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Risk vs. Reward

[Hey, danup here--Extra, extra: Khalil Greene is a Cardinal, in case you don't check the fanposts. Current reports have the trade being for "two pitchers, neither of whom was on the major league roster at the end of last season"; according to the mothership one is a right-handed reliever. Now, back to your regularly scheduled analysis.] 

WARNING: Lots of numbers forthcoming!!!!!!!

I want to thank both Joe Sheehan (subscription required) and Derrick Goold for providing primers for today’s discussion, which is not all that different, BTW, from the discussions of the last couple of days. (Meet the new boss – same as the old boss!) There’s been lots of discussion the last few days about the Cards’ decision to not offer arbitration to either Looper or Springer, but I wanted to put all this into a financial context.

First of all, I’m going to use as my basis Nate Silver’s study a few years back on the value that draft picks offer teams. This is critical to our analysis of the Cards’ decision since that decision could ultimately lead to the Cards receiving draft picks as compensation. I’ll add as disclaimers to our study here that BP uses numbers for WARP and for the value on the free agent market of a win that aren’t generally accepted from other sources. For example, they set the bar for replacement level lower than other sources do and, consequently, have determined that the marginal value of a win is less than the $4.5 – 5 million generally recognized at other sites. Still, if we use their values alone, they’ll translate and work for our analysis.

In 2005, Silver determined that the marginal value of a win was $2.14 M. If we assume an 5% inflation rate over three seasons, then the BP number for this season becomes $2.48 M. BP determined that Springer was worth 2.0 WARP and Looper was worth 4.4 WARP. This puts Springer’s estimated performance value for ’08 at $4.96 M and Looper’s at $10.91 M. Using Justin Inaz’s numbers Springer would be worth about $2.5 M and Looper would be worth approximately $9 M.

Silver’s study determined the average WARP of players drafted between picks 1-7, 8-15, 16-25, and 26+. Now, Springer was a type A free agent. If he had been offered arbitration and signed elsewhere, the Cards would have received either 2 26+ picks (a sandwich pick + a first rounder if drafting between 26 and 30 or a second rounder if drafting between 1 and 15) OR a 26+ pick and a 16-25 pick. Not knowing who would sign him, we could determine that there was a 2/3 likelihood of the Cards receiving 2 26+ picks and a 1/3 likelihood of the Cards receiving a 26+ pick and a 16-25 pick.

Silver determined that, 3 years ago, the net present value of a player chosen between #16 and #25 was worth $8.94 M and the net present value of a player chosen 26th or later was worth $3.24 M. We have to increase that value by 5% per year as we did the value of free agent contracts. After 3 years, the value of a 16-25 pick became $10.36 M while the value of a 26+ pick became $3.75 M.

So, at what point should the Cards offer Springer salary arbitration? If we do, and he signs elsewhere, there is a 2/3 chance that the Cards will receive a net return (from the draft choices) of $7.5 M ($3.75 M x 2) and a 1/3 chance that the Cards will receive a net return of $14.11 M ($10.36 M+ $3.75M). Therefore, the expected net return if the Cards offer arbitration and Springer signs elsewhere is $9.70 M. However, as many of you pointed out, there was a distinct possibility that Springer would have accepted the Cards’ arbitration offer. He would have had only a week to make that decision but clearly, it was something the Cards feared. Why?

Springer received $3.5 M last year and some believed that he might receive up to $4.5 M in arbitration this year. Was he likely to be worth $4.5 M? If you believe BP’s numbers and he pitches as well as he did last year, he would be worth $4.96 M again – that’s better than $4.5, obviously. That makes the decision to offer him arbitration a no-lose situation. You might point out that there’s an opportunity cost involved – if we give Springer $4.5 M, that’s $4.5 M we don’t have to give to someone else (a 2B, SS or SP, for example). However, we could always trade Springer for that player or to get the salary off the books, thus freeing up the money to be used on the free agent market. Therefore, he is still worth an additional $460,000 to the team and it’s a no-lose situation.

This year’s PECOTA projections aren’t up yet but, as of last year, PECOTA had him projected at 1.1 WARP for 2009. It’s safe to say that that number will be a little higher based on the fact that he pitched above his projections for 2008 so we’ll use 1.5 WARP as a projection. Using BP’s numbers, 1.5 WARP is worth $3.72 M. If we’re paying him $4.5 M, we’re losing $0.78 M by signing him to the 1 year contract. Let’s just call it an even $1 M loss to the team by resigning Springer – whether we keep him or trade him, b/c we’re paying $4.5 M for a $3.5 M asset.

If there is a 50-50 chance that Springer accepts arbitration, there is a 50% chance that the team takes a $1 M loss and a 50% chance that the team gains $9.70 M. If you could pay $1 to participate in a coin flip where, if you lose, you lose the dollar and if you win I’ll give you $9.70, would you participate? That’s a pretty good deal. It’s a no-brainer, isn’t it? Still, some of you have pointed that Springer was likely to accept arbitration. What would the likelihood have to be in order to make the arbitration offer a bad one for the Cards?

In order for this to be a bad offer for the Cards, there had to be a 90.7% likelihood that Springer would accept arbitration. If the likelihood that he would decline was even as great as 10%, it was worth it to offer arbitration. Apparently the Cards decided that his likelihood of accepting was at least 90.7% but, remember – this assumes that Springer would receive $4.5 M in arbitration. The Cards likely would have offered something near what he received last year -- $3.5 M -- leaving a 50-50 chance that he’d receive $4.5 M and a 50-50 chance he’d receive $3.5M. The expected cost of the contract would’ve been $4 M – putting the Cards in the hole just $500,000. If that’s the case, there would have had to have been a better than 95% likelihood that Springer would accept. This is a gamble the Cards had to take. The worst-case scenario is that the Cards are set back $1 M. The best case scenario is that they end up +$9.7 M. It was worth the risk, IMHO.

Now let’s look at Looper. Goold believes that it was likely that Looper, too, would have accepted – or at least that the Cards believed that. His rationale – the economy sucks right now (for baseball players, too) and Looper would have decided he’d be better off w/ a 1 year deal this year and a 3 year deal next year than a 3 year deal today. Maybe, but again, maybe not.

Now, Looper is known to be seeking a 3 year deal so it may seem more likely that he would decline the offer than it would be for Springer. However, b/c he’s a type B free agent, the potential payoff to the Cards of him declining arbitration is much lower. This time, we know that the pick would be a 26+ pick worth $3.75 M to the team – considerably less than Springer’s $9.70 M. Moreover, Goold believes that it was possible that Looper would receive an arbitration award of as much as $10 M using Carlos Silva’s contract as a baseline. I’m skeptical. Looper received $5.5 M last year and he wasn’t THAT good. Let’s say a 50% chance of $10 M and a 50% chance of $7.5 M – for an expected award of $8.75 M.

What will Looper be worth next year? He was worth anywhere from $9M to $11M this year. Unfortunately, PECOTA doesn’t help us much as it treated Looper’s marginally successful ’07 campaign as a fluke. ZIPS has Looper projected to be marginally better than he was in 2007 and BP has him at 3.2 WARP for 2007 so let’s go w/ 3.5 WARP. That makes his expected value in the neighborhood of $8.68 M – about what his expected award is. Yes, maybe the Cards don’t want to pay it but they’re going to have to pay someone to be the 5th starter. That cost will likely be $9M or so. If Looper accepts and Carp is healthy and able to pitch, they could trade Looper and his 1 year contract – freeing up that money to spend on a middle infielder.

