Markakis Contract Suprisingly No Help to Ethier
After yesterday's analysis of Andre Ethier's pending arbitration case (hint: Ethier should settle), another comparable entered the fray. The Baltimore Orioles signed Nick Markakis to a 6 year, $66.1 million contract extension, which on the surface seems like it should have Ethier licking his lips. However, as you will soon see, this contract actually helps the Dodgers' case.
Let's look at how Markakis and Ethier compare on the field:
| 2008 | ||||||||||
| Player | 2B | HR | SB | R | RBI | BA | OBP | SLG | OPS+ | WAR |
| Nick Markakis |
48 | 20 | 10 | 106 | 87 | .306 | .406 | .491 | 134 | 5.4 |
| Andre Ethier | 38 | 20 | 6 | 90 | 77 | .305 | .375 | .510 | 130 | 3.6 |
| Career | ||||||||||
| Player | 2B | HR | SB | R | RBI | BA | OBP | SLG | OPS+ | WAR |
| Nick Markakis |
116 | 59 | 30 | 275 | 261 | .299 | .375 | .476 | 121 | 10.9 |
| Andre Ethier | 90 | 44 | 11 | 190 | 196 | .299 | .364 | .482 | 116 | 7.4 |
It looks to me like Markakis is and has been the better player. Not overwhelmingly so, but better nonetheless. Markakis just signed a contract for $66 million (covered ably by our friends at Camden Chat). How could this possibly mean anything other than great things for Ethier? Well, let's look further into Markakis's contract. Here's how the money is spread out:
Signing Bonus: $2.1m (paid over 2009-2010)
2009: $3m
2010: $6.75m
2011: $10.25m
2012: $12m
2013: $15m
2014: $15m
2015: $17.5m mutual option ($2m buyout)
Markakis has 3 years service time, just ahead of the 2 years, 153 days for Ethier. Since MLB spreads the signing bonus over the life of the contract in its calculations, we must add $350,000 to each year of the contract for comparative purposes. Thus, Markakis's 2009 salary is $3.35 million.
The Dodgers offered $2.65 million, and Ethier countered with a request of $3.75 million. The midpoint is $3.2 million, and for arbitration purposes, that is the figure both sides will try to argue against. Markakis has a higher OPS+, higher WAR, and has more service time than Ethier. There's no way Ethier should be making more than Markakis in 2009, based on past performance.
Yet another reason Ethier should settle rather than go to arbitration.
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Not sure I like your logic/math
If MLB rules apply the bonus evenly over the contract, then those same rules apply the average salary as each year’s salary. That is, MLB does not distinguish a $66M/6y contract structured as $60M bonus paid on day one, and $1M/year for 6 years from a $66M/6y contract paid at $11M a year for 6 years.
You are choosing to divorce the terms of the deal on the bonus, but then not divorcing the terms of the deal as to annual salary. By doing so you have created a worst possible scenario for Either. You either need to view this as an $11/year deal in 2009 or view it as a $3M + payable portion of bonus in 2009 deal for 2009.
Even done your way, however, I don’t see the Markakis comparison nearly so bad as you do for Ethier. Firstly, you are using WAR, an offense only Stat unlikely to be considered by arbitrators. They have nearly identical career and 2008 BA and are very close on OPS. Defensively, Ethier can make a decent case for being a wash. The best case for Markakis being significantly better is that Ethier is apx. 1.5 years older.
I am not saying this is a slam dunk for Ethier by any means, but I think given that the midpoint is below Markakis also adds to Ethier’s chances.
If what you are saying is that Ethier has a hard case to make, I agree. But there is a case there and I don’t see Markakis as hurting it. It would still benefit both parties to settle this.
Grr, need an edit function
… WAR, an offense only Stat… was a combination of two thoughts. WAR DOES consider defense. I’ll suggest both that arbitration likely focuses mostly on offense and uses more traditional statistics not requiring defining replacement level nor requiring quantification of defense into runs.

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