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11.19.2008 11:20 am

An Audit of the St. Louis Cardinals’ Payroll

St. Louis Post-Dispatch
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TOWER GROVE — With the subtraction of the salaries for Mark Mulder, Braden Looper, Scott Spiezio, Juan Encarnacion and Jason Isringhausen (though possibly only briefly for him), the St. Louis Cardinals have a raw total of about $29 million in expiring contracts from their 2008 payroll. But presented with the question on whether the Cardinals had $25 million to even $30 million of flexibility for the coming season, an organization official was direct with his answer:

“You might want to check your math.”

Good idea.

Pooling the salaries of the Cardinals’ 25-man roster, the handful of players on the disabled list, and some estimates of the prorated additions to the team, the Cardinals spent approximately $105.89 million on the salaries of 34 players. (For example, Chris Perez didn’t make his full $390,000 big-league salary, but in concert with the other relievers and minor leaguers who came up through the year about that much was spent on the spot on the roster. I.e., Jason Motte, Joe Mather, etc.) Of those 34 players, 11 either are or are expected to be free agents.

Those 11 salaries lopped from the books for 2009 equal approximately $39.7 million.

But before considering that as a straight cut from the payroll, first the buyouts must be considered. Mulder and the released Spiezio are owed a combined $1.6 million for their rejected 2009 options.

And then there are the players due raises, like Chris Carpenter from $10.5 million to $14 million or Ryan Ludwick who is arbitration eligible after a career season. Those upticks in salary slice considerably into the “dry powder” the Cardinals have if they expect to keep the 2009 payroll around $100 million, give or take a few injuries.

Asked if the economic conditions could guide their payroll, Cardinals president Bill DeWitt III said earlier this offseason the he expects the payroll to remain the same “if not grow, a little.”

When all those factors are calculated and some 2009 salaries are estimated, the closer total for the cash still available is around $20.6 million. According to a couple people in the organization there are scenarios — arbitration losses, new contracts — where it is around $17 million. Two new lefties could quickly knock that down to $11 million.

There’s still enough to alter and improve a roster in need of reinforcements.

The best way available to “check the math” is dig into the contracts themselves and track who is gone, who is due a raise and estimate just what some of the raises could be (via renewals or arbitration). Using reports in the Post-Dispatch, many of them by senior baseball writer Joe Strauss, and other sources on the existing contracts, I generated a payroll matrix for the blog here. These are base salaries, not including bonuses but Felipe Lopez’s has been adjusted to reflect how the Cardinals got him. Below it there is further discussion about the arbitration cases and how to estimate what it could cost the Cardinals if, say, Ludwick does take them to arbitration.