Let’s go with the worst-case scenario – Looper receives a $10 M arbitration award leaving the Cards losing $1.32 M on the gamble ($10 M payout - $8.68 M value). If there’s a 50-50 chance that he accepts arbitration, there’s a 50% chance the Cards lose $1.32 M and a 50% chance the Cards gain $3.75 M. It’s still a great deal for the team. In fact, it’s a good deal for the team as long as there’s less than a 74% chance that he accepts. If the likelihood that he accepts arbitration is 74% or higher, we shouldn’t offer – in the worst-case scenario.

However, his expected award is $8.75 M and his expected value is $8.68 M – a net loss to the team of just $0.07 M. Using that as our baseline, as long as the likelihood that Looper accepts arbitration is less than 98.17%, the Cards should make the offer. Again, the downside is a loss to the team of $70,000. The upside is $3.75 M. This is more of a no-brainer than the Springer offer. For each, there is very little downside and quite a bit of upside. Sure, it’s possible that both Looper and Springer would have accepted and flamed out but the likelihood is that both offers would have worked out to the team’s advantage. They are, to put it bluntly, offers that should have been made.

In the Sheehan article referenced at the very beginning, he says that

There’s is simply no reason, even given the externalities present, for teams to be as risk-averse as they were in this process. The risk isn’t great enough, and the reward is considerable.

I couldn’t agree more.

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The only way it makes sense...

Is if the free agent market collapses and looper can be signed much cheaper than everyone expects.

Given last years lohse signing, why wouldn’t you wait as long as possible to see if free agency stagnates? If it does (and it looks like it will), looper will be one of the deals.he might sign for last years rate.

I’ve not seen any trade rumors that mention looper. With teams being this risk averse the free agent market may collapse. My guess is the fringe free agents, like looper, are very aware of this.

I still wish we had those picks…

jp

by jpmorgan5150 on Dec 4, 2008 7:52 AM EST reply reply actions actions   0 recs

Greene a Cardinal

Just trying to find the prospects dealt but 2 relief pitchers for Greene

"People call me El Hombre," Pujols said. "But only Stan is the Man."

by StLHugo on Dec 4, 2008 7:53 AM EST reply reply actions actions   0 recs

Good idea

I didn’t see that post till after I put my note here but at least we have something pointing people over to it.

"People call me El Hombre," Pujols said. "But only Stan is the Man."

by StLHugo on Dec 4, 2008 8:39 AM EST to parent up reply reply actions actions   0 recs

thanks

I work on these the night before and didn’t know about the trade at the time.

I knew there would be times like these.

by chuckb on Dec 4, 2008 9:14 AM EST to parent up reply reply actions actions   0 recs

Is there a VEB rule that

there can only be one “main post” per day? In one respect VEB is very unusual in the blog world because it almost never has more than one major posting a day. (Of course the fanpost capabilities make this format much different from most blogs.)

by MdRedbirdFreak on Dec 4, 2008 9:46 AM EST to parent up reply reply actions actions   0 recs

I like it

because it keeps the discussion focussed to one main thread per day, instead of having 4-6 main threads per day that have 20-30 comments in each of them.

I read a ton of blogs each day through my RSS reader, but this is one of the few that I use the site itself, because it’s uncluttered and easy to follow.

"I just wish that the late Harry Caray were still around so I could hear him mispronounce 'Kosuke Fukudome' every fukun' night" -- Dennis Miller

by fourstick on Dec 4, 2008 10:14 AM EST to parent up reply reply actions actions   0 recs

ditto

I follow this site in an RSS reader but I actually come for the comments and fan posts, VEB along with Future Redbirds are about the only ones I actually use the site for anymore.

"People call me El Hombre," Pujols said. "But only Stan is the Man."

by StLHugo on Dec 4, 2008 10:23 AM EST to parent up reply reply actions actions   0 recs

It might

get more attention (that is, the Khalil Greene post) if it was posted under Recommended Fanposts. I almost never read the stuff below (for good or for bad)

by eglasier on Dec 4, 2008 10:24 AM EST to parent up reply reply actions actions   0 recs

then how does it get to recommended?

people have to read the stuff below then recommend it before it goes up, back in the old days (like what 7 months or so ago?) we didn’t have that feature enabled even

"People call me El Hombre," Pujols said. "But only Stan is the Man."

by StLHugo on Dec 4, 2008 10:25 AM EST to parent up reply reply actions actions   0 recs

yea,

I don’t know how that works. I just thought a site admin just recommended it as good and it went into that section

by eglasier on Dec 4, 2008 10:30 AM EST to parent up reply reply actions actions   0 recs

nope

open the post then you will see two icons at the bottom, one for “Flag” the other labeled “Rec” click on the Rec one to recommend the post, once it gets enough recommendations it gets bumped up

"People call me El Hombre," Pujols said. "But only Stan is the Man."

by StLHugo on Dec 4, 2008 11:06 AM EST to parent up reply reply actions actions   0 recs

I'll add 1 more thing about Springer

if he signs with another team, rather than retiring, there was not a 100% chance that he accepts arbitration.

by chuckb on Dec 4, 2008 7:53 AM EST reply reply actions actions   0 recs

Arbitration offer eliminates 15 possible teams

I don’t think a team would exchange one year of Springer for a first round pick. Look at it from the Cards point of view if Springer was an Astro last year. Would you sign Springer for pick number 19?

This would limit his signing options to the teams with picks 15 and lower. Of those teams, Springer and his agent would have to look at how many would beat $4.0 M for one year of a 40 yr old righty. Of those, Springer would see how many of the cities fit his family needs. Then compare that to the comfort level he has with STL and the team. I believe the end result would be that he would accept arbitration.

by ubeddie on Dec 4, 2008 9:55 AM EST to parent up reply reply actions actions   0 recs

no

it means that we would get their 2nd round pick instead of their 1st, thus the 2/3 likelihood that we get a 26+ pick.

by chuckb on Dec 4, 2008 10:35 AM EST to parent up reply reply actions actions   0 recs

I am eliminating teams 16 - 30 not 1 - 15

Would you sign Springer at $4 M and lose 2009’s #19 pick? That is the question teams with picks 16 -30 must answer before they venture into the fray. 99.9% chance that they would all pass on that offer.

by ubeddie on Dec 4, 2008 10:51 AM EST to parent up reply reply actions actions   0 recs

according to Joe Strauss at the PD

during his chat earlier in the week, there was zero chance of Springer not accepting arbitration. He would have accepted it “immediately”, or something like that.

god, i love baseball. -roy hobbs

by SleepyCA on Dec 4, 2008 12:47 PM EST to parent up reply reply actions actions   0 recs

Kalil Greene

And I’m all for kalil as long as we don’t give up too much.

jp

by jpmorgan5150 on Dec 4, 2008 7:53 AM EST reply reply actions actions   0 recs

Greene is terrible

To give up anything for a guy who fought to keep his head above replacement level last season is ridiculous. In Greene’s last 2 seasons (including 2007, maybe his best season), he has an OBP of .278. Do we really need to give up prospects (no matter who they are) AND pay him $5.5 million for that kind or performance? I can’t even imagine a silver lining to this deal. It is 100% terrible.

by southsidepat on Dec 4, 2008 11:12 AM EST to parent up reply reply actions actions   0 recs

OBP is a fair stat, but power is also crucial to offensive output.

by astrostl on Dec 4, 2008 12:51 PM EST to parent up reply reply actions actions   0 recs

No one wants to bet

that regression to the mean applies to both players who play well and those who suck.

