Nationals Arm Race

Clay Buchholz provided the best Wins/salary in the majors last year. Photo baseballrumormill.com

A few weeks back si’s Tom Verducci posted an article discussing the value of starters over closers.  One of the points that he made in the article related to the general fact that Ace Starters are more likely to be with the same team that developed them than being free agent acquisitions in the modern game.  In Verducci’s article, he analyzed the 20 best pitchers by ERA from last season and found that 13 of them are still with their original organization.  Furthermore, 10 of them were first round draft picks.

Modern baseball teams are being built more and more through the draft.  Last year’s World Series champions San Francisco featured 4 home grown starters, each of whom would slot in as the best or 2nd best pitcher on most every other rotation in the league.  Tampa Bay rode a slew of home-grown (and cheap!) starters to the 2nd best record in Baseball over the past 3 years.  And now we clearly see Mike Rizzo trying to build up his starting pitcher cache in the minors through mid-season trades and a focus on pitching in the past couple drafts.

I thought I’d take this point a bit further, as it relates to a topic that I have found more and more fascinating.  The New York Yankees and their $200M payroll struggled to find starting pitching in the off season and are now essentially conducting tryouts in spring training for the #4 and #5 starter spots in their rotation.  How did they find themselves in this predicament?  The answer is thus; it has been years since they developed a home-grown Ace starter.  Their best pitcher (CC Sabathia) was a (very) expensive Free Agent, their 2nd best a home grown rookie (Phil Hughes) and their third best (AJ Burnett) another pricey free agent.  Arguably it has been since either Chien-Ming Wang or possibly Andy Pettitte that the Yankees have developed a starter worthy of mention.  Now, the Yankees have certainly bought themselves a whole lot of offense that will mask their weaknesses in the rotation, but the fact remains that they could easily miss the playoffs in 2011 despite their payroll if the first three members of their rotation do not pitch well.

Lets look at the “Aces” in baseball, and take a look at their acquisition methods and their contract status.  Here, “Home Grown” means the team that developed the pitcher, not necessarily the team that drafted him.  When prospects get traded, I credit the acquiring team for developing and delivering the player to the majors.

• Home Grown: Johnson, Hamels, Wainwright, Jimenez, Lincecum, Cain, Lester, Buchholz, Price, Verlander, Liriano, Felix Hernandez, Jered Weaver.
• Free Agent Acquisition: Halladay, Lee, Carpenter, Sabathia.
• Trade Acquisition: Oswalt, Santana, Greinke.

Of these 20 “Aces,” 13 are still with their developing organization.  Four Free Agent acquisitions for big money, and three traded Aces that cost their teams plenty (though in retrospect the Johan Santana trade isn’t looking that bad for the Mets).

Another side-point was Verducci’s findings that 10 of the top 20 pitchers by ERA last year were first rounders.  I find that piece of information really amazing, given the notorious “crapshoot” mentality of baseball Drafts.  Here’s a quick followup analysis of the Initial Acquisition method of my 20 “Aces” and determining draft or international free agent. Here, we’ll put “supplemental first rounders) into the “1st round” category.

• Draft: 1st Rounder: Hamels, Halladay, Carpenter, Wainwright, Greinke, Lincecum, Cain, Buchholz, Price, Sabathia, Verlander, Jered Weaver.
• Draft: top 5 rounds: Johnson (4th), Lee (4th), Lester (2nd).
• Draft: 6th round or later: Oswalt (23rd).
• International Free Agents: Santana, Jimenez, Liriano, Felix Hernandez.

So by my analysis, 12 of the best 20 pitchers in the game were first round picks.  Only Oswalt looks like a complete diamond in the rough find.  For all the talk about how the draft is a crap shoot (hey, Albert Pujols was a 13th round pick), it really seems apparent that these first rounders paid off handsomely.

Here’s one more look; of the 13 “home grown” aces, lets look at their current contract status.  All data per Cot’s fantastic salary database site.

