I’ve had a couple days to digest the Sal Perez contract extension. Makes sense to throw my thoughts out there about 48 hours beyond the BIG announcement.
— Sal will bank $3.25 million in his first three years. That’s some good upfront cash. Had he not signed a long-term deal, he would have made close to the major league minimum of $500k in each of those seasons. Let’s put him down for a net of around $1.75 million in those three seasons.
— His arbitration years (I’m going to assume his first option year gets picked up) will bring him $7.5 million. On first glance, that seems low. But don’t forget he’s already ahead close to $1.75 million before he enters what would have been his arbitration years. Move that money over, and he’s making $9.25 million for the three seasons that would cover his arbitration eligibility.
In a situation like this, we need some comps to help us frame the deal. A natural comp would be the Cardinals Yadier Molina. Like Sal, Molina entered the league as a 21 year old backstop who played exceptional defense and more than held his own in his first turn in the majors. Molina signed his contract extension just prior to his fourth big league season. That contract was for four years (with a club option for a fifth). The first three years bought out his arbitration eligibility. For those three seasons, Molina was paid… Wait for it… $9.25 million. Remember, this extension came after he played for three seasons at the major league minimum.
So the contracts are basically a wash, value-wise. The difference, of course, is the setting in which both were signed. When Molina inked his extension, he had over 1,400 major league plate appearances and had put up a line of .248/.304/.349 with an OPS+ of 69, but he played exceptional defense behind the plate. A no-hit, great-field catcher. Although the season prior to his extension, he showed signs of life at the plate for the first time since his major league debut.
Perez, on the other hand, gets his extension after just 158 plate appearances in the bigs. Hell, the dude has a grand total of 207 plate appearances above Double-A ball. He’s much less the known commodity that Molina was. Yet, he will make the same amount of money over his first six seasons. Normally, you’d adjust for inflation of salaries, but the difference in experience at the time of the signing offsets that.
The early part of this contract seems fair.
— But then we get to the option years. Amazingly, there isn’t a buyout for those seasons. So if Sal doesn’t develop into the stud we believe he will (unlikely) the Royals can walk away. Just like that. No harm, no foul.
Sure, the Royals will argue there are escalators built in based on performance and awards that can push the total of the option years from $14.75 million to $19.75. That’s nice. But there is absolutely no risk to the Royals beyond the $7 million owed to Perez through the 2016 season. It’s like going to a car dealership, having to put no money down, not having to make a payment for five years and if you wreck the car before a payment is due… No problem… We’ll just forget about the deal.
I’m going to try that the next time I have to buy a car. Will they just ask me to leave, or will I be forcibly removed?
Again, in a situation like this it helps to have comps to examine. When I think of teams locking up young talent, Tampa immediately jumps to mind. They signed two of their players with very little major league experience to long term deals: Evan Longoria and Matt Moore. Moore’s contract pays him $11 million through his first five seasons before his option years kick in. Like Perez, he has three options covering his final year of arbitration and his first two seasons of free agency. Unlike Perez, he has a buyout in each of those seasons. He also stands to pocket $26 million if all three options are picked up by the Rays.
Longoria has three options, but they don’t begin until what would have been his first year of free agency. He’s due a cool $30 million should Tampa pick up all three seasons. Interestingly, he has only one buyout. It comes with his first option and would pay him $3 million. Basically, if the Rays want out following the 2013 season, they would have to pay a 10% penalty. Obviously, that’s not going to happen, but there’s at least some protection there for the player.
For Perez not to have that kind of protection seems to be a failure on the part of his agents. There has to be some risk for the club in the option years. That’s kind of the whole point.
— Finally, we need to look at where the Royals were the last few seasons with their catching situation. Remember Jason Kendall? The Royals paid him $6 million for two years where they had miserable production for basically five months. You could make the argument he was worth more on the DL than in the lineup.
Before Kendall, there was John Buck. Before he was non-tendered to make way for the Mighty Kendall, Buck earned $5.1 million in his first two seasons where he was arbitration eligible. He’s now in the second season of a three year, $18 million deal. Nice.
Of course, Buck was partnered with Miguel Olivo who earned $4.75 million over those same two seasons. Bleech.
The Royals committed $15.85 million for four seasons of bad defense and abysmal offense. In Sal Perez, they have a premium defender and a developing offensive player locked up for the next five years at $7 million.
Well done, Dayton Moore. Well done.
— Bruce Chen is on Twitter. I’m pretty sure this was the Twitter moment we’ve been waiting for. His fourth tweet didn’t disappoint:
Tweeting is awesome! Thanks 4 all ur support. Should have been here long ago. I mean I should be good with technology, I am Asian
— The Royals held an intra-squad game where Vin Mazzaro started against a lineup that featured Alex Gordon and Eric Hosmer. Any wonder he gave up two runs?
And Sean O’Sullivan faced nine batters in an inning and allowed five runs to cross the plate, surrendering run-scoring doubles to Billy Butler and Perez.
If either pitcher breaks camp with this team, I would be shocked. And depressed.
— Felipe Paulino looks to be fine after battling a slight strain in his right hamstring. Hope so. I still don’t understand how he can’t be considered a lock for the rotation.
— I talked the Perez deal and other things to look forward to at spring training with Kevin Keitzman on Between The Lines on Sports Radio 810 WHB. Click here to listen to the podcast.