Our players who have outperformed their career numbers (I’m not going to touch ‘true talent level’):
1. Kyle Lohse.
2. Springer.
3. Ludwick.

Could these guys be worse next year? You bet.

Our players who played like crap:
1. Izzy.
2. Pinero.
3. Kalil Greene. (If the deal goes through.)

I’m sure there are more than that in both categories – I am at work. Basically, if Kyle Lohse sucks next year (like Pinero did this year) we are all going to call Mo an idiot. Based on Izzy’s past recovery from injury, he ought to be a pretty good closer next year.

Do we know which players are really better or which ones had fluke years (or careers)? No. Can we project and get some sort of idea? Yes. Are they reliable enough to catch all possibilities? Not until we learn how to Asimov the future by math.

My point? Greene is young, has lowered value, and has a good possibility of recovery since he is not in Petco and in a different setting. Is there still risk associated with this move? Yes.

The key is to buy low and sell high. Right now, we don’t know if the stock market has hit bottom – we could buy now and win in 5 years or we could buy now and the market could tank another 50%. However, historically, we are buying low on Greene.

Worst case scenario we give up a good relief arm (or two), which we have plenty of, and overpay for Izturis offensive production.

My general point in my posts today: We can’t fully predict the uncertainty in the actions we take today with only partial information.

We won’t have full information until Kalil Greene has played his 2009 season for the cardinals. I do think we have stacked the deck in our favor on Greene, though.

jp

by jpmorgan5150 on Dec 4, 2008 2:20 PM EST to parent up reply reply actions actions   0 recs

Future performance

All the projections are biased towards the most recent performance.

Hear me out before you throw me out of the forums!

They have to be due to our lack of ability to read the future. However, no one is predicting that future performance will be drastically different than the most recent year of performance, even though it does happen in real life.

While many times injuries are responsible, some players just suck some years. We can’t really project the outliers in performace like that, either good or bad. Just like oil – when it was $150/barrel most people were predicting $200/barrel. Very few reliable ‘analysts’ were saying “oil will be $60/barrel by the end of the year.”

I’m simply saying we need to aknowledge that the coaches (like Duncan) have seen the Ken Bottenfields and Kyle Lohses and Joel Pinero’s (plus others) who come in and either overperform or underperform their career numbers. They may have a read on those outliers as much as we do with the projections.

I don’t mean to rant, and some of this is not backed up by numbers, so I may be talking out of my butt. But the average net worth between myself and Warren Buffett is around $1,000,000,000.

jp

by jpmorgan5150 on Dec 4, 2008 2:30 PM EST to parent up reply reply actions actions   0 recs

Black Swan

Have any of the statheads here read the Black Swan by Nassim Nicholas Taleb? It’s about the fallacies of using bell-curve based projections. When reading it I keep trying to apply it to baseball. I’m not sure if his criticisms translate to the sport, though, because a player only gets so many at-bats in so many games with so many innings, etc (it’s mediocristan, not extremistan if you’ve read the book). Anyway, just wondering if anybody else had read it and had an opinion

by spencegrif on Dec 4, 2008 4:29 PM EST to parent up reply reply actions actions   0 recs

I see your point about buying low, but my point is that...

The Cardinals shouldn’t be buying at all. There is no need to expend any kind of resources (be it dollars or prospects) to get Greene. If his cost is near replacement level, then that’s fine, and worth a roll of the dice, but if we’re giving away even marginal talent or paying millions of dollars, then that’s terrible. There’s not other way to put it. If he regresses to the mean, and take into account the move from Petco, Greene does have the ability to put up a .200+ ISO, but he’s still going to be a very low OBP guy. There may be better options on half of the AAA squads out there. All I’m saying is that if you’re going to trade away resources, maybe try to get a player with a smaller contract, more of a future than just one year, or someone who provides some kind of offensive upside. If none of these things can be achieved, why bother making the deal?

by southsidepat on Dec 4, 2008 2:51 PM EST to parent up reply reply actions actions   0 recs

How much smaller of a contract are you looking for?

Greene’s is one year, $6.5 million. Perhaps you didn’t notice, but Renteria (who is an undisputably worse defensively and only marginally better offensively) signed with the Giants today for 2 years, $18.5 million. I’ve also read that there is speculation that the Padres are kicking in $1 million on Greene’s contract, although this is just speculation at this point.

Also, Greene doesn’t have offensive upside? All he has to do is slightly perform better than he did last year — his career worst by far – and he will be an offensive upgrade over Izturis. If he returns to 2007 form, we got an absolute steal.

by Ray Lankford on Dec 4, 2008 5:10 PM EST to parent up reply reply actions actions   0 recs

I think we got a steal either way...

"I just wish that the late Harry Caray were still around so I could hear him mispronounce 'Kosuke Fukudome' every fukun' night" -- Dennis Miller

by fourstick on Dec 4, 2008 6:28 PM EST to parent up reply reply actions actions   0 recs

Bernie

is claiming $2 mil. Which makes it a great deal.

by Evilfrog on Dec 4, 2008 9:01 PM EST to parent up reply reply actions actions   0 recs

LOOPER'S WORTH IS FUNGIBLE

I’M GOING TO GO OUT ON A LIMB HERE AND SUGGEST THAT LOOPER’S VALUE IN THE EYES OF THE ARBITRATION PROCESS IS GOING TO BE GREATER THAN HIS VALUE ON THE FREE AGENT MARKET…

by TOLAXOR on Dec 4, 2008 8:27 AM EST reply reply actions actions   0 recs

If he's fungible

how could that be possible? Arbitrators make their decisions based on free agent contracts. If your argument is that the market is falling and teams will stop spending money altogether, that may be. But free agent contracts is how arbitrators determine players’ worth.

Even so, he’s not getting more than $10M in arbitration and, if that’s the case, and there was less than a 74% chance that he would accept (given 1 week to make a decision), the Cards still should have made the offer.

by chuckb on Dec 4, 2008 9:17 AM EST to parent up reply reply actions actions   0 recs

i've missed you man

the Cards really should have offered him arb though. they really really should have.

I'm going to go try to find a puppy and kick it. - Brad Thompson AND THAT'S A WINNER!

by gdm426 on Dec 4, 2008 2:08 PM EST to parent up reply reply actions actions   0 recs

This was painful to read.

I don’t understand the declined arb and now I feel like the Cardinals flushed money down the toilet. If they sign any reliever/starter not better than Springer/Looper to a multiyear deal, I’m going to have a fit

by azruavatar on Dec 4, 2008 8:45 AM EST reply reply actions actions   0 recs

the only thing

I can think of is that they believe that economic conditions will cause the free agent market to plummet in the coming weeks. Since arb decisions are made based on last season, the Cards must figure they could re-sign the same players or their equivalent for much less and they’d be stuck paying more than necessary. The picks are what make this tough to stomach for me, but that’s a whole different can of worms.

by spencegrif on Dec 4, 2008 9:58 AM EST to parent up reply reply actions actions   0 recs

fantastic post

an extremely objective way of looking at this whole abomination

by VolsnCards5 on Dec 4, 2008 9:00 AM EST reply reply actions actions   0 recs

Another option...

