Overpaying For a Closer

In perhaps one of the most organization-defining offseasons Doug Melvin has ever faced, the team attempted to solidify the back-end of the bullpen by resigning Trevor Hoffman to a one-year, $8MM deal.

The contract also has a mutual option for 2011. 

Hoffman was previously unwilling to include an option on his previous contract with Milwaukee, as he was unsure how he would like the team and the surrounding city.  That changed after he became the undisputed leader of an infectious clubhouse, running mock courts and leading ceremonies for various players throughout the year.  He also was a large part of the Milwaukee community as a whole.

That all lead to the All-Time Saves Leader being back in a Brewers uniform in 2010, if not longer.

Unfortunately, as with all top-flight closers, the Milwaukee Brewers had to overpay for the shiny "closer" tag to keep Hoffman in their bullpen.

In the SportsBubbler forum, brewguru listed the contracts for closers who had 6+ years of service time:

Mariano Riviera:  $15 million (3 year/45 mil deal)

Francisco Cordero:  $12 million (4 year/46 mil deal)

Francisco Rodriquez:  $11.5 million (3 year/37 mil deal)

Brad Lidge:  $11.5 million (3 year/37 mil deal)

Joe Nathan:  $11.25 million (4 year/47 mil deal)

Kerry Wood:  $10.5 million (2 year/20.5 mil deal)

Brian Fuentes:  $9 million (2 year/17.5 mil deal)

Jose Valvarde:  $8 million (in 2009, will be a FA)

Ryan Franklin:  Signed 2 year/$6.5 million deal on September 1, 2009.

By comparing Hoffman's contract to other veteran closers, it is clear that Milwaukee made out pretty well.  Hoffman did not demand too much money.  The Crew is paying far less for even better production than many teams in the league.

My issue, however, is more of a philosophical disagreement about paying closers top-dollar.

Milwaukee will pay $8MM to a pitcher who only tossed 54 innings last season.  That correlates to approximately $148K per inning pitched.  It also is $8MM to a pitcher that did not go more than one inning in a single contest during the 2009 season.

Sure, there is something psychologically comforting about having an "ace in the hole" during the ninth inning to close out a win, but their impact on a game is not $6-7MM more important than the reliever who pitches during the eighth inning.  It is contract inflation due to the "save" statistic.

To be a bit more concrete about Hoffman's value, we can look at FanGraphs' WAR totals and how it correlates into a specific dollar amount.

Trevor Hoffman was worth +1.5 wins over replacement, which would fetch $6.9MM on the open market.

Before you yell about how Hoffman's contract was approximately $6.5MM after all the incentives and how he actually outperformed his contract, take a look at his career numbers.

At 41-years old, Hoffman put up his best ERA (1.83) and WHIP (0.907) since 1998.  He did this despite a walk rate that increased from 1.79 BB/9 to 2.33 BB/9 from last season.  His strikeout rate decreased over a batter per nine innings, while his BABIP (batting average on balls in play) was an extremely low .240 -- suggesting Trevor got a bit lucky this season.

That luck becomes more apparent when noticing that his HR/FB rate was only 3.1%.  That is significantly lower than his previous marks, and those were in a pitchers park in PETCO.  Moving to Miller Park, Trevor should have recorded a bit of an uptick in his HR/FB rate.  Instead, it depreciated significantly.

What all these numbers that I just threw out at you suggest is that Trevor Hoffman will likely not be able to sustain his 2009 production.  That is, unless he benefits from the same amount of luck that he enjoyed this past season.

This is not out of the question.  Hoffman routinely posts a BABIP below .300.  His rising fastball induces many infield flies and his changeup is normally down in the zone.  He also began throwing his slider much more often to right-handers this season, which gives batters yet another pitch to worry about while constantly having the change in the back of their minds.

I do not wish to portray Hoffman as a below-average closer.  

The right-hander still has a strikeout rate that approaches 9.00 K/9, while walking under 2.50 BB/9.  Aside from the oblique injury to begin the season, Hoffman has proven extremely durable and healthy throughout his career.  He also provides a stabilizing force in the back-end of the bullpen.  A solidified closer allows the remainder of the relievers to fall into a set role without having to worry about a closer by committee.

When comparing Hoffman's contract to those of other veteran closers in baseball, Milwaukee did just fine.  The team needed a closer with Hoffman hitting free agency, and Doug Melvin moved quickly to address that need.  Melvin also did it well within the economic trends of baseball.  He should be commended for that.

Once again, I am not against this signing.

I simply am against the practice of overpaying for a reliever that only pitches one inning per game, perhaps only 50-60 games per year.  $8MM for such a player is a bit ridiculous, especially when that same closer is coming off a tremendous season that will likely lead to a significant regression in 2010.

