Received qualifying offer prior to contract** • Lohse had incredible 2012 season leading into free agency. • Contract likely diminished due to loss of daft pick tied to signing. - Many teams weary to sign him, didn’t sign until March 25th Lohse 2012 Season ERA 2.86 FIP 3.51 K/9 6.10 BB/9 1.62 WAR 3.4 *Stats according to Fangraphs
  • 35. Ubaldo’s Odd Year • Latest year is most important when a player hits free agency • Many assert Jimenez’s 2013 season started poorly and significantly improved as season prolonged • We believe bad fortune played role in his early poor starts. Month (s) HR/FB% March/April 20% May 16% June 10.8% July 8.3% August 3.8% September/October 0% *Stats according to Fangraphs Ubaldo’s career average HR/FB%: 8.7%
  • 36. WAR Projection • Same process used with Ubaldo as performed with McCann - Ubaldo’s Steamer projects a 2.7 WAR. Average Annual Value (AAV): $15M • 2014: 2.7 WAR * $6 million= $16.2 million • 2015: 2.2 WAR * $6 million= $13.2 million • 2016: 1.7 WAR * $6 million= $10.2 million
  • 37. Contract Value at Four Years Projected Contract: 4 yr/$48.6M • • • • 2014: 2.7 WAR * $6 million= $16.2 million 2015: 2.2 WAR * $6 million= $13.2 million 2016: 1.7 WAR * $6 million= $10.2 million 2017: 1.2 WAR * $6 million= $7.2 million With the smaller projected $7.2M in final year, the AAV would decrease.
  • 38. Contract Value for Two Years Projected Contract: 2 yr/$29.4M • 2014: 2.7 WAR * $6 million= $16.2 million • 2015: 2.2 WAR * $6 million= $13.2 million Ubaldo’s AAV would increase because the year in which he is valued the least (final year of contract) would presumably be removed
  • 39. Jimenez Contract Value Having Not Received Qualifying Offer • Average Annual Value: $14M for total of 4 yr/$56M • AAV decreases by $1M, however, Jimenez receives an additional year and more guaranteed money • Without having to give up a draft pick and draft pool money, teams will be more willing to pay Jimenez • Similar to Edwin Jackson 4 yr/$52M deal with Cubs

Editor's Notes

  1. Great WAR (above 4) in 2011 + 2012, sharp decline in other years, including 2013
  2. MLB Debuts of Draftees taken from Baseball-Reference.com, Regression Run on EviewsLikelihood of getting an impact player goes down to about 0 around the 21st or 22nd pick
  3. BaseballAnalysts.com June 15, 2009, FanGraphs January 3, 2013
  4. received Cy Young votes this year