Archive for International Free Agents
Late last week, the Red Sox signed free agent Cuban outfielder Rusney Castillo to a seven-year contract worth $72.5M. He’ll play in some minor league games this week and make his MLB debut in September. The Yankees were connected to Castillo — they reportedly liked him more as a second baseman — but opted to “end any pursuit” of him a few days before he wound up in Boston. Here are some notes on the international market, including some more details on New York’s pursuit of Castillo.
Yankees never made offer to Castillo
Both Jon Heyman and Joel Sherman report the Yankees did like Castillo — they saw him as a potential 20-homer player — but balked for luxury tax reasons once the bidding got up to $40M. They didn’t even make a contract offer. The Yankees are taxed 50% on every dollar they spend over the $189M threshold, so $72.5M for Castillo would have meant a $108.75M total investment, and they didn’t view him as that type of player. They considered him to be similar to trade deadline pickup Martin Prado. One thing is clear: the price for Cuban free agents is only going up with each new player who arrives.
The Next Big Thing
Isn’t it amazing how as soon as one high-profile Cuban player signs, the next one pops up? Ben Badler puts on a name on that next big thing, and it is 19-year-old Yoan Moncada. He is described as a “a 6-foot, 210-pound switch-hitting infielder who’s the best teenager to leave Cuba since Jorge Soler, a player with exciting tools and dominance of the Cuban junior leagues on par with what Yasiel Puig did at the same age.”
Here’s the obligatory video The video was removed from YouTube for whatever reason.
Now here’s the catch: no one seems to know where Moncada is at the moment. Badler says it doesn’t appear he is in Cuba but other reports say he is still on the island. If he is still in Cuba, it will obviously be a long time before Moncada is able to sign with a big league team, if ever. If he has defected, teams still have to wait for MLB to declare him a free agent and for the Office of the Foreign Assets Control to unblock him.
Because he is only 19, Moncada will be subject to the international spending restrictions clubs deal with each summer. The Yankees are unable to sign a player for more than $300,000 during the 2015-16 and 2016-17 signing periods as a result of this year’s international spending spree, so they won’t be able to make a serious play for Moncada if he becomes the available anytime soon. That’s the risk with going big in one signing period, taking yourself out of the running for the top talent in future years.
Tomas establishes residency
Cuban outfielder Yasmani Tomas has established residency in Haiti, according to Jesse Sanchez. That is a big and necessary step towards being unblocked by the OFAC and declared a free agent by MLB. It’s still likely he will not be able to sign with teams until the offseason, if not sometime in 2015. Because of his age (23) and service time in Cuba, Tomas will not be held to the international spending restrictions.
Back in June, Badler described Tomas as a “righthanded-hitting corner outfielder” who can “hit towering home runs thanks to the strength from his thickly-built 6-foot-1, 230-pound frame,” though he cautioned Tomas has “some swing-and-miss tendencies” and an “uppercut stroke and trouble handling good breaking pitches.” Tomas is also described as a below-average runner who will be a corner outfielder in the big leagues. Here’s video. Jim Salisbury says the Phillies intend to be major players, for what it’s worth.
MLB implements new rules to curb pre-July 2nd deals
Last week, MLB sent teams a memo detailing new rules for how they are allowed to evaluate international amateurs, according to Badler. Players are now no longer allowed to be at a team facility until they are 16 years old or until six months before they are eligible to sign, whatever comes first. Before that, players can go to team facilities for MLB sanctioned league games and showcases only. The rule change is effective immediately.
Under the old rules, teams would bring players to their complex and have them work out. If they liked what they saw, they would make an offer and often agree to a contract in advance of the signing deadline. Teams would “hide” players they like at their complex so other clubs couldn’t scout them. That isn’t possible anymore. Long story short, MLB is trying to crack down on pre-July 2nd deals, and limiting how long players can spend at team complex is a big step towards doing that.
According to multiple reports, the Red Sox will sign Cuban free agent Rusney Castillo to a record six-year contract in the $72M range. The Yankees had Castillo in Tampa for a private workout and were said to have interest in him as a second baseman, but the other day we heard they “ended any pursuit” of him. Commence complaining.