Hoffman will likely draw some criticism next season for not performing up to his contract, but it will be from the same folks that praised the deal at the time.  Exorbitant contracts to closers only appear worth it when they are "lights out" throughout an entire season -- which Hoffman was in 2009.

The price of the Hoffman signing frustrates me.  I do, however, understand the move.  It makes sense, especially when considering the baseball economic practices.

Just do not come complaining when you think Hoffman was overpaid in 2010.  I can almost guarantee you that he will be.

Comments

 

Polish Pickle said:

And your plan B would be what?

October 7, 2009 1:01 PM
 

Charlie Marlow said:

Amen.

Folks will, however, start saying things like "the contract will be justified in merchandise sales!"  That's all well and good, we're talking about $/appearance.

October 7, 2009 1:07 PM
 

Jeff said:

Closers are irrlevant if the starting pitchers suck

October 7, 2009 1:12 PM
 

Charlie Marlow said:

Hey Polish:

Did you bother to read through Jim's article?  He says he agrees with signing Hoffman, but he does not agree with the practice of overpaying for the saves stat.

That being said, if you look at average leverage index and clutch ratings, Coffey's average leverage was lower than Hoffman's, but his clutch rating (how well he performs in higher leverage situations as opposed to context neutral situations) was a good amount higher.  That implies that he would have performed better had his average leverage been what Hoffman's was.  No one will really know, but that's what the numbers say.  And I don't think you can argue against those.

October 7, 2009 1:17 PM
 

Charlie Marlow said:

"Closers are irrlevant if the starting pitchers suck"

Yep.  I said it all last off-season and I'll say it again this one: who cares who you have sitting at the back end of the bullpen if your starters can't get him the ball with a lead?

Will everyone love this signing if Hoffman gets 50 saves in 51 opps, but the Brewers finish below .500 because the starting pitching sucks?  I certainly will, again, say 'should have used that money to do something with the SP'.

October 7, 2009 1:32 PM
 

Polish Pickle said:

Hey Charlie

#1 I read it and #2 I wasn't talking to you.  I was asking Jim Breen a question.  If the Brewers don't sign Hoffman, what would be the alternative?

October 8, 2009 9:55 AM
 

Jim Breen said:

If the Brewers would not have signed Hoffman, I would have been targeting Rafael Soriano of the Braves.  His peripherals were outstanding and is just the power-armed guy the Brewers have been lacking in the bullpen.

I think he could have been had for $5-6MM per on a two or three year deal.

October 8, 2009 10:38 AM
 

HamNeggs said:

This is yet another example of the Brewers being at the mercy of the market. But it's not all the market's doing. We could be playing the market smarter. Melvin is not the man for doing this. He has repeatedly shown us that he doesn't understand what a small market team needs to do to be competitive year after year. This team is laden with talent, in all the wrong places. Now they're at a virtually insurmountable competitive disadvantage after the dough they spent on Sabathia (I'm against deals conceived under the heading of immediate gratification) and Suppan. Compared to the deals for those two, the Hoffman deal was only mildly stupid. But here's the point I'd like to make in terms of the overall status of the team: Weeks vs. Lopez.

The Brewers were lucky to get second-baseman Felipe Lopez this season. Where are the Brewers without this guy who actually elevated his batting average over his mid-season mark, not an easy thing to do, esp. with an underperforming club like Milwaukee, and esp. hitting out of the top spot. Let's face it, Felipe Lopez was the best thing to happen to this team this season, including all the wonderful boisterous records of Fielder and Braun. He may not have been a gold-glover, but he's a bright spot in the lineup while performing dependably, and occasionally brilliantly, in the field. I believe he finished with a mark of close to .310.

When did Ricky Weeks ever come close to that kind of hitting? He's not that kind of hitter, you say? Precisely my point. Weeks brings other strenghts to the table? That may be so, but they appear to be outweighed by things like health. Well, Lopez could get hurt too, and he nearly was out of the season after that toe injury...  Yes, also adding to my point, look how he bounced back....

I'll always be a Ricky Weeks fan, because you see the guy do well at certain times and you see him struggle, and you're pulling for him and he bounces back, etc. etc. Same old same old. I was thrilled with the way he started the season this year. But Ricky is old news now. His injury solidifies that. The risks are now greater than the potential rewards with him. We've got to let him go. His history with the Brewers has been spotty at best. He had moments of brilliance, and he's a proven gamer, but he's "done" as a Brewer. I think most people realize that, esp. in light of getting Lopez.

If the Brewers are willing to let Lopez go in favor of Weeks, they are begging to have have a big red "L" pinned prominently on their lapels. Losing Weeks and keeping Lopez is a no-brainer. But my money is on Melvin insisting on staying with Weeks. Doug Melvin seems to find ways to make deals that go sour on the Brewers. If he stays with Weeks it makes it awfully hard to support this team given their small market status and their overall chances of finding good pitching and getting to the post-season in 2010.

