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Trading Nolan Arenado: The financials of dealing a superstar in his prime

Patrick Lyons
Patrick Lyons
January 31, 2021
Trading Nolan Arenado: The financials of dealing a superstar in his prime

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Patrick Lyons

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ColoradoFanOxford

ColoradoFanOxford

February 1, 2021

Patrick, at this point I want to wait for the final details of the deal to burn any Monfort/Bridich effigies, but I think this does give us more insight into recent past and near future. To have inked Nolan to that deal with the opt out pushed the Bridich tells us they wanted to push for a WS in 2019/2020. They were buying two years of labor solidarity with Nolan, and hoping to push one final try for a WS. Okay, totally get that. Clearly they never wanted Nolan to stay beyond 2021. And to be blunt, smaller-market clubs should only ink big contracts for age 30-35 players if their name is Trout or Aaron. Could Nolan be a stud in age 30-35 season? Of course…but the risk was always too great. Since Nolan never would have signed an extension for a couple of years, it gave both sides protection. And assuming baseball finances continued to boom (a good belief in January 2019), Nolan could have opted out and make big money somewhere but Rox would have gotten 2-3 more seasons of prime Nolan. They were buying short on margin, and figured a liquid market would protect them.

But then 2020 happened. If the details don’t move much, this tells you all you need to know about how baseball views 2021-2022. There was no way the union would have allowed Nolan to opt out if his contract shrunk by $5-7m/year, as it would have next winter. And the Rox truly believe they do not have the budget to have Nolan and anyone else beyond 2021 in that environment. The talk out of Arizona, the potential fan limits for 2021, and the death of cable deals has changed the financial calculus for a lot of clubs. The Rox put themselves in a corner with an unhappy ball player they couldn’t afford where all but perhaps half a dozen other clubs were in the same situation. And to free themselves…a major margin call has come due. To be honest, aside from providing the fig leaf of cover the union contact requires, I’m not sure any prospects would have been included. The NHL we see prospects going as part of Nolan just to save the salary cap situation (ie, get the other team to take a bad contact). Given what is clearly the Rox financial forecasts (and I do believe this may give a picture of Monfort’s overall business portfolio which is clearly cashflow-starved due to Covid), this was what they were stuck with. Well, this or Nolan and the Toddlers. While I think Bridich is an awful GM (because player relationships are part of it), the mistake was betting in January of 2019. Maybe it was the right move, coming off a Game 163 loss of a West division banner and a better run to WS. But the bet blew up big in their faces…along with a lot else the past few years.

Maybe we should just be grateful it’s over. But unless a new GM and staff are in place to build for 2022 and beyond, it’s hard to think past mistakes won’t be repeated.

ColoradoFanOxford Replying to ColoradoFanOxford
Patrick Lyons

Patrick Lyons

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February 1, 2021

A few great points here, Christopher, specifically, “They never wanted Nolan to stay beyond 2021.”

As for this, “Rox would have gotten 2-3 more seasons of prime Nolan (with the long-term deal that includes an opt-out).” This is part of the problem. Colorado left itself with only two options: the relationship is great and he stays; Nolan opts out and Rockies get out from under the contract and can still look like the good guy. Had they considered what the opt-out would do for drastically reducing his trade value, they wouldn’t have given the opt-out. They wanted to have their cake and to eat it, too. That’s something that someone who thinks they’re incredibly intelligent would do. Sound like anyone you know?

“There was no way the union would have allowed Nolan to opt out if his contract shrunk by $5-7m/year, as it would have next winter.” I don’t know how true this is at the moment. After 2021, Nolan was due 5 years at $164M. With a normal Nolan season, he certainly could have gotten close, if not matched that deal. Regardless, the MLBPA cannot prevent a player from opting out. They can impress upon the importance of not opting out, but they could not prevent him from doing so. Sure, if he opts out and got 6 years at $164 – very reasonable – the money is the same, but not the average annual value. Some union mates would be pissed, but it wouldn’t be the end of the world.

“Unless a new GM and staff are in place to build for 2022 and beyond, it’s hard to think past mistakes won’t be repeated.” I couldn’t agree more. A broken clock is right twice a day. Major changes need to be made in order for this franchise to ever win a World Series. It’s not bad luck that keeps a team from not winning its own division for 28 consecutive seasons.

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