Saturday, January 12, 2008

IN CASH WE TRUST?

(Pete Abraham, the Yankees' beat reporter for The Journal News, ran an abridged version of the piece below on his blog on January 11, 2008. Much thanks to Pete for the opportunity)http://yankees.lhblogs.com/2008/01/11/pinch-hitting-the-yankees-republic/

February 4, 2008, will mark the 10th year of Brian Cashman’s tenure as the Yankees’ General Manager, the longest period anyone has held the position in the Steinbrenner era, in itself an accomplishment. With celebration however anniversaries also invite reassessment. Accordingly, the milestone begs an appraisal of Cashman’s record.

The first problem, of course, is how. In business, labor and management, for better or worse, bow to the same arbiter—the profit margin. In baseball, however, the very numbers that are a GM’s lifeblood offer no reliable, objective index of his proficiency, only his players’. The most obvious index, his team’s wins and losses, owes to too many variables beyond his control-- payroll, injuries, meddlesome owners, a manager’s folly, the vagaries of players’ production, and sheer luck — to gauge his performance by this measure alone.

Two further complications bedevil the task of evaluating Cashman. First of all, he has benefited from the foundation of young, championship-caliber players his two predecessors Gene Michael and Bob Watson assembled. The core of whom, Jeter, Pettitte, Posada, and Rivera, even today, underpin the Yankees’ success. Secondly, Cashman bore the title of GM in name only through his first eight years, not assuming the position’s full power and authority until November 2005.

Still, Cashman has stamped his signature on enough of the organization’s management structure, personnel, and philosophy to suggest an informed, if hardly definitive, assessment. A record, I judge, in sum, an equivocal one: far less prodigious than the genius nomaas.org, for example, regularly credits him with; but far more able and momentous than the incompetence Mike Pagliarulo’s crude tract smeared him with last year. http://www.myspace.com/baselinereport

No place is this checkered ledger more evident than the Yankees’ major league roster. Where a history of shrewd position-player acquisitions have secured and fortified the dynastic foundation Cashman inherited while a disastrous succession of inept, aged, and frail pitchers have squandered and undermined it. Compare Justice, Ventura, Olerud, Matsui, A-Rod, Damon, and Abreu, on one side, with Weaver, Karsay, Brown, Vasquez, Contreras, Wright, Pavano, Farnsworth, and Igawa, on the other. Even the exceptions, largely, prove the rule. George and his Tampa cronies account for the Mondesi, Wommack, and Giambi acquisitions, on the one side, and propelled the Mike Mussina and Roger Clemens’ signing, on the other. And if we can quibble with wisdom of some of the above acquisitions, or even who accounted for them, the overall pattern speaks for itself: éclat with position-players, folly on pitchers.

Now, in Cashman’s defense, a neglected, depleted farm system and a bear free-agent pitcher market often confined his options to overpriced starters and regressing veterans. And to his credit he recognized why. In a sport flush with cash, beholden to new revenue sharing arrangements, and plagued by a scarcity of pitching talent, only the rare preeminent starter reached free-agency while still in his prime. Even small-market teams jealously guarded their proven pitching talent. They began to sign their best starters to cheaper, long-term contracts before they qualified for arbitration, enabling them, as such, to hold on to their pitchers for two or three years past their free agent eligibility.

Witness Dan Haren’s contract with Oakland. Haren would have attained the six years of service free-agency requires after the 2008 season. But in 2005, the A’s signed him to an extension through 2009, with a 2010 club option, besides. Apart from enabling them to retain Haren longer, the A’s increases his trade value. This explains why Haren commanded four highly rated Diamonbacks prospects when Twins’ GM can’t seem to obtain more than two for Johan Santana. Haren, now, likely won’t reach free-agency until, at the very earliest, he’s 30.

The lesson Cashman learned from all of this is that the Yankees had to return to drafting and cultivating their own pitchers. Their woefully deficient farm system hadn’t produced a starting pitcher since Andy Pettitte in 1995. But once granted full authority in 2005, Cashman remedied the deficiency with considerable dispatch. In just three years, his infusion of premiere, minor-league pitching talent raised the Yankees organizational ranking from 27th in 2004 to 5th in 2007 in Baseball America’s annual survey.

Yet how Cashman accomplished this feat will leave perhaps a more enduring legacy on the franchise than will even the players themselves. He streamlined the management structure, reasserting his supremacy, clarifying executives’ domains, reconciling the Tampa and New York factions, and restoring accountability. Next, he dismissed scouts, hired new cross-checkers, and re-invested money and manpower in the amateur draft. And finally, he expanded the use of quantitative analysis to vet prospects, to identify unsung talent, and to preempt subjective, scouting reports, plagued by human bias, with empirically verifiable data. Enter Moneyball; Exit Prodigal George.

Some of Cashman’s recent comments, however, raise worrisome questions. Has he, like the sculptor Pygmalion, fallen in love with his own creation? The Daily News’ Bill Madden reported, during the Winter Meetings, that Cashman rebuffed an offer of Phil Hughes, Melky Cabrera, Jeff Marquez and Mitch Hiligoss for Johan Santana. “"I'm definitely fully invested in a lot of young talent. You get attached to it," Cashman said. Raising the question: has the GM succumbed to the very irrational bias he embraced sabermetrics to curb and proceeded to overvalue Hughes, among others? Economists would call the “attachment to Hughes” Cashman revealed his “endowment bias”— peoples’ tendency to demand more to sell what we possess than what we’d pay to buy it.

Would Cashman value Hughes equivalently were he another team’s prospect? Why, for example, do the Yankees alone seem to project Hughes a can’t-miss, bona-fide ace? Former Blue Jays’ Assistant GM Keith Law regards him no better than a #2 starter. http://myespn.go.com/s/conversations/show/story/3007436

But more importantly, is Hughes so valuable that he’s worth the price of forgoing Johan Santana? Santana, after all, already is a bona-fide ace, if not the best pitcher in baseball, and pitcher, moreover, capable of giving the Yankees 200 innings the following two seasons. (Whereas Hughes won’t contribute more than about 150 to 170 innings the next two years; that is, if the Yankees honor their professed plan to cap his innings.)

An organization that once mortgaged its future, and bartered away all its young talent-- now that they abound with prospects-- runs the risk of overcompensating and idealizing them. The latter danger Cashman risks is especially prevalent because so many aging superstars compose the Yankees major league roster. How many more prolific years do a 38-yr-old Rivera, a 36-yr-old Posada, a 33 and 32 yr-old Jeter and A-Rod really have left? (And though teeming with young pitching, a recent Baseball America podcast identified the Yankees farm system as having scant hitting talent.) Yet Cashman, nonetheless, plans to entrust 60% of his pitching 2008 rotation to three unproven, rookies with inning caps. Does an aging Yankee lineup, where only two hitters, Cano and Melky, are under 30, have the luxury to wait for them to ripen?

Given Cashman’s history on pitchers, I wish I could say I trusted his judgment. I wish I could say I agreed with his decision to forego both the best pitcher in baseball while still in his prime and with it, the Yankees best chance to overtake the Red Sox next year. But on the future of Hughes and the fate of Santana will hinge the final reckoning.

Monday, January 7, 2008

J'ACCUSE: THE MITCHELL BLACKLIST

"Ninety-eight in New England was a summer of exquisite warmth and sunshine, in baseball a summer of mythical battle between a home-run god who was white and a home-run god who was brown, and in America the summer of an enormous piety binge, a purity binge... reviv[ing] America's oldest communal passion, historically perhaps its most treacherous and subversive pleasure: the ecstasy of sanctimony. In the Congress, in the press, on the networks, the righteous grandstanding creeps, crazy to blame, deplore, and punish, were everywhere moralizing to beat the band: all of them in a calculated frenzy with what Hawthorne identified in the incipient country of long ago as 'the persecuting spirit.'" --Philip Roth, The Human Stain

Well, baseball fans, it appears "the persecuting spirit" has returned because the "righteous grandstanding creeps" are at it again: the self-appointed arbiters of morality; the pious windbags bloated with their superior virtue and repressed envy; the sanctimonious hacks who presume themselves the guardians of the national pastime because some tabloid accords them a corner between advertisements to retail their pablum.

Baseball's Moral Guardians are out deploring and villifying and haranguing again. Only now they've come armed with a list of sinners. And to Inquisitor's altar they've gone, to ostracize and to punish, to blacken reputations and to tarnish legacies, to purge the accused from the record books and to restore to baseball some long lost, wholly imaginary purity.

Not flawed investigative methods; not selective, geographically-biased targets; not tenuous, circumstantial evidence; not witnesses of dubious character and suspect credibility testifying under prosecutorial duress; not the absence of an impartial judge or jury; not the suspension of the most basic procedural safeguards against false testimony, uncorroborated accusations, the right to confront hostile witnesses or to be notified of the specific charges-- no ambiguity has chastened their zeal to prosecute; no doubt has shaken their moral certitude.

No, like the Inquisitions into Communists in Hollywood and Witches in Salem, someone making his confessions before the Mitchell tribunal only need name you to exonerate himself before Cotton Mather's scribblers find you guilty and the mob comes clamoring for your neck.