I suppose this isn’t likely as it would require the team to be looking out for the best interests of the player but… by not offering arbitration they’re making these players much more attractive to other teams. It’s like they’re doing them a solid favor. Is it possible that this is a marginal way to attract slightly above average players? Players like Braden Looper and Russ Springer and Edgar Rentaria don’t need an extra check in the ‘minuses’ column while they’re in contract negotiations. Could this be a way of saying to this years free agents “hey.. we’re not going to tie this particular anchor around your neck when your contract with us is up” thereby making the cardinals are more desirable location to land? Or am I just talking out my ass…

by Birds on the Matt on Dec 4, 2008 9:19 AM EST reply reply actions actions   0 recs

Looper was a Type B and a supp pick shouldn't affect his value so no

Renteria, the Tigers evaulated he wasn’t worth 9 million on a 1-year deal by declining his option, it’s no surprise they didn’t offer him arbitration. So I don’t think there’s too much evidence to that one.

Kosuke Fukudome: $48 million .257 .359 .379
Skip Schumaker: $Free .302 .359 .406
Skippy needs a new publicist, but I heart Ben Zobrist

by joker24 on Dec 4, 2008 9:26 AM EST to parent up reply reply actions actions   0 recs

It's doubtful the Cards would have never got a first round pick for Springer

Even though Springer was a Type A, if a team signs a higher rated type A in addition to Springer then the Cardinals would have go bumped back a round.

That beings said, if the Cardinals had offered Springer arbitration he would have accepted it right away.

Now with the trade for Khalil Green (if the gave up Franklin on Thompson) they can bring Springer back anyway.

www.salukihoops.com

by salukihoops on Dec 4, 2008 9:20 AM EST reply reply actions actions   0 recs

Good, but....

"However, we could always trade Springer for that player or to get the salary off the books, thus freeing up the money to be used on the free agent market. Therefore, he is still worth an additional $460,000 to the team and it’s a no-lose situation. "

That’s a huge assumption upon which a lot of reasoning is based. How many teams are going to want to pay $4.5 to a 50-60 inning 40 year old AND give up a player or player for that privliege?

I would have put the odds of Springer accepting at 100%. I seriously doubt any team would have sacrificed either their 1st or 2nd rounder for 1 year of him. He knows that.

by Hal Lanier's Pants on Dec 4, 2008 9:22 AM EST reply reply actions actions   0 recs

Considering the relationship the Cardinals have with Springer...

and also considering Springers family situation, a sign and trade wouldn’t be a reasonable option anyway.

Mo would lose a lot of credibility with players and agents if he did Springer like that.

Also, I believe there is a rule in the CBA saying if you sign a FA then you can’t trade them until 1/6 of the season is complete (but don’t quote me on that)

www.salukihoops.com

by salukihoops on Dec 4, 2008 9:38 AM EST to parent up reply reply actions actions   0 recs

I think that

by taking arbitration that the player forfeits said rights….but not positive

by eglasier on Dec 4, 2008 9:42 AM EST to parent up reply reply actions actions   0 recs

Springer's family no longer near STL

His family was in Monroe LA last season and he stated in a radio interview Tuesday that he saw his son for about three weeks during the 8 month season. He is also looking at autism schools in other major league cities when considering free agency. The link to the interview was in Tuesday’s main thread posted by gdm426

by ubeddie on Dec 4, 2008 11:28 AM EST to parent up reply reply actions actions   0 recs

i think this is right

also i think you blow off opportunity cost argument too quickly. we have a very limited amount of money and lots of needs. if looper and springer were both to accept, that’d be just about it for the cards’ offseason. and everybody knows springer is not a valuable trade chip.

by rannpb on Dec 4, 2008 9:48 AM EST to parent up reply reply actions actions   0 recs

The 5th starter

Nice analysis but I’ll quibble with this point: “Yes, maybe the Cards don’t want to pay it but they’re going to have to pay someone to be the 5th starter. That cost will likely be $9M or so.”

The only way the decision not to sign Looper makes sense to me is if the Cards are slotting his $9 mill or to a splashy free agent and plan to get by with McClellan (or Boggs) as the 5th starter until Carpenter is ready. McClellan is perfectly capable of stepping in for league minimum and giving us replacement level output IMHO. Are we going to take a run a Furcal? If so, this Looper thing makes sense. If not, I don’t like the move for reasons given in your post (the money play was to offer arb).

by jjray on Dec 4, 2008 9:28 AM EST reply reply actions actions   0 recs

We just shored up our SS for next year.
Are we going to take a run a Furcal?

Not unless Khalil Greene or Raffy wants to move over to second base….

"I just wish that the late Harry Caray were still around so I could hear him mispronounce 'Kosuke Fukudome' every fukun' night" -- Dennis Miller

by fourstick on Dec 4, 2008 9:44 AM EST to parent up reply reply actions actions   0 recs

regarding Springer

It’s funny how… "we can always trade Springer for a 2B, SS or SP"! Because everyone is looking at the start of the season for a $4.5 million right-handed relief pitcher and is willing to part with a quality 2B, SS or SP at that same point in the season. Are you kidding?

by jomfa on Dec 4, 2008 9:31 AM EST reply reply actions actions   0 recs

No

But the point is if we felt like making a pure salary dump they could do it. Teams (Yankees, Mets come to mind) would easily take on 4.5 mil to get Springer if they didn’t have to give up much of anything.

So if he accepts and we don’t want him to, then it doesn’t matter we could dump him. If he doesn’t, then we could possibly get draft picks.

Kosuke Fukudome: $48 million .257 .359 .379
Skip Schumaker: $Free .302 .359 .406
Skippy needs a new publicist, but I heart Ben Zobrist

by joker24 on Dec 4, 2008 9:36 AM EST to parent up reply reply actions actions   0 recs

I think you're overoptimistic

to be counting on the existence of “someone” to take on a $4.5 million 40-year-old relief pitcher in the middle of a godawful recession. Clearly Moz wasn’t willing to take that chance.

by MdRedbirdFreak on Dec 4, 2008 9:50 AM EST to parent up reply reply actions actions   0 recs

The point is

we could even dump him and eat 2/3 of his salary and still be financially better off. If we’re willing to do that, considering the likelihood of his not accepting, it’s still a deal worth making.

by chuckb on Dec 4, 2008 10:38 AM EST to parent up reply reply actions actions   0 recs

if we trade him

the other team gets the picks

by spencegrif on Dec 4, 2008 10:01 AM EST to parent up reply reply actions actions   0 recs

You only trade him if he accepts

At which point no one gets any picks.

Kosuke Fukudome: $48 million .257 .359 .379
Skip Schumaker: $Free .302 .359 .406
Skippy needs a new publicist, but I heart Ben Zobrist

by joker24 on Dec 4, 2008 10:02 AM EST to parent up reply reply actions actions   0 recs

Good article

I’ve long been an advocate of risking the signing of arbitration-eligible players like Looper and Springer. As the article says, you guarantee a contract if they accept arbitration, but it’s just for one year, and you ARE FREE TO TRADE THEM. The article talked about the value of draft picks, but there is also considerable value in trade possibilities—even it we only received a couple of minor league prospects in return. They become much more known quantities than players yet to be drafted, and therefore are less of a risk.

One element that isn’t being discussed, however, is the 40-man roster. it seems that Mo may be afraid of loading it up before the Rule 5 Draft or before other trades and/or signings can be completed.

Oh, and one more issue with the sign and trade option (even though I support it) is that if the player actually goes to arbitration, the salary may not be known until February. That makes it practically impossible to trade that player until Spring Training. In that sense, it could radically limit what Mo could otherwise do in the next 2 months.