Via Pete Caldera: The Yankees have “ended any pursuit” of Cuban free agent Rusney Castillo. For what it’s worth, George King says the Phillies are the favorite to sign him while Jim Salisbury says Philadelphia is not the front-runner, so believe these reports at your own risk. Caldera also notes Castillo is having visa issues and is unlikely to sign before August 31st, meaning he will not be postseason eligible this year.
The Yankees reportedly like Castillo as a second baseman more than as an outfielder, which goes against the consensus. They had him in Tampa for a private workout two weeks ago. Castillo is said to be sifting through several offers — it’s unknown if the Yankees made one — and he was initially expected to sign within a few days, but I guess the visa issues put an end to that. It’s unclear why the Yankees are passing on the 27-year-old Castillo. In all likelihood they think he’s not worth the money he’s going to get.
Via Joel Sherman: The Yankees are viewed as “major players” for Cuban free agent Rusney Castillo. They are said to like him more as a second baseman while most teams view him as an outfielder. The 27-year-old Castillo is finished with private workouts and is currently sorting through contract offers. He could sign as soon as next week.
According to Sherman, teams have a lot of urgency to get Castillo signed quickly for a few reasons. One, needs a work visa and they want to start that process as soon as possible. Two, he has to be in the organization by August 31st to be postseason eligible. Three, there is a little more than two weeks left in the minor league season and teams want Castillo to get in as many games as possible before considering him for a September call-up. The Yankees should be focused on 2015 at this point, so if they’re going to sign Castillo, the sooner they get him into the organization the better.
Via George King: The Yankees have until the end of the week to submit a contract offer to Cuban free agent Rusney Castillo. Several teams have already made him an offer, though it’s unknown if the Yankees are one of those teams. Castillo is expected to sort through the offers in the coming days and could sign next week.
The Yankees had Castillo in Tampa for a private workout last week, and they reportedly like him more at second base than in the outfield. Most teams like him in the outfield. Castillo has had private workouts with several teams and King says he still has a few more scheduled this week. I have no idea whether signing Castillo is a smart move — reports indicate he could get as much as $50M — though the Yankees certainly have a long-term need at second. If that doesn’t work, the outfield is always a fallback option.
Via George King: Following Friday’s private workout at the team’s complex in Tampa, the Yankees want to talk about a contract with Cuban free agent Rusney Castillo. They like him more at second base than in the outfield, which puts them in the minority. Castillo has experience both on the middle infield and in the outfield. The Yankees had scouts from several different departments at the workout.
“This guy could get $35M to $50M because of what (Jose) Abreu, (Yoenis) Cespedes and (Yasiel) Puig have done, but eventually somebody is going to be wrong about one of these guys,” said a scout to King. Another pointed out “the league he played in Cuba wasn’t great but there is momentum, who knows?”
Castillo, who hit against the rehabbing Preston Claiborne (shoulder) during the workout, has already been declared a free agent by MLB and unblocked by the Office of Foreign Assets Control, so he is free to sign at any time. He has also had private workouts with Phillies, Red Sox, and Cubs, plus the Tigers, Giants, White Sox, and Mariners have shown interest as well. Castillo has been billed a speedy leadoff hitter type with surprising pop.
Wednesday: The Yankees invited Castillo to their Tampa complex for a private workout next week, reports George King. Andrew Marchand says they should not be considered the favorite to sign him, for what it’s worth.
Monday, 1:43pm: The Yankees are one of three teams that have scheduled a private workout with Castillo, according to Ben Badler. Balder says Castillo is likely to sign within two weeks.
1:00pm: Via Ken Davidoff: The Yankees sent a contingent of four to watch Cuban outfielder Rusney Castillo’s showcase in Miami over the weekend. Those four: international scouting director Donny Rowland, international cross-checkers Gordon Blakeley and Dennis Woody, and pro scout Jay Darnell. Their level of interest in unknown. Twenty-eight of 30 teams were in attendance.