  • "Chad Allen, who has admitted using steroids, was a teammate of [Bart] Miadich. He said that Miadich’s size, muscle definition, and tightness of skin indicated to him that Miadich was using steroids." --- Mitchell Report, 12/13/ 2007

  • "Well the Communist party functionaries, when they are such, are always secretive. They never announce themselves as Communist Party functionaries. But they have a quality of authority, a quality of talking with knowledge, and one makes the surmise that [Andrew Overgaard] is some kind of functionary." --Clifford Odets, House Un-American Affairs Committee Hearings, 05/19/1952

As Arthur Miller once wrote, "The witch-hunt capture[s] some significant part of the American imagination...most startling [is] the similarities in the rituals of defense and the investigative routines... should the accused confess, his honesty could be proved precisely the same way-- by naming former confederates...normal evidentiary proof [is] either de-emphasized, left in limbo, or not required at all... in the end, the charge itself, suspicion itself, all but becomes the evidence of [wrongdoing]... "

POPE GEORGE: THE INFALLIBLE
But as if the Mitchell's Blacklist wasn't reckless enough in accusation, indiscriminate enough in targets, unsound enough in method, and shoddy enough in evidence-- as if this wasn't outrage enough alone, Baseball's Scribes defended its fairness and justice in a contortion worthy of Alice-in-Wonderland.

Through the looking glass, implication became proof of guilt. Witnesses, facing federal indictment, epitomized forthright probity. And George Mitchell-- former politician, lobbyist for big tobacco, and card-carrying member of the ownership group that somehow acquired the Red Sox without the highest bid (from whom Mitchell drew a salary until 2006)-- was elevated into a paragon of virtue, wisdom, and infallibility.

After all, didn't Senator Mitchell broker peace in Northern Ireland? Well, yes. Did the Moral Guardians somehow forget that Bill Clinton brokered the Oslo Accords? The role of elder statesman however hardly immunized the former President of errant judgment, ulterior motives, ethical improprieties, or even flagrant lying, as the Lewinsky scandal dramatized.

How quickly the media sheds its cynicism for politicians when it suits their ends. All the better to dismiss the complaints that Mitchell's ownership affilliation suggested a conflict of interest and/or explained his zeal to smear players, variations in evidence notwithstanding.

THE BLACK HERRING

But why let a few equivocal facts, troublesome conflicts, or moral ambiguity inhibit the ecstasy of judgment when Baseball's Clerisy has a national pastime to purify, a blacklist to enforce, a laity to incite, column space to fill, and a pulpit to fulminate from on television.

  • "We are probably at the darkest moment in baseball history, even worse, to me, than the 1919 Black Sox scandal." Bob Klapisch, "Yankees Hot Stove", YES Network
  • "This is worse than the Black Sox scandal. This is worse than the Pete Rose betting scandal."-- Kevin Kernan, The New York Post
  • "This makes April 15, 1947 [the day Jackie Robinson graced Ebbets Field] the greatest day in baseball history. George Mitchell's mass public shaming of cheats and frauds leaves December 13, 2007, running a close second." -- Ian O'Connor, The Bergen Record
  • "These were the drugs that... ultimately damaged the games as anything that has happened to it since the Black Sox of 1919." --Mike Lupica, The Daily News

The tragic irony, or rather the ironic tragedy, is that any writer so obtuse, reckless, or hysterical as to conflate steroid use with throwing a World Series actually has a forum to purvey his canards in the first place. To miss the critical difference in the two transgressions, both in their underlying motive and the harm inflicted is to betray an intellectual shallowness, moral sophistry, and historical ignorance that alone should disqualify them as authorities fit to render judgment.

Let's leave aside the obvious differences the criminal law would draw between them: that it punishes bribery and racketeering far more harshly than illegal drug use. Or that, as such, that while prosecutors indicted and tried the Black Sox players, no prosecutor has filed charges against steroid users-- unless, of course, like Barry Bonds, they've lie about it. Leave it aside, for a moment, because no one would expect of a baseball writer the critical discrimination of our judiciary.

Still, consider the basic difference in the two offenses' respective motives and in their implications for the very game in which Baseball's Clerisy presumes itself expert.

The Black Sox players, remeber, didn't merely break the rules. They actually preempted them because in a sham competition, the rules are a nullity. The Black Sox players, then, didn't "cheat". By which, we mean, they didn't violate this or that prohibition. No, Comiskey's conspirators defiled the game's entire raison d'etre. They subverted its whole purpose: to enact a competition with an unknown outcome, a game in which both teams strive to win and which either, in theory, could.

The Black Sox players. as such, staged a fiction. Indeed, in identity, the 1919 World Series more closely approximated a theatrical performance where the author scripts the characters' fates before the play actually begins. The Black Sox players then impersonated prefabricated roles to simulate a competition, all the while sabotaging their talent to ensure the result they predetermined.

Performance enhancement, by contrast, springs from the exact opposite motive. Take confessed steroid user, Jason Giambi, for example. Giambi's drug use violates the rules, yes. But his goal is to augment his talent not to compromise it, to help his team win not to guarantee they lose, to realize the fan's expectations not to conspire to thwart them.

Both the steroid user's motive and his transgression still observe and preserve both the game's fundamental spirit, to compete, and its fundmental purpose, to win. If the steroid user distorts the game-- although no one has quantified precisely how as yet--he, unlike the Black Sox racketeers, doesn't subvert its objective or counterfeit its identity. However if steroid use is as prevalent and pervasive as Baseball's Mullahs contend, steroid use may not even offend this much. With enough users spread throughout the game, the drug-enhanced deviations tend to nullify each other and to have no influence on the outcome.

Why does steroid use pale in comparison to rigging a World Series? Just examine the fan's respective reactions. The Black Sox scandal drove fans away en masse for years afterward, nearly causing the sport's extinction. While during the steroid era, baseball's popularity has soared and it has attraced fans in unprecedented numbers.

Which seem to prove Jefferson's old verity about democracy's average citizen having the most developed instinct for justice, where money is the medium which best accumulates his moral sense and renders the fairest verdict. What's the distinction between 1919 and 1998; the altered game, from its impostor? Ask the fan: the former he will pay to see and the latter, he won't.

CHEATERS ANONYMOUS

And really when was the game ever pure anyway? Really, for all Baseball's Clerisy's execration and dudgeon about the blight on the game's integrity and the taint of its record books, how much more does steroid use sully their Platonic Ideal of Competitive Purity than all the unsportsmanlike infractions and rule violations baseball either has condoned or has ignored throughout its history. Doctoring the ball. Corking the Bat. Tarring fingers. Stealing Signs. Manipulative landscaping.

How does one measure the precise effect anyway? Both on the individual player's performance and the team's success in the aggregate.

Jason Giambi testified that he began using anabolic steroids and HGH in 2001 and ceased using them at the All-Star Break in 2003. (Even if you believe nonetheless that Giambi used the drugs after 2003, it is difficult to believe he persisted beyond 2004, when a doctor diagnosed him with a related pituitary tumor and he missed almost the entire season.) However, Giambi's statistics before and after his steroids use don't differ materially from the stats he amassed while taking them.

Non-Steroid Years



  • 1998-- .295/.384/.489 27 HR, 110 RBIs
  • 1999-- .315/.422/.553 33 HRs, 123 RBIs
  • 2000--.333/.476/.647 43 HRs, 137 RBIs
  • 2005-- .271/.440/.535 32HRs, 87RBIs
  • 2006-- .253/.413/.558 37HRs, 113 RBIs
  • AVG -- .296/.421/.556 35 HRs, 114 RBIs

Steroid Years

  • 2001-- .342/.477/.660 38 HRs, 120 RBIs
  • 2002-- .314/.435/.598 41HRs, 122 RBIs
  • 2003-- .250/.412/.527 41HRs, 107 RBIs
  • AVG.-- .302/.431/.594 40HRs, 116RBIs

Is there a statistically significant difference in these numbers? Not to the naked eye, certainly.

Do steroid enhance a hitter's performance more than, say, corking his bat or stealing signs? Do they enhance a pitcher's performance more than, say, doctoring the ball?

No expert has performed a long-term study on the precise effect of prolonged steroid use on athletic performance for obvious reasons. However, Dr George Griffing, Professor of Medicine at St. Louis University, has concluded that HGH not only doesn't improve athletic performance, it may actually cause a degradation in a player's proficiency.

"HGH has some definite and proven medical benefits. It is currently approved medically in the United States for two primary indications, short stature in children and growth hormone deficiency in adults. All of these HGH benefits, however, are in individuals with growth hormone deficiency. In people with normal GH levels, HGH does not improve athletic performance in terms of muscle strength, flexibility, and endurance.

In fact, several placebo-controlled studies have been negative. A 4-week, double-blind Swedish study using 2 doses of HGH and placebo found no differences in subjects exercising on a bicycle in terms of power output and oxygen uptake. In another study, a single injection of HGH increased plasma lactate and reduced exercise performance.

In addition to the lack of effectiveness for enhancing athletic performance, HGH has a downside. It can cause dose-related side effects including diabetes, carpal tunnel syndrome, fluid retention, joint stiffness, muscle pain, and high blood pressure."