My first memory of Cardinals baseball is seeing Darrell Porter jump into Bruce Sutter's arms on October 20, 1982!

by 82Special on Dec 4, 2008 9:42 AM EST reply reply actions actions   0 recs

Not much of a math whiz

but maybe they don’t look at it this way. I understand the sentiment of getting draft picks and that they add up to money saved. I am going to use the example of Pete Kozma.(even though he is from my hometown and think he’s damn fine player) He was our #1 pick 2 years ago and most everyone here was pissed that we didn’t take Rick Porcello. Kozma doesn’t have any particular great thing. The point I’m trying to make is that the draft is a gamble in and of itself. Maybe they wanted to have flexibility to choose who they wanted on the 09 roster. Maybe if they trade Ankiel or Ludwick, they can get those picks back. (You know Ludwick for Guy + prospects.) If you don’t want these guys on your team, then don’t give them a chance to be on it.

"It is easy to be brave from a safe distance." - Aesop

by OKCardsfan on Dec 4, 2008 9:46 AM EST reply reply actions actions   0 recs

RISK ASSESSMENTS!

What you are overlooking is the fact that there is tremendous uncertainty in the following:

1. The Draft. The uncertainty increases the lower the pick.
2. Trades. Ask San Diego how easy it is to trade an ace and get value.
3. Springer’s performance/health. He is 40 and has not been good most of his career.
4. This year’s free agent market.
5. Looper’s performance next year. This was only his 2nd year starting.
6. The arbitration process.
7. The general economy as it pertains to baseball in 2009.

There is, however, great certainty in the following:

1. A guaranteed contract.
2. Money available to spend on payroll. (Given last year’s payroll can be maintained economically.)
3. The familiarity of pitching for the same team you have been successful with.

I think we as a community are fairly accurate in our view of the team. However, I do believe we are more biased to growing and aquiring talent through the draft. I include myself in this – I would have offered arbitration.

That said, your analysis is incomplete until you can quantify the uncertainty in the above list. That is why Mo didn’t offer arb – he is picking the route that gives him the most flexibility with the available data now. While that may turn out to be a bad decision later, now there is NO WAY TO QUANTIFY ALL THE FACTORS IN THE EQUATION.

Pan me if you like – until the uncertianty is quantified your analysis is incomplete. And Mo may end up signing someone worse than either of those two for the same or more money – there is just too much uncertainty right now to know which way to go.

jp

by jpmorgan5150 on Dec 4, 2008 10:18 AM EST reply reply actions actions   0 recs

sure,

you can never quantify everything in any equation. But what most people, economists, statisticians do is use the relevant, available information to make informed decisions. Maybe Mo & Co have some numbers that we don’t our information that we don’t. But I think based on what we know, they made a bad decision.

At worst Mo was being risk averse and while on an individual level that is usually wise as an organization it isn’t a smart decision. You should always go by the numbers. You will lose some just like a casino but in the end you will come out ahead.

by eglasier on Dec 4, 2008 10:29 AM EST to parent up reply reply actions actions   0 recs

+1

"It is easy to be brave from a safe distance." - Aesop

by OKCardsfan on Dec 4, 2008 10:29 AM EST to parent up reply reply actions actions   0 recs

projections and probabilities

take all that stuff into account. The value of the draft picks is an average of years worth of picks. They might turn out to be a lemon, as you suggest, but they also might turn out to be a Hall of Famer. You neglect that possibility. The only wild card is #7 and, in fact, it’s why I assumed a 5% growth rate in salaries as opposed to the customary 8-10%. Uncertainty in the arbitration process? Again, I accounted for that. Each team submits their bid (so to speak) and each has basically a 50-50 chance of winning. That’s accounted for in the calculations.

To suggest that none of those factors have been considered is just factually inaccurate. To suggest that I haven’t quantified the uncertainty in your list is factually inaccurate. That is exactly what I, Nate Silver, PECOTA, and BP have done. Does it account for the possibility that Springer might be horrible next year? Absolutely, yes. Does it account for the possibility that the draft pick might not sign and, instead, go to college. Absolutely, yes. All those things you suggest are uncertain are factored in — the only possible exception being questions about the current economy.

However, if those questions are ubiquitous among teams and agents, it will affect their arbitration demands and the arbitration awards — 2 things I considered in my analysis.

by chuckb on Dec 4, 2008 12:29 PM EST to parent up reply reply actions actions   0 recs

I liked the analysis chuck, it’s very sound, but doesn’t necessarily take into consideration what the team’s goals this offseason were (which are completely unknown to any of us of course). They may have said “there’s no way we can take $8-10M for the 5th starter and $4-4.5M for a relief man and still fill the other holes on the roster”. It certainly pins yourself in a corner to have to make a bad decision in not offering arbitration, but maybe they saw the alternatives for SS/2B, etc. as even worse.

by woodfeld on Dec 4, 2008 12:53 PM EST to parent up reply reply actions actions   0 recs

Projections and probabilities

need to be used correctly.

I’m not knocking the analysis – it quantifies more items than anyone has seen to this point, which is truly impressive. I would be surprised if the Cardinals front office has gone this in depth. In my opinion, quantifying the unknowns is the single most powerful tool anyone can use to make an intelligent business decision.

But to quantify the value of a pick, you absorb the uncertainty of a bad draft pick and couple it with a good draft pick. At the end of the day, there is still the risk that you pick a loser.

Even though the numbers quantify that risk, when you apply it to a particular pick it becomes either a winner or a loser, not $11.5M to spend on this year’s needs. It may net you the next Greg Maddux and it may net you the next Chris Lambert. It’s uncertain.

I’m not arguing against the stats – I’m not that guy, even though it seems that I may be.

My main point is that the uncertainty of the draft PLUS the uncertainty of the economy PLUS the uncertainty of arbitration PLUS the uncertainty of future performance PLUS the uncertainty of trading PLUS the possibility of a free falling free agent market all add up to a very, very conservative approach by the Cardinals front office.

Add to that the teams needs (which starting pitching is third) and you get no arb offers.

Play the numbers and you win long term. You won’t win every time and the individual situation determines whether you win or lose. I think that Mo took the approach that there were too many uncertainties to offer either player arbitration.

jp

by jpmorgan5150 on Dec 4, 2008 2:02 PM EST to parent up reply reply actions actions   0 recs

Agreed in many ways

I agree here in a lot of ways. On paper, in just the pure worth of players/draft picks, it makes sense to offer arbitration, but there are a lot of uncertainties. Without knowing next season’s opening day roster, I could see Mo thinking of plugging in some of the cheap farmhands (Boggs/Motte) for the two roles Springer and Looper were going to fill. Of course, if he goes out and signs comparable vets to Springer/Looper, then all bets are off and this was silly for Mo to do. Maybe he’s tipping his hand here, that these two guys are going to be replaced with guys from Memphis. That said, not offering Springer is much more of a question mark to me, though the cheaper minor league options are plentiful. If he accepts, which in all likelihood he would, it’s still a good pitcher in the pen that can mentor the younger guys for a relatively cheap rate. And if he doesn’t accept, we get rewarded tenfold….

by woodfeld on Dec 4, 2008 12:37 PM EST to parent up reply reply actions actions   0 recs

Chuckb.

I really think you are leaving out the human element in the case of Springer. There are a lot of other circumstances that make the decision to not offer Springer make sense.
First off, He lives in St. Louis with his family and they want to stay because his child has autism and the best school the kid could possible be in is here. Springer has also said that he wants to play in St. Louis and he would consider retiring if that option didn’t present itself. I think the probability that he accepts is 100% given his circumstances.

