Options For Everyone

The business of Baseball transcends the game in many ways. Oftentimes purist fans want to forget about the business side of Baseball as it takes away from the joy of watching America's Pastime the way it was meant to be watched. On the other hand, like in medicine, philanthropy, and other parts of life, Baseball is a business, no matter how much we wish it weren't. While many heads in the clouds hope that one day Baseball will return to just a bunch of boys playing game after game in the summer sun, the business side of Baseball isn't going anywhere. In fact, embracing the money side of the game can enrich one's fandom. Determining the length, dollar amount, and other parts of contracts makes up such a large part of analyzing the game, that some focus solely on such topics. If your looking for a good website for all things business oriented concerning Baseball check out Maury Brown's website http://www.bizofbaseball.com/. For now, I want to discuss the idea of an option. 

Adam LaRoche

Every player's contract has an average annual value, a yearly dollar amount that when combined equals the total value of said player's contract. So, for example, this offseason Adam LaRoche of the Washington Nationals signed a 2-year contract worth $22 million. He will earn $10 million in 2013 and $12 million in 2014. That $22 million counts as his base salary. Options are one-year additions that teams and players' representatives negotiate on when discussing a contract that have a dollar amount associated with them, but are not guaranteed unless the option is "picked up" or the option vests. Options give teams and players flexibility. Sometimes tacking on an option to a contract can make negotiations run more smoothly, other times they can be deal breakers, causing the two sides to forgo a contract and move on. More often than not, options are useful tools for both a player and the team; giving both sides a bit more wiggle room when discussing contracts involving tens of millions of dollars.

A few different types of options exist, including team options, player options, mutual options, and vesting options. I'll give a quick synopsis of each type, using examples to illustrate the positive and negative affects of each. First, let's discuss the team option. Team options, or club options, are the most commonly utilized form of the option. In his book, "The Extra 2%", Jonah Keri mentions club options when discussing ways in which the lowly Tampa Bay Devil Rays, now known only as the Rays, got the most out of the contracts they offered to top tier players. Keri describes it best when he says, "But with a club option, the team wields all the power. Got a 40-home run hitter? Keep him. Did he turn into Mario Mendoza? Happy trails." Team options give a club's front office complete latitude as to whether to keep or release a player. If an option has a dollar amount that a player would not find on the open market due to attrition in productivity then the team will choose to not pick up said option because no team wants to waste money on a player who isn't worth the money he will receive.

James Shields

On the other hand, using the example of the Rays, tacking on multiple team options onto a contract given to a young player could allow a team to keep said player for relatively less money than that player would make on the open market, making such an option very valuable. For example, when the Rays offered James Shields a contract early in his career, they added three player options on to the end of the deal, anticipating that Shields would only get better with time, and thus giving them complete autonomy when making the decision to keep him or not. Veterans who sign contracts during their prime years rarely allow teams to add club options onto their deals, preferring the other types of options instead, but young players who haven't proven their worth yet, or older players who are on the wrong part of the aging curve accept team options because it leaves some possibility that they could continue playing without becoming a free agent. Oftentimes, if a team refuses to give a player a contract without a club option attached, the player's agent will demand that a buyout clause be attached. A buyout clause is a dollar amount that a team must pay the player if said team decides not to pick up the club option, thereby securing the player some money no matter which way the club decides to go.

Derek Jeter

Now that you understand what a team option entails, let's move on to a player option. Player options are simple; they constitute the exact opposite of a club option. If teams place club options on younger or older players' contracts, player options are more often seen on contracts of players in their prime, or franchise players' contracts. Since the team has the money, front offices rarely want to allow a player to decide whether he will play another year after the base years of his contract have expired. It leaves teams with fewer alternatives, making it more difficult for General Managers and their staffs to plan for the future. On the other hand, some players are just worth it. For example, Derek Jeter, the face of the Yankees franchise, a future first-ballot hall of famer, and a consistently productive player even in his late thirties, had a player option attached to the contract he signed with the Yankees in 2010. The foundation of the contract runs through 2013, with a player option worth $8 million for 2014. Jeter's AAV for the base of the contract is about $17.6 million, significantly more than the dollar amount associated with the 2014 player option. Like club options, player options commonly have buyout clauses linked to them. In Jeter's case, the team has a $3 million buyout option they must pay if Jeter declines the player option for 2014. Player options are rarer than club options, but for a player as important to a one club as Jeter is to the Yankees, teams will do whatever is necessary to ensure that player signs a deal with them.