More recently, a professor of statistics and sociology at the University of Chicago and Columbia University, respectively, drew similar conclusions about the effect of steroids as well. Among the 80+ names, Mitchell's blacklist identifies, the professors compared the statistics of 48 hitters and 23 pitchers before and after the Report alleges they used steroids. (The remaining players were excluded for insufficient data.) Their conclusions are as follows:

For pitchers there was no net gain in performance and, indeed, some loss. Of the 23, seven showed improvement after they supposedly began taking drugs (lower E.R.A.’s), but 16 showed deterioration (higher E.R.A.’s). Over all, the E.R.A.’s rose by 0.5 earned runs per game. Roger Clemens is a case in point: a great pitcher before 1998, a great (if increasingly fragile) pitcher after he is supposed to have received treatment. But when we compared Clemens’s E.R.A. through 1997 with his E.R.A. from 1998 on, it was worse by 0.32 in the later period.

Hitters didn’t fare much better. For the 48 batters we studied, the average change in home runs per year “before” and “after” was a decrease of 0.246. The average batting average decreased by 0.004. The average slugging percentage increased by 0.019 — only a marginal difference. So while some batters increased their totals, an equal number had falloffs. Most showed no consistent improvement, several showed variable performance and some may have extended the years they played at a high level, although that is a difficult question to answer.

Some players improved and some declined. But the pattern for the individuals’ averages was consistent, and the variability of players (with the exception of home run counts) was low. There is no example of a mediocre player breaking away from the middle of the pack and achieving stardom with the aid of drugs. ("More Juice Less Punch", New York Times, Op-ed, December 22, 2007)

Indeed, the overwhelming number of marginal, undistinguished players the Mitchell Report accuses would seem to illustrate the professor's last conclusion.

THAT WITCH DON'T HUNT?

But if Baseball's Guardians really wanted to see fairness restored and justice prevail, they'd spare us their pious moralizing about the game's purity and integrity. The fans, as they have throughout baseball's history, can uphold the game's soundness quite well on their own, policing the game with their pocketbooks.

No, if Baseball's Guardian bleed with compassion for the games' disenfranchised and dispossessed, the cause they should espouse is that of those with no representation: all the struggling, fringe minor-league players who never make the Show because some marginal major leaguer, propelled by performance-enhancing drugs, usurped his roster spot.

Which means the players most deserving of censure are not the all-stars who appear on Mitchell's Blacklist: Jason Giambi, Miguel Tejada, Roger Clemens would have had prosperous major league careers with or without steroid. It's all the anonymous major-league player the Clerisy's crusade never mentions who most deserve sanction. But that's unlikely to happen.

Senators don't target the obscure and Columnists don't denounce the marginal because as Salem, HUAC, Ken Starr teach us, witches aren't worth the hunt unless you fell the mighty.

Saturday, December 1, 2007

POHLAD'S POUND OF FLESH

"They are as sick that surfeit with too much, as they that starve with nothing."-- The Merchant of Venice

It isn't often that I thank the Baseball Gods for the Steinbrenners. Like many a Yankee fan I've always nurtured a rather ambivalent view of the Boss and his progeny. This off-season's developments offer a dramatically illustration.

For example, the Steinbrenners, one minute, can exhibit pettiness, duplicity, and callous ingratitude in disposing of the manager who guided their franchise through one of the great eras in Yankees history: 10 division titles; 6 Pennants; 4 World Series Championships.

In the next minute, the Boss Juniors can epitomize the very opposite traits-- magnanimity, self-effacement, endearing candor, wisdom and a largess both of spirit and pocketbook. They exercise Abreu's option. They indulge Andy Pettitte while he plays Hamlet. They re-sign Posada and Rivera (only after questioning the commitment of the one and offending the other.) And they top it off by consummating the unfathomable. They welcome Alex Rodriguez back without humiliating him. They forgive him his errancy without demanding his abasement. They don't allow rancor and slight to trump the business of winning. And at the exorbitant price of doing so, they never once recoil. A commitment the fans of most major league franchises only can envy and that we Yankee fans ought not take for granted.

ST. PAUL'S SHYLOCK
A cursory glance at the tycoons fraternity that comprises MLB's ownership club only reinforces Yankee fan's great good fortune. For all the Steinbrenners largesse, their net work qualifies them among the memberships' middle class.

Consider Carl Pohlad, the Twins' owner, the wealthiest owner in baseball. Forbes' magazine estimates Pohlad's net worth to total somewhere between $2.8 billion dollars and 3.1 billion dollars (a sum more than twice that of the Steinbrenners) which would rank him the 114th wealthiest man in America. (See "The Twins Are Not Sharing the Wealth," NYT, November 29, 2007) Indeed, the annual interest Pohlad's wealth accrues exceeds the Yankees payroll. However, Pohlad operates his team as though it were a municipal entity and refuses to spend a dime more than the revenue the Twins generate. Although many question whether Pohlad even spends this much.

Many reports (in addition to Twins fans) accuse Pohlad of pocketing a portion of the revenue sharing he receives instead of investing it to retain his players and/or to sign free-agents, the purpose for which MLB earmarked it. http://www.reason.com/news/show/32522.html. The Twins, evidently, receive $20 million annually from general revenue sharing and an additional $25 million from MLB's on-line media properties, yet their 2007 payroll totaled about $70 million, 19th in baseball.

As for whether the Twins' own chief revenue sources, their ticket sales and media contracts, cover the difference, including added expenses. Well, Forbes' last "Business of Baseball" article credits the 2006 Twins' with producing $14 million in operating income, from which they garner about $5.5 million in operating profit. http://www.forbes.com/lists/2007/33/07mlb_The-Business-Of-Baseball_Income.html

Not enough lucre, evidently, to sate Pohlad's money lust.

An avarice the Twins forthcoming new stadium only accentuates and makes all the more reprehensible. Because in 2010 the Twins will earn $30 million dollars a year more from their new $522 million dollar stadium -- 75% of the cost Pohlad extorted from the City of Minneapolis.

But with more money on the way, Pohlad still has the effrontery to cry poverty. So as the 2007 Winter Meetings approach, the Twins prepare to ransom their franchise's crown jewel-- Johan Santana, perhaps, the best pitcher in baseball-- because they refuse to pay him the $20 + million dollar over 6 years that he seeks.

Which would seem to suggest that a competitive imbalance plagues baseball less because it can't institute a salary cap than because it allows tight-fisted misers to own its clubs-- hidebound skinflints who buy baseball teams to ornament their portfolio with a vanity asset and who could care less about winning or their fan's allegiance.

Compare Pohlad's short-sighted parsimony to Red Sox owner John Henry. Last year, Henry, another billionaire who surpasses the Steinbrenners in wealth, reportedly drew Dice-K's $51 million dollar posting fee from his own vast personal resources. Henry bought Dice-K for the obvious reason of course-- because he wants to win and Dice-K was the best available commodity for improving the Red Sox's fortunes. But Henry also did so because he's an astute businessmen. He appreciates professional sports' fundamental economic law: nothing sells like success. Henry's investment brought him a championship and augmented his team's revenues besides. The Red Sox not only profited from a post-season gait that ran through the World Series; what's more, winning a Championship enabled them to raise their ticket prices from between 5% and 13% for the forthcoming season.

However, the simple verity that "If you win it, they will come" is a verity Carl Pohlad, for all his business acumen, evidently is too frugal and/or too myopic to apprehend. Because for very same $50 million Henry spent, Pohlad could increase the Twins' offer to Santana from the 4-year $80 million proposal Santana rejected to a 6-year $130 million contract he likely would approve. An investment that would assure Pohlad a World Series contender for his new ballpark and far beyond. With a 29-yr-old Santana and a 24-yr-old Liriano at the front of their rotation, the Twins would boast the best 1-2 combination in the AL. (Liriano, you may recall, went 12-3 with a 2.19 ERA in 2006 before an elbow injury disabled him and ended his season.) .


But that doesn't appear in the offing. So baseball's talent drain continues: from the frugal and myopic to the ambitious and visionary. The question for the Yankees is at what price Shylock's ransom?

A CALL TO ARMS

And it will be a hefty price at that because the Minnesota Usurer can smell the anxiety. Their mortal rivals have won their second World Series in three years and perhaps for the first time in history, threaten the Yankees' hold on their birthright. And the Yankees know it: they didn't just invest $100 million in two players over 35 to surrender the fight or to bide their time while their youth movement burgeons. The Steinbrenners understand the law of battle: You must strike the enemy before he grows too powerful to overcome.

Because for all the media cant about Joe Torre's tactical inadequacies and the demagogy about his failure to realize the team's "mission statement" the Yankees' haven't advanced to a World Series since 2003 for one overriding reason. They've suffered from a deficit of arms. As a consequence, they've had to muddle through the post-season with a middling starting rotation bloated with overpriced salaries, debilitated by age and injury, and bereft of a genuine ace.

(Albeit, observers have overrated the liability of the last shortcoming. During the Yankee dynasty era, the Yankees won less because they possessed a conventional ace in the Guidry, Beckett, Santana mold than because of their rotation's depth. From '96 through '01, a different pitcher occupied the #1 slot in October, depending on the quality of the season he was having: Cone/Pettitte in '96/'97, Wells in '98, Duque in '99, Pettitte in '00, Clemens '01. In fact, the #1, #2, and #3 slots were largely interchangeable because one or two equally proficient pitchers followed the #1 starter. This explains why the Yankees could drop the first game in nearly every ALDS and still win the series.)

