Bucking The Trend: Young Stars Choosing Security Over Dollar$

Written by: Jason Weaver on 25th March 2009

Bucking The Trend: Young Stars Choosing Security Over Dollar$ | read this item

Despite the growing economical problems engulfing the country these days, the market for free-agents continues to yield outrageous contracts for players at the pinnacle of the game. New precedents have been set by the record contracts given to Philadelphia Phillies’ first baseman Ryan Howard ($10M in 2008 was largest contract awarded to a player who won their arbitration hearing) and Boston Red Sox closer Jonathan Papelbon ($6.25M contract for 2009 was the largest contract ever given to a closer in his first year of arbitration eligibility). So it is even more mind-boggling that over the past few years a number of young up-and-coming superstars have defied conventional wisdom and picked job security over the possibility of earning more money through massive free-agent deals or lucrative arbitrator-approved contracts early in their professional careers.

In March of 2006, Cleveland Indians center fielder Grady Sizemore signed a six-year, $23.45M deal. It was the largest contract signed by a player with less than two years of major league service. Three All-Star Game selections and one Silver Slugger Award later, that deal is among the biggest bargains in the game. The Indians have made locking up young homegrown talent to long-term contracts an organizational priority over the past two decades, and it has become somewhat of a blueprint now being followed by many small-market teams that otherwise wouldn’t be able to compete with deep-pocketed organizations. For example, the Tampa Bay Rays have been trying to chain themselves to their youngsters for a while now. Aubrey Huff, Carl Crawford, James Shields and now Evan Longoria. The Rays’ third baseman signed a six-year, $17.5M deal last April after logging just six days of major league service time and he is already considered one of the elite third baseman in the league after just 122 games in the majors. Meanwhile, Gabe Kapler signed a one-year deal that will pay him nearly twice as much this season to make sure that Longoria has a warm seat when he comes back into the dugout.

This approach certainly has it’s risks and rewards for both the players and the clubs. Last season, two of the most prestigious awards were won by arguably two of the most underpaid players in the league. The Boston Red Sox paid just $457,000 for Dustin Pedroia’s MVP season in 2008, and considering that Alex Rodriguez has averaged $24M for each of his three MVP Awards over the past five seasons, you’d have to call the six-year, $40.5M extension that Pedroia signed in December a considerable discount. Same can be said about the four-year, $15M deal Cleveland Indians’ starter Cliff Lee signed in 2006. Lee won the American League Cy Young Award last year. His salary? Just $3.75M. The average salary for the last five AL Cy Young Award winners was $8.6M. But for every Dustin Pedroia and Cliff Lee, there’s a Rocco Baldelli and a Kris Benson. Baldelli signed a three-year, $9M deal with Tampa Bay after missing the entire 2005 because of Tommy John surgery, but played in just 155 games over the next three years due to various injuries. Benson, after a stellar sophomore season in 2000, signed a four-year, $13.8M deal with the Pirates. He underwent Tommy John surgery in 2001 and has started more than 30 games just once since signing the deal.

While the organization generally benefits the most from locking up young talent to long-term inexpensive deals, these types of contracts protect young stars from the risk of injury and the possibility of a substantial decline in production. We also cannot overlook the fact that these agreements offer the fans peace of mind in knowing that the future faces of the franchise won’t be leaving town any time soon. After all, just ask fans in Boston what they think about the five-year, $30M contract left-handed starter Jon Lester was just inked to.

Topics: Carl Crawford, Cliff Lee, dustin pedroia, Evan Longoria, Grady Sizemore, Jon Lester, Jonathan Papelbon, rocco baldelli, Ryan Howard