Breaking: Estrada Extension?

[RealAccountant]

It's a good deal for the Jays I expect it to have options

[Angrioter]

2Ys/26M over Y/15.8M mean Estrada doesn't trust in himself.

[G-Snarls]

2Ys/26M over Y/15.8M mean Estrada doesn't trust in himself.

 

True. If he'd taken the QO and had a very good 2016, he probably could have commanded a sweet 3-4 year deal.

[flafson]

It's a good deal for the Jays I expect it to have options

 

AA was master of options, hard to tell if that will remain the case.

[Dr. Dinger]

Protects him from a bad 2016 and all things being equal players probably prefer to stay in the same place for awhile if they are happy and enjoying success.

 

Marco really liked it here, especially the playoff push. Getting a standing ovation from 50,000 people after saving your team's season... twice... that's pretty special. I'm sure he feels appreciated here and wants to build on what the team did this year.

 

This just about brings our team payroll to $120M, though. So unless we trade Revere (and maybe cut Smoak and Thole), or we get a payroll increase, there's no way to fit Price or Greinke in the budget, or Heyward for that matter.

[fireballW]

Marco really liked it here, especially the playoff push. Getting a standing ovation from 50,000 people after saving your team's season... twice... that's pretty special. I'm sure he feels appreciated here and wants to build on what the team did this year.

 

This just about brings our team payroll to $120M, though. So unless we trade Revere (and maybe cut Smoak and Thole), or we get a payroll increase, there's no way to fit Price or Greinke in the budget, or Heyward for that matter.

 

Does anyone here actually believe we have a chance to sign either Price or Greinke? Anyway, of course there is a way. It's called a back loaded contract.

[BTS]

A bit surprised this hasn't been made official. I'm assuming both parties want it done before 5PM today.

[L54]

I view back loading contracts like credit cards. Some people seem to think you can continue to use them, until you hit that breaking point. Then your hands are fiscally tied and you're left paying a bunch of money for s*** you didn't really even want in the first place.

[Brenner]

This would be nice, you can't argue with his results last year. Even if he gives up another 0.5 run a game he slots in nicely as the 3rd starter and still have money to pursue a Zimmerman/Shark level pitcher who can slot into the #2 spot.

[Dr. Dinger]

A bit surprised this hasn't been made official. I'm assuming both parties want it done before 5PM today.

 

Probably just doing physicals. I'd be very surprised if the deal isn't announced before the QO deadline.

[BigCecil]

I view back loading contracts like credit cards. Some people seem to think you can continue to use them, until you hit that breaking point. Then your hands are fiscally tied and you're left paying a bunch of money for s*** you didn't really even want in the first place.

 

Good analogy. It's an option that has to be sparingly used or it has the same budgetary net negative effect as trading the farm system for more expensive older talent.

[Dr. Dinger]

I view back loading contracts like credit cards. Some people seem to think you can continue to use them, until you hit that breaking point. Then your hands are fiscally tied and you're left paying a bunch of money for s*** you didn't really even want in the first place.

 

I'd honestly rather frontload a deal whenever possible. You don't want to be in a spot come 2018 where you have $90M committed to just Martin, Tulo, Donaldson, and Price/Greinke. The other thing you can do is give them an opt out after 2 or 3 years that they are likely to take if they're still good.

[BTS]

Man, Kuma would be the perfect piece to round out the staff. Will likely earn around 15M per season on a short term deal, and is s borderline ace when healthy. I'm sure he stays in Seattle, but he'd be such a good fit.

[Dr. Dinger]

Man, Kuma would be the perfect piece to round out the staff. Will likely earn around 15M per season on a short term deal, and is s borderline ace when healthy. I'm sure he stays in Seattle, but he'd be such a good fit.

 

I would looooove to land Kuma. Perhaps Maeda is also an option, since he's basically a younger Kuma.