Since 2003, however, the Yankees' starting rotation has lacked both quality and depth. By now, Yankee fans are all to familiar with the following damning stat. In the last seventeen post-season the Yankees have played, beginning with Game 4 of the 2004 ALCS, their starting pitchers are 2-8 with 6.36 ERA. And in only four of those games has the team's starter given them a "quality appearance"-- defined as pitching at least 6 innings and yielding 3 or less runs. (Mussina in Game 5 of the '04 ALCS, Chacon in Game 4 of the '05 ALDS, Mussina in Game 2 of the '06 ALDS, and Pettitte, more recently, in Game 2 of the '07 ALDS.)

But with one transaction, the Yankees could consign this record of futility to a best forgotten past.

Add Johan Santana and overnight, the Yankees' rotation rivals that of the Red Menace to the North.

Slot 1-- Santana v. Beckett------------------------------------ Draw
Slot 2-- Joba v. Buchholz-------------------------------------- Draw
Slot 3-- Wang v. Lice-K----------------------------------------NYY
Slot 4/5--Schilling-Wakefield-Lester v. Mussina-?-------BRS

However, if the Yankees can manage to retain Kennedy and/or Pettitte returns, the fourth/fifth slot evens and the Yankees pull ahead overall.

YOUNG FLESH
The problem, of course, is that Shylock knows how much Santana would profit the Yankees. Or alternatively, cripple them, should he instead ransom Santana to the the Red Sox. And so, Pohlad will extract his weight in young flesh. At what price do the Yankees' balk? Because apart from the players they will have to cede, the Yankees also will have to pay Santana over a $120 million, besides. The financial burden to the Yankees then is two-fold. First, Santana's $20 to $25 million-a-year salary, obviously, would consume 10 to 15% of their payroll, forestalling the leaner, more flexible salary structure Cashman recently has striven to implement. Second, Cashman would have to yield three to four of the young, inexpensive players upon which the success of his plan depended.

Fewer younger players subject to the league minimum for 3 years and to arbitration for another 3 years still perpetuates reliance on the overpriced, inefficient market baseball's free agency system produces. A player earns the most in his career at the precise moment he is oldest and least productive.

Of course, the foremost problem in evaluating the Twin's ransom is that they haven't publicized their demands. At this writing however, baseball insiders at ESPN, SI, and the local tabloids have reported the Yankees' best offer for Santana to include Philip Hughes and Melky Cabrera, in addition to a third prospect ranging from Jose Tabata, Austin Jackson, Alan Horne, and Mark Melancon at the high end to Daniel McCutchen, Kevin Whelan, Alberto Gonzales and Jeff Marquez at the lower end.

The Red Sox meanwhile refuse to relinquish either of the two players the Twins would require: Clay Buccholz or Jacoby Ellsbury.

Is Hughes too high a price for the Yankees to pay? An that depends of course on one's estimation of Hughes' promise.

LAW-LESS LOGIC
Keith Law, one of ESPN's more insufferably insolent, self-declared experts, believes the New York media has overvalued Hughes and exaggerated his potential.

Law's opinion of Philip Hughes follows:

"I've never seen [Hughes] as a potential #1; best case scenario is a #2... He has just an average fastball; does not have plus fastball movement; has only one average or better secondary pitch (his curve); does not show an advanced feel for pitching; does not have a build that points toward durability, nor has he been durable in the past; does not show plus command, although I wouldn't rule it out down the road; and has shown below-average poise and mound presence...I've seen him lose his composure on more than one occasion...His fastball also isn't explosive...Clay Buchholz, for example... I've said before that I think he could be a #1 starter."

http://insider.espn.go.com/espn/blog/index?name=law_keith&entryDate=20070906; http://myespn.go.com/s/conversations/show/story/3007436

How much value should we place on Law's assessment? Well, those familiar with Michael Lewis' Moneyball will recall Law's pedigree. Toronto GM J.P Riccardi hired him to serve as the Blue Jay's counterpart to the Oakland Athletics, stat guru, Paul DePodesta. However, Law fancies himself more than just another sabermetric prodigy. Law thinks the part of Riccardi assistant qualifies him as a scout as well.

His sabermetric background notwithstanding, Law doesn't offer a single stat to substantiate his judgment. An rich irony considering Billy Bean adapted sabermetrical analyses precisely to eliminate his front-office's dependence on the very kind of subjective evaluations Law issues on Philip Hughes.

Hughes' Minor League Stats certainly impress: In 275 innings, he struck out 311 batters (1.13 per inning), issued only 66 BBs (.24 per inning), amassed an exceptional 2.83 GO/AO (Ground Ball:Fly Ball ratio), and held batters to a .164 Batting Average.

Compare Buchholz's Minor League stats: In 125 innings, he struck out 171 batters (1.37 per inning), issued 35 BBs (.28 per inning), posted a 1.09 GO/AO, and held batters to a .193 Batting Average.

Apart from Hughes' larger sample size and better GO/AO, the numbers almost mirror each other.

SHYLOCK'S BARGAIN
At first blush, it might seem improvident to trade a 21-yr old pitcher who can anchor the team's rotation for the next six years for a 29-year-old pitcher, even if he's the best in baseball. While Hughes is entering the prime of his career over the next six years, Santana will begin the autumn of his. What's more, over the same period, Hughes would probably cost the Yankees approximately $100 million less.

Year 1 through 3 Hughes $5,000,000 (pre-arbitration)

Years 3 through 6 Hughes $30,000,00 (arbitration eligible years)

Year 1 through 6 Santana 135,000,000

Forsaking Santana, accordingly, would save the Yankees an average of about $16 million-dollars-a-year that they then could reallocate for free-agent position players or relievers. It's a bargain, that in the abstract, it would behoove the Yankees to rebuff.

Alas, the Yankees aren't an abstract team playing in a baseball vaccum. Their an aging roster that plays in the AL East.

Four interdependent factors compel them, as such, to bear the sacrifice and to trade for Santana.

1) Pettitte's potential retirement only leaves them the Yankees with two starting pitchers the Yankees can rely on for 200 innings: Wang and Mussina. And perhaps, not even Mussina, given his performance last year.

2) The corollary to which is that the Yankees would have to rely on three rookies Hughes, Chamberlain, and Kennedy-- none of which the Yankees will let pitch 200 innings or whose performance the team can project over that portion of the season they will pitch.

3) Forsaking Santana raised the possibility the Red Sox could obtain him and a rotation featuring Beckett and Santana very well could relegate the Yankees to second place for the next decade.

4) The Yankees need to win NOW. The Yankees had a sum total of 2 starters under 30 last year: Cano and Melky. Their next youngest starter is A-Rod, at 32. While Posada and Rivera are over 35. Jeter, Matsui, Damon, and Abreu are all 33-34. During the 3 to 4 years it may take for their young pitching to flourish, their position players may decline and/or retire. And with the exception of Jose Tabata and Austin Jackson, the Yankee farm system lacks high-end position prospects to replace their aging superstars.

So if the Twins will trade Santana for Hughes, Melky, and another prospect (that does not include Tabata, Austin Jackson, Melancon or Horne), the Yankees, reluctantly, will have to gouge themselves to award Shylock his pound of flesh.

Friday, November 16, 2007

BORAS v. YES : THE LOST CRUSADE

"No battle is ever won. They're not even fought. The Battlefield only reveals to man his own folly and despair and Victory is an illusion of philosophers and fools." --William Faulkner

No one likes lawyers very much; less so, agents.

Scott Boras, however, arouses in fans, reporters, critics, and of course, baseball's owners and GMs, an animosity usually reserved for tyrants, subversives, and crooks. His less than scrupulous tactics explains some of it. His arrogance, presumption, and cynicism certainly doesn't help. However, sheer envy accounts for much of it as well. The resentment testifies to the skill. After all, Boras doesn't disguise his ambition to be the best at what he does. And his adversaries' (and rivals') hostility largely proves that Boras has succeeded. Indeed, the man who dominates his field, as A-Rod does his, should take pride in having earned the unalterable hatred of some of the most competitive, rapacious, and frugal business tycoons in the country-- men who since the days of Charlie Comiskey have lied, stonewalled, and colluded to preserve their stranglehold on the profits Boras has managed to re-distribute among the people most responsible for generating them, his clients.

It's no accident, then, that the sports media has crowned Boras baseball's most influential and notorious agent. However, as he recently revealed in a less than flattering New Yorker profile ("The Extortionist" October 29, 2007), Boras actually considers himself a lawyer, first and foremost. To his mind, the lawyer's mantle fits more aptly with his conception of himself as a learned professional driven, above all, by high-minded purpose.

The media, in contrast, prefers to see Boras through its own narrow and jaundiced prism. Baseball Columnist, Bill Madden, for example, would reduce the man he calls "the Avenging Agent," to some comic-book crusader exacting revenge for a minor-league baseball career derailed by injuries and thwarted by inadequate talent. First of all, the caricature exaggerates Boras' actual modest expectations for his baseball career. From which he wanted little more than a practical way to finance his education, first through a college scholarship and later, a subsidy for his law school tuition. And by this measure, Boras can count his minor-league career a resounding success. Secondly, by evoking the vindicitve malcontent who wishes to bankrupt his former bossess, Madden's caricature trivializes the baseball's ignoble legacy of exploitation, graft, conspiracy, fraud, wage-fixing and labor scabs against which Boras fights.

Anyway, what ultimately motivates Boras's crusade is far less important than how he envisions it and what he intends it to accomplish. Which in the modern era is to right the injustice that has enabled baseball ownership to veil their books in secrecy, to siphon undeclared revenue streams, to skirt anti-trust laws, to trade on political patronage, to beggar minor-league players, to deny amateur's legal representation, and to amass exorbitant profits they neither account for nor confine to their proportionate contribution to the game.