On the other hand, if they make some deals that reinforce a strong infield, consisting of McGehee at 3rd, Escobar at ss, Lopez at 2nd and Prin-say at first, we have an actual nucleus, something we can bank on, build on. Yes, getting a pitching coach who buys into the Macha scheme will help. I regret losing Maddux. But you've also got to wonder where the hitting coach was this year when Hardy needed to be retrained in the fundamentals.  Maybe Hardy was a lost cause, but we all know he's talented, and that his talent was wasted this season, regardless of who may be to blame. I believe he was not coached properly after diving into his funk.

The bottom line: with Doug Melvin at the helm of the good ship "Brewer," don't get optimistic. It was fun having Hoffman this year, but the cost-benefit ratio of having that "cherry on top" did not warrant resigning him. Because of that expense, we're already at a disadvantage for 2010 -- and the play-offs have only just started. It's going to be a long off-season for Brewers fans.

October 8, 2009 11:27 AM
 

Polish Pickle said:

Thanks Jim - good info.

October 8, 2009 3:22 PM
 

Corey said:

if you want to be at even more of a disadvantage, go ahead and sign lopez to a deal.  you think he will accept a one year or two year deal after having a career season - WRONG.  he will be more expensive, and even in a contract year i saw things i didn't like - not hustling for example.  kinda reminded me a little of estrada.  if you want help with starting pitching, you have to go with the cheaper, just as much upside, option - weeks.  melvin said himself that the brewers will have to take some chances to help the pitching.  take a chance on weeks becoming the player we all hope he will and that he started to show in 09.  not to mention lopez is a boras client (i believe) and if someone signs him we get picks - hopefully to help fill the pitching void in the future...

October 8, 2009 8:18 PM
 

HamNeggs said:

The problem with your reasoning is that pitchers (even the ones who aren't supposed to succeed) know where the club has cut corners. You throw a lead-off hitter like Weeks in there and any pitcher with a brain is going to wonder "why," much like we do as fans. You hold onto a guy like Lopez (who is no different than 90% of other players who occasionally slack) and the pitchers will have that much more reason to keep their confidence, to rely on their defense, to have faith in the offense. So much of this is psychological, and pitchers are often at the forefront of policy making when it comes to deals on a club. If I'm Melvin I'm using Hoffman in the front office: 1) to get the most out of the expensive deal he just signed; and 2) to use that noodle of his which has been around long enough that he's got a sixth-sense about the way things are done in baseball. Ask Hoffman who he'd want at second base. I think he'd pick Lopez, and for good reason. You want to operate the club on the cheap? Pick Weeks and get the same result, which fits the definition of insanity, continuing the same process while expecting a different result.

October 9, 2009 10:15 AM
 

Corey said:

My point is that by going with weeks, and other cheaper options at select positions, saves the club enough money to go after starting pitching....  you make too many selections like lopez and less selections like weeks and you don't even have the option to go after free agent pitchers because you can't afford them...  would you rather have no chance or a possibly reduced chance at signing a starter???  by the way, lopez is only a career 270 hitter....  do you expect 320 again if he comes back?

October 9, 2009 1:02 PM
 

Milwaukee Brewers Blog - Bernie's Crew said:

I took down the last undefeated squad in my fantasy football league by one point thanks to DeSean Jackson

October 27, 2009 12:22 PM
 

hahaha said:

melvin makes deals that go sour on the brewers?  coco cordero, mike cameron, signing braun long term, gabe kapler, ned yost (thats right i said it), rick peterson, trevor hoffman (not the all time saves leader for nothing), and let us not forget CC SABATHIA.  that is just to name the ones in the last few years.  the only reason we got lopez was because he was hitting well and we needed to give counsel a break while staying competitive.  lets not forget that weeks is what, 26 years old?  most guys are lucky to even make it to the majors by then, let alone have 3 mediocre years.  he is  due to break out, and thats what he was doing before the injury.  as for hardy, saying that he wasnt coached right is a bunch of crap.  look what the rest of the team did under sveum.  maybe thats why prince hit 300 while driving in 141 and weeks was on pace for 100 rbis.  some brewers fans are just so negative.  youre the same ones who rode sheets while he was here.  can you imagine where we would be if we had sheets' 200 innings?

October 29, 2009 3:14 AM

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Bernie's Crew is a Milwaukee Brewers blog that addresses everything concerning the Brewers. It discusses major league news, minor league news, and big news around Major League Baseball as a whole. It is a community where Brewers fans can let their voice and opinions be heard. If you have any comments or questions, email me at berniescrew@gmail.com.

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