Castillo, 27, was said to have an impressive workout with the caveat that it was only a workout, not game action. Walter Villa has an excellent breakdown of the day. Castillo worked out in the outfield and at shortstop, but Villa says the consensus is that he won’t stick at short and his arm isn’t right field caliber. He showed good speed and surprising pop from the right side. “I like him, he’s a Major League player,” said one scout while another estimated he would sign for $25-35M. I have no idea whether he is worth that money or a good fit for the Yankees.
Via George King: The Yankees will be among the teams to watch Cuban outfielder Rusney Castillo at his showcase in Miami (at Alex Rodriguez Park!) tomorrow. “He reminds me of (Dayan) Viciedo, not with the power, but with the way he plays and he has very good speed,” said one scout. “He is not (Yasiel) Puig. Some teams think he is a fourth outfielder but others believe he can be more.”
Castillo, 27, has already been declared a free agent by MLB and is free to sign. He is represented by Jay-Z’s Roc Nation. “Castillo has good strength for his relatively short stature and is an athletic player whose best tool is his plus-plus speed … Castillo can sting the ball from the right side of the plate, projecting as a line-drive bat who hits a lot of doubles and triples rather than home runs. He’s an aggressive hitter with good bat speed, though his swing can get long at times and he will expand his strike zone,” wrote Ben Badler recently. Here’s the obligatory highlight video.
Because of his age, Castillo would not count against a team’s international signing pool, not that it matters for the Yankees at this point. They haven’t signed a big name Cuban player since getting burned by Jose Contreras, though they did show serious interest in Aledmys Diaz earlier this year and appear to be ready to get back into the market. I have no idea what kind of contract Castillo will command or if he makes sense for the Yankees, who already have two low-power outfielders signed for big bucks long-terms. Either way, they’ll be on hand to see up close this weekend.
A winter’s worth of rumors about an international spending spree proved true last week when the Yankees signed more than 20 players and spent more than six times their spending pool on the first day of the 2014-15 signing period. You can relive the day right here. Here’s more breaking down the record-setting day, and here are some more stray signings and links:
- The Yankees have signed 16-year-old Venezuelan OF Raymundo Moreno for $600k, reports Ben Badler. He is not among Baseball America‘s nor MLB.com‘s list of the top 30 international prospects. Balder says Moreno has “above-average speed, an average arm and gets good reads off the bat in the outfield. He has good bat speed and gap power from the right side.”
- Jesse Sanchez reports the Yankees have signed Dominican SS Griffin Garabito for $225k while Kiley McDaniel says they have also signed 19-year-old Dominican RHP Yossty Vargas. Both are older (relative term here) prospects who can begin playing right away. Neither was ranked among Baseball America’s or MLB.com’s top 30 international prospects.
- In an Insider-only piece, Chris Crawford says that ” in terms of both quality and quantity, [the Yankees had] the most impressive class by a considerable margin.” He also notes that they are also considered the favorite to sign a few of the top players who are still available.
Total Known Bonuses: $15.335M. Total Penalties: ~$13.135M. Total Spent: ~$28.47M.
As expected, the Yankees went on a huge international free agent spending spree when the signing period opened last Wednesday. By my unofficial count, the team signed 22 players for $14.51M worth of bonuses on the first day of the signing period alone, and those are just the players we know about. I’m certain there are other deals in place that have not yet been reported.
Now that the signing period has opened and most of the heavy lifting has been completed, let’s break down everything that happened on the international front. There’s a lot to digest here.
The Yankees were assigned a $2.2M signing pool for international players this summer, but they blew right through that. Based on what we know, they will have to pay approximately $12.31M in taxes for going over their pool, and the final number will be higher than that since it is inevitable several signings have yet to be reported. Between bonuses and penalties, the current total payout is $26.82M, or thereabouts.
In addition to the tax, the Yankees are now prohibited from signing a player to a bonus larger than $300k during both the 2015-16 and 2016-17 signing periods, the last two covered by the current Collective Bargaining Agreement. Here is the most important thing: their signing pool will not change in those years. Their pool will be whatever size it’s supposed to be based on their finish in the standings, but now they can not hand out any big bonuses. They aren’t actually losing any pool money these next two signings periods.