Nonetheless, the dynamic of the crusade also explains how and why Boras' mission could so easily could founder in overzealousness, hubris and miscalculation, as it did this time. Boras bungled the A-Rod negotiations and cost his client at least $21 million, if not more, because the incandescence of his righteousness blinded him. Zeal ensnared him in the missionary lawyer's trap. Cause eclipsed client. Boras lost sight of his paramount duty--to fulfill Alex Rodriguez' personal wishes and to advance his limited self-interest.

JOHNNY COCHRAN & OJ SIMPSON: CLIENT SERVES CAUSE
You see, the legal advocate often strives to vindicate two interests simultaneously, interests that can converge but often as not conflict-- the interest of his cause and the interest of his client. To illustrate, witness the infamous OJ case. One the one hand, when Johnnie Cochran played the "race card," he did so for the simple reason that appealing to his preponderantly black jury's racial grievance promised his best chance for his client's acquittal. Nonetheless, Cochran's indignation at the LA law enforcement's ignominious record of racism animated him as well. Cochran sought to establish a legal precedent for jury nullification where endemic racism has tainted the criminal investigation. Acquitting OJ, despite the incriminating evidence against him would achieve a farther-reaching objective. It would signal to the City of LA that the racism which pervades their police department, unless eradicated, will forfeit their officer's legal authority, void the legitimacy of the arrests they make, and risk exoneration of the guilty they accuse. Serving OJ served Cochran's cause. Or perhaps, more accurately, Cochran's cause served OJ. In either case, the interests of client and cause intersected.

SCOTT BORAS & A-ROD: CAUSE DISSERVES CLIENT
What does Johnny Cochran have to do with Scott Boras? Well, Boras, a self-styled labor lawyer, confronted a similar dichotomy between client and cause in his representation of A-Rod. Only this time the two goals diverged. And Boras was remiss in not subordinating his larger cause to A-Rod's avowed interest.

We can assume Alex Rodriguez retained Boras for the reason every performer seeks representation from his agent-- to maximize his share of the money others earn from his performance. The actor from the studio. The musician from the record company. The ball player from the owner.

Accordingly, Boras claimed Alex Rodriguez, as the best player in baseball, deserved a 12-year contract in excess of $350 million. The figure wasn't arbitrary. Far from concealing his logic, Boras recounted it to the point of tedium. In 2000, the year the Rangers signed A-Rod to a 10-year, $252 million dollar contract, major league baseball was $3 billion dollar industry. Since then it's nearly doubled, to approximately a $6 billion dollar industry in 2007. From this figure, Boras, as such, extrapolated that Alex Rodriguez was worth almost double his 2000 compensation package or around $400 million. Now there are a number of obvious flaws in Boras' logic. The obvious one being that A-Rod 2000 contract far exceeded what the market could bear, as the Rangers problems in paying it subsequently proved. Moreover, no contract executed over the last seven years even nearing its average annual value, and only Manny Ramirez's breaching the $20 million+ threshold.

Still, distorted math is not what propelled Boras in the end, who probably understood the logical flaws in his economic model anyway. No, what drove Boras to miscalculate was that he allowed his agenda to subsume his client's. Sure, Boras wanted to secure for A-Rod the largest contract and the most money possible, as he does for every player. He counseled A-Rod to void his contract and to declare free-agency because in most instances, the competitive bidding of the marketplace sets value and inflates price. But like Cochran saw in OJ, Boras saw in A-Rod an opportunity to set a precedent. A precedent that would benefit all his clients and consistent, moreover, with Boras' idea of players' just deserts.

That Boras had another agenda was evident to anyone with enough patience to listen to his tedious and pedantic lectures. At every public opportunity to discuss A-Rod's contract, Boras cited, ad nauseam, baseball's continuing exponential revenue growth. Which he traced to all the new revenue streams the owners have tapped over last decade in new stadiums equipped with corporate luxury suites and more recently, through the regional sports networks and alliances with foreign baseball leagues. To say nothing of the tremendous boom in attendance, broadcast revenue, overseas merchandising, and overall profit the owners have reaped as a consequence-- profits, in Boras' estimation, and many others as well, the owners haven't shared with their players.

This explains why Boras devised a term of art to characterize A-Rod's worth: IPN, standing for iconic magnetism, historic performance, and network value. The network value comprising the key of course. Boras persisted in arguing that A-Rod was worth hundreds of millions to one of the 25-odd teams who had not founded regional sports networks to broadcast their games. Presumably, with A-Rod's contract, Boras intended to set the precedent for a player garnering a share of the profit a team's sports' network generates.

(Boras has a valid point here, incidentally. Regional sports' networks founded on broadcasting a local baseball team potentially enable owners to segregate, if not conceal, the revenue they otherwise would have to declare. To illustrate, when MSG paid the Yankees $40 million annually for the right to broadcast Yankee games, the Yankees could not deny that their operating revenues included $40 million above and beyond the gait. Such is not necessarily the case with the YES Network. The Yankees own 36% of YES, but it's a separate legal entity. Who's to say whether YES pays the Yankees a fair-market rate for broadcast rights?)

The problem, of course, is that A-Rod, evidently, didn't want to serve as the self-sactificing martyr in Boras' grand design. He wanted to play for the Yankees, plain and simple, and to extract as much money from them as Boras could. Boras, it seems, persuaded A-Rod that to accomplish as much, he had to opt-out first, enable the bidding process to begin, and then persuade the Yankees to match the offer. Presumably, if some team like the Giants or Angels interested in founding a sports network offered A-Rod some share in its profits, the Yankees would have to respond likewise.

Only it soon became clear the Yankees had other ideas. They weren't bluffing about the consequences A-Rod risked in opting-out. The Front-Office was set to replace him. And once Cashman's pursuit of Miguel Cabrera, Mike Lowell, Miguel Tejada or Scott Rolen accelerated, A-Rod realized his interests and Boras' agenda conflicted. He wasn't going to play somewhere other than the Bronx just so his lawyer could realize his mission to transform baseball's landscape. And who could blame A-Rod for refusing to play the standard-bearer? Who could blame him for refusing the the sacrifice Boras' justice would have exacted? He did that once and he ended up languishing in Texas.

So A-Rod returned to the Yankees and agreed to forfeit the $21 million subsidy his opt-out denied them. While Boras' zeal, perhaps for the first time, cost his client instead of enriching him.

And so this Thanksgiving, we Yankee fans gives thanks that baseball mirrors America, where more often than not, over collective justice, self-interest will prevail.

Tuesday, November 13, 2007

THE $203 MILLION DOLLAR CANARD

Evidently, the Yankees have resorted to damage control yet again.

Just as King George's Court Reporters tried to discredit Joe Torre in the wake of the public outcry his ouster created, they've spearheaded the movement to depict A-Rod and Boras as greedy, venal mercenaries and to defend the Yankee Front-Office's decision, as such, to shun them.

At first Cashman Inc. wanted Yankees fans to believe that the reason the organization would spurn A-Rod, if he voided his contract, was because the Yankees would lose the $30 million subsidy the Rangers' committed to pay them through the contract's final three years. Lose the best player in baseball over $30 million-- that is, $3-million-a-year over the 10-year contract to which the Yankees planned to extend him?

Well, Cashman's argument, never especially compelling to begin with, became even more untenable once A-Rod actually opted-out. First, a few reporters revealed that the so-called $30 million dollar subsidy was really only $21 million-- because of the $30 million Tom Hicks still owed under A-Rod's former contract, A-Rod himself was entitled to $9 million of it.

What's more, once reporters began to consider the unpalatable alternatives for replacing him, Yankee fans wanted to know why $21 million-- a sum less than Kei Igawa's posting fee and Roger Clemens 2007 salary and commensurate to Giambi's '07 and '08 earnings-- should preclude the Yankees, at the very least, from negotiating with A-Rod notwithstanding.

Wasn't the business of winning more important than the Yankees' wounded pride or the so-called "credibility" with future free-agents the organization claimed it would squander if it reneged on its warning? And in any case, what credibility were they talking about? Wasn't A-Rod's situation sui generis? The Yankees don't have any other players on their payroll with opt-out clauses. And when was the last the Yankees announced before free-agency started that they wouldn't negotiate with one of their own players if he exercised this right? Answer: NEVER.

So as the Yankees' ostracism of A-Rod increasingly seemed more punitive than prudent, King George's Court, through their press agents, began to pander a few more justifications to bolster their case. The first was that by opting-out, A-Rod indicated he no longer wished to play in New York. Which, A-Rod, then, refuted through his press agents and "unnamed sources close to him" and the spuriousness of which Boras, moreover, exposed by adducing Bernie Williams' example. Was Bernie Williams, in 1998, Boras asked, was any less loyal to the Yankees by declaring free-agency and nearly signing with the Boston Red Sox? No, of course, not. Nor is Mariano Rivera for recently reminding everyone that he would consider playing for Joe Torre in LA.

So with the valence of the "Alex doesn't want to be Yankee" dwindling, the King George's Press returned to their favorite bogeyman-- the money.

