Strasburg Signs Mega-Deal
- Thread starter sturg33
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chop2chip
Well-known member
I thought this was a decent deal since they were able to defer a lot of it interest free. It also makes sense for Strasburg to take this deal now instead of taking a health risk this year.
I only wonder how Washington will afford Bryce. They have a couple big contracts on this team already.
I only wonder how Washington will afford Bryce. They have a couple big contracts on this team already.
nsacpi
Expects Yuge Games
The Werth, Papelbon, Daniel Murphy and Gio Gonzalez deals roll off over the next two to three years.
striker42
Well-known member
I'm not sure I like it for Strausburg. If he kept up what he's been doing this year so far (and I see no reason he wont) then he might get $30 million a year from someone. He was looking at being a 28 year old FA pitcher with top shelf stuff coming off a dominant season. He could easily have commanded a Price-esque deal.
nsacpi
Expects Yuge Games
Presumably the replacements will be lower cost.
chop2chip
Well-known member
Which reinforces the idea of being top heavy.
They have a solid farm system and Rizzo is legitimately a great GM. They just have the envious position of having multiple stars that command top shelf money. I'm curious if they'll be able to make it work.
Millwood1Hitter
Anytime Now Frankie...
Maybe he just likes the security of the guarenteed, I mean he could blow his arm out or shoulder out on his next pitch, and then what?
striker42
Well-known member
Sometimes you have to bet on yourself. It would be a bet that could pay off $40 million more.
chop2chip
Well-known member
He essentially mitigated that risk with the rolling opt outs. Stras made out really well in this deal.
bravesfanMatt
Steve Harvey'd
The Nats will be committed to about 70 million when Harper is a FA.. only problem is that 70 million only buys you 2 Starters and a 1B. They will have to fill in the rest and still have to pay Harper 40 million.. can be done, but they need those three guys to stay healthy and productive for the next 4 -5 years and the prospects to pan out.. otherwise they will be the Phollies 2.0 extremely fast..
They are sitting around 150 million... not sure what their max will be. The biggest issue I see with this contract is mid season and off season upgrades.. Are they now maxed out until they can get rid of Werthless..
They are sitting around 150 million... not sure what their max will be. The biggest issue I see with this contract is mid season and off season upgrades.. Are they now maxed out until they can get rid of Werthless..
Tapate50
Well-known member
I think the underlying premise we ought to kick around is the use of deferred money. They used it with Max, and now with Stras right? So, down the road when they have 20+ million a year allocated to players that might not be there at all....how does that affect them? Not at all? Some ?
striker42
Well-known member
Why not wait, get more money, and get opt outs? Stras took a discount. Maybe he's worried about his arm or something for a reason we don't know yet.
bravesfanMatt
Steve Harvey'd
I said this as well.. but that will also depend on how many other teams are selling.. Seemed last offseason, no one was really selling any pitchers. The Marlins were out there over inflating the market.. but not many were selling.. So the Braves only competed with the FA market and that was good being that Miller was cost controlled.. This year there is no FA market to compete against.. but how many teams will be selling?? My guess is the Braves will still be able to score huge on JT..
They way they have managed it is by paying interest free deferrals on the backend. They are paying Scherzer 15 million per year, which will last until 7 years after the contract ends. The Strasburg deal is $15 million per year till 23 and then $10 million per year for the following 7 years. I don't really like the deals from the players perspective because money today is worth more than in the future so $15 million in 7 years is worth; what $12 million today? So Scherzers has a NPV of roughly $170 million and Strasburgs is around $150 million in relative terms. OTOH, athletes arent' great with their money and its nice for them to have a paycheck for a few years after their playing days are over.
How it affects them, I don't know. Ownership is among the richest, if not the richest, in baseball. They bring in a lot of money and are expecting a large payout from the Orioles MASN deal. With no salary cap, if they are willing to pay $25-$50 million per year in deferred money to players that aren't on the roster as well as paying the market oriented payroll figures; then it doesn't hurt the team.
Its interesting seeing what players are willing to take deferred money and which ones aren't. Heyward and Cepedes were wiling to take less money with more upfront. Scherzer and Strasburg were willing to take more deferred money. It all comes down to what inflation comes in at.
I was more skeptical of Strasburg returning than Harper. Stras is a west coast guy that doesn't like the limelight and this years FA class is terrible. But, there is also a risk he blows out his arm this year and is forced to take on a short term deal. It appears it was a good deal for both sides; willing to take less for added security and to stay in a place where you are comfortable. Also built in an outclause if pitches well over the next 3 years. Harper would not be wise to lock up a contract before free agency. Every major club is going to be bidding hard for him. He would have to really love it in Washington to stay.
To add to the deferment. If you think Max and Stras are $25 or $30 million per year guys. They are being paid at $15 million per year guys. Theoretically, the Lerners could put $10 million each that they are saving in the bank for the next 7 years. At 4% interest, that is $80 million dollars that is now covering the remainder of the contract. (In Maxs case they owe $105 million, In Strasburg case, they owe $70 million).
He is set for life with this contract no matter what happens. Would an extra few million make him more set? I absolutely see why he took this deal.
This is the epitome of a home-town discount in exchange for financial security now. And it ends in 1 of 2 ways: either Stras is good and opts out, or he gets hurt and the Nats are stuck with a huge contract. Precisely why long term contracts for pitchers are never a good idea.
chop2chip
Well-known member
He blows his elbow out in July and all of a sudden he's a starter that's had two tommy john surgeries that is taking 10 million dollar pillow contracts to rebuild his value.
I think it made a lot of sense. I don't think you and I can imagine the amount of stress that would be to worry about your next contract when you have a litany of injuries through out your career. Of course he would have loved to make it to November healthy and make more money, but he made a perfectly sound business decision.