Tampa Rays Are A Model Organization

The Tampa Rays just signed their best pitching prospect to a guaranteed 5 year contract, with options that could make the deal extend to 8 years. The young 22 year old hurler’s name is Matt Moore. You may have heard of him if you watched the 2011 post-season. You see, the Rays made the post-season yet again, in what is regarded as baseball’s roughest division, the American League East. And they pitched Moore in their AL Division Series against the Texas Rangers. In the opening game actually. No pressure! Moore only threw 7 shutout innings and became the youngest pitcher to start and win a team’s first game of the post-season. Not too shabby!

The Rays brought up the hard throwing lefty Matt Moore in mid September, where he started one game against the Yankees striking out 11 in 5 innings. He also made two more relief appearances during the season. So with only 3 major league appearances on his resume, the Rays had enough faith to start Moore in the playoffs, that’s how special they think he is. They also think he is special enough to give a guaranteed contract that might run 8 years long! Let’s breakdown his unique contract for a moment; the first 5 guaranteed years are for a total of $14 million, but could balloon to as much as $39.75 million over 8 years.

Signing bonus = $500 thousand (chump change!)

2012 salary = $1 million

2013 salary = $1 million

2014 salary = $1 million

2015 salary = $3 million

2016 salary = $5 million

3 Team Option years

2017 = $7 million, $2.5 million buyout

2018 = $9 million, $1 million buyout

2019 = $10 million, $750 thousand buyout

Incentives & performance bonuses

2014 through 2016, pitches at least 600 innings = 2017 salary increased by $500 thousand

2015 through 2017, 85 GS/570 IP, 90 GS/600 IP, 95 GS/630 IP = 2018 salary increased by $250 thousand for each level reached

2016 through 2018, 98 game starts or 600 innings pitched = 2019 salary increased by $500 thousand

2017 – 2018, 66 game starts or 400 innings pitched = 2019 salary increased by $500 thousand

Wow! Normally I don’t break down contracts like this, but you may never see this again, at least not until the next time Tampa strikes!

This is not the first time the Rays have relied upon their youth to help them in the post-season, and it is not the first time the Rays have signed their young talent to long contracts. A practice that, for some curious reason, is not done all that much in baseball. But the small market Rays have had to think outside the box to stay competitive with the big boys in the AL East. They are arguably the best organization for targeting young talent and nurturing it to the major leagues, not to mention the best at pitching the team concept and signing their young stars to long contracts. The contracts are risky for both sides; if the young player becomes a star then he will be severely underpaid at some point. But if the player gets hurt, the team will lose millions in guaranteed money. The agents and players know that once they sign, their families are taken care of for life, and that’s quite an important selling point!

The Rays targeted several of their players similar to Moore over the years, sometimes being able to convince the player to sign, sometimes being rebuked. Some players were even paid major league money while still in the minors!

Carl Crawford = starting in 2005, guaranteed 4 year deal worth $15.25 million, can reach 6 years for $33.5 million.

Rocco Baldelli = starting 2006, guaranteed 3 year deal worth $9 million, can reach 6 years for $32 million.

David Price = starting in 2007, guaranteed 6 year deal worth $8.5 million that can reach as high as $11.25 million.

Evan Longoria = starting in 2008, guaranteed 6 year deal worth $17.5 million, can reach 9 years for $47.5 million.

James Shields = starting in 2008, guaranteed 4 year deal worth $11.25 million, can reach 7 years for $38 million (or even more with CY young bonuses).

Ben Zobrist = starting 2010, guaranteed 4 year deal worth $18 million, can reach 6 years for $32.5 million.

Wade Davis = starting in 2011, guaranteed 4 year deal worth $12.6 million, can reach 7 years for $37.6 million.

BJ Upton = Repeatedly rebuffed Rays’ approaches.

As you can see, not all of the deals have worked out. Rocco Baldelli’s option years were never picked up, as a painful example. Sometimes the team has to chase the player for a couple of years before they sign, which is what happened with both Carl Crawford and Baldelli. Other players never agree to a long term contract and become the subject of constant trade rumors, which is what BJ Upton is experiencing.

