The Newest Tribesman

Michael Bourn

Yesterday the Indians announced that they had come to an agreement with free agent outfielder Michael Bourn on a 4-year contract worth $48 million, or $12 million AAV. The contract has a vesting option for a 5th year worth $12 million pending Bourn reaches 550 plate appearances in the final year of his contract at which he will be 34 years old. When the offseason began, writers, pundits, and experts ranked Bourn as one of the top free agents. On my own big board of top-50 free agents, I had Bourn ranked as the fourth best free agent behind only Zack Greinke, B.J. Upton, and Josh Hamilton. The Dodgers signed Greinke to a 6-year $159 million deal, Upton got 5 years and $75.25 million from the Braves, while Hamilton inked a 5-year $125 million deal with the Angels. Of the top 4 free agents on my list, Bourn received the fewest years and least amount of money. For more on how Bourn compared to free agent center fielders check out my article from earlier this offseason. For more on Bourn's value, check out this recent Summerpastime article.

Essentially, Bourn is a speedy player. Every positive aspect of his game relies on his wheels. He has a good on-base percentage, but to continue as a dominant leadoff hitter past the age of 30, his walk rate needs to rise. Here's a snapshot look at some of the better leadoff hitters from 2012 and where Bourn ranks:

Name	Team	R	SB	BB%	OBP	fWAR
Mike Trout	Angels	129	49	10.50%	0.399	10
Michael Bourn	Braves	96	42	10.00%	0.348	6.4
Austin Jackson	Tigers	103	12	10.90%	0.377	5.5
Jose Reyes	Marlins	86	40	8.80%	0.347	4.5

So, given the information we know about Bourn, was this deal a success from his position? Going into the offseason Bourn and agent Scott Boras wanted a contract that totaled higher than $100 million with at least 5 guaranteed years. Instead of that mega-deal he signed for less than half that amount of money, but was able to find 4 guaranteed years with the possibility of a 5th. From this we can garner that getting more years was more important to Bourn than getting the highest AAV possible. Prior to Bourn's new contract agreement, many speculated that he might look for a one-year deal, in the hope that he might find better luck next offseason. I think teams in need of outfielders looked at Bourn as an upgrade, a great defender, a threat on the base paths, but not a player built to sustain such qualities by even age 33. Fortunately, free agents willing to take less money have a better chance of finding a deal because it allows teams with less money to become involved in negotiations. The Indians fit that mold perfectly. Jose Reyes received more money and more years, but he signed his contract at a younger age, he switch hits, and has shown more power than Bourn has. So, the answer to the original question is that this contract wasn't a success by Bourn's original standards, but by any realistic set of criterion $12 million AAV is the perfect fit for a player like Michael Bourn. 

From the players perspective this is the best available option, and he took it, but what about from the Indians' perspective. In 2012 Cleveland lost 94 games, and the last time the team went to the playoffs was 2007, remember the bugs? 

The Indians haven't been trending well of recent, which resulted in the firing of manager Manny Acta, the hiring of Terry Francona, and the release of former big-time players like Travis Hafner and Grady Sizemore. The Indians of 2013 won't look anything like the team that stormed to the ALCS in 2007, but given the weaknesses in the American League and particularly the AL Central, and the addition of the 2nd wild card spot, the Indians 2013 season outlook continues to improve. 

Since one player cannot turn a 94 loss team into a playoff primed squad, what else have the Indians been up to improve? Chris Antonetti, the GM of the Indians, started his offseason by getting rid of dead weight like Hafner and Sizemore, which allowed him to move on from those well known, but injury hampered, names. Next, Antonetti inserted the Indians into a three-way trade involving the Diamondbacks and the Cincinnati Reds. In exchange for parting with soon-to-be free agent Shin-Soo Choo, the Indians received outfielder Drew Stubbs from the Reds and high-level pitching prospect Trevor Bauer from Arizona. While Bauer is far from a proven commodity, he is young, under team control at a cheap price, and most importantly, loaded with talent and upside. Given the Indians mediocre farm system, Keith Law ranked them 19/30 MLB teams, adding an MLB ready top of the rotation starter like Bauer made the Indians the clear winners of the three-team trade.