• Johnson: 4 years/$39M (2010-13)
• Hamels: 3 years/$20.5M (2009-11), but he has a 4th arbitration year in 2012.
• Wainwright: 4 years/$15M (2008-11), plus 2012, 2013 club options (this contract is in complete peril though, since the club can terminate at the end of 2011 when Wainwright is on the DL.  That essentially kills $21M guaranteed to Wainwright in 2012 and 2013.  Tough, tough break for the player).
• Jimenez: 4 years/$10M (2009-12), plus 2013-14 club options (the club options are very reasonable for an Ace)
• Lincecum: 2 years/$23M (2010-11), but these are just his first two arbitration years.  Two more to go to take him through 2013.
• Cain: 3 years/$27.25M (2010-12)
• Lester: 5 years/$30M (2009-13), plus 2014 club option
• Buchholz: 1yr/$480K (est): Still on a pre-arbitration contract, possibly the best value in baseball right now.  Controlled through 2014 by the Red Sox.
• Price: 6 years/$8.5M (2007-12).  Wait, actually THIS may be the best deal in baseball, since Buchholz will probably garner a massive first-year arbitration award in 2012 just as Price’s 6 year deal ends.  However, Price can void the contract and file for arbitration as soon as he becomes eligible, presumably for the 2012 season.
• Verlander: 5 years/$80M (2010-14)
• Liriano: 1 year/$4.3M (2011).  Still in his arbitration years, under club control through 2012.
• Felix Hernandez: 5 years/$78M (2010-14)
• Jered Weaver: 1 year/$7.37M (2011).  He lost his arbitration hearing this year after going “only” 13-12 but leading the league in strikeouts and coming in 5th in Cy Young voting.  Under club control through 2012.

And, adding in the non-home grown players for a complete picture of the future Ace starter FA market:

• Halladay: 3 years/$60M (2011-13), plus 2014 option
• Lee: 5 years/$120M (2011-15), plus 2016 option
• Carpenter: 5 years/$63.5M (2007-11), plus 2012 club option
• Sabathia: 7 years/$161M (2009-15) but he can opt out after the 2011 season
• Oswalt: 5 years/$73M (2007-11), plus 2012 club option
• Santana: 6 years/$137.5M (2008-13), plus 2014 club option
• Greinke: 4 years/$38M (2009-12)

So, here’s a quick summary of when these Aces may hit the FA market:

• After 2011: Wainwright (but he’ll be post-TJ surgery), Sabathia (probably)
• After 2012: Cain, Liriano, Weaver, Oswalt, Carpenter, Greinke, Hamels
• After 2013: Johnson, Lincecum, Santana (probably)
• 2014 or Beyond : Jimenez, Lester, Buchholz, Price, Verlander, Hernandez, Halladay, Lee

Notice how teams are locking up these Ace pitchers for the long haul.  We’re likely to have perhaps just an injury reclamation project in Adam Wainwright and opt-out 100% certain to return to the Yankees Sabathia as the sole major  free agent candidates this coming off season.  I’ve read differing opinions on whether or not Sabathia opts out of his contract (he’d be abandoning $92M of guaranteed pay over 4 years) but I’d be surprised (shocked actually) if he did NOT opt out, especially if he has a third consecutive year of similar production to his first two for the Yankees.  You would have to think he could easily merit a contract north of Cliff Lee’s $24M/year for 7 additional years.  7yrs/$170M or so.

Lastly, lets look at the 8 playoff teams from last  year and investigate how many of their starters were home grown:

• Giants: 4 of 5 homegrown (Lincecum, Cain, Sanchez, Bumgarner).  1 FA in Zito
• Rangers: 3 of 5 home grown (Wilson, Hunter, Feldman), 1 trade acquisition (Lee), and one FA (Lewis)
• Yankees: 1 home grown (Hughes) and 4 Free Agents (Sabathia, Burnett, Pettitte, Vazquez)
• Phillies: 1 home grown (Hamels), 3 traded acquisitions (Halladay, Oswalt, Blanton) one FA (Moyer).
• Rays: 4 home grown (Sheilds, Neiman, Price, Davis) one trade acquisition (Garza)
• Twins: 3 home grown (Baker, Blackburn, Slowey) one FA (Pavano) and one trade acquisition (Liriano).
• Braves: 3 home grown (Hanson, Jurrgens, Medlen/Minor), one FA (Lowe), one trade acquisition (Hudson)
• Reds: 3 home grown (Leake, Bailey/Wood, Cueto), two trade acquisitions (Arroyo and Harang).

