Boston was smart to let him walk. $13M/yr is a lot to pay someone for league average OPS and average defense.
On to the subject of free agents and small market teams. There is
revenue sharing AND there is a luxury tax.
Quote:
In the end the two sides agreed on this plan for revenue sharing: $258 million each year phased in over four years. A $175 billion base to be distributed to each club on a straight-pool basis with the remainder split by the Commissioner out of the central fund and discretionary fund.
Overall, 34 percent of locally generated money would be shared, which was up from the previous rate of 20 percent. Also, one-third of all revenue sharing funds must be spent on baseball operations.
In the end, the two sides agreed on this: A threshold of $117 million and a tax of 17.5 percent for first time violators. After that the threshold would be $120.5 million in 2004, $128 million in 2005 and $136.5 million in 2006. Teams that pass the threshold more than once could be taxed up to 40 percent.
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Small market teams can do just fine. In fact, since 2002, almost half of the teams that made the playoffs had salaries under $80. Most of these were under $60M. Three of teh last 3 world champs had payrolls under $80 including the Marlins that were under $50M. The problem is that many are so cheap, make bad trades, bad FA signings, and bad drafting. Greedy owners pocket their revenue sharing and luxury tax monies.
There are three things that good teams do: They make smart FA signings, make trades at the right time, and use the draft efficiently.
Teams don't realize the value of their talent and don't get enough back for them. If they can't get great players back, let them walk and collect the draft picks. When a type A free agent leaves, you get the 1st round draft pick from the team taht signs him AND a sandwich pick in between the 1st and 2nd round.
Look at the DBacks. Prior to 2002, their farm system was a wasteland. In the last couple of drafts they went from one of the worst farm systems in baseball to the third best system (behind the Angels and the Dodgers). Look at their top 10 prospects*:
1. Stephen Drew, ss - 1st round
2. Conor Jackson, 1b - 1st round
3. Carlos Quentin, of - compensatory pick (19th overall)
4. Carlos Gonzales, of - undrafted Venezualan free agent (signed at 16)
5. Dustin Nippert, rhp - 15th round pick
6. Miguel Montero, c - undrafted Venezualan free agent (signed at 19)
7. Garrett Mock, rhp - 3rd round pick
8. Matt Torra, rhp - comensatory pick (31st overall)
9. Micah Owings, rhp - 3rd round pick
10. Sergio Santos, ss - 1st round pick
Two players were compensatory picks from type a free agents. The earliest any of them was taken was Drew as the 13th pick. Four of those top five should get good playing time in 2006. All project to be high impact staters and almost any team could have taken any of them.
Drew had the highest bonus of all of them and got a $4.5M contract. In his first 6 years he'll get less than $20M. That's an average of $4M/season. For a projected all star calibre player. As he gets close to free agency, they could either trade him for excellent talent, let him walk and get draft picks or resign him.
There is also the Rule V draft. The Royals snatched Andy Sisco from the Cubs last year. He was awesome.
The last and probably most important thing is that teams don't make good free agent signings. Virtually all teams are guilty of this, but some more than others. There are always underpaid gems out there looking for work. Reggie Sanders has been a damn fine starting RF and has never made more than $5M/yr. Tony Clark got paid just over $1M and posted an OPS over 1.000. The thing is that you don't do is blow your wad on the Russ Ortiz's and Eric Milton's of the world.
*This doesn't include Chris Young (aquired in the Vazquez trade) or Upton (taken with the first pick in 2005, he hasn't signed yet). Both will rate in the top 5.