Nick Swisher

Next, the Indians made a few minor moves like signing Brett Myers to a 1-year deal as a starter, not a reliever. In addition, Mark Reynolds joined the club to mix in at 1st base and DH. Next the Indians made their biggest splash of the offseason by signing Nick Swisher a 4-year $56 million contract. Swisher has Ohio connections, will make $14 million AAV, and provides a great upgrade in the Indians lineup. With the addition of Bourn, about 32% of the Indians 2013 payroll will go to Swisher and Bourn, but even for a mid-market team, the proportions could be worse. Swisher does every thing the Indians needed, he gets on base, switch hits, has power, and can play both outfield and 1st base. With the addition of Bourn, the Indians have a top of the lineup that could do some serious damage to opposing pitchers, causing them to work harder, throw more pitches, and possibly give up more runs in the process. Given Cleveland's project lineup, 5 starters are projected by PECOTA to have higher .328 OBPs in 2013. Cleveland's new lineup will strikeout more than the average team, but it will also produce more homeruns, a higher on-base percentage, and more stolen bases than it has in the previous 4 seasons.

From a hitting standpoint, Bourn adds run production. With Asdrubal Cabrera, Jason Kipnis, Nick Swisher, Carlos Santana, and Mark Reynolds/Jason Giambi hitting behind Bourn, the Indians and their fans can expect the club to score a lot more runs than they have been accustomed to in recent years. Defensively, the Indians have more options now than before. If Terry Francona, Chris Antonetti, and others want, the team now has the ability to move Drew Stubbs or Michael Brantley for an upgrade elsewhere. On the other hand, a defensive outfield of Brantley, Stubbs, and Bourn would be a vacuum for fly balls.
(2010-2012)

Name	Inn	DRS	UZR	UZR/150
Michael Bourn	3888.2	51	35.3	11.9
Nick Swisher	3201	-5	11.5	4.7
Drew Stubbs	3666	-3	4.8	2
Michael Brantley	2833.2	-10	-12.4	-6.4

Don't be dissuaded by Brantley's poor numbers, he plays a much better left field (8 DRS & 3.4 UZR in 2012) than he does center field. An outfield with Stubbs and Brantley in the corners and Bourn in the middle would have a lot of range, which cuts down on hitters turning doubles in to triples and singles into doubles. Over the course of 162 games, such range could benefit the Indians in a subtle yet vital manner. From the numbers above, Swisher doesn't seem like a bad outfielder, so why relegate him to first base? First, playing a less demanding defensive position might cut down on the possibility of injury. Second, Swisher has average range at 1st base, and has posted a positive DRS (3) since 2010. So, moving Swisher to 1st doesn't hurt in the infield, and it improves the team's overall defense in the outfield. While moving Brantley or Stubbs could help, keeping both might give the Indians the best chance to compete for a playoff spot in 2013.

In Baseball, like all other aspects of life, timing often dictates success or failure. In this case, the timing of the Indians interest in Bourn makes me see this signing as a big win for Cleveland. With spring training approaching and few teams catering to the type of contract Bourn originally wanted, the Indians swept in offered Bourn the security he wanted and snatched him up for a reasonable AAV. While Bourn got the best available deal, the Indians made a smart, savvy, and productive move to improve their club now. Cleveland may not be a hot destination for free agents, but it's considered more highly valued than Kansas City, another AL Central team that improved this winter, albeit through controversial means. This puts Cleveland into the conversation for a playoff spot, a turnaround that 94 loss teams rarely expect. While the two wildcards seem the most likely possibility for Cleveland, I think that the AL West and East are too powerful, and that the best chance the Tribe has of reaching the postseason will be by unexpectedly winning the AL Central. Knocking off the Tigers, who are vastly better than their divisional opponents won't be easy, but given the uncertainty of injuries and other unaccountable factors, the Indians now have a chance. Despite the fact that Bourn rejected a qualifying offer from the Braves, Cleveland won't have to relinquish their first-round pick in the draft as it is protected due to the Indians' abysmal record in 2012. The Indians lost their second-round pick when they signed Swisher, and the acquisition of Bourn causes the team to lose their competitive balance pick, which would have been the 71st overall pick.

