Math Check: Revisiting Payroll Audit & Estimated Arbitration Salaries
TOWER GROVE — The arbitration wallop the St. Louis Cardinals have been bracing for this winter came into view Tuesday with the exchange of salary figures around baseball. The Cardinals two unsigned and eligible players, outfielders Rick Ankiel and Ryan Ludwick, each are guaranteed to receive significant raises. The salaries that an arbitrator will choose between — if the two sides do indeed get to a hearing, that is — are there for everyone to see. Every comma. Every zero.
- Ankiel put in for $3.3 million; Cardinals countered with a $2.35 million offer
- Ludwick submitted a $4.25 million request; Cardinals entered $2.8 million
A year ago at this time, Ankiel presented one of the most confounding arbitration cases. He was without a true comparable (I mean, beside Von McDaniel who had even tried, right?), and both sides stretched for their cases. One side went with Ankiel as similar to a … drumroll, please … backup catcher. This year, who’d believe it but Ankiel is the easy one. Ludwick, following a breakthrough year of 100-plus RBIs, 37 home runs and an All-Star invite, is a riddle in his first year of eligibility.
Back in November, I attempted to go line by line through a rough draft of the Cardinals’ payroll to get a real feel for how much money they had to spend in the free agent market. We had been told repeatedly that it wasn’t as much as simply the millions coming off the books in the forms of Mark Mulder, Jason Isringhausen, et. al. “An Audit of the St. Louis Cardinals’ Payroll” attempted to estimate the 2009 salaries of the arbitration-eligible players.
They were … well, not too shabby. Almost nailed the Aaron Miles and Chris Duncan deals.
The estimates ripped from the November blog:
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
Aaron Miles, INF … $1.4 million … Arb. est: $2 million … + $600,000
Todd Wellemeyer, RHP … $1.0 million … Arb. est: $3.25 million … + $2.25 million
Brad Thompson, RHP … $414,000 … est. $855,000 … + $441,000
Chris Duncan, OF … $439,000 … est. $855,000 … + $416,000
The total kickup there after arbitration had its influence was estimated to be about $8 million. It is important to note here that arbitration is impervious to the economy. By rule, the arbitration process is immune to outside factors. The overall economic climate, the economic situation of the team and the economic market for the league cannot — by agreement — be considered. In this icy market, arbitration is a comfy blanket. And, in some cases, we’ve seen how free agents may regret their decision not to accept arbitration when offered in December.
With three of the above contracts finalized, one of the above players non-tendered and off to play second base for the Chicago Cubs and two pending, here is the updated matrix:
Rick Ankiel, OF … $900,000 … Arb. $3.3 million OR $2.35 million … + $2.4/$1.45 million
Ryan Ludwick, OF … $411,000 … Arb. $4.25 million OR $2.8 million … + $3.84/$2.39 million
Aaron Miles, INF … $1.4 million … Arb. est: $2 million … ZERO (Cubs: $2.2 million)
Todd Wellemeyer, RHP … $1.0 million … $4.05 million … + $3.05 million
Brad Thompson, RHP … $414,000 … $650,000 … + $236,000
Chris Duncan, OF … $439,000 … $825,000 … + $386,000
The new spike in the Cardinals’ payroll, according to those salaries, is either going to be $9.9 million or $7.5 million depending on the outcomes of the arbitration cases with Ankiel and Ludwick. It has been 10 years since the Cardinals got all the way to a hearing, and this is the first time in memory that they actually exchanged figures for a Scott Boras client (Ankiel).
The purpose of arbitration is to spur a deal and not need the February hearings.
As mentioned before, Ankiel is the easier of the two to find a comparable. Think Gary Matthews Jr. Back in April 2004, Matthews was released by Atlanta, an act that you could argue is akin to Ankiel retiring as a pitcher. Matthews latched on with Texas. Ankiel latched on to the outfield. Two years later, at 31, Matthews hit 19 home runs and drove in 79 RBIs with a .313 average in 620 at-bats and became a free agent at the end of that season. He also played a strong center field. While he has the at-bats that Ankiel does not, the Cardinals’ center fielder counters with more power. In his final year of arbitration, Matthews turned a 17-homer, 55-RBI season in 475 at-bats into a doubled salary, from $1.1 million to $2.4 million. There’s the comparison.
You can see the shadow of Matthews in the Cardinals’ arbitration offer.
Ludwick is … Bubba Trammell (check out 2001)? Jason Lane? No clue. Any suggestions?