Conceptually, player and club options have little complexity to them. But wait, there's more. Another type of option seen in Baseball is the mutual option. This type of option combines the aspects of a team option and a player option. Essentially, a mutual option is an option that both the player and team must agree to. Wendy Thurm, a former lawyer, and writer for www.fangraphs.com describes the positive and negative aspects of a mutual option best:

"A mutual option is a hedge against volatility in the market for that player in that particular option year. If the player’s value plummets, the team can decline the option and pay the buyout. If the player’s value rises, he can decline the option and seek a better deal as a free agent. If the player’s value is stable, however, then it might be in both parties’ interest to exercise the mutual option."

So, mutual options give both the team and the player the ability to come together and make a decision. This may seem like the most mature option available because it very well may be. Player and club options give control to one side, shutting out the other, but mutual options, like the negotiation of any contract, allow both sides to have a say. For a good example, let's take Adam LaRoche's contract, mentioned above. In LaRoche's deal, the two sides negotiated a mutual option for 2015 worth $15 million, substantially more than the $11 million AAV of the years preceding 2015. This option, like so many others, comes with a buyout clause. If the two sides don't agree to the mutual option, the Nationals must pay LaRoche $2 million in his departure.

Bobby Abreu

So, we've gone through club options, player options, and mutual options. All that's left is the vesting option. Recently the diligent writers at www.mlbtraderumors.com published a piece about vesting options, publishing with it a list of examples in which vesting options were and were not triggered. A vesting option is the same as the other types of options, except that in order to trigger the option, the player must attain some predetermined level of productivity. For example, the Angels gave Bobby Abreu a vesting option for 2012 that would be triggered if Abreu reached at least 433 plate appearances in the 2011 season. If he did not come to the plate 433 times or more the option would be moot, but if he achieved that minimum number of plate appearances he would be an Angel for another season. We see vesting options pop up most often on the contracts of older players or oft-injured players. These conditions cause instability, and a team doesn't want to be "on the hook" for money if a player cannot prove to the team they can perform on the field. For relief pitchers vesting options often involve appearances or games finished, for hitters we see plate appearances used, and for starting pitchers, innings pitched are most commonly used as a barometer. Sometimes vesting options come with clauses that allow a player to decline said option even if the option has vested, but not all incorporate such provisions. 

So, now you know everything and more about contract options in Major League Baseball. Maybe for some fans these topics detract from the fun and childlike innocence attached to the game, but for most, it offers another fascinating aspect to the non-playing side of sports. So much of the analytical revolution in Baseball combines on-field play with off-the-field decisions made by MLB front offices. No matter your preference, I hope you've learned something, so that maybe, the next time you hear he details of a contract, you might understand them a little better. 

Mind Your Manners

Recently two major baseball ethics and etiquette issues have surfaced and crowded the headlines.  First, Derek Jeter, yes the same one who just collected his 3,000th hit, decided not to attend the All-Star game.  Second, a brawl erupted in Boston between the Red Sox and the bottom dwelling Orioles.  Let's begin with DJ and his rise and fall.

Last saturday, Derek Jeter became the 28th member of the 3,000 hit club and the first ever Yankee to accomplish the feat.  I congratulate Derek on his consistency, health, talent, and longevity, all of which contributed to reaching this milestone.  He hit a home run to collect this historic hit and not do allow personal accomplishments to trump the team, Jeter also drove in the eventual game winning run.  Unfortunately those who rise the highest have a tendency to fall the hardest (thanks Newton).  Jeter has not fallen hard, but his image has taken a small step backwards this past week.  One might wonder, "How can Jeter's image be smeared during the only part of the summer when there is a break in regular baseball activities?"  The simple answer is that generic baseball fans are stupid.  The more complicated answer has to do with the All-Star game and Jeter not handeling a simple situation well.

