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I do go a bit too far sometimes in my comments
2107 WBA Total Payroll - $828,698,2612108 WBA Total Payroll - $827,982,5052109 WBA Total Payroll - $966,502,970All of these figures are from the last day of the regular season. Total cash on hand hasn't been affected yet, but I really do believe that the arbitration system may have an impact moving forward on free agency. I just don't think it's been around long enough for the effects to be seen yet. Maybe that's just being optimistic but I believe that's the case.
4. I am a small-time player in the FA market, though I am looking simply to plug some holes while guys lower in the minors develop. I'll confess that I almost asked on slack the other day, "Is there an FU button in contract negotiations?"
Take Carlos Vargas for example. He lowballed himself with a 5 year $40M deal his first time around. The second time he signed for $34.5M over 3 years. Still lower than he could have gotten on the market but better. So perhaps if the arbitrated salaries were higher then that first extension would be higher. Which would then, of course, make the second extension higher in turn. Just a thought and I may do some testing with this. If I do then I will post all the results here so everyone has the same information and data.
Just to offer a little context on this, Vargas' first extension was signed with 2+ years of service and back before we had an arb system so I bought out 2 years of free agency while wildly improving his current salary. He then rejected talking extensions until he was in the final year of his deal (the upcoming season). I contacted him the moment the World Series ended and basically just gave him exactly what he wanted, which was clearly way under market value in terms of years and dollars. I have no real understanding of what Vargas based him asking price on. You'd think 4 MVPs in 5 years and a base salary of $8M would push OOTP to ask for a hell of a lot more. I also extended Luis Hernandez last season mid-year in a kind of odd situation. He was a CY Young runner up as recently as 2107, and while he struggled in 2108 and dealt with injuries early in 2109, his ratings were still strong at 6/7/7. Working off of a salary of $4.2M he was still willing to accept a league minimum offer from me. Logically, I don't know what would compel someone to take that offer when you basically couldn't do worse on the open market. I don't see an issue with players refusing to negotiate at times or choosing one org over another in free agency, but the asking prices in extensions is sort of problematic. I just don't really know what the solution is to make players smarter.
I think one thing that would help with more realistic extensions is to limit extensions to only being offered in the last year of the contract.
Yeah, the Hashimoto situation just completely put a spotlight on OOTP failings. However, in this case I think it can actually work to our advantage. With a full league of human owners we don't have to worry about the AI's opinion of free agent value. We actually have a market that will determine free agent salaries.So the fact that the players fail to take their future free agent self-valuation into account when making extension demands is a good thing in an online league.Arbitration salaries are currently $200K + $350K*MAXWAR for year 4 and $200K + $700K*MAXWAR for year 5. As noted many times here, the rule of thumb is approximately $1.4M/WAR if everything was a completely free market and every player was paid perfectly based on performance. It's something to think about. Perhaps the solution is as simple as increasing the salary baseline numbers and bumping up the arbitration formula. As noted above, we were still only at $966M in team payroll last year. The league is designed so there is $1.0B in revenue every year, so we're still a hair low on that.
FWIW, I think the hashimoto situation is the exact issue with this league...and its the exact oposite of what evetyone says. no one trades. he was offered 20 M a year...didnt sign, and then signed for less, was put up for sale...and nothing. people over value prospects that will never develop in this league. I have never seen such minor league depth...yet people are mega greedy when it comes to trade. THATS the problem but im drunk and love to trade.
I really think we will regret any changes we make right now. Arbitration has been in place for 1 year. Give it at least another 3 or 4 years before changing anything else.
Hashimoto is a 32 year old 3B who can't play defense and is on his decline into the 2 and under WAR. I don't think he has much value for trade.
To be fair you love to trade when you're sober, too.
and if there is so much cash hanging around that someone was just biddgin for the sake of it...then the cash is the issue.people pay for FA because they can, no issues there.
Guys I just caught up on this talk. I know this thread is lengthy, so I'll make this brief. We need a players' union or else our economy will stay fucked. The union would be a heterogeneous 4 person panel of owners. They would be responsible for veto-ing un-realistic contract extension. CBW is right that Chris Boone should have made it to FA. He gave up like $50m to sign an extension. The union needs to veto that. Once we start veto-ing the really bad extensions, the ones that would *never* happen irl, we will have more FA. Supply will increase. Demand will stay the same. Prices will become way more reasonable. We can hammer out specifics on this, but he union would basically use historical precedents to veto extensions. If a guy is making a crazy decision to avoid FA, then we veto it, he becomes a FA and the market stabilizes. This is a labor market, and it is fucked because the "workers" are making horrifically irrational decisions. If we fix that, we fix the market.
I like the spirit of the union idea but don't like the execution in having a panel of GMs. Mainly because that can breed bad blood in the league and we've got a great group right now.
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