March 26th


Jacob deGrom – Extension

On Tuesday the Mets announced a four year $120.5MM deal to keep the ace in Queens. In 2018 deGrom had a historic season pitching to a 1.70 ERA and 9.0 WAR. Even his FIP was so good at 1.99. Using ERA, the next best pitcher in the National league was Max Scherzer with a still superb 2.53 but that is 0.83 higher than deGrom’s. To compare, Blake Snell the winner of the Cy Young in the AL, had 4.8 WAR. Almost half of deGrom’s. Crazy good he was. Funny moment, was Brodie Van Wagenen who was deGrom’s agent before this season, had been hired on by the mets, and had requested an extension or a trade. Wagenen then comes into the front office of the Mets and extends deGrom himself.  


Kyle Hendricks – Extension

Kyle Hendricks will be pitching in front of the ivy for four more years! The deal which is worth $55.5 MM will begin in 2020. If he finishes top 3 in Cy Young, a 5th year option will vest for $16MM. As the poster-boy for pitching without velocity, he has plus plus command with plus movement on almost all his pitches. Kyle has succeeded in allowing soft contact in such a strikeout heavy era we are in. 


Frenando Tatis Jr. – Promoted

Wow. This one is a shocker. Everyone would have thought the Padres would have taken the minimum 15 days in the minors until they promoted top prospect and phenom Tatis Jr. ensuring them that they got an extra year of control, but no. The San Diego Padres have promoted and will start Tatis Jr. at shortstop on opening day! While not the best business decision, if the Padres do indeed see a path to a wild card (I don’t) then every game counts and Tatis could influence those 15 games. I love to see a competitive Padres team. It’s been too long. 


Steven Souza Jr. – Injury

On Tuesday the Diamondbacks announced that Souza Jr. will undergo season ending knee surgery to repair his left knee. He has a torn ACL, LCL, and partially torn PCL after crossing home plate in Monday night’s Grapefruit League game. While this obviously is a huge blow to the Diamondbacks, for they had just traded for him in 2018. They will still have one more year of control for 2020.


Larry Baer – Suspended

Giants CEO Larry Baer has been suspended through July 1st for his the video that surfaced of domestic abuse of his wife. He will not be paid during this suspension, nor during the leave of absence he has taken since the incident. 


Nick Senzel –  Injury

Top prospect in the Reds’ system suffered an ankle injury and will be sidelined several weeks. He will wear a walking boot for 14 days, and then will be reevaluated. After the boot it is expected that he will need a few weeks to get back to full speed. 


Sandy Leon – Clears Waivers

Red Sox backstop has cleared waivers Alex Speier of the Boston Globe has tweeted. Since clearing waivers the Red Sox have outrighted him to Pawtucket in AAA, but he has not yet accepted that offer. He has 48 to make the decision, and we will of course keep you updated. Leon was the primary backstop in the team that won the World Series in 2018, the pitching staff heralded how well he can call a game and his defensive skills. He signed for $2.475 this past offseason but did not make the team. If he plays for Pawtucket AAA team, he will retain that money, if he Denys the assignment then he will become a free agent. 


Notes 

  • Devin Mesoraco will indeed retire and has been placed on the restricted list
  • Cubs resign Junichi Tazawa
  • Pablo Sandoval will make the Giants
  • Brandon Guyer resigns with the White Sox to a minor league deal
  • Mariners and Eric Young Jr. agree to minor league deal



Business of Baseball – club Option

A club option is an optional year at the end of the contract which may be guaranteed at the discretion of the club. In most instances, the option comes with a buyout that represents a fraction of the option value. If the player is injured or performs poorly enough that the club believes the option value to be too expensive, the club will typically pay the buyout and decline the option. In most cases, this results in the player being eligible for free agency. However, if a player signed a contract that turned one of his arbitration-eligible seasons into an option season, the option can be declined with the player then entering the arbitration process instead.

Should the club exercise the option, the player is considered signed for the following season at that option’s value. Contracts can contain multiple option years.

Examples

Following the 2016 season, the Kansas City Royals exercised their club option on Wade Davis before trading him to the Chicago Cubs in December 2016. The option was part of the contract extension Davis had signed with the Tampa Bay Rays in March 2011, guaranteeing his salary for the 2011-14 seasons and including club options for 2015, 2016 and 2017. Davis was dealt to the Royals as part of a December 2012 trade and played for the team from 2013-16, with Kansas City picking up his club option for each of the latter two years in that span.

Meanwhile, the Nationals picked up Gio Gonzalez’s club option but declined Yusmeiro Petit’s in November 2016. Petit subsequently signed a Minor League contract with the Angels and made the team’s 2017 Opening Day roster.


Header Photo Curtesy of USA Today

Business of Baseball Curtesy of MLB.com

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