So … Good Idea or Bad Idea?
I’ve been going back and forth about whether going all in on one signing period is a good idea. At this point I think it is. Yes, they effectively removed themselves from the bidding for the top international prospects in the next two signings periods, but the Yankees usually do a very good job of finding cheap talent in Latin America. RHP Luis Severino ($225k), SS Abi Avelino ($300k), and SS Thairo Estrada ($45k) all signed for relative peanuts. Heck, go back a few years and both Robinson Cano ($150k) and Ivan Nova ($80k) came cheap. That $300k bonus cap the next two summers shouldn’t hinder them from finding quality prospects.
More than anything, I think it’s good the Yankees added all that talent right now. Remember, we’re talking about 16-year-old kids here. Even if things work out great, we’re still talking about four or five years in the minors before they make their MLB debut. It’ll take another few years after that for them to have a real impact. This is a long-term process and by signing all of these players now, the Yankees are starting that process. They added a ton of talent in one fell swoop. (Signing players is the easy part, developing them into MLB players is the real challenge.) I’ll take a bunch of top youngsters today over the prospect of signing top youngsters tomorrow.
What Kind Of Talent Are We Talking About Here?
As always, information about international prospects is hard to come by. It’s gotten about a million times better over the last few years, but there are still lots of conflicting reports. Here are where the team’s most notable signees were ranked by Baseball America and MLB.com, for comparison:
|SS Dermis Garcia||$3.2M||9th||1st|
|3B Nelson Gomez||$2.25M||6th||2nd|
|OF Juan De Leon||$2M||2nd||5th|
|OF Jonathan Amundaray||$1.5M||22nd||7th|
|SS Wilkerman Garcia||$1.35M||7th||14th|
|SS Hyo-Jun Park||$1.16M||18th||13th|
|C Miguel Flames||$1M||16th||25th|
|OF Antonio Arias||$800k||28th||9th|
|SS Diego Castillo||$750k||24th||16th|
According to MLB.com, the Yankees signed the top two, three of the top five, four of the top seven, five of the top nine, and eight of the top 20 available prospects. According to Baseball America, they signed one of the top five, three of the top eight, four of the top nine, and six of the top 20 prospects. Bit of a difference there, and you know what? That’s perfectly fine. Consensus rankings are boring. The most important thing is that both publications agree the Yankees landed some of the very best international prospects last week. They brought in the elite.
Bats, Not Arms
As you may have noticed in the table, all of the team’s notable signings are position players, particularly up the middle players (De Leon and Amundaray are center fielders). This year’s crop of international free agents was light on pitchers to start with — according to Baseball America, only two of the top ten and five of the top 30 prospects were pitchers — but hoarding position players prospects is not a bad idea in and of itself.
Offense is getting harder and harder to find these days. Run-scoring around the league is down to its lowest point in years — MLB teams have a combined .316 OBP in 2014, which would be the lowest since 1972, the year before the DH was adopted — and that makes quality bats even more of a top commodity. Pitching is important, it absolutely is, but right now impact bats are something of a market inefficiency. Everyone wants one but few are actually available. Look at the Cubs and their prospects. Remember, not all of these guys will be future Yankees. Some will be used as trade bait and young, high-end bats are valuable. Stockpiling position player prospects makes a ton of sense.
Exposing A Broken System
This last week has exposed just how broken MLB’s spending restriction system is. The system was intended to level the playing field and give every club a shot at acquiring the best talent, but instead the Yankees (and Red Sox, as well) blew through their spending limit and signed the top available talents. Meanwhile, both the Brewers and Rays had to swing trades for pool money to sign just one top prospect because they can’t afford to pay the penalties.
Rather than create a fairer market, the new system has given large market clubs even more of an advantage. It’s not about a willingness to go over the pool to sign players, every team would do it if possible, but some simply can not do it financially. The Yankees didn’t break the rules at all, they will pay the tax and deal with the bonus limitations the next two years, but to them that is simply the cost of doing business. Smaller market teams can’t dream of doing that. Expect the system to change somehow during the next round of Collective Bargaining Agreement negotiations.