The Indians made a great deal here. Most sabermetricians will tell you that Bourn's production will decline in the next few years, and I stand with them, but the Indians are only on the hook for a guaranteed 4 years, and given their lack of other stars, paying Bourn $12 million AAV should be worth it. At the very least, even if the Indians don't make the playoffs in 2013, they should be more exciting to watch, win more games, and thus bring more fans to Progressive Field. On the bright side, Bourn could burn out just around age 34-35, meaning the Indians got the most out of him while they could, another sign that Antonetti made a sly deal. Cleveland got their man, Bourn finally found a team, the rest remains unknown, but that's the fun. 

Patience

Chris Perez

Today, the Cleveland Indians announced that they had avoided arbitration with closer Chris Perez, settling on a 1-year $7.3 million contract. This was Perez's second year of arbitration, having qualified as a "super 2" player. MLB players with 3 years of service in the big leagues become eligible for arbitration. Arbitration lasts for 3 seasons, unless the player in question has almost three years of service (say 2 year 200 days) at the end of a season. In this case, MLB awards them "super 2" status, which allows the player to be eligible for arbitration for 4 years instead of the usual 3. Some teams have tried to use this to keep young players under team control for extra time, but the league recently changed the necessary dates of service time to make it more difficult for teams to exploit the apparent loophole.

Perez, a right-handed bullpen pitcher has served as the Indians closer since 2010. Ever since conforming Perez to the ninth inning role combined with his "super 2" status, has made Perez ever-increasingly expensive. Relievers are overvalued in the current MLB market; sometimes more often by arbitrators who weight saves as more important than true markers of success for bullpen pitchers. This combination has led to Perez's new 1-year contract of $7.3 million, which equates to about 1.33 fWins. Perez is young, and entering what can be the most fruitful years of a pitcher's career, meaning that he should be able to pitch up to, or at least close to, his annual average value. Since becoming the closer, Perez has accrued 1.6 fWins in 3 seasons for an average Fwins/season of 0.5 fWins. 0.5 Fwins is worth only $2.75 million, which is 38% of what he will be paid this year. Well, if it's so obvious that Perez won't be worth his 2013 contract based on his past performance, so is he set to improve to the point that he will?

As you can see from the graph to the left, Perez's strikeout numbers have fluctuated ending in a K/9 that ranked 51st amongst all 2012 qualified relievers. On a different note, Perez has consistently lowered his BB/9 numbers to end the season 39th amongst all relief pitchers. Essentially, Perez has been a decent bullpen pitcher, one that has improved in some areas, but not enough to make him one of the 20 best relief pitchers in Baseball. His numbers might cause some to wonder why he has been dubbed as the pitcher to throw in supposedly the most crucial situation for the Indians late in games. Maybe if he performed exceptionally well in the clutch, it might justify his AAV as well as his standing in the Cleveland bullpen. Unfortunately for Perez, his WPA/LI, which measures how well a player performs in high leverage situations in comparison to an average leverage situation, and Perez hasn't performed exceptionally well. His WPA/LI has been below 1.0 every year of his career, not a good sign, seeing as the top echelon of relievers (30 best), has a WPA/LI over 1.0 with names like Rodney, Chapman, and Kimbrel all hovering around 2.0 or greater WPA/LI.

Given that we have now proven that Perez's $7.3 million salary is quite inflated, even assuming some improvement, the next question to ask is why have the Indians not considered trading Perez. The Indians, while improving their status this offseason, haven't made significant enough improvements to put them in the discussion for possible playoff team. This fact only adds to my confusion as to why Indians GM Chris Antonetti didn't make a deal to move Perez before coming to a 1-year deal. Now, it is completely possible that the Indians decide to trade Perez now, after setting a definite price tag to him, but that possibility is logically outweighed by the chance that that the Indians go into 2013 with Perez in their bullpen. Given Perez's soft numbers, it's possible that Antonetti wants to wait and see if Perez's stock rises before flipping him so as to receive the best possible package in return.