THE ESTIMATED PAYROLL MATRIX

PLAYER … 2008 Salary … 2009 Salary … CHANGE

Yadier Molina, C … $1.75 million … $3.25 million … + $1.5 million

Jason LaRue, C … $850,000 … $950,000 … + $100,000

Albert Pujols, 1B … $16 million … $16 million … n/c

Adam Kennedy, 2B … $3.5 million … $4 million … + $500,000

Troy Glaus, 3B … $12.5 million … $11.25 million … - $1.25 million

Cesar Izturis, SS … $2.85 million … Free Agent … - $2.85 million

Aaron Miles, INF … $1.4 million … Arb. est: $2 million … + $600,000

Felipe Lopez, INF … est $130,000 … Free Agent … - $130,000

Brendan Ryan, INF … $393,000 … est. $400,000 … + $7,000

Rick Ankiel, OF … $900,000 … Arb. est: $2.4 million … + $1.4 million

Ryan Ludwick, OF … $411,000 … Arb. est: $3.3 million … + $2.89 million

Skip Schumaker, OF … $396,000 … est. $475,000 … + $79,000

Brian Barton, OF … $390,000 … est. $400,000 … + $10,000

Adam Wainwright, RHP … $750,000 … $2.6 million … + $1.85 million

Kyle Lohse, RHP … $4.25 million … $7.125 million … + $2.875 million

Braden Looper, RHP … $5.5 million … Free Agent … - $5.5 million

Todd Wellemeyer, RHP … $1.0 million … Arb. est: $3.25 million … + $2.25 million

Joel Pineiro, RHP … $5 million … $7.5 million … + $2.5 million

Ryan Franklin, RHP … $2.25 million … $2.5 million … + $250,000

Russ Springer, RHP … $3.5 million … Free Agent … - $3.5 million

Ron Villone, LHP … $2 million … Free Agent … - $2 million

Randy Flores, LHP … $1 million … Likely Free Agent … - $1 million

Kyle McClellan, RHP … $390,000 … est. $421,000 … + $31,000

Brad Thompson, RHP … $414,000 … est. $855,000 … + $441,000

Chris Perez, RHP … $390,000 … est. $400,000 … + $10,000

Juan Encarnacion, OF … $6.5 million … Free Agent … - $6.5 million

Jason Isringhausen, RHP … $8.0 million … Free Agent … - $8.0 million

Chris Carpenter, RHP … $10 million … $14 million … + $4 million

Chris Duncan, OF … $439,000 … est. $855,000 … + $416,000

Mark Mulder, LHP … $6.5 million … Free Agent … - $6.5 million ($1.5m buyout)

Scott Spiezio, UT … $2.5 million … Free Agent … - $2.5 million ($100,000 buyout)

Matt Clement, RHP … $1.25 million … Free Agent … - $1.25 million

Tyler Johnson, LHP … $398,000 … est. $400,000 … + $2,000

Josh Kinney, RHP … $390,000 … est. $400,000 … + $10,000

***

The biggest uncertainties in the above matrix are obviously the abitration cases. Rick Ankiel, Todd Wellemeyer, Aaron Miles and, of course, Ryan Ludwick make for compelling cases. There’s Wellemeyer who has been reinvented as a starter, there’s Ankiel who has been reinvented as an outfielder and there’s Ludwick who has just reminded baseball what kind of impact prospect he was.

The above estimated salaries are educated estimates, but not locks. They could go up.

A few weeks ago, columnist Bernie Miklasz asked the seminal question of the winter, “Do the Cardinals believe in Ryan Ludwick?”. In that blog entry, Miklasz explores the comparable players to Ludwick, and thus offers a road map toward arbitration.

See, arbitration is based on comparable players and service time. It also considers an everyday at a different tier than a part-time player, and it categorizes players further by starters, closers, relievers and so on. Finding a comparable for Ludwick is as tricky as finding one for Ankiel was last winter. As Miklasz points out, Bubba Trammell does it. Trammell had a breakout 2001 with San Diego, hitting 25 homers and driving in 92 runs at the age of 29. With arbitration rights that winter, Trammell received a raise from $335,000 to $1.5 million. I have been cautioned at using the same rate of increase when it comes to Ludwick, but the outline of a comparison is clearly there.

Ankiel is actually a touch easier this year. Outfielder Gary Matthews Jr. could fit as his comparable, as he was going to be for one side of the arbitration case a year ago. Matthews was released before landing with Texas and re-establishing his career — a loose, but not absurd link to Ankiel’s trek. In 2005, Matthews made $1.1 million and went out and hit 17 home runs and drove in 55 runs in 526 plate appearances, enough to qualify for the batting title. In 2008, Ankiel hit 25 homers and drove in 71 runs, but did so in 463 plate appearances — not quite enough to qualify as that everyday, title-eligible batter.

Off to arbitration before the 2006 season, Matthews submitted $3 million and Texas countered with $2 million. The two sides agreed on a deal for about $2.4 million. That’s how arbitration is designed to work.

How it works out for the Cardinals will shape how much they have yet to spend for 2009.

-30-

25 comments

Comments are closed.

Just to clarify my last comment:

My point was that the middle infield will probably never produce a solid middle infielder with the likes of Green Kozma and Hoffpauir being the top middle infield prospects. So I don’t think waiting for Green to develop or Hoffpauir to start hitting again, can happen. The Cards have some depth in their system, but they can’t wait for a SS to develop much longer. Hoffpauir’s and Greene’s time to make a move is ticking away. Just wanted to clear up what my point was.

Now that I think about it, you can’t leave out Nico Vasquez out of the picture, but still he is probably a year or two away…

DG, do you think Edgar would be interested in signing a one year deal or at this point in his career would he be looking for a multiyear deal?