[dineke]

I'd honestly rather frontload a deal whenever possible. You don't want to be in a spot come 2018 where you have $90M committed to just Martin, Tulo, Donaldson, and Price/Greinke. The other thing you can do is give them an opt out after 2 or 3 years that they are likely to take if they're still good.

 

Signing Price or Greinke is a thing now huh?

[glory]

[Dr. Dinger]

Signing Price or Greinke is a thing now huh?

 

Ostensibly, yes. Reports have indicated the Jays are "weighing an offer" to Greinke, and the brass has always maintained they are interested in re-signing Price.

[KingKat]

I'd honestly rather frontload a deal whenever possible. You don't want to be in a spot come 2018 where you have $90M committed to just Martin, Tulo, Donaldson, and Price/Greinke. The other thing you can do is give them an opt out after 2 or 3 years that they are likely to take if they're still good.

 

Do players ever agree to front-loaded contracts? You don't really want to set yourself up for diminishing revenue if you can help it.

[GD]

2/26 for Estrada is nice

[Dr. Dinger]

Do players ever agree to front-loaded contracts? You don't really want to set yourself up for diminishing revenue if you can help it.

 

I don't really see why it would matter to them from a financial perspective. I'd rather get the bulk of the money up front and invest it however I want, rather than get it later. If you are negotiating a deal that big you can get an NTC anyway, at which point it might be nice to be more tradeable down the line, because you could control which contending teams you could get traded to, and be more affordable for them.

[KingKat]

I'd rather get the bulk of the money up front and invest it however I want, rather than get it later.

 

That would make sense but I think a lot of player just blow tons of money and are better off having their revenue increase over time than the other way around. I'm pretty bad with money so that's definitely what I would want.

[z3r0s]

Do players ever agree to front-loaded contracts? You don't really want to set yourself up for diminishing revenue if you can help it.

 

I'm pretty sure the reason you don't see front loaded deal is the time-value of money. A player should be all for getting more money up front.

[Brenner]

If a player and his reps aren't dumb they'd always take the money upfront. They can invest the money earlier and increase their earnings.

 

From a team perspective, there are really two competing aspects of this. From a financial perspective, back loading decreases the current value of the contract and makes it a better investment decision. For front loading you need available current budget room to make it work, but it could create a baseball asset in the future as the contract becomes cheaper and if the player maintains production.

[G-Snarls]

Man, Kuma would be the perfect piece to round out the staff. Will likely earn around 15M per season on a short term deal, and is s borderline ace when healthy. I'm sure he stays in Seattle, but he'd be such a good fit.

 

Yep

 

I've asked for him every off season last 2-3 years

[Brownie19]

I'm pretty sure the reason you don't see front loaded deal is the time-value of money. A player should be all for getting more money up front.

 

Exactly. Take the money up front, invest it and watch it grow. Compounding returns are awesome.

[jays4life19]

2/26 for Estrada is nice

 

But not so nice for the Bluejays. I guess it's better then him taking the QO but probably should have never been offered one in the first place.

 

3rd worst xFIP in baseball last year among qualified starters.

[L54]

Good analogy. It's an option that has to be sparingly used or it has the same budgetary net negative effect as trading the farm system for more expensive older talent.

 

Yup it's certainly a tool that can be utilized in some instances, but making it a habit will have negative longterm effects.

[BigCecil]

2/26 for Estrada is nice

 

During the season I never would have thought so but now I agree. The reality of our dearth in SP has sunk in along with the cost of FAs.

 

When Chen seeks a 5 year deal, its clear that expectations are high for a sellers market.

[L54]

I'd honestly rather frontload a deal whenever possible. You don't want to be in a spot come 2018 where you have $90M committed to just Martin, Tulo, Donaldson, and Price/Greinke.

 

Yup that's a good recipe to become the 2015 Phillies, current Tigers, etc.

[Dr. Dinger]

2 years, $26 million, which just happens to be the exact figure I predicted yesterday. Just check that thread that got deleted!