It also makes sense for him business wise. The guy is 40 years old. Not a lot of teams are going to sign him for more than arbitration would offer, AND accommodate his family needs, AND give up a draft pick in order to do those things. If Springer accepts, he doesn’t have to move and he gets a 100% guarantee of a raise. if he was a newly married 25yr old and was looking for a long term contract with a career on the up-tick it wound be a different situation.

One more thing. This also makes sense for the Cardinals. If they knew he would accept, that means he probably still wants to pitch and we know he wants to be in the Lou. By not offering arbitration, all the bargaining power is shifted to the Cardinals and they will probably be able to sign him for the same salary as last year, if not less.

That being said, I can’t think of any reason not to offer Looper and I agree with your assessment. I just think we should remember that percentages that we come up with and scenarios we think of often leave out the human element of the whole process when that is actually a huge part of it. Just like you don’t choose to hire someone at work if you know the location or living situation isn’t a right fit. The decision is made even though the finances look good for them and the skills look good for the employer. Family situation and attitude are all part of the equation that we often leave them out when we talk about scenarios regarding real people. Our fixation and loyalty is often placed with the TEAM and not the individuals, but being a good GM involves working with individuals and understanding their situations. Being able to juggle those things and still put together a good team is the root of being a good GM in my opinion. Time will tell, but I feel that there is much more to these decisions than percentages and dollar figures.

by t7rick on Dec 4, 2008 10:26 AM EST reply reply actions actions   0 recs

This is silly

You say that I ignored the human element and then say that the likelihood that he would have accepted arbitration is 100. If you’re right, then they should not have offered arbitration. Apparently, all you and I disagree on is the likelihood that he accepts. So then how did I not consider the human element? I just don’t agree that it is 100. I think it’s 90% or less though, certainly — for all the reasons you mentioned, greater than 50. Moreover, I’m going w/ the belief that the Cards should have offered arbitration if the likelihood is 95 or lower. Now we’re only 5% apart. Offering arbitration is still a low risk/high reward option that the Cards missed out on — Springer’s son notwithstanding.

by chuckb on Dec 4, 2008 12:33 PM EST to parent up reply reply actions actions   0 recs

True

and I just read above that his son no longer lives in the Lou so that blows that argument out of the water.

I still think on a purely business standpoint that the chances he accept are pretty close to 100% and I am sure that MO knew the deal based on conversations with Springer and his agent. If Springer gets over 4.5mil or more on the open market, then yeah, I agree with everything you said, but if he lands somewhere else for 3mil, or the Cards resign him for last years money or less, then I think they made the right decision.

If a team with an unprotected pick signs him to a bigger deal, then we probably made the wrong decision.

by t7rick on Dec 4, 2008 12:42 PM EST to parent up reply reply actions actions   0 recs

That's a great post

Of the two choices, I find not offering Springer arbitration more acceptable because:

A. I believe his unique circumstances likely put the chance of him accepting arbitration at far greater than 90%.
B. The Cards have a crush of low value right handed relievers.

As for Looper, I think one aspect that has not been covered (and likely because Larry no longer does these posts) is that perhaps the Cards are considering the cheap Ryan Franklin as the cheap 5th starter/ swingman role and therefore didn’t feel that Looper offered as much value in that role as Franklin.

by JMedwick on Dec 4, 2008 10:35 AM EST reply reply actions actions   0 recs

Right on target!!!

I couldn’t agree more with the human element. I have a son that has autism, & being in the right school environment is HUGE! I hope both parites involved can come to some sort of reasonable agreement. Autismspeaks.org

CliffNotes: "My Dad wanted me to be a baseball player!"
Roy Hobbs: "The Natural"

by CliffNotes on Dec 4, 2008 10:42 AM EST reply reply actions actions   0 recs

Disagree

It appears in Springer’s case the club showed consistency with their push to develop young players. This bullpen may indeed miss Spring, I think it will but these kids need to play. This probably isn’t the year the Cards win it all so why not get the young right handers some experience to help them in the future. If the club sticks to this formula who can complain. However, if they forsake the developmental path with a new closer then this move is definitely questionable.

by okiecardfan on Dec 4, 2008 11:13 AM EST reply reply actions actions   0 recs

once again

an arbitration offer and playing young players are not mutually exclusive. The team can do both. If he accepts, Springer is a commodity that can be traded. It’s even worth it to trade him for little and eat some salary — for the opportunity to gain 2 draft picks. The opportunity to gain 2 high draft picks is, in and of itself, a commitment to developing young players and, if the team was really interested in that, they would have taken the chance and made the offer.

by chuckb on Dec 4, 2008 12:35 PM EST to parent up reply reply actions actions   0 recs

Just Want to Mention...

…Renteria signed with the Giants today, and jack Wilson went to the Tigers – 2 moore short stops off the market…
:=8/

by The MooCow on Dec 4, 2008 12:41 PM EST reply reply actions actions   0 recs

since we got our SS last night, its a moooo-t point

the only thing of note to renteria signing is they in fact did give him 9 mil a yr

by FunkeeC on Dec 4, 2008 12:49 PM EST to parent up reply reply actions actions   0 recs

Better bet?

2 years at $18.5M that the 33-year-old Renteria will regain his form after a season in which he hit .270/.317/.382 or 1 year at $6.5M that Greene will be more similar to 2007’s 37 HR and 44 doubles form than last year’s .231/.260/.339 awfulness?

"I'm gonna throw the nastiest curveball I have ever thrown...if he hits it, I'll tip my cap, but if not we're going to the Series."

--Adam Wainwright on the final pitch of the 2006 NLCS

by bgh on Dec 4, 2008 1:40 PM EST to parent up reply reply actions actions   0 recs

all things considered

i do think its a decent bet that Greene will at least beat our recent SS output with the upside being much better

by FunkeeC on Dec 4, 2008 1:42 PM EST to parent up reply reply actions actions   0 recs

Slight disagreement

I’ll wait until tomorrow’s VEB post about Greene for a full evaluation, but looking at the stats, I don’t see Greene as much of an improvement over Izturis, even if he bounces back to a 20 HR, 35 2B season, and he’ll be double the price. The only thing Greene has over Izturis is power, everything else slides to Izturis’ side. I like that it’s only one year (also contract year motivation) so if he fails, not too much skin off the Cards’ teeth.

by woodfeld on Dec 4, 2008 1:56 PM EST to parent up reply reply actions actions   0 recs

well, anyone who is better than what we had would cost

it just depends on what the cost is. Any trade for a better SS than K.Greene would cost much more in the way of talent (Escobar) or much more in the way of dollars (Furcal). I do see this as an improvement over Iz2 as there is at least a chance that Greene does hit better with comparable defense. We have seen who Iz2 is and what he can provide. I don’t think its the perfect deal, I’m not doing ozzie style flips over it, but I understand that it could work for us

by FunkeeC on Dec 4, 2008 3:24 PM EST to parent up reply reply actions actions   0 recs

A very interesting piece in the P-D

I’m not sure if it’s been linked to already, but it’s Gordo detailing an interview with Duncan and it is most definitely worth a read. Here’s a taste:

The Cards must add an established closer. If Mozeliak can’t land one, Duncan would be open to giving Jason Isringhausen another look in that role in the spring.

"If he does everything he has to do to recover from the injuries he had and he wants to give it a shot, I’d vote ‘yes’ to giving him a shot," Duncan said. "I know he’s interested in trying to continue pitching."