— emc2013
3:53 pm November 19th, 2008

Hey DG,

what about Placido Polanco? Are the Tigers fielding offers? Are the Cards interested in his services? Seems like a grand fit to me. Cost efficient, good defense, hits for average and is familiar with the organization. What would it take to get him if they are indeed interested?

Your thoughts…

— bill
4:25 pm November 19th, 2008

Here is one reason why we will not be throwing around our money: There is this guy named Albert Pujols whos contract is up in a couple of years. We might want to hold on to the money that he will be able to command and keep him in STL. Not throw around our money to these pitchers who are commanding $20MM a year or any second tier free agents. Rhodes? Are you kidding me? Rather, use what we have in our own system. Garcia is a GOOD lefty, Tyler Johnson will be back who is a GREAT lefty and Kinney will be back. RACK BAR!!

— Rack Bar
5:37 pm November 19th, 2008

Here is one reason why we will not be throwing around our money: There is this guy named Albert Pujols whos contract is up in a couple of years. We might want to hold on to the money that he will be able to command and keep him in STL. Does everybody else agree? Thats what I thought. Not throw around our money to these pitchers who are commanding $20MM a year or any second tier free agents. Rhodes? Are you kidding me? Rather, use what we have in our own system. Garcia: GOOD lefty, Tyler Johnson: will be back who is a GREAT lefty and Kinney: will be back. RACK BAR DELUXE!!

— Rack Bar
5:40 pm November 19th, 2008

So…is 100 Mil really 100 Mil?? What about the insurance payments the cards receive on injured players?? What Carp made the last two years vs. what the cards really spent are surely two different numbers. Derrick??

— JL
7:12 pm November 19th, 2008

Garcia isn’t a LHRP option. He underwent Tommy John Surgery in Sept. and will miss the 2009 season.

— emc2013
8:55 pm November 19th, 2008

No chatter about Placido Polanco. He’s a cornerstone in Detroit. Obviously the likely addition of Trever Miller today — pending physical — will add a salary to above. He made $1.6 million last season, with a $400,000 buyout of a $2 million option. So, think around the same cost. The year(s) will be interesting when the deal is finished.

As for insurance. This is tricky, and I know a lot of people ask about it a lot. Insurance on contracts works a lot like insurance for anything else. You don’t take out a policy on the tent. You take it out on the house. You don’t insure your … well, I won’t torture the analogy any further. You get the idea. Like any insurance, insurance contracts …

… considers history (esp. injury history)
… has a deductible.
… does not cover the entire cost of the contract/etc.

With contract insurance there is also a certain amount of time a player must be out before the insurance kicks in. I’ll speak directly from experience: A few years ago, Chris Pronger missed an entire season with the Blues because of a wrist injury. The Blues had insurance on his contract. Let’s use the facts of the Pronger situation on a $10-million year baseball player. First he has to miss 90 days before the insurance clicks in. Once that happens, then the remainder of his salary is covered past the deductible. Say, 80 percent.

OK, so Mr. $10m is paid for those 90 days — or roughly half the season — before the insurance kicks in. That’s $5 paid by the team. Then the insurance covers 80 percent of the rest — or a grand total of $4 million on a $10 million contract. And that’s without a history of injury.

The smaller contracts aren’t worth the premiums on that kind of coverage.

Hope that helps,

dg
-30-

— Derrick Goold
12:14 am November 20th, 2008

Every time Pinero collects a paycheck, a little kid starts dreaming he could be more like Zambrano.

— Chris
1:20 am November 20th, 2008

Hey RUM

“That is the most ludicrous thing I have read on any STLToday message board.

Rick Ankiel is more Ron Gant than Ryan Braun.”

I’ve said more ludicrous then that…..Ryan Braun was par with Ryan Lud this year and if you compare Ricks AB’s this year to Braun’s rookie year - Rick is in the same category as Braun except in AVE…and MUCH better D (even then GANT). Rick’s power is impressive and not to be understated…1st full year in ML

— Sheckmen
12:04 pm November 20th, 2008

Duncan will be arb eligible via super 2 status - add $500K for that.
Thompson will be arb eligible — add $500K for that.

— cariocacardinal
7:58 am November 21st, 2008

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