Why is generic stupidity affecting Derek Jeter?  Due to MLB allowing fans to vote on the starters for the All-Star game, Jeter was named the starter for the AL squad.  Recently coming off an injury, Jeter was likely to decline to play in the game, which is disrespectful enough, but instead of declining to play Jeter refused to catch one of the many non-stop flights from LaGuardia Airport to Phoenix's Sky Harbor Airport. Jeter may not have deserved to be an All-Star, thus once again questioning the validity of allowing fans to vote on who is an All-Star, but if chosen by the fans, he should have at least humored them and shown up. I know from growing up with three strong willed and immensely bright women that sometimes it is best to humor those people who have influence on you because in the long run it is easier to smile and nod now than to take the verbal tongue lashing that will most likely ensue.  You might think Jeter would have liked to attend the game and be cheered by thousands of fans for being selected to his 12th All-Star game as well as reaching 3,000 hits only 2 days prior.

Bud Selig recently stood behind one of his league's star players, saying, "I think I'd have made the same decision that Derek Jeter did."  No matter the reason, Jeter should have respected the game that has given him so much over the last 15 years.  Jeter's seniority does not give him special status that allows him to skip what I consider obligatory events.  Selig's diplomacy is laudable but not right, he should have forced Jeter to attend.  Phillies third baseman Placido Polanco, and center fielder Shane Victorino, both voted All-Stars by the fans, have injuries that precluded them from playing in the game, but still travled to Phoenix and heard their names announced before the game, taking their hats of to the fans who were gracious enough to provide them with All-Star status.  Maybe Derek Jeter could take a lesson from his peers.  Other offenders similar to Jeter include Aramis Ramirez, who when asked to serve refused.  This peccadillo is less offensive than Jeter's snubbing of the fans because Ramirez was a manager's choice, but it still shows immaturity and a "better than thou" attitude.  In contrast to the bad etiquette of Jeter and Ramirez is Albert Pujols, who publicly expressed interest in being a part of the All-Star team.  Robinson Cano's unbridled joy following winning the Home Run Derby, showed why attending the All-Star game has its perks.  Jeter should have hopped on a private jet and attended the game, he could even have brought Minka Kelly, i'm sure no one would have minded that.

In other baseball etiquette news the Boston Red Sox played the Baltimore Orioles this past weekend.  Seeing as these two teams play three to four series a season, what could be the interest?  Well, in lue of the Sox trouncing of the Orioles (big surprise), an amateur boxing match erupted during Friday night's game.  In the right corner weighing in at 230 lbs was Orioles bullpen pitcher Kevin Gregg and in the left corner weighing in at a surprisingly 230 lbs was Red Sox DH David Ortiz.  Gregg threw 3 straight fastball inside to Ortiz, one of which seemed intentional.  Ortiz took offense to these inside heaters and took a few steps closer to Gregg gesticulating towards him while most likely warning him, "I'm David Ortiz and I will eat you alive if you continue to almost plunk me in the ribs with 94mph fastballs."  Gregg, probably frustrated with a thus far subpar season, painfully one-sided game, and Ortiz's bravado barked back.  If not for the home plate umpire putting his body between the two hot heads the bell may have rung for round one to begin.

 Instead Ortiz returned to the batter's box and awaited the 3-0 pitch from Gregg.  Gregg threw a 4th consecutive inside fastball which would have resulted in  ball 4.  Here lies the quagmire.  It is traditional that on a 3-0 count, the batter does not swing.  Sometimes, managers, to my dismay, allow their better hitters to swing away 3-0 thinking it may be a perfect pitch due to the likelihood that the hitter will not swing and the need of the pitcher to throw a strike.  If Ortiz's stroll to the mound was "strike one", swinging at the 3-0 pitch was "strike two".  "Strike three" came next, when Ortiz hit a lazy fly ball to right field and instead of respectfully jogging to first base the slugger took a few steps, stopped moving and began to retreat to the confines of the Red Sox dugout.  Gregg, seeing this breach of baseball etiquette decided is was his civic duty to remind Ortiz to run to first.  This did not sit well with Ortiz who decided that "them be fightin' words" and proceeded to charge the mound and swing widely at Gregg who swung back.  Benches cleared, punches were thrown, and foul words exchanged.  Not surprisingly Ortiz and Gregg were ejected for their crimes, and luckily neither player actually made contact during the bout thus lessening the possibility of injury.  During the myriad of post-game interviews, Gregg capitulated his side of the story and even left a warning saying,

"We're not backing down. We're not scared of them," Gregg said. "Them and their $180 million payroll, we don't care. We're here to play the game and we have just as much right to play the game, and we're going to do everything we can to win."