Six of the Eight playoff team used rotations that were mostly home grown.  Most of the trade acquisitions here were trading of prospects (either the acquiring team using prospects to acquire a proven Vet, as with Hudson, or the acquiring team acquiring and developing the player, as with Garza).

What is the lesson, after all this analysis?  Draft well, develop well, and then lock down your Aces for the long haul.  That is the pathway to success.  There are some exceptions of course (the Phillies have acquired 2 Aces by leveraging their very good farm system depth, and still have enough lower-level depth to rank among the best farm systems in baseball.  And the Yankees of course have bought themselves a good portion of their team).  But looking at the playoff teams last year, most of them were draft-heavy on starters.

Coincidentally; the Nats 2011 rotation by way of comparison?  2 drafted (Lannan, Zimmermann), 2 FAs (Livan and Marquis) and one trade acquisition candidate (Gorzelanny).  This would look far better of course if we were using two key drafted/developed players (Strasburg, Detwiler or even Maya).

Here’s hoping that the Nats’ higher-end starting pitcher draft picks (Strasburg, Zimmermann Solis, Cole, and Detwiler) become the core of our rotation for years to come.

Pettitte is done ... leaving a massive hole in the Yanks rotation. Photo: noahhunt.org

One of the last major off-season issues to resolve prior to the beginning of spring training (the status of lefty Andy Pettitte) was resolved with the pitcher announcing his retirement earlier this week.

The retirement leaves the Yankees rotation in serious trouble.  Pettitte may have only given the 2010 team 21 starts but he went 11-3 in those starts and was the Yank’s 2nd best pitcher.  They failed to acquire any of the marquee free agents or trade targets in the off-season and are going into 2011 with this as a rotation: Sabathia, Burnett, Hughes, Nova, and Mitre.  The problem is that after Sabathia, every one of these guys has serious question marks;

• Hughes may have gone 18-8 but his accompanying numbers (4.19 era, 1.28 whip) only rated a 102 era+ for the season.  That’s essentially league average.  He benefited from some pretty amazing run support that probably cannot be sustained in the long term.  It was also his first year starting full time.  He has a great pedigree (1st round pick in 2004) and has pitched well.  But he may be a candidate for the Verducci effect of quickly increasing workload.  The Yanks have been burned in the past by young starters blowing out their arms (Wang).
• Burnett may be the latest in a long line of quality pitchers who just cannot perform in the spotlight.  He was relatively awful in 2010; 10-15, 5.26 era, 1.511 whip.  Most teams would put up with this in a 5th starter if the guy was a promising rookie … but Burnett is a highly paid supposed ace starter.  He’s never been a complete lights out starter, sports a career 110-100 record and should never have been given a $84M contract to begin with.
• Mitre is a 29-yr old journeyman pitcher with a career 13-29 record.  And he’s slated to be the Yankees #4 starter.
• Nova looks like he could be a ok back of the end starter prospect … but he owns a grand total of 3 career major league starts.  And he’s slated to be the #5 starter.

New York has signed a couple of MLB veterans in Freddie Garcia and Bartolo Colon to minor league deals, and they may provide insurance/competition for Mitre and Nova in the spring.  But there is a reason these guys couldn’t catch on with even the worst teams out there; they’re more likely to put up a 6.00 era than a 3.00 era.  Perhaps Garcia’s decent 2010 season may land him a rotation spot, but Colon hasn’t pitched in the majors in over a year and was awful then.