Why so few baseball writers ever condemn, let alone question, the amount of money the owners earn baffles this writer? Baseball players actually work for their salaries. What contribution does an owner make? It's not as though baseball owners assume some great risk in purchasing a team. They own a closed-market business. Don't players deserve increases commensurate to the astronomical rise in profit the owner have garnered over the last decade from the advent of luxury suites, sold-out ballparks, local television networks, and a rising gate.

Still, reporters' prefer to decry escalating player salaries. So, perhaps, it wasn't surprising when the new reason they offered for the Yankees to shun A-Rod focused on the financial difference between the contract extension A-Rod rebuffed and the cost of signing him as a free-agent. A cost, Jayson Stark observed, wasn't $30 million-- the amount commensurate to the Rangers subsidy-- no, it was actually $203 million. What, $203 million? Where did that come from? Let's see.

MAD MADDEN
Bill Madden, one of King George's favorite leakers when he wishes to replace his manager and unregenerate Boras-hater (Madden calls him "The Avenging Agent"), illuminates.

Madden's premise is that A-Rod now will cost any team he signs with a minimum of $300 million. The reason: the total extension package the Yankees were prepared to offer A-Rod would have netted him at least $300 million. According to Madden, an extension for A-Rod that retained the terms of the old contract would have looked as follows: (See NY Daily News, "Just Shea No," November 11, 2007

'08-'10 Rangers Contract $91 million ($32M for '08, $32M for '09, $27M for '10)
'11-'17 Yankees' Extension $203 million ($29 million per year for 7 years)

TOTAL NET WORTH TO A-ROD = $294 million


STARK NUMBERS
Following Madden's logic one-step further, ESPN's Jayson Stark purports to account for this $203 million premium the Yankees now would have to pay to sign A-Rod. To his credit, Stark's calculations account for an additional variable many other commentators missed. A-Rod, potentially, costs the Yankees more than any other team, apart from the Red Sox, because the Yankees' current payroll exceeds the luxury tax threshold. As such, the Yankees would have to pay a 40% surcharge on A-Rod's annual salary if their pay roll exceeds $155 million for 2008, $162 million for 2009, $170 million for 2010, and $178 million for 2011.

Accordingly, Stark calculates the "$203 million difference" as follows:

A STARK EXTRAPOLATION
Yankees Proposed Extension: 5 years, $145 million
Rangers' Contract: 3 years, $81 million
A-Rod's Take: 8 years, $226 million (28.25M per year)
Yankees' Luxury Tax Premium: $226m + ($226m * 40%) - ($30m TX subsidy)
Total = $287 million

A-Rods' Demand: 12 years, $350m
Luxury Tax: ($350m * 40%)
Yankees' Total Bill: $490 million
Total Difference for Yankees = $203 million


But before we address the two basic fallacies Stark's analysis betrays, let us update his calculation with the figures Madden provides. Remember: Madden reveals, on the one hand, that (1) the Yankees were prepared to offer A-Rod a full 7-year extension, not just five; (2) that the Yankees only receive $21 million of Hicks' $30 million outstanding obligation; and on the other (3) that Boras, despite demanding $350 million, could accept a minimum of $300 million for A-Rod and still claim a victory.

Stark's Numbers with Madden Addendum
Yankees Proposed Contract Extension: 7 years, $203 million
Rangers' Contract: 3 years, $81 million
A-Rod's Take: 10 years, $284 million (28.4M per year)
Yankees' Luxury Tax Premium: $284m + ($284m * 40%) - ($21m TX subsidy)
Total = $377 million

A-Rods' Minimum: 10 years, $300m
Luxury Tax: (300m * 40%) = $120m
Yankees' Total Bill: $420 million
Total Difference for Yankees: $43 million

Now, $43 million is not exactly $203 million. But let's concede for the sake of argument that Boras already has a suitor willing to pay his ransom of $350 million and the Yankees would have to match it to retain A-Rod. (Under such a circumstance the Stark difference would rise from $43 million to $113 million.) The problem is that two assumptions still plague Stark's argument. One of which is spurious, another of which is indeterminate.

STARK FALLACY
Stark's extrapolations assume (i) that the Yankees' payroll will exceed the luxury tax threshold for the entire duration of A-Rod's contract and (ii) that following the expiration of the current labor agreement which runs through 2011, the owner and player will renew the luxury tax. The corollary assumption to which is that the Yankees payroll for the last six years of A-Rod's contract ('12-'17) still will exceed the height to which the new labor agreement raises it.

(This is to say nothing about another flaw in Stark's argument. The Yankees receive some percentage of the luxury tax they pay to defray the cost of the new stadium they're building.)

Stark's first fallacy subsumes its second. Evidently, Stark didn't look beyond the 2008 season in assuming the Yankees would exceed the luxury tax threshold throughout the duration of A-Rod's next contract. Because had he, he would have come to a more equivocal conclusion.
After the 2008 season, the Yankees will discard the following contracts:

1) Giambi $22 million
2) Abreu $16 million
3) Mussina $11 million
4) Pavano $11 million
5) Farnsy $5.5million
6) Pettitte $16 million (provided he doesn't retire this year)

Total Lost after 2008 season = $81.5 million

(I will assume that the loss of other players beyond the players listed above following 2008 will off-set the increases the Yankees will incur from the rise in salaries of arbitration-eligible players like Wang and Cano)

ESPN calculated the Yankees 2007 payroll to be $195 million http://sports.espn.go.com/mlb/teams/salaries?team=nyy

So let's estimate their 2008 and 2009 payrolls, should the Yankees change their mind and sign A-Rod. In 2008, with A-Rod, the Yankees payroll would rise as follows:

1) + $1million Posada's Contract
2) + $4.5million Mariano (I assume Rivera re-signs for 3 years at $45 million)
3) +$1 million Abreu
4) +$1 million Pavano

Total Increase w/o A-Rod = app. $8million

A-Rod Increase = $14million ($30 million '08- $16 million)

Aggregate increase for '08 = $8million = $14million = $22 million

  • Estimated 2008 Yankee payroll with A-Rod = $215 million
  • Estimated 2009 Yankees payroll with A-Rod = $215 - $81 (expiring contracts) = $134 million

Which means, all else being equal, the Yankees would be about $28 million under the luxury tax threshold for 2009. Two implications follow: (i) if the Yankees don't incur the luxury tax after 2008, the cost differential of signing A-Rod on the open market versus extending his contract drops to little more than the $21million Rangers' subsidy and (ii) that even with paying A-Rod $35m-per-year, the Yankees potentially would have about $28 million dollars at their disposal to spend on Johan Santana, before MLB would assess a luxury tax in 2009.

CAN THE YANKEES AFFORD A-ROD?

In fact, should the Yankees change their mind, A-Rod's contract, along with Posada's, Rivera's, and Jeter's, would remain the only long-term contracts the Yankees would have to pay past 2009, when the Yankees' luxury tax threshold would rise to $170 million and in 2011, to $178 million.

So can the Yankees afford A-Rod? It's difficult to evaluate definitively, of course, because the Yankees, like every other major league team, don't have to account publicly for their revenue and indulge in creative book-keeping to minimize the profits they declare. Still, the Yankees enter a new stadium in 2009 with 60 corporate luxury boxes and suites and seats throughout the ballpark whose prices many estimate will rise from 75% to 400% in addition to commanding "a licensing fee" surcharge for season-ticket holders. Whether they maximize this earning potential will depend on whether fans fill the ballpark and spend their money on concessions and souvenirs, which in turn, will hinge, in the long-term, on whether the Yankees win.

So, once again, can the Yankees afford to re-sign A-Rod? To which a Talmudic answer seems most apropos: i.e., Can the Yankees afford not to?

Wednesday, November 7, 2007

WHY THE YANKEES NEED A-ROD

"Hell hath no fury like a Steinbrenner scorned"

Villify him, if you will. Deplore him, if you must. Renounce the mercenary temptress who stole your affections and trampled your heart.

After all, you embraced him and he rebuffed you. You defended him and he betrayed you. You let him seduce you; and then when you offered him millions to stay, he spurned your calls.

But then, please, let the indignation, recrimination, and malice subside. And then, once you've shed the scorned lover's bravado; once your wounded pride has healed, ask yourself whether your beloved Yankees can prosper without him?

Because if you're honest with yourself, if you eschew the temptation to overconfidence and self-deception; you'll have to confront the stark reality. The Yankees cannot win a championship next year without A-Rod's production. Worse, the remedies readily available for assuaging A-Rod's loss can cripple the Yankees more, in the end, than the loss itself.

Alas, A-Rod and Boras knew exactly what they were doing when the AL MVP voided his contract: the Yankees need A-Rod far more than A-Rod needs the Yankees. And all the threats King George's Men issued over the past three months only reaffirmed where the balance of power rested. For an ultimatum is a sure sign of weakness. More dangerous still, ultimatums invite defiance or reprisal.

Reveal to A-Rod once or twice the consequence of opting-out and the Yankees, perhaps, deter him. Repeat the threat multiple times, as the Yankees' hierarchy did, and you almost certainly provoke him. Because no one can acquiesce to an ultimatum without surrendering his self-respect. A-Rod only demonstrated that he was less desperate to remain a Yankee than the Yankees were to retain him.

As well they should have been, because A-Rod is no less indispensable to the Yankees future than the Yankees other free-agents, Rivera, Pettitte, and Posada and perhaps, more so.

Lose Mariano and the Yankees, at least have Joba Chamberlain to stanch the bleeding. (Not that the body still won't ache.)