This much is clear, Ryan Howard is due a payday and it is incredible the Philadelphia Phillies continue to drag this into arbitration. He submitted an $18-million salary for the arbitration process, and the Phillies countered with $14 million. The Phillies offer is $4 million more than the record award Howard received last year. Saw that coming.
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Programming note: Later this week, I will pull off the annual vanishing act for vacation, and access to the blog may be limited because my access to the Internet may be limited. But there will be at least one entry before I depart. Thanks to all who joined the blog over the weekend for Warm-up info, and expect the same and more with the usual Spring Training deluge of coverage …
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Derrick Goold said he was going to Mizzou for capital-J journalism, but after growing up in the Time Zone Baseball Forgot he was really drawn to MU sitting between two major-league cities. Goold joined the Post-Dispatch in 2001 after working for The Times-Picayune and Rocky Mountain News, covering sports from LSU to NHL and every level of baseball in between.
The arbitration increase and the $20 million the Cards shelled out to the Post Dispatch owner for their stock is all you need to know why the Cards have made just one name free agencies signing.
Scott,
The deal with Lee Enterprises was consummated in August of last year. If anything it affected the bottom line for 2008 - not the payroll for 2009.
This is the same case when the Cardinals opened the stadium in 2006. Castellini and the Williams Brothers sold out their combined 14% ownership to go buy the Reds in November of 2005.
The Cardinals had to raise over 50 Million dollars that offseason (2005-2006). They did so buy selling over 40 Million Dollars in PSLs for the new stadium and most likely (according to Forbes) taking the remaining hit on their bottom line at the end of 2005.
I don’t think the Cardinals are done yet. I think they will go into Spring Training and analyze the complete health of all their players and see how the bullpen and bench looks. Depending on what they see, they should have about 8-9 million to spend via a trade (take on more salary than they lose) in a trade. I still think once they see how Duncan is doing that there will be a big trade out of the surplus of OFers.
Time will tell, but I don’t think you will see another FA signing unless someone really falls off the table with their demands. Any more acquisitions will come after (or during) Spring Training via trade.
What are the chances Ludwick actually gets on the final roster for USA WBC team?
On another topic, just wanted to say thanks for the Tweets from the Winter Warm-Up. You were the final push in me getting on Twitter. Great work.
Maybe Carlos Quentin for a comparison on Ludwick?
I dont think Howard deserves any kind of raise, honestly. I mean he’s comparable to Adam Dunn who won’t get more than 10 million dollars. No Arguments there. The past 3 years he’s struck out 579 times. His Average has gone down every year. His defense is Average at best. The only thing going for him is that he can hit for power. And that little thing that the phillies did in the postseason. Other than that, no way he should be the highest paid 1st baseman in the NL, hes the 4th or 5th best, maybe even worse. Pujols, Berkman, Fielder, Lee, Delgado, then maybe howard. I know he’s from st louis, but its rediculous that he’s asking for that much money. No way i would offer him more than 12 millon.
Whether Ludwick recieves his 4.25 million request or he recieves the Cards’ counter offer of 2.8 million, the Cards are going to get this guy at a real bargain, in my opinion. Same goes for Ankiel. I’m thinking the Cards will windup very happy no matter which way this goes.
Also, Carlos Quentin is a great comparison on Ludwick. That is probably the best suggestion I’ve heard yet.
Have a nice vacation, DG…
The Cardinals would love if Quentin was the comparable for Ludwick because the White Sox slugger made, what, $400,000 this past year? Quentin isn’t yet eligible for arbitration so his salary won’t help set another player’s. Not the way the system works. Now, Quentin is probably watching with interest what Ludwick gets because that will help set his asking price when it’s his turn.
dg
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Question: Wasn’t Matthew’s $2.4 arbitration award based off his 2005 stats (17 HR, 55 RBI, .255 BA)? The ones you have listed are 2006.
What about Mike Cameron in 1999 as a comparable to Ankiel in 2008? Cameron’s 1999 stats with the Reds: 542 AB, 21 HR, 66 RBI, .256 BA, .357 OBP. Cameron had less power and a lower average in more at-bats, but he had the element of speed with 38 steals.
Thanks for giving me something to spend my afternoon on. Enjoy the vacation.
That is correct about Matthews. I should have made it clearer in the comparison. Good catch. I will go fiddle with the phrasing.
why did the cards resign duncan and Wellemeyer when they are under contract still so why not give some cap to Ankiel or Ludwick or we could go out and get a player like Orlando Hudson