League

Hanrahan

According to Paul Hoynes of the Cleveland Plain Dealer, as of January 6th, the Indians were still considering trade offers for Perez, but wouldn't budge unless they could receive a similar package to the one the team swindled for outfielder Shin-Soo Choo. Choo brought back outfielder Drew Stubbs and pitcher Trevor Bauer. Given that the Indians have set an asking price, maybe we should take a look at recent trades for relievers of similar or better caliber to get a sense of what the Indians might expect in return for Perez. So far this offseason two comparable relievers were moved. The Red Sox traded Jerry Sands, Stolmy Pimentel, and Mark Melancon to the Pirates in exchange for Joel Hanrahan and Brock Holt. Hanrahan represents the comparable reliever. Most thought that this trade broke down to Hanrahan for Melancon, which pundits quickly dubbed a victory for the Pirates. Hanrahan had a very lucky season last year given his peripherals while Melancon fought off a tough start to put together solidly underrated numbers. Melancon is younger and under team control for more years, making him slightly more valuable than Hanrahan. The other trade this offseason was between the Astros and Rockies. The Astros dealt reliever Wilton Lopez to the Rockies for minor league pitchers Alex White and Alex Gillingham. Both prospects are starting pitchers, each with enough deficiencies to label them both as projects. So, so far we have one reliever exchanged for another reliever of slightly better standing and the 2nd acquired for 2 project prospects. These aren't lofty hauls.

During the 2012 season 2 other "big time" relievers swapped teams, Jonathan Broxton and Brandon League. League went to LA for 2 prospects, one an outfielder with some upside and the other a relief pitcher who made double A last season, but struggles with his control. Broxton was moved in exchange for Donnie Joseph and J.C. Sulbaran. Josepth is a lefty specialist out of the bullpen who has put up very good numbers in AA and AAA, leading the Royals to put him on their 40-man roster heading into 2013. Sulbaran projects as a 4 or 5 starter who has the build to be an innings eater and the numbers to back it up. Both Broxton and League were under less team control than Perez, but both performed better than Perez prior to being traded. In 2011, 3 comparable relievers were traded midseason and 2 in the offseason, all yielding similar packages in return with the exception of the swap between the Rangers and the Blue Jays. In that deal, which was made in the offseason, the Blue Jays sent catcher Mike Napoli to the Rangers in exchange for reliever Frank Francisco. This was just prior to Napoli's power surge, making the deal very skewed in Texas' favor.

Overall, this analysis of previous trades gives us a sense of Perez's realistic trade value. Teams that are in the market for Perez's services include the San Francisco Giants, Detroit Tigers, Toronto Blue Jays, and possibly the Cincinnati Reds. On the other hand, by the time the 2013 trade deadline roles around, that list may have grown to almost twice the size. Simple economics teach us that it is best to buy low and sell high. So, the Indians want to wait until Perez is at his highest demand before flipping him, which might be now, or could be in 6 months. At the moment I'd be surprised if the Indians could get more than a similar deal to the one that Astros got for Wilton Lopez. Lopez was a far better reliever than Perez in 2012, but he comes with some injury concerns (Just ask the Phillies), so his stock was about the same as Perez's is now. I expect the Indians would much rather receive one top 6 prospect than 2 high ceiling/low floor prospects like the Astros got for Lopez. This leads me to believe that Perez, if moved, won't call a new city home until June or July. Recently, with the Nationals' signing of Rafael Soriano, the pattern of NL teams polishing their rosters by stacking their bullpens has emerged. This advent has made Perez look more and more like a very likely future trade candidate, so watch out for teams like the Pirates, Phillies, and Reds to come calling looking for relief help midseason.

In the offseason, MLB lovers grasp onto anything to quell their desire for Baseball given the lack of games being played. This includes looking for a trade wherever possible, and over-analyzing every move made from the flashiest to the most diminutive. Anyone who works in an MLB front office has to be immune to such temptations because oftentimes it is not skill, guile, or competitiveness that leads to the best results, but good timing. MLB General Managers and their staff's have to act as stock traders, timing the market at the precise time so as to cash in for the best possible return. Antonetti and the Indians seem to be waiting patiently, asking for too much and fending off lesser offers for Perez now, hoping to time the market perfectly later to and get the high caliber prospect they are looking for in return for Perez. Such patience should be admired, as some GM's due to pressure from all sorts of sources often jump the gun and make a hasty trade that backfires with ease. The Mariners recent trade for Michael Morse marks a good example of such a move. The Indians know Perez is not worth the money they are paying him right now, but in due time, he may reap benefits they hadn't even though possible.