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Spend Some Dollars, Extend Jose


Ted Schwerzler

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Right now, the Minnesota Twins sit something like $20 million below the point in which they entered the 2018 season in terms of payroll. A $135 million figure should’ve been expected for 2020 and barring a big acquisition they’ll struggle to get there. Utilizing some of the available cash on Jose Berrios seems like a worthwhile investment.

 

Over at Twins Daily recently, Matthew Taylor touched on what could be ahead for the soon-to-be 26-year-old. Berrios was a dark horse Cy Young candidate going into 2019 and harnessing his ability to the next level could put him squarely in the conversation. Once that takes place, the price for his services will go up, and free agency looms large in 2023.

 

Obviously, any negotiation is going to require both sides to find common ground. In talking with Skor North Contributor Darren Wolfson at multiple different points, he notes the two sides have had extensive dialogue. At this point there hasn’t been a number that makes the Puerto Rican jump at the opportunity, but there’s been groundwork laid. If we’re looking for somewhat of a blueprint, Aaron Nola may have provided that last offseason.

 

Both Nola (4/$45MM) and Yankees Luis Severino (4/$40MM) inked extensions last winter and are the same age as Berrios. Both of those arms had previously garnered Cy Young votes and had appeared in All-Star Games. Minnesota’s man made his first All Star Game in 2018 (and a second last year) but has yet to climb into the Cy Young consideration. Having pushed another year into team control, Berrios landing a four-year deal would buy out two years of his free agency as opposed to one and make him eligible for the first time as an impending 30-year-old.

 

Projected for a $5.4 million payday through 1st year arbitration eligibility, any extension would represent a substantial pay increase. Looking for something north of a $10 million annual valuation, he’d more than double his earnings in 2020. Continuing down this path, or more hopefully taking another step forward in the year ahead, would have him quickly outpacing any deal in yearly raises.

 

I’m not sure what it would take for the Berrios camp to buy in, but the second year of free agency would come at an obvious premium. Minnesota paying 4/$55MM could make both parties happen, and lock in what has the makings of a future ace. There’s less reason for the team to be interested in a three-year deal, but something like 3/$38MM strikes me as reasonable.

 

Without having a ton of foresight into what the financials would look like, using any leftover cash flow to lock down some of the three unsigned cornerstones (Berrios with Buxton and Sano) seems like good business. Buxton may still be looking to increase his footing from a positioning standpoint, and Sano’s ceiling is arguably the most capped. Jose is the logical target, but will all parties dance?

 

For more from Off The Baggy, click here. Follow @tlschwerz

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I would be 100% on board with 4/$55m. I think he's worth that now even if he doesn't take another step forward, and it wouldn't handcuff the payroll in the future either. I know there have been extenuating circumstances with free agency this winter, but with all the whiffs we've had and where the payroll sits, it would be nice to at least see an extension like this to see some kind of progress made toward the future.

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He is first-year arb eligible this year (2020), meaning arb years in '21 and '22.  Assuming he is (as you say) $5.4M this year, there seems to me no way he earns $33M in his last two arb years.  So a 3/$38M only allows him to know his income with certainty right up until free agency.

 

That being the case (and I am not familiar enough with salaries paid to higher-end arb 2 and 3 pitchers), don't we look at these situations as risk/reward and try to buy out at least one free agent year, rather than solely a gamble on how much he increases his income through arbitration alone?  If we assume $10M in 2021, and $15 in 2022, he'd be owed $30M (more or less) from now through the end of the 2022 season.  I don't think $25M for his first free-agent season is without any worthy consideration, but doesn't this have to be a 4-year deal at a minimum in order to talk about risk/reward at all, other than minor (and at least somewhat predictable) arbitration awards variations in years 2 and 3?

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If the team can't find a FA or salary dump trade, absolutely extend Jose. If, that is, he's interested in sticking around. Jose strikes me as a competitor who wants to win it all. To date the FO has given no sign the organization is interested in trying. We seem happy to tread water and hope for a miraculous confluence of overachieving prospects to keep us in competition for the central title and another lottery ticket in the playoffs. 

 

As a famous Minnesotan once said, you don't need a weatherman to know which way the wind blows. 

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