The Value of a Compensation Draft Pick

            If the magnitude of deals for free agents like Robinson Cano and Jacoby Ellsbury already seem too high to you, the market rate might be even higher than you see on the surface. Both Cano and Ellsbury were signed with draft pick compensation attached. If MLB teams are evaluating the draft picks accurately, the valuation of Cano and Ellsbury are even higher than just their contracts on surface. How much should the draft picks discount these contracts? To answer the question, we have to determine how much the draft picks are worth by themselves.

Predictions for 2013 NBA playoffs

OKC 4-1 HOU (4-2)
SAS 4-1 LAL (4-0)
DEN 4-2 GSW (2-4)
MEM 4-3 LAC (4-2)
MIA 4-0 MIL (4-0)
NYK 4-3 BOS (4-2)
IND 4-1 ATL (4-2)
CHI 4-2 BKN (4-3)
MEM 4-2 OKC (4-1)
SAS 4-2 GSW (4-2)
MIA 4-1 CHI (4-1)
IND 4-2 NYK (4-2)
SAS 4-3 MEM (4-0)
MIA 4-2 IND (4-3)
MIA 4-2 SAS (4-3)

Giving Up Too Much for Igoudala

The Golden State Warriors have decided that Andre Iguodala (48 million dollars over 4 years) is worth the assets it has to give up to dump the contracts of Andris Biedrins, Richard Jefferson and Brandon Rush on the Utah Jazz, namely two first round picks, including one in the coveted 2014 draft. However, the Warriors are likely as far from contention as they are from the lottery, and that is not a point where the team should be trading the future for the present.

Clippers Shore Up, but Questions Remain

The Los Angeles Clippers have used their most valuable chip in Eric Bledsoe to acquire two wing players they desperately need, Jared Dudley from the Phoenix Suns and J.J. Reddick via sign-and-trade. They also give up Caron Butler’s expiring contract to the Suns in the process. The Milwaukie Bucks will pick up two second-rounders in the trade, but the focus should be on the Clippers side. Dudley and Reddick solve one of the Clippers’ wing positions, but the other remains in doubt unless Matt Barnes re-signs far below his market value.

A Minimal Upgrade at Minimal Cost

Let the trade rumors begin to fly! The first significant trade of the season has occurred, as the Baltimore Orioles acquire  Scott Feldman and Steve Clevenger from the Chicago Cubs for Pedro Strop, Jake Arrieta and international bonus slots.

Recapping the Orioles' Offseason

Courtesy of Keith Allison

When your biggest offseason move is re-signing a player who was released by the Pittsburg Pirates half a year ago, you probably had a really quiet and uneventful offseason. That is exactly what the Baltimore Orioles have done. Dan Duquette, after leading the Orioles to a surprising playoff appearance in his first season as the general manager, decided to stand pat with the current core and hoped for a repeat performance from the group in 2013. The only major changes the Orioles made this offseason include declining Mark Reynolds’s option, letting go of Joe Saunders, signing Jair Jurrjens, claiming Alexi Casilla off waivers and re-signing Nate Mclouth.

Cleveland Indians paying for Bourn in the future

Scott Boras has always been known to wait for the market to develop for his free agent clients. Sometimes it works, as evidenced by Prince Fielder’s nine-year $214 million contract with the Detroit Tigers in late January last offseason. Sometimes it doesn’t. Michael Bourn is an example of how Boras’s plan fails as he signs with the Cleveland Indians for $48 million for 4 years. However, from the perspective of the Indians, this is an absolute steal for a player who was rumored to be asking for $100 million at the start of the offseason, even though Bourn’s presence does not push the Indians even remotely close to a place in the playoff. 

Why did the Mariners give Felix Hernandez 175 million dollars even though he may not be worth it?

The Seattle Mariners have just extended Felix Hernandez to the largest contract a pitcher has ever received, for reportedly 175 million dollars over 7 years. Hernandez is among the best five pitchers in baseball today, and will only be 33 when the contract ends. This kind of investment for a pitcher is inherently risky and Hernandez may not perform up to his contract on the field, but it is understandable why the Mariners would commit this amount of money to their only franchise superstar.

Raptors the lone loser of Rudy Gay trade

Rudy Gay has finally been traded, through a three-team trade to the Toronto Raptors. Rudy Gay has always had the looks of a superstar, which probably earns him his max contract in the summer of 2010. However, he has never played up to his potential on the court and he is having probably his worst season statistically since his rookie season. This trade gives the Raptors a potential All-Star, while providing both the Grizzlies and the Pistons with financial relief in the future.