Did Braves Overpay Billy Wagner?
Yesterday, it was reported that Billy Wagner signed a one-year, $7M deal with the Atlanta Braves by Ken Rosenthal of Fox Sports. The deal also includes a club option worth $6.5M for 2011 that vests if Wagner finishes 50 games, a relative possibility given that he'll likely be the closer all season if healthy.
After offering arbitration to relievers Rafael Soriano and Mike Gonzalez, signing Wagner to this kind of deal seems fairly questionable. This hardly has to do with any issues with Wagner, he showed in Boston that he's still capable of shutting down hitters, but rather the fairly excessive price that the Braves paid.
As most of you know, the value of a closer is very limited by the number of innings that he'll pitch, and while you can give them some extra points for pitching in high-stress situations, you simply can't ignore the clear limitations of a reliever. With Wagner, those limitations are more than evident. He's pitched just 62 innings in the past two seasons due to injury, and according to FanGraphs' valuations, he's been worth the $7M that Atlanta guaranteed him in just two of the eight seasons evaluated.
So right off the bat, you can see that spending $7M guaranteed on a closer is a pretty huge risk, even if that closer is Billy Wagner, arguably the best left-handed reliever ever. Certainly, giving Wagner a one-year, $7M deal is tolerable, albeit a bit costly. What makes the Wagner signing seriously questionable is that Wagner is a Type A free agent, and in order to sign him the Braves will have to give the Red Sox their first round pick, Number 20.
According to research done by Victor Wang at The Hardball Times, a free agent first round compensation pick (#16-30) is worth approximately $5.5M of value on the open market. Adding that kind of value to the $7M that the Braves gave Wagner, and adding a closer ended up costing Atlanta around $12.5M in value, at least in statistical vacuum.
Considering that Atlanta offered arbitration to Soriano and Gonzalez, they'll have the opportunity to recoup draft picks there, but why not just resign one of those guys and keep the draft pick? Or even better, what about building a bullpen on the cheap, signing multiple guys to fill the spots? Certainly, Gonzalez and Soriano are capable of matching Wagner's performance, regardless of Wagner's impressive reputation. They would have required a longer term presumably, two or three years guaranteed, but Soriano is an elite reliever when healthy and Gonzalez is among the best as well, and considering that both have had injury problems as well, their asking prices probably would have been relatively low, around three years, $21M or so, I would guess.
It seems pretty clear that the Braves prefer Wagner to the guys they're letting go, and that they're very confident that Soriano and Gonzalez will sign elsewhere, giving Atlanta back the draft picks that they lost with the Wagner signing. I'm just not sure that this was the best route for Atlanta, compared to signing multiple guys to give them options, guys like Takashi Saito, Kiko Calero, Joe Beimel, Brandon Lyon, Kevin Gregg, Octavio Dotel, Kelvim Escobar, and others. I'm just not a big fan of spending significant money on a closer when you have some serious issues in your lineup and you could still use some additional bullpen depth.
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Wagner to Braves a good deal for them
Considering Wagner’s history as a closer, I’d this is a good deal for the braves.
Look what happened last year with the closer market. The Indians gave Kerry Wood, after his first full season as a closer, a two year deal worth 20.5 million dollars. Now, they are saddled with his contract and trying to move him.
Wagner gives them a closer at relatively cheap cost and likely saved them from spending more on either Gonzalez or Soriano. In the end, if the Braves can add another bat because of the money they saved, it will look like a very good deal.
Not only that, but the Braves are lining themselves for several early round draft picks, which is putting them in a spot to be competitive down the road. Collecting draft picks instead of spending is a great way to save money while wallets are tight.
I see the Braves benefitting long-term from this move.
But I think that realistically, deals like the K-Rod, Fuentes and Wood deals, along with a market that’s flush with relief options, has deflated the expected price for a lot of these relievers.
Yeah, Wagner comes at a fairly reasonable cost, $7M isn’t going to destroy their budget, but the team still had to sign another reliever as well, and now they’ve spent $17M for next season on the pitching staff (Hudson, Wagner, Saito) without addressing an offense that has some serious issues.
The Braves really didn’t save much money, because Soriano and Gonzalez aren’t really in a position to ask for more than $8-10M per over a 2-3 year deal, and considering that they’ll also cost other teams a first-round pick, that deflates their value to other teams, making it cheaper for Atlanta to retain them.
The Braves aren’t really benefiting from this deal unless they get first round picks for both Soriano and Gonzalez, something that doesn’t seem particularly likely given the nature of the free agent compensation system, which by the way is a freaking joke.
I just think that the Braves would’ve been better off offering arbitration to Gonzalez and Soriano, keeping those picks, and then signing say, Saito, Rafael Betancourt and Octavio Dotel for essentially the same value (~$12.5M) that it costed Atlanta to add Wagner.
serious issues? After getting rid of Francoeur, Kotchman, and Kelly Johnson (well moving him to the bench) they actually had an above average offense and that was with Chipper going through one of the biggest struggles of his entire career.
by McCann's the Man on Dec 4, 2009 6:56 PM EST up reply actions
Overpay?
hell yea.
They do know who Billy Wagner is right? You’d think they’d realize that he’s a POS after all those years with the Mets.
"It ain't over till its over"---
braves offered arb
the braves did offer arbitration to gonzalez and soriano and because they are the most sought after relievers on the open market, in no way would they take a discount.
signing betancourt would cost the team a draft pick.
when was the last big name power hitter the braves signed long-term?
they have always been about pitching and defense, developing young talent. that doesnt mean they wont go out and get someone through a trade (teixeira), but they have a system around pitching and defense. Why spend big on a power hitter right now when jason heyward may be a year away?
I think they will add another bat, but only focusing on offense because they spent big on hudson would only create a hole in the bullpen, which is key (as shown by the yanks) to making it deep into the postseason.
I never said the Braves should spend big on a hitter, I just don’t know if spending $7M and their first round pick on a closer is the best allocation of resources.
I agree that spending big on Holliday or Bay isn’t a good idea, but they realistically are trying to contend next season and going into it with an outfield of McLouth, Diaz, Church, and Blanco would be bad after the way last season’s outfield panned out. They could sign Mike Cameron and move Nate McLouth to left field, and then add someone else to join Diaz in right until Heyward is called up while still being able to afford an everyday first baseman, but that likely isn’t possible now without dealing Lowe, Vazquez or Kawakami, and unless they can find a team to eat Lowe’s entire deal, which is unlikely given the way his K/BB and contact rate went last season, they’d be taking away from the strength that could potentially make them a dominant team.
I just don’t think it was necessary to spend that much on a closer considering how much help the offense needs and the fact that their highest paid starter is arguably their worst option certainly doesn’t help, I just would’ve looked at alternatives before handing over $7M and my first round pick for a 40-year-old closer that’s pitched 62 innings since 2007, considering the volatile nature of relievers.
by Satchel Price on Dec 3, 2009 7:38 PM EST via mobile reply actions
i like the idea of camera
I love the idea of adding cameron to that outfield. I don’t expect the Braves to make a move until they try to deal one of their starters at the winter meetings next week.
Re-signing Adam LaRoche is also a priority.
“I’m just not sure that this was the best route for Atlanta, compared to signing multiple guys to give them options, guys like Takashi Saito, Kiko Calero, Joe Beimel, Brandon Lyon, Kevin Gregg, Octavio Dotel, Kelvim Escobar, and others.”
See also Braves add Saito
Looks like a solid backend bullpen to me.

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