Wednesday, October 08, 2008

Phoning It In: Lingering Injuries

Hey. If you've looking for a TwinsGeek fix on the offseason, check out SethSpeaks radio podcast from last night. I'm on with Seth, Nick Nelson from Nick's & Nick's and Parker from Over the Baggy.

Towards the end of the podcast, we talk a little bit about the offseason and how the Twins have a chance at signing a number of players to long-term deals. So I'm rerunning a story from March of 2007, where I talk about the poor timing some of their better players have had in terms of injuries, and how much it cost the Twins in subsequent years.

It also explains why the offseason before they are eligible for arbitration is the best possible year to get long-term deals done. The Twins have several players who fit that description this offseason, including Scott Baker, Francisco Liriano, Glen Perkins, Delmon Young and Pat Neshek. I expect we'll see long-term deals for at least those first two, and I wouldn't be shocked if we see nearly a half dozen long-term deals or extensions worked out.

Sunday, March 11, 2007

Lingering Injuries

They keep telling us that Matt Garza’s neck is just stiff, but they can’t fool me. It’s some degenerative spinal injury, requiring at least a half year’s worth of rehab.

And that’s if we’re suddenly lucky.

For some major league franchises, the cost of the minor leagues is just the cost of doing business. To the Twins, it’s an investment. The millions of dollars that are spent in salaries, scouting, per diems and signing bonuses are quickly recouped when a high-impact rookie provides millions of dollars worth of production for pennies on the dollar.

For instance, for the numbers that Justinn Morneau and Joe Mauer put up last year, a good chunk of teams would have been happy to pay $10 million. Each. And then they would’ve toasted their good fortune.

The Twins paid them $785,000. Combined. Which means that the Twins previous investments in the minor leagues provided at least a $19 million return for the organization, just for those two players. That’s the kind of return that low-revenue, low-payroll teams need be competitive.

Unfortunately, the Twins ability to leverage those investments has been limited due to a nearly unprecedented string of year-long injuries to high ceiling prospects. The Twins have had four players in the last few years who were considered elite prospects, an impressive number for any organization. But so far only Garza had managed to stay relatively healthy (knock, knock).

Joe Mauer’s knee cost him almost all of 2004. Jason Kubel’s knee cost him almost all of 2005 and ultimately most of 2006. Francisco Liriano’s elbow cost him half of 2006 and all of 2007. And the concussion from a bean-ball, along with a series of offseason plagues, didn’t keep Justin Mornea from playing 2005, but likely cost him a year of development.

Of course, injuries are a part of the game, and it isn’t difficult to find other teams who had players that suffered year-long injuries. You might even be able to find another team with year-long injuries to four high-impact players. But you’ll need to look long and hard to find a team that had worse timing.

That’s because what REALLY hurts a team like the Twins is that they all happened within the first two years of each player’s major league careers. Injuries those two years minimize the return a team receives from their minor league investments. But they hurt just as much years after the player has healed, because it makes it unlikely that a club can sign their high-impact players to a long-term contract that is below market value.

There is no better time for a ballclub to approach a rising star about a long-term deal than after their second complete season as major leaguer. Up to that point, the player has made close to the major league minimum, probably in the neighborhoold of $300-400,000 per year. That’s some nice ching to be sure, but it’s likely not enough to make sure they’ll never need a real job. They still have one more year to play before their first year of arbitration, which is where a star player can suddenly make several million dollars.

If the club offers the player a multi-year guaranteed deal after two years, they’re offering a lifetime of security a year earlier than the player would otherwise receive it. And all they’re asking in return is for the ballplayer to be a little less filthy rich over the next few years. It makes a ton of sense for both the ballplayer and the club to agree to that kind of a deal.

But because of early injuries, the Twins have yet to agree to that kind of deal with any of their young impact players. Everyone talked about locking up Maure and Morneau this year, but the time to negotiate with them was last offseason, before they reached arbitration. Unfrotunately, Morneau had underperformed through an injury-plagued year, and Mauer’s knee was still a question mark. Instead, the Twins didn’t get to talk about long-term deals until each one of them was already guaranteed a lifetime of security with their $4 million arbitration settlements.

This spring, Kubel is in the same boat as Mauer and Morneau were last year. You can bet that two years ago the Twins planned on approaching him with a long-term deal this offseason. They can’t, because they don’t know if his knees will remain healthy, or whether he’ll regain his stroke. If he does this year, he’ll get his $3 million whether or not he signs a long-term deal with the Twins. And we’ll be wondering why he and the Twins can’t get a long-term deal done.

And next offseason? Well, Liriano will be finishing his second year – except that he won’t have pitched in the majors for a year-and-a-half. So the Twins won’t be able to comfortably offer him a long-term deal, and will again see if their highly prized prospect breaks out just before his first big pay day. And you wonder why they weren’t anxious to have Liriano go under the knife?

When a star player’s lack of production is taken into account, the cost of an injury for every team is easily in the millions of dollars. That’s already devastating to most low revenue franchises. But the timing of these injuries is even worse, because it’s likely costing the Twins another $1-2 million worth of salary per year than if they could have negotiated a long-term deal at the best possible time. And it’s happened four times.

Is there any doubt the fifth is coming? So when you see pictures of Terry Ryan standing behind Garza in the Twins dugout, delivering a neck massage, don’t be so sure it’s a Photoshop job. That neck rub could be as valuable an investment as the entirety of the Twins minor league payroll.


Anonymous said...

Cases like those described in the column--where a two-year player has significant upside potential but also poses health concerns--seem like perfect opportunities for long-term contracts with temporary health or performance requirements. For example, "We pay you $4 million next year. And if you hit at least .270 in 400 or more at-bats next year, then we also pay you $26 million over the following four years." Of course, those conditions are just illustrative; the team and agent might prefer to settle on something else, like maximum days on the DL. But the basic idea seems clear: the player gets at least one year of big money, which he would not otherwise get at this point because of his uncertain health, and if the health problems seem to be resolved, the team and player have a long-term contract.

This seems so obvious to me, I can't understand why it isn't already common practice. Maybe I should set up shop as a GM consultant??

Anonymous said...
This comment has been removed by a blog administrator.
SethSpeaks said...

Shocking that that person wrote all that anonymously, huh? :)