But Izzy would have to prove himself in that closing role -– and accept pitching in other roles if he doesn’t win the job.

"I'm gonna throw the nastiest curveball I have ever thrown...if he hits it, I'll tip my cap, but if not we're going to the Series."

--Adam Wainwright on the final pitch of the 2006 NLCS

by bgh on Dec 4, 2008 1:35 PM EST reply reply actions actions   0 recs

I hope this is strictly Gordo's order of reasoning

and not Dunc’s—

Izzy would have to prove himself in that closing role…

I’m all for giving Izzy an NRI or something, but I’d rather not have him prove himself on the job again. He has to prove himself fit to be a closer—or a relief pitcher—before he does anything else.

by DanUpBaby on Dec 4, 2008 2:26 PM EST to parent up reply reply actions actions   0 recs

fail

this line is dedicated to '09

by Cards Fan in Chitown on Dec 4, 2008 4:37 PM EST to parent up reply reply actions actions   0 recs

In Baseball

There are them that do, and there are them that prove they can do.

by mateodh on Dec 4, 2008 6:39 PM EST to parent up reply reply actions actions   0 recs

Also fro the same piece
Duncan has great respect for the job veteran reliever Russ Springer did last season. "I would not dismiss the possibility of us signing Russ," he said. "We’re trying to pursue him. I hope we will. I would envision him playing a major role if we should be able to bring him back

."

Maybe the Cardinals feel Springer would sign for less than what he gets in a hearing? Or maybe we are looking at a 2 year deal..

by Evilfrog on Dec 4, 2008 9:05 PM EST to parent up reply reply actions actions   0 recs

I agree - he needs to prove himself.

Just like anyone else – results take care of your position.

jp

by jpmorgan5150 on Dec 4, 2008 2:32 PM EST reply reply actions actions   0 recs

my only gripe

is that you make it sound sort of easy to trade Springer or Looper in your argument… I don’t think it would be that easy to trade either one of them, unless we’re just unloading them and then I guess I see the point

this line is dedicated to '09

by Cards Fan in Chitown on Dec 4, 2008 3:39 PM EST reply reply actions actions   0 recs

Right

And can you imagine this rationale? – “Well, we need to unload them, and also eat portions of their contracts, because we gambled back in December that 1) they would not accept, 2) other teams would have signed them and given us picks. But, we lost that gamble and now are basically throwing away millions of dollars in a salary dump trade.”

Bottom line – banking on the “bail out” of trading a player who accepts arbitration is just not an option.

by Hal Lanier's Pants on Dec 4, 2008 4:39 PM EST to parent up reply reply actions actions   0 recs

In all of this

did anybody notice Aaron Miles was non-tendered? I haven’t seen it mentioned, and there’s always a good possibility I’m mistaken.

Acquire Boof Bonser. I am serious, and don't call me Shirley.

by Dave Barry on Dec 4, 2008 5:29 PM EST reply reply actions actions   0 recs

google news

doesn’t say anything about it, and I haven’t seen it in any of the Khalil articles yet.

by DanUpBaby on Dec 4, 2008 5:50 PM EST to parent up reply reply actions actions   0 recs

probably just misinformation given to me, i can’t find it anywhere either.

Acquire Boof Bonser. I am serious, and don't call me Shirley.

by Dave Barry on Dec 4, 2008 6:10 PM EST to parent up reply reply actions actions   0 recs

I haven't seen it

But it wouldn’t surprise me if he was. With the Greene trade there really isn’t a place for him on the team if Kennedy isn’t dealt somewhere — I think it’s foolish to pay him to be the third infielder when Ryan could do the job.

"I just wish that the late Harry Caray were still around so I could hear him mispronounce 'Kosuke Fukudome' every fukun' night" -- Dennis Miller

by fourstick on Dec 4, 2008 6:30 PM EST to parent up reply reply actions actions   0 recs

No place on the team?

How does swapping out Greene for Izturis push Miles off the roster? I don’t get that.

by Hal Lanier's Pants on Dec 4, 2008 6:56 PM EST to parent up reply reply actions actions   0 recs

It easily could

Izturis made $3.5M last season. If SD is paying $2M of Greene’s salary he will make $4.5M next season. The difference of $1M is what Miles made last year. Kennedy makes $4M and is signed for next year, and Ryan and Barden could fight it out to be the utility infielder for league minimum salary. There’s really no reason to bring him back at $1.5-$2M next season unless you’re carrying four middle infielders — which is something that the club should not do next year.

Miles will be eligible for a raise next season, unless he is non-tendered and then resigned (like he was last year), so he’ll probably be non-tendered by the club, then resigned for what he made last year or possibly a bit more unless he finds another team in the league that wants him.

I would be happy to trade Kennedy and pick up $2M of his salary and make Miles the everyday second baseman, but I don’t think that’s going to happen

"I just wish that the late Harry Caray were still around so I could hear him mispronounce 'Kosuke Fukudome' every fukun' night" -- Dennis Miller

by fourstick on Dec 5, 2008 10:35 AM EST to parent up reply reply actions actions   0 recs

after last season

I’d be stunned if Miles wasn’t back.

by chuckb on Dec 4, 2008 9:23 PM EST to parent up reply reply actions actions   0 recs

We didn't offer him arbitration

so I think, by definition, he was “non-tendered”. He’s under club control for one more year, but only IF we offered him arbitration. Since we didn’t, he’s a free agent.

Same thing we did last year; we just re-signed him as a free agent last year.

god, i love baseball. -roy hobbs

by SleepyCA on Dec 4, 2008 6:48 PM EST to parent up reply reply actions actions   0 recs

This is what

I was thinking too, but i believe they have until Dec. 12* to offer arbitration to players under team control. Either way, a utility guy who’s due around 3.3 Million* next season seems a stretch for a team who couldn’t take a chance on Looper. I would suggest Willy Harris or Alfreda Amezaga as replacements.

*i might be pulling these numbers out of my ass

Acquire Boof Bonser. I am serious, and don't call me Shirley.

by Dave Barry on Dec 4, 2008 10:27 PM EST to parent up reply reply actions actions   0 recs

MLBTR listed non-tender candidates

That sort of stuff won’t happen until next Friday.

by Phizzle on Dec 4, 2008 8:42 PM EST to parent up reply reply actions actions   0 recs

i listed them in the Hot stove thread

:) with link

I can't believe i gave up a homerun to that punch and judy hitter-major league 2

by punchinjudy on Dec 4, 2008 10:21 PM EST to parent up reply reply actions actions   0 recs

On a lighter note......

When Rickey Henderson goes into the HOF will he give his acceptance speech in “Rickey speak” third person? Man, I can’t wait for that one……

She isn't crazy, she's just not impressed.

by jillsinmo on Dec 4, 2008 8:32 PM EST reply reply actions actions   0 recs

"Rickey Henderson

would like to thank Rickey Henderson for being such a good Rickey Henderson. Ya’ll done right by voting Rickey into the Hall of Fame. To all you kids who want to grow up to be like Rickey Henderson, just remember: there is only one Rickey Henderson."

by spants on Dec 6, 2008 2:38 AM EST to parent up reply reply actions actions   0 recs

i wonder

if they are looking at izzy vs. russ as one more vet arm in the pen, but not both, since they are stuck with franklin?