Sox starter Josh Beckett backed his teammate saying,

"I felt like [Gregg] should have been thrown out before any of that [expletive] even happened," Beckett said. "The rule is, if something like that happens and you leave the mound, you're automatically ejected. It wasn't handled that way and now we've got other guys probably looking at fines."

No matter who is right or wrong, brawls should never happen because of a player disrespecting the game and not running out a fly ball.  Gregg was obviously trying to get Ortiz out by throwing inside fastball, eventually succeeding, but he also bears some blame by nearly missing Ortiz's chest with a 94mph fastball that would most likely have caused some damage had it connected with its target.  In the end, these things happen and the most important thing is that both players and teams' egos shrink and tempers subside, but I do not realistically see that happening.  The Red Sox travel to Baltimore on July 18th for a three game series at Camden Yards.  Sparks may fly, but hopefully they will not be due to a lack of etiquette or respect of the game.  Both David Ortiz and Derek Jeter could use to reread the book of unwritten rules of baseball, which can be found in the plaque gallery at the baseball Hall of Fame.  Nonetheless my hope is that both events are behind them because the second half of the season is set to begin tomorrow, the trade deadline looms, and teams begin to fortify their resumes for a chance to play October baseball.  With so many great headlines and so much baseball to be played let us focus for a moment on Jeter and Ortiz's transgressions but not for long.

The Injury Bug

In sports vernacular, the "disabled list" (“DL”) or "injured reserve" are commonly used terms thrown around as if the average inhabitant of the earth understands its meaning without the need for further explanation. For those unfamiliar with these terms, they describe a special status given to athletes with injuries in order to allow substitute players to temporarily replace them for the duration of their injury. If I sprain my ankle running, I still come into work or go to class, but professional athletes do not have that luxury. Recently Derek Jeter, who is in pursuit of 3,000 hits, attempted to leg out a slowly hit ground ball and strained his calf muscle. From the moment Jeter left Monday's game due to injury, the media has offered conjecture as to the severity of his injury. Will he will be placed on the disabled list? And, of course, how this will affect his quest to accomplish a goal that only 27 other Major League Baseball player have reached in the sports 230+ years of existence?

Jeter's injury probably won't adversely affect his team's play or their chances to be competitive, especially if his stint on the DL is short. Unfortunately, for many teams, most of the time that is not the case. Many times, an injury, depending on the type, length of recovery time, and who is injured, can dramatically affect a team and its chances of winning. The Minnesota Twins finished first in the AL central last season making the playoffs for the second consecutive season. This season they find themselves in last place mostly due to injuries. The 2011 Twins roster looks fairly similar to the 2010 roster, which begs the question, "Why have they been so bad this season after such a successful 2010 campaign?" The Twins' star players are without a doubt Joe Mauer, Justin Mourneau, and Delmon Young. Mauer has played in only 11 out of 65 games this season, Mourneau has missed 10 games, and Young has missed 20. Three key players on the DL has been the leading contributor to the Twins' struggles. Injuries, especially when afflicted upon smaller market teams with one or two key players, can plummet a first place team to the cellar.

Bigger market teams may avoid this plight. For An example bigger market teams affected but not debilitated by injuries are the Philadelphia Phillies and San Francisco Giants. Recently, the Phillies, for the first time all season, put out their original starting lineup. Chase Utley, Shane Victorino, Roy Oswalt, Joe Blanton, Carlos Ruiz, Dominic Brown, and at least three bullpen pitchers have all visited the disabled list this season. Only recently have the Phillies had a starting 9 with no bench players. Because the team did not lose key players like Roy Halladay, Cliff Lee, Cole Hamels, Ryan Howard, and Placido Polanco to injury, the team has sustained its winning ways. But only a team with talent like the Phillies, Yankees, or Red Sox can sustain a high winning percentage while suffering numerous injuries to crucial players.