But why are the Rays just about the only team to sign their young talent to guaranteed contracts? As I stated before, the Rays have worked very hard to stay competitive in the AL East. They will never have the income/team payroll of the New York Yankees nor the Boston Red Sox. Not even the Baltimore Orioles and Toronto Blue Jays. The Rays will always be the smallest market in their division, and keeping their homegrown talent for as long as possible is the only way they can succeed. Let’s compare some team opening day salary history (since 2005) and their division placing (I rounded off to the nearest million to make things easier).

Tampa Bay Rays –             New York Yankees –          Boston Red Sox

2011 = $42          2nd              $207          1st               $164          3rd

2010 = $73          1st               $213          2nd              $168          3rd

2009 = $63          3rd               $201          1st               $122          2nd

2008 = $44          1st               $209          3rd               $133          2nd

2007 = $24          5th               $190          2nd              $143          1st

2006 = $35          5th               $195          1st               $120          3rd

2005 = $30          5th               $208          1st                 $124          1st

As you can see the Tampa Rays strategy started paying off in 2008, after multiple years of coming in dead last in the division. The combination of great draft picks, cultivating young talent and a small sprinkling of key free agents have really paid off the past 4 years. You can see the spike year of $73 million in 2010 for the Rays, where they paid Crawford’s last year, along with Carlos Pena and Matt Garza. Losing all 3 All-Stars would normally signal demise for any baseball team, but the Rays did what they always do. Bring up the youngsters and plug the holes. Jeremey Hellickson (24 years old and AL rookie of the year) and Desmond Jennings (25 years old) were two of the young plugs for the Rays last year. You have to think the Rays are scheming to try and sign both to long term contracts as I write.

With so much success with this strategy, where are the other small market teams duplicating it? A few other teams actually have tried the same strategy once or twice, but all it takes is one bad experience and most teams become gun-shy about paying guaranteed millions when they don’t have to. The  recent shining example is the Oakland A’s trying this with Brett Anderson, a brilliant left-handed pitcher. But after just one successful year in 2009, Anderson battled major arm injuries in both 2010 and 2011. He finally gave in and had Tommy John surgery and probably won’t be seen again until 2013, if at all. Pitchers especially, are more fragile and apt to pay low dividends on a guaranteed contract.

So what exactly did the Rays see in the lefty Matt Moore to make them want to do this then? Well, forgetting his outstanding pitching in the post season, his minor league numbers are insane. To say he is a power pitcher is an understatement, and he has been refining his control to the point of absurdity. In 497 career minor league innings Moore has struck out exactly 700 batters. That breaks down to 12.7 K’s per 9 innings, a level unheard of for a starting pitcher. Only Stephen Strasburg of the Washington Nationals has comparable minor league strikeout totals. Last year, in 27 starts split between AA and AAA, Moore excelled; 155 IP, 46 BB, 210 K, 12-3 record, 0.95 WHIP and 1.92 ERA.

Also, as a coveted lefthander, he has one of the smoothest deliveries you will ever see. His fastball seems to effortlessly roll out of his hand, usually clocked in the mid 90’s. And at 22, the hardworking 6 foot 2, 205 pounder seems to only be getting better. What’s not to love for the Rays? Moore will join quite a solid pitching rotation, one that is also amazingly young!

David Price (L) age 26

James Shields (R) age 29

Jeremy Hellickson (R) age 24

Matt Moore (L) age 22

Wade Davis (R) age 26

This signing is just one in a long line of smart signings by the best small market organization in baseball. The Rays are situated in one of the worst markets in America with an attendance that is simply horrible for a winning team. Especially a team that has been a winning one for 4 straight years! If not for their scouting, player development and multiple signings of long term contracts of homegrown talent, the Rays could never be competitive in the AL East. It speaks volumes that the Rays have made the playoffs 3 of the past 4 years. And with the recent signing of Matt Moore, they are justified in scheming for more!