"No matter where you go, there you are" Buckeroo Bonzai Across the 8th Dimension

by sportsman on Dec 4, 2008 11:47 PM EST reply reply actions actions   0 recs

Nate Silver issued a retraction on this method

A friend and I were talking baseball today, and he sent me a key link on this topic:

http://sonsofsamhorn.net/index.php?showtopic=1443

Last winter Nate Silver wrote an article using PECOTA to determine valuations of the 04/05 free agent contracts. He determined that an expected WARP of production was worth 2.14M. He then proceeded to use that simple 2.14M multiplier in a few articles.
In response to many e-mails mocking his initial proclamation that Christian Guzman was the bargain signing of the free agent period he wrote a follow-up with a new method to determine player values.
His new formula is: Salary = (WARP^2 * $212,730) + (WARP * $402,530)

So that’s the corrected formula, although still circa 2005.

The later, PECOTA-free method sounds a lot like http://www.tangotiger.net/marcel/

by astrostl on Dec 5, 2008 12:07 AM EST reply reply actions actions   0 recs

It's all in the assumptions...

I have a problem with some of your assumptions.

1) I don’t think there was much of any chance that Springer would have failed to accept arbitration. Remember, he signed with St. Louis because his son is autistic and there are excellent medical facilities for that in the Lou. That combined with the fact that, at his age, he couldn’t expect a high-dollar contract from another team (look at some of the relief signings this year…Affeldt’s average yearly salary is below $4.5 mil) makes it a near certainty that Springer would have accepted. Heck, he’s even talked about resigning with the Cards anyway.

2) Springer’s PECOTA projections must be weighed against the fact that a) he’s old and likely to hit the performance wall soon and b) his last two seasons of effectiveness are an outlier for his career.

3) The opportunity costs are much more significant when you consider the fact that a right-handed reliever is WAY down the Card’s priority list…unless he can serve as closer (Springer’s effectiveness seems to be quite dependent on him being used fairly sparingly). They shouldn’t be committing 4.5 million to a postion where they are already stacked with younger, potentially better, and much much cheaper alternatives.

4) I don’t believe there is a 50/50 chance that Springer would lose his arbitration case. He was very underpaid relative to his production last season.

So fundamentally I think your argument might work in general but simply fails in this particular case. You haven’t factored in the significant opportunity cost that Springer’s acceptance of arbitration would have meant. And the probability of Springer accepting arbitration and winning his arbitration case approaches 1…which means the draft pick values if he signs elsewhere are simply irrelevant. D.GOOCH

-- GOOCH

by GOOCH24 on Dec 5, 2008 9:01 AM EST reply reply actions actions   0 recs

One other point I forgot to mention on point 1)...

…and it has to do with Springer’s age. Remember, he is almost a season or two away from retirement. So there is very little incentive for Springer not to take arbitration, since the primary motivation to decline arbitration is to get a multi-year deal. Could Springer, at his age and use pattern, get a higher base salary than what arbitration is likely to offer? Possible, but not very likely. And we already know Springer enjoys St. Louis and has his son as a motivation to stay.

If Springer’s probability of accepting arbitration wasn’t one…it was indistinguishable from it. D.GOOCH

-- GOOCH

by GOOCH24 on Dec 5, 2008 11:43 AM EST to parent up reply reply actions actions   0 recs

we all get #1

1. it’s been argued ad nauseum. It’s not an assumption I made. You say the likelihood of his accepting is greater than 95%. I don’t agree. That’s not an assumption. If you’re right, it made sense not to offer. That’s the point of the thread.

2. Springer’s PECOTA projections include his age and likelihood of his decline. To imply that they don’t is simply false.

3. We don’t have to commit that much money — also not an assumption, BTW. I do assume that Springer would be tradeable which, considering the fact that several teams (notably the Phillies) are interested in his services, is a fair assumption to make. Perhaps you don’t agree that someone else would be interested. If he accepts, we can trade him for something of value. Therefore, whether we get him or something for which we trade him, we get $4.5 M of value.

4. He wasn’t underpaid vs. his production — or at least, not considerably — as I demonstrated above. Still, even if the team loses the case and $1M in value from this transaction — the loss is very small relative to the potential gain the team receives if he declines. He only has 1 week to make his decision.

by chuckb on Dec 5, 2008 12:31 PM EST to parent up reply reply actions actions   0 recs

Doesn’t Silver’s formula retraction render this argument moot?

For what it’s worth, there’s also this: http://www.baseballprospectus.com/article.php?articleid=3910

Relief pitchers appear to be particularly overpaid. I actually cheated a bit by multiplying the WARP scores for the free agent relievers by 50%, in order to account for their pitching in higher-leverage situations.

So if I understand things correctly, the original formula on which this article is based is considered flawed – and perhaps especially so if this 50% fudge isn’t manually applied due to Springer being an RP. It does look like the new formula could be subbed out for the flat 2.14M multiplier, though.

by astrostl on Dec 5, 2008 12:53 PM EST to parent up reply reply actions actions   0 recs

Rebuttal

1) Of course you are making an assumption regarding the probability of Springer accepting arbitration. That probability is not directly observable. There’s nothing wrong with it…that’s what Bayesian updating is all about. Your prior may be based on an informed judgement…but it is still a prior….and hence inherently an assumption. Your 50/50 assumption is, frankly, simply not credible. It wasn’t 50/50. I don’t even think it was 90/10. Also, you’ve got some lottery logic operative by noting the value of the draft picks if he signs elsewhere. Sure, if I win the lottery, I get millions of dollars. But the overwhelming likelihood is that I will not win the lottery. There are certain levels of probability where it simply is never rational to commit dollars…no matter how great the return is if you hit a miracle. I think we were at that with Springer. But even beyond that, there is a fundamental flaw in your calculation (as I mention below). You don’t factor in the opportunity costs of signing Springer to an arbitrated contract when assessing what the probability of acceptance would need to be for a net loss. You just use the dollar value of his contract in comparison to the dollar value of the draft pick. You’re missing a key variable.

2) PECOTA attempts to take age and decline into account. And in the aggregate, it may do a fair job. In a particular case, however, we would be foolish to take those projections at face value. Most projection systems are built on incremental changes (i.e. regression to the mean). They don’t deal well at all with players who ‘fall of the table.’ But you would be foolish as a manager to ignore such a possibility.

3) I don’t want to get hung up in a semantical argument, but there were several assumptions you made in this analysis and I didn’t even try to list them all. One was that granting Springer arbitration would not have opportunity costs on the market. I call that an assumption because, even though you mention it, you don’t factor it in to your calculation. You use projected WARP, which assumes that his most recent performance is indicative of his performance from next year. That’s a reasonable assumption,,,but an assumption none the less. And let’s not forget that last year for Springer was well nigh a career year.

4) One week to make the decision would tend to make it more likely that he accepts arbitration than rolling the dice in the market (and let’s not forget how the current economic crisis might affect such decisions). The problems here are as follows a) Springer is near certain to accept arbitration, in which case the value of the draft picks if he declined is moot b) Springer is unlikely to put up career numbers two years in a row c) he has to be used sparingly d) he is ripe for injury or age related performance decline that could cause him to significantly underperform his projection, e) your analysis in no way incorproates the opportunity costs in filling our other needs, which are substantial f) right-handed relief is the position where the Cardinals have their most depth. Your analysis in no way incorporates the comittment of dollars to team needs.

In short, that money is best spent elsewhere. Even if Springer would live up to the contract next year. D.GOOCH

3)

-- GOOCH

by GOOCH24 on Dec 5, 2008 1:26 PM EST to parent up reply reply actions actions   0 recs

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