The San Francisco Giants lost star catcher Buster Posey for the rest of the season, second baseman Freddie Sanchez for an indeterminate amount of time, and will only now get third baseman Pablo Sandoval back in the lineup after a long DL stint. The Giants, like the Phillies, haven't lost all of their key assets and thus remain afloat and competitive despite injuries to 3/5 of their starting infield. Pitchers Tim Lincecum, Matt Cain, Jonathan Sanchez, Brian Wilson, and Sergio Romo have all remained healthy, thus allowing the Giants to retain their lead in the NL west. Not all teams are so lucky. The Twins are only one example of a smaller market team where 2-3 injured stars have lead to a drop in the standings. The A's and Angels have suffered similar fates. The 2011 Oakland A's were destined to win because of their young but formidable pitching staff. Regrettably, key pitchers Andrew Bailey, Brett Anderson, Dallas Braden, and Josh Outman have all succumbed to the DL for short periods of time. Anderson recently received good news regarding his elbow pain. At first Anderson's meeting with "Tommy John" expert Dr. James Andrews raised alarm bells, but ultimately his injury only required 6 weeks of rehab instead of major surgery followed by 18 months of rehab.

Not all teams are blessed with a prognosis like the A's pitcher Anderson. Last season, Stephen Strasburg burst onto the scene throwing 100 mph and winning baseball games, something few Washington Nationals pitchers have been able to accomplish. He left a game a few months after his debut with tightness in his elbow and received a diagnoses requiring Tommy John surgery. He remains injured, and most likely will not pitch again in the majors until August. In his case, the Nationals not only lose his stellar pitching, but they also miss the thousands more fans that would have attend games in D.C to see Strasburg.

Injuries are not always an awful scenario for a team. Sometimes injuries allow teams to call up highly touted prospects who otherwise wouldn't be called up. Other times injuries cause a general manager to make a trade that leads to better results than expected. Although these situations occur, injuries, especially to starters, always have negative aspects to them. In Derek Jeter's case, his team may barley miss his play, but his pursuit of 3,000 hits will be put on hold. Jimmy Rollins, the Phillies shortstop, suffered a similar injury to Jeter's current calf strain, and when asked about it, said,
"The best advice I can give Derek is, you’re going to get healed in the offseason."
He also mentioned that despite returning to play last season, his calf injury never fully healed until December."When you think your good, you’re not even close," remarked Rollins.
Essentially Rollins is telling Jeter, "Just because you’re about to become the first Yankee to reach 3,000 hits, the 27th major leaguer of all time to accomplish the feat, and secure your eventual induction into the Baseball hall of Fame, don't rush coming back because that may just worsen the injury." This seems to be good advice from someone who plays the same position with similar energy and competitiveness, and suffered a similar injury.

Jimmy Rollins is right. Players should make sure they are healthy before returning to the lineup, no matter how much their team needs them to play because other factors are stake. At the same time, baseball players are commonly referred to as wimpy athletes because they go to the disabled list with injuries like a mild calf strains, blisters, and elbow tightness. In hockey and football players regularly play with injuries more serious than those just mentioned, and such behavior is seen as gallant by fans who see such players as putting their team and teammates ahead of their own personal health. However, such behavior is foolish, especially for injuries like concussions, which can be sustained at any time and have few physical symptoms. I do not have a problem with a player playing injured as long as it is determined that the injury will not affect their play and will not have lasting affects on their health. But when players play through serious injuries, they need to rethink their decision. These injuries may not just affect the rest of their sports career—they may affect them for the rest of their lives.

I seriously injured my elbow pitching in high school. The injury was bad enough that my Orthopedist told me that I needed Tommy John surgery if I was to return to the mound. Instead of going through the surgery and extensive rehab, however, I opted out of the surgery and never pitched ever again. Although I still think about whether I made the right choice, overall I know that not pitching again is probably the best and healthiest choice. Although these decisions are never easy, especially when they affect one's livelihood (in professional sports), players need to consider all of their options and do what is best for their health, which sometimes means sitting out for long periods of time. So, I say to Derek Jeter, 3,000 hits will happen, and despite the media hoopla it does not matter when. So sit out, rehab and return healthy, strong, and ready to join the 3,000 hit club.