Lose Andy Pettitte and the Yankees can turn to their farm system's one surplus commodity-- young pitching. Or they can wait a year; and with the bonanza of elite starters likely available, the Yankees can go shopping and purchase a substitute in the marketplace. (Following the 2008 season, Santana, Sabathia,Sheets will be free-agents. And if their team don't exercise their options and Peavy and Lackey will join them and Burnett, too, if like A-Rod, he exercises his opt-out.)

Lose Posada? Well, the Yankees will suffer and profoundly at that. In fact, of the dynastic threesome, the franchise can afford to lose their catcher least. Nonetheless, a catcher as prolific as Posada is an anomaly, more windfall than necessity, in the long run. All else remaining the same, the Yankees would survive with Jose Molina, Yorvit Torrealba, or Michael Barrett behind the plate for a year or two until either Francisco Cervelli or Jesus Montero, their two top minor-league catchers, displaces him.

But tragically, all else is not equal. Because with the player responsible for 17% of their runs last seaason, the hitter who accounted for 14% of their total bases, the bat that comprised their sole source of right-handed power, the Yankees refuse to negotiate. It's one thing to shun a player because his price exceeds his worth. Quite another, when pride, spite, and stubborness forestall rational decision-making. But this is precisely what the Steinlittles current stance betrays. They've ostracized A-Rod in a fit of pique. Did A-Rod court banishment, by refusing, when he did, to discuss an extension? Of course, he did. But Scott Boras is the Godfather of agents. With him, it's never personal; it's only business. Would that the Steinlittles emulated him. Because in their vindictiveness, the Steinlittles harm themselves above all.

Have the Yankees record-breaking attending records induced complacency or overconfidence? Do the Steinlittles honestly believe they will draw 4,000,000 fans with the Yankees languishing in third place on September 1st? (Sure, 50,000 fans may attend Yankees Stadium's final farewell ceremonies, but ask Larry Lucchino how many fans braved muggy September nights in 2006 after the Red Sox fell out of playoff contention.)

And a forlorn September is precisely what the Yankees now face. Indeed, A-Rod's departure, if irrevocable, threatens to push the Yankees to the precipice of mediocrity, the lesser of all the teams they barely surpassed to make the playoffs this year-- a slightly more expensive, slightly more productive incarnation of the '07 Blue Jays or Twins. Because whether the Yankees' front-office acknowledges it or not, the Yankees, during the last four years, have grown increasingly dependent on A-Rod's production. As such, his loss leaves a void the size of a crater and the most readily available means to fill it would require the Yankees to dig themselves deeper into the hole, by relinquishing the young pitching prospects which hold their future's foundation.

Their Yankees farm system is barren of major league ready offensive talent. Their two best hitting prospects, Tabata and Austin Jackson, are outfielders and still years away from burgeoning. The next two years' class of free-agent 3B is a middling lot: with the 34-yr-old, pull-hitting Mike Lowell leading the '07 class and what will be a 33-year-old, oft-injured and steroid-tainted Troy Glaus leading it in '08. While the one major-league player who could both play 3B and approximate A-Rod's production is Miguel Cabrera, who would cost them Hughes, Kennedy, or Chamberlain, one of the very young pitchers upon whom the Yankees future depends.

PITCHING, BROSIUS AND OTHER FALLACIES

So why can't the Yankees just stick Joe Crede or Wilson Betemit at 3B and rely on their young pitching to carry them? After all, didn't the Yankees contend for six championships in nine years with Charlie Hayes, Scott Brosius, and Aaron Boone at 3B?

Well first of all, Chamberlain, Hughes, Kennedy, and Wang have hardly proven they're the equal of Cone, Clemens, El Duque, and Pettitte just yet. Neither Hughes nor Chamberlain has exceeded 140 innings in a single season . And Ian Kennedy has started a sum total of three major league games, all in September, no less. Sure, the Yankees budding three, with Wang, could burgeon into a modern day incarnation of Cuellar, McNally, Palmer and Dobson, the Orioles Fab Four. Then again, it's possible, if unlikely, Chamberlain-Hughes-Kennedy could no more meet the enormous expectations that now saddle them than could the Mets' notorious triumvirate of Isringhausen, Pulsipher, and Wilson.

The real flaw in the Brosius fallacy however is that it fails to account for how much the current lineup's complexion differs from its championship-laurelled predecessors. From '96 to '03, the Yankees only asked their third-baseman to field his position because they received consistent, and widespread, production from CF (Bernie), 1B (Tino), and DH (Fielder, Justice, Chili/Strawberry). Even the '96 through '00 teams, founded on their pitching had 3 or more players that hit 19 or more home runs. '96 (Bernie, Tino, Fielder/Sierra, O'Neil ) '97 (Bernie, Tino, O'Neil); '98 (Tino, O'Neil, Strawberry, Bernie, Brosius, Jeter ); '99 (Tino, Jeter, Bernie, O'Neil, Chili) '00 (Posada, Bernie, Justice).

Now, the Yankees receive little offensive production from 1B and CF and considerably less from their DH.

Remember: The 2007 Yankees were not the 2004 team when A-Rod's 36 HRs and 106 RBI's complemented Gary Sheffield's 36 HRs and 121 RBI's and Hideki Matsui's 31 HRs and 108 RBIs (and even Bernie William contributed 21 HR and 70 RBIs). Nor were 2007 Yankees were not the 2006 team when A-Rod's 35 HRs and 121RBIs reinforced Jason Giambi 37 HR's and 113 RBI's.

The 2007 Yankees were a collection of left-handed singles and doubles hitters; a 36-year old switch-hitting catcher with a career season; a right-handed SS, if among the best clutch hitters in history, who doesn't hit for power; and the AL MVP and best all around player in baseball, Alexander Emmanuel Rodriguez.

Subtract A-Rod and the Yankees's lineup suddenly looks very ordinary-- bereft of power, right-hand deficient, wanting at the infield corners, regressing at the outfield corners, old and overloaded at DH, and in general, entering the first-stage of decline -- a series of 33+ yr-old veterans whose most productive seasons have passed them by.

Damon, Abreu, Matsui and Giambi all regressed this year, with the latter two's erosion the most disconcerting because they're the only other two hitters who hit for power.

A POST-AROD DYSTOPIA

Refusing to negotiate with AROD because in opting-out, he cost the Yankees $21 million dollars-- an amount less than Kei Igawa's posting fee; a sum less than Roger Clemens '07 salary; a total equivalent to Jason Giambi's '08 income-- means the Yankees face on the following two options.

1) Mortgage the future and relinquish Ian Kennedy, Melky Cabrera, and (Humberto Sanchez or Alan Horne or Ross Ohlendorf) for Miguel Cabrera.

or

2) Concede '08 as a rebuilding year. Take the risk that no team acquires Santana and signs to a long-term deal before the '08 season concludes. And hope that the Yankees can sign him and another Boras' client Mark Teixiera for the money they would save on A-Rod.

Either entails considerable risk. Far more risk, that is, than offering $280 million dollars over 8 years for the best player in baseball.

Thursday, October 25, 2007

JOE KNOWS

So the debate rages on: Will the Yankees benefit from Joe Torre's departure or will King George's Court come to regret the rift they either orchestrated or otherwise invited?

Let's leave aside, for a moment, whether the King's Court intended to discharge Joe or not. Let's leave aside how little the Boss and his courtiers, evidently, understand the respect, gratitude, and kudos due a succesful 12-year employee, even if his performance of late, for whatever reason, hasn't matched his earlier triumphs: better yet, how one ensures that when his 12-year tenure ends, he departs gracefully and without carrying a trail of rancor or acrimony in his wake. [1]

Let's leave all aside all the arguments about how the Yankees handled Torre's departure. Alas, it is now a fait accomplis. So the question remaining is whether the change in leadership will benefit them.

Of course, change doesn't occur in a vaccum. The alternatives must be measured against the deposed incumbent.

GENERAL GIRARDI
Girardi is perhaps the only candidate the Yankees could hire who might excel Torre in media savvy. Neither Pena nor Mattingly, in contrast, come close to matching Torre.

Indeed, neither Girardi's intelligence nor his verbal dexterity can be gainsaid. Girardi owns an engineering degree from Northwestern Univerity. A background reflected in the meticulous statistical archive he keeps on players and utlilizes during games and outside the diamond, in the fastidious precision with which he chooses his words. Which, perhaps, explains why his delivery so often lacks the sincere, forthright, and paternal warmness Torre exuded. Girardi's skillful use of evasion, indirection, and platitude rather suggests the lawyer or politican. Coupled with his austere demeanor, Girardi, more accurately, evokes the military man. The crew-cut, the fixation with details, the immaculate grooming bespeak the repressed, controlling martinet. Think Rumsfeld or Wolfowitz: the Pentagon engineer overly awed by the numbers; the smug expert overly impressed with his technical skill; the thin-skinned autocrat utterly intolerant of criticism. One part Buck Showalter, Two parts William C. Westmoreland.

More problematic still, I can't imagine the Yankees current roster of veterans, superstars, icons, and future Hall-of-Famers wouldn't chafe at receiving criticism and instruction from a 41-year-old contemporary-- one Jeter, Posada, Rivera, and Pettitte played with as late 1999. What's more, Bergen Record columnist, Bob Klapisch, has speculated that A-Rod, in particular, may recoil from playing from Girardi because he reminds A-Rod so much of Showalter. Meanwhile, some of Posada's friends intimated to the NJ Star-Ledger (10/26/07), the Yankees catcher harbors similar misgivings about Girardi. Either, if true, in itself, should disqualify Girardi from further consideration.