Now, the Yankees are still one of the best offensive teams in the league and can slug their way to a number of 8-6 wins … but in a division where Boston has restocked and looks dominant and Tampa has a rotation that New York only wishes it had, 3rd place looks like it is in the Yankees future.  Writer Jon Paul Morosi thinks that the Yankees won’t miss Pettitte, but i think he’s crazy.  His article seems to just assume that a Fausto Carmona trade is a done deal (despite the fact that the Yankees have swung and missed on every pitcher acquisition this off-season).  He also assumes that 3 prospects that nobody has heard of (Dellin Betances, Manny Banuelos or Andrew Brackman) will magically come to the rescue.  Banuelos and Betances each are grizzled minor league veterans with 3 AA starts to their credit, and Brackman isn’t that far ahead of them (he was 5-7 with a 3.01 era in 15 AA starts in 2010).  Yeah; not exactly Jeremy Hellickson-esque prospects waiting in the wings.

2/7/11 update: Seth Livingstone at USA Today wrote about this same topic and reviewed some other possible prospects in the Yankees system that may be better options than the three mentioned above.

There are definitely some arms to be had in the trade market.  Joe Blanton is probably available, the Braves may have an extra starter in Kenshin Kawakami if their up and coming prospect Mike Minor blows it out in the spring, the Dodgers have 6 starters for 5 slots and may give up Vicente Padilla once the season starts, and even the Washington Nationals may have an extra arm or two worth gambling on (Maya, Wang and Detwiler are all slated to start in the minors right now).

Without a move though, I say “Welcome to 3rd place” and only the 2nd time you’ve missed the playoffs since the wild card era.

Heeeee's back! Photo: AP via lehighvalleylive.com

Talk about a shock.  Everyone in the baseball world had Cliff Lee going to the Yankees (with a small minority believing that the lack of income taxes in Texas would keep him with the Rangers).  Now, news has broken that Lee is returning to the Phillies in a relatively affordable deal (all things considered).  5years, $120 (average annual value of $24M) with a 6th year easily attained.  He turned down longer deals from New York (reportedly 6years $132M with a 7th year player option at $16M) and Texas (a similar 6year deal with player option for 7th) to return to Philly, where he really enjoyed the clubhouse culture and the city.

Immediate thoughts (echoed in texts to Philadelphia friends earlier today):

1. The Phillies are *really* stacked.  A rotation where Roy Oswalt is your 4th starter??  That’s sick.  Though they’ll probably line up the rotation to go R-L (Halladay, Lee, Oswalt, Hamels).  Their 5th starter is now either Blanton or Kendrick, meaning they have spare parts to trade to teams needing pitching.
2. Lee joins a team that won 97 games last year and significantly improves the rotation.  Does this mean the Phillies are on their way to 105-106 wins?  Perhaps; Lee is such an upgrade over the starter he’s basically replacing in the rotation (Jamie Moyer), but the Phillies have lost Jayson Werth in the middle of their order.  Ibanez isn’t getting any younger and its no guarantee super-stud prospect Dominic Brown can provide the offensive replacement they need.  But, baseball is becoming a pitcher’s game and the Phillies just bought the biggest arm out there.
3. Phillies GM Ruben Amaro re-acquires the same guy he mortgaged his upper farm system for two years ago.  Only this time for no prospects lost (just his 1st round draft pick).  I know that nobody will be saying this, but clearly the return of Lee means that the Phillies screwed up royally by letting him go in the first place.  Luckily nobody will care as long as they’re still winning, still making the playoffs and still competing for the world series.  And, in the end it may not matter because reports from scouts say that the Phillies lower farm teams (rookie and low-A) are stacked with talent and the team will naturally replace some of these aging free agents (guys like Polanco, Ibanez, perhaps even Victorino) with cheaper alternatives and keep payroll in check.
4. The Yankees are in seriously big trouble.  Their entire off-season depended on upgrading a very vulnerable rotation with Lee.  Right now their rotation has one sure thing (Sabathia), one retirement question mark (Pettitte), one promising rookie with little track record (Hughes), one possible massive FA bust (Burnett) and … who knows?  I don’t think a trade for Greinke or Garza is possible for the Yankees; Greinke may not be the best fit in NY and Tampa may not be wise to trade Garza intra-division.  Plus, do the Yankees even have prospects worthy of tempting these two teams?  Joe Lemire posted very similar thoughts to mine vis-a-vis the yankees today as well.
5. Lee’s contract, tacked onto the massive contracts for Howard and Halladay may very well serve as a boat anchor for this team in a few years.  I’ve posted in the past about free agent pitcher contract values and clearly a $24M/year AAV is going to be incredibly difficult to earn.  Even if Lee wins 20 games in every season of the contract the Philles are still not getting good value on their money.  Cot’s site isn’t fully updated for even Howard’s extension but the Phillies right now have about $80M committed in 2013 to FOUR players (Howard at $20M, Halladay $20M, Lee $24M and Utley $15M).  That’s not exactly a lot of flexibility of one of those guys gets badly injured.

