Signing the Youngsters

Stephen Piscotty becomes the latest young player to sign a long-term contract:

The 26-year-old would have been eligible for arbitration following the 2018 season and free agency after the 2021 season. The deal announced Monday calls for a $2 million signing bonus, salaries of $1 million each in of the first two years, $7 million apiece in 2018 and ’19 and $7.25 million in each of the next two years. The Cardinals have a $15 million option for 2023 with a $1 million buyout, and the option price could escalate to $18 million.

This has been an excellent way of controlling free agency, much better than compensation picks. By capturing the prime of a player with an early, long-term contract, the teams not only lock in good residual value, but a 32-year-old free agent is not as costly as one in the middle of their prime. These contracts to young players are a big reason that the players share of revenue has dropped this century. Manny Machado and Bryce Harper may change that.

from baseballmusings.com http://ift.tt/2nUw0sA