PAPI PENA
On the diametric opposite end of the personality spectrum sits the man who best could match Torre's role as clubhouse paterfamilias-- Tony Pena. By all accounts, Pena is affable, modest, lighthearted, and inspires affection in all who know him. Pena has developed a close rapport with the team's two young Latino player, Melky and Cano. Further commending him, Pena has transformed Posada from a below-average catcher to an average to above-average one over the last two seasons. Indeed, both Posada and Torre have credited Pena with markedly improving the percentage with which the Yankees' catcher has thrown runners out. And like Girardi Pena not only has managerial experience, he boasts a manager of the year award, besides (2003, with The Royals)

Still, to most Yankee fans, Pena is a cipher. Part of it, I suspect, is that as first-base coach, he has avoided the spotlight; the other part, I supect, is the language barrier. Although Pena speaks English without difficulty, he seems to lack the full command and fluency Latin American players like Bernie and Posada possess. And in a city where the media feeding frenzy leads reporters to parse manager's syntax every day, Pena may not be at his most confident or at his best.

CAPTAIN ICON
Perhaps, the only candidate capable of combining both of Torre's best qualities-- the loyalty and affection he inspired in the clubhouse and the honor he imparted to the manager' chair outside it-- is, of course, Don Mattingly. The salient difference between them, of course, is that Torre had about 15 years of managerial experience before he became the Yankee manager. Mattingly hasn't been a coach for half as long.

Now, like many a Yankee fan, Don Mattingly was about the only reason I watched the team through the late 80's and early 90's. And during Mattingly's prime, few compared in talent, work ethic, consistency, gravitas or stature. Which is precisely what gives me great pause about him managing the Yankees now, at this juncture. The impetus seems driven by sentimentality. The sentimentality of the Yankees' most influential fan-- the Boss. About the aging monarch's recent penchant for the lachrymose, I quote James Baldwin, "Sentimentality is the mark of dishonesty, the inability to feel; the wet eyes of the sentimentalist betray his aversion to expereience, his fear of life, his arid heart."

King George, evidently, wants to see Mattingly manager, he says, before he dies. A reason I can understand but with which I don't necessarily sympathize.

I'd hoped, rather, that the Yankees would renew Torre's contract for two years with the stipulation that he groom his heir-apparent. Because if the organization envisioned Mattingly as their manager one-day, it seemed to me, that the Boss' favorite son needed a little more seasoning. Not only has Mattingly not overseen a pitching staff in a managerial role, but unlike many former catchers like Torre, Girardi, and Pena, who often transition seamlessly into managers, Mattingly hasn't handled a pitching staff as player either.

One can only hope Mattingly is a quick study.

In short, all of the above managerial alternatives suffer from one or more glaring shortcomings. Which, to my mind, had commended Torre as manager-caretaker for another two years, until Mattingly had ripened fully enough to assume the mantle.

CLASSY JOE MUST GO ?
Nonetheless, I wish to do justice to the case that the Yankees needed a managerial change. And in doing so, I will cite no less than the universally respected authority, Newsday's national baseball columnist, Ken Davidoff. Ken, recently, was generous enough to mention this obscure, little blog on his http://blogs.trb.com/sports/baseball/blog/ ("There are still games going on?", October 23, 2007) and I wish to repay the compliment.

Those of who you who already read him know that Ken's commentary is always intelligent, trenchant, and cogent. More rare in a sports columnist, his tone is gracious, his conclusions are judicious, and rarer still, he is often witty and endearing. (See his Blog Post, Trading Places, 10/25/07) However, with Randy Levine's conflict of interest police on full watch, I should disclose that Ken and I went to JP Stevens High School together, which may explain why I not only admire his work but also like him personally. But I doubt it. In fact, considering my, shall I say, ambivalence, about Edison, New Jersey, it's probably an even greater credit to him.

Ken's case appears in "Time Has Come for Classy Joe To Go" http://www.newsday.com/sports/columnists/ny-sptorre095407151oct09,0,5326998.column

As I read it, Ken arguments are as follows,
(1) Torre is a bit of an anachronism, a throw-back to the old-school baseball traditionalists who rely on gut and instinct for their decisions.
(2) Wheras baseball's future belongs to managers who are extensions of front-offices steeped in sabermetrics and who as a consequence, don't command salaries as high as Torre's was.
(3) To this end, Cashman and the rest of the Yankees brass prefer "cheap, young, durable youngsters" whereas Torre demonstrates a marked prejudice toward aging veterans.

Ken cites two vivid examples of this last shortcoming of Torre's in his overuse of Proctor and Vizcaino-- to which we could add, from past years, Karsay, Quantril, Sturtze, and Gordon-- and his neglect of Edward Ramirez. And Torre's similar consignment of Shelly Duncan to a bench player, at most.

All weaknesses of Torre that I can't dispute. (Although the GM's office bears its share of responsibility for neglecting Duncan as well. They didn't even invite him to training camp and instead, used their Rule 5 pick on Josh Phelphs.) Indeed, I'd love to see the new Yankees' manager award Duncan a chance to perfect his skills at 1B and to win a full-time job.

And Lord knows, Torre's management of his middle-reliever leaves something to be desired. However, once again, it's important neither to overlook his personnel nor to forget who Torre, in overusing certain relievers, had as his alternatives. Until Cashman's youthful movement bore fruit this year, it wasn't as though Torre has this reservoir of young hard-throwing relievers he had, but refused to tap. Since the middle relief heyday of Mendoza, Nelson, and Stanton, Torre has been hard-pressed to find a jewel amid the dross of Felix Heredia, Felix Rodriguez, Gabe White, Buddy Groom, Chris Hammond, Juan Acevedo, Antonio Osuna, etc.

NO, JOE KNOWS
There has been considerable speculation that Cashman's support for Torre was tepid, at best, not only because of the shortcomings Ken enumerates above. But also, Cashman, apparently, as designs on placing his own stamp on the organization. SI's Tom Verducci suggests that Cashman imagines himself a baseball intellectual in the mold of Theo Epstein and Billy Beane and has aspired, for some time, to transform the Yankees into some Moneyball epigone. But Torre's traditionalist management-style blocked Cashman's way.

Is this true? God, I hope not. To be sure, Cashman deserves kudos for replenishing the Yankees' farm-system and re-asserting its overall strategic importance to the Yankees future. However, many of Cashman's personnel decisions, in particular, about major league pitchers are responsible for the playoff defeats that cost Torre his job. Here's just a few of Cashman's noteworthy follies.



  • Trading Ted Lilly for Jeff Weaver
  • Trading Jeff Weaver for Kevin Brown
  • Trading Juan Rivera and Nick Johnson for Javier Vasquez
  • Trading Javier Vasquez for a 41-yr old Randy Johnson
  • Jose Contreras
  • Carl Pavano
  • Jared Wright (forsaking Derek Lowe, for $1 million more per year)
  • Kyle Farnsworth
  • Kei Igawa
  • Andy Pettitte? (George was more responsible ignoring Pettite in '03 however)

And since Game 4 of the 2004 ALCS, Yankee starters, in their last 17 post-season games, have gone 2-8 with a 6.36 ERA. In elimination games, they're 0-4 with 12.22 ERA, averaging 2.8 innings per start.

I quote an astute observation of a loyal contributor to Ken's blog, Peter Ciccone,

"In the Yankees last 15 postseason games--going back to Game 6 of the '04 ALCS--Yankees hitters have reached their first at bat in the 4th inning down 3 runs or more 9 times. 9 TIMES!!! Including three times this month against Cleveland. In those same 15 games, the Yankees took their first at bat in the 7th inning trailing 10 times, with starters providing a quality start in only 2 of those 10 games (Chacon Game 4 '05 ALDS, Mussina Game 2 '06 ALDS)."

Is this because Cashman relied too heavily on sabermetrics in acquiring these starters? Or does this reliance, in turn, discredit Cashman's sabermetrical model? No, not necessarily

However, it does suggest that there's no substitute for that quality that Torre had in abundance-- baseball instinct. We often forget how often Torre would make a decision, contrary to what the numbers would imply, and turn out right in the end. I can recall countless occasions over the last 12 years, where I would wring my hands and shout at the heavens over Torre's decision to play Minky or Cairo or Enrique Wilson or Charlie Hayes, or to pitch Graeme Lloyd or Jim Mecir or Holmes or Grimsley or Vizcaino in some situation, during a period in which his players were strugging, and the player nonetheless responded. And Torre's faith in him would reward him and the team.

It's because Torre often relied on that primal level of human knowledge-- intuiton-- part innate, part experiential-- that no sabermetrician can duplicate and for which rational intelligence cannot substitute.

I only hope that the Yankees don't soon regret their decision to minimize the simple importance of "JOE KNOWS". He marshalled, an often inconsistent level of talent, to 12 straight post-seasons for a reason. His critics ignore that accomplishment at their peril.

[1] According to YES Network's Michael Kay, Torre professes insult because he just loves acting the martyr. I wonder whether Kay ever paused to ask why almost every Yankees manager to leave King George's employ in the last 30 years, then, harbors lingering bitterness and shuns the organization for years afterward.