Since this is a Nats blog, how does this affect us?  Besides the obvious (the Phillies clearly will be that much more tough to beat for a divisional title for the next few years), this move means the Nats may have a much tougher time acquiring Greinke or Garza.  Both Texas and New York now will bet the farm on those two starters, and the Nats will not be willing to match the prospect drain that Kansas City and Tampa Bay (respectively) will be demanding in return.

And lastly the really obvious; competing in the NL East just got that much harder for this team.  If the Phillies are going to act like the Yankees in acquiring high-end FA an Payroll … the Lerners better start acting more like Boston and less like Baltimore.  $60M in payroll isn’t going to cut it anymore; try $120M.  The Werth signing in many ways seemed like a desperation signing, a quick attempt to regain some fan interest in this town and offset the loss of Adam Dunn.  But Werth alone isn’t going to help this team.  We need more hitting, better pitching, better players.  Honestly we really just need time to get our high-end prospects though the system … but can we wait until 2013 to compete?

The team is entering its 7th year in Washington, a team notorious for NOT supporting its professional teams unless they’re successful.  Baseball isn’t like football, where national TV contracts and salary caps essentially mean a team can compete equally whether they’re in New York or Kalamazoo.  In baseball you have to generate your own revenue and make your own luck.  You have to spend money or spend time (and risk alienating the entire fan base) while getting better.  For the Nats, who wasted 3 years of good will and a brand new stadium being stingy and thinking that the product on the field didn’t matter … they have no choice.  They need to be successful NOW to stem the flow of season ticket cancellations and attempt to be relevant in this town.

In a short series (if you went to a 3-man rotation in the playoffs, as lots of teams do), who scares you the most?

Candidates:

• Philadelphia: Halladay, Hamels and Oswalt
• Boston: Lester, Beckett, Buchholz.  tough.  If they were all performing that is.  Beckett seems off this year.
• NY Yankees: Sabathia, Burnett and Hughes; this was supposed to be Vazquez but once again the best rotation that money can buy, didn’t.
• St Louis: Carpenter, Wainwright and Garcia.  Wow.
• San Francisco: Lincecum, Cain and Zito/Sanchez/Bumgarner; again, that’s tough.
• Tampa Bay: Price, Garza, Shields (with Sonnanstine/Hellickson thrown in there).  Scary tough, which is why they’re beating out the Red Sox right now.

For my money, it has to be Philly slightly followed by St. Louis.  How is that team gonna get beat this off season?  Of course, they have to MAKE the playoffs for it to matter.  Ironic that the 3 best rotations in the AL are all in the east.  Chicago’s is decent but more veteran laden.  Texas’ starts with Lee and ends with a guy who was playing in Japan this time last year (Colby Lewis).  I don’t think Minnesota’s guys are scaring anyone.  How scary is it that Toronto has two guys with one-hitters this year (Marcum, Morrow) but is buried in FOURTH place in the AL east.  That’s a tough division.