Pujols Signs With Angels

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vinsanity
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Re: Pujols Signs With Angels

Post by vinsanity »

skmsw wrote:
guess my only issue with what steve said was that I don't think it was phase 1 of replacing him as much as the insurance policy against him leaving ... It's a minor detail that'll bother me for awhile when people speculate whether Carpenter, Holliday, Berkman extensions kept them from 'having the money'.
I think they had the money. I think they could have offered something much more competitive than 9/<$200, 5/$150, or 7/$175 (if any of those are accurate; by my sources, they are the best I have).

I think they were worried about the risk. Those who agree that he "would not have been worth it" for a ten-year deal probably share that concern; injury, age, decline in performance, etc make it hard to project him to pay off at market value for the whole length of an 8 to 10 year contract.
That was my point. I think they had a ceiling on how high they'd go. They could have afforded 10/200. The spent in the past and left room for that 'ceiling' they'd spend hoping that's all they'd have to spend. They didn't get Albert because they didn't want to spendmore, but people (ESPN/sports reporters) will talk about the Berkman/Holliday/Carpenter stuff keeping them from havin the money. And that is going to annoy me.
But I personally, in my opinion, doubt that the problem was that they couldn't do it. I think they decided two years ago they weren't going to do it, unless it came in the form of a deal that minimized their concerns around long term investment and risk. Not that the money wasn't there to pay him his $25mm and still field a good team;
Right, we agree 95%. I'm saying, that two years ago when Lozano/Pujols were asking for 10/300 they weren't going to do it. They looked at Teixeira, AGonz and Howard along with a younger Fielder hitting the market this year and figured it wouldn't take 10/300 to sign him. They were thinking 9/200 or 9/180 or whatever they offered would take care of it. They probably took him a bit at his word on the "Why would I leave for a few million a year?" statements.

But I don't think when they signed Holliday 2 years ago they were thinking "We have 0% chance of retaining Pujols." Or "We have no interest in retaining Pujols." was the thought process. I believe Holliday was viewed as a good enough player to build around should he leave, and a great, affordable compliment to Pujols if he stays. I think they were comfortable with $21-22M/year for Albert and left that room available, but weren't going to go above that for the risk.

And they were almost right. If it wasn't for Arte Moreno blowing his load, he probably would have been back.

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Re: Pujols Signs With Angels

Post by jagtrader »

If the Rangers didn't intentionally walk Pujols in 10th inning of Game 6, odds are his final at-bat in a Cardinals uniform would have ended the World Series with a loss.

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mikechamp
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Re: Pujols Signs With Angels

Post by mikechamp »

I don't watch SportsCenter anymore, because I now get the MLB Network, usually read to get my information and have only passing interest in the other sports ESPN hypes, I mean, covers. But I made a point to watch last night, after MLB's Hot Stove program was over.

What was the lead story? On the edition of SportsCenter broadcast live from LA??

"Chris Paul trade is denied by David Stern"

Welcome to LA, Albert. Your monumental signing isn't even the lead story on a sports program broadcast from your new city.

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Re: Pujols Signs With Angels

Post by Spider John »

Cardinals fans are predictably very upset with Albert Pujols for choosing to leave St. Louis and sign with the Angels for considerably more money, but it’s worth remembering that because of MLB’s service time and financial structure he’s spent most of his career being significantly underpaid.

Pujols was paid around $104 million for his 11 seasons with the Cardinals, during which time Fan Graphs calculates his overall value as being approximately $330 million.
http://hardballtalk.nbcsports.com/2011/ ... -paid-for/

Bill DeWitt is a business man, and it occurs to me that he considers that he received ten years of HOF performance at below market value as a win on the Good Business Scoring System. If he had signed AP at his market value today then this business deal would have been reduced to, at best, break even , and likely a loss.

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Re: Pujols Signs With Angels

Post by TimeForGuinness »

Spider John wrote:
Cardinals fans are predictably very upset with Albert Pujols for choosing to leave St. Louis and sign with the Angels for considerably more money, but it’s worth remembering that because of MLB’s service time and financial structure he’s spent most of his career being significantly underpaid.

Pujols was paid around $104 million for his 11 seasons with the Cardinals, during which time Fan Graphs calculates his overall value as being approximately $330 million.
http://hardballtalk.nbcsports.com/2011/ ... -paid-for/

Bill DeWitt is a business man, and it occurs to me that he considers that he received ten years of HOF performance at below market value as a win on the Good Business Scoring System. If he had signed AP at his market value today then this business deal would have been reduced to, at best, break even , and likely a loss.
...on the field, but he still would have been making money on Pujols for life.

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Re: Pujols Signs With Angels

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mo's on 590 right now

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BW23
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Re: Pujols Signs With Angels

Post by BW23 »

mikechamp wrote:I don't watch SportsCenter anymore, because I now get the MLB Network, usually read to get my information and have only passing interest in the other sports ESPN hypes, I mean, covers. But I made a point to watch last night, after MLB's Hot Stove program was over.

What was the lead story? On the edition of SportsCenter broadcast live from LA??

"Chris Paul trade is denied by David Stern"

Welcome to LA, Albert. Your monumental signing isn't even the lead story on a sports program broadcast from your new city.
I went to the LA Times site this morning just to see if the Paul story was the lead over the Angels signings. It was actually the lead story of all the news, on the website anyway. Pujols now plays for the fourth most popular team in that market.

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Re: Pujols Signs With Angels

Post by AdmiralKird »

TimeForGuinness wrote: ...on the field, but he still would have been making money on Pujols for life.
Yeah, but financially once you get ~20 years out from your investment the revenue streams produced are negligible compared to the original cost of investment.


Okay, this is a crappy example from a sleep deprived guy who is just trying to illustrate a point but:

Say you have an upfront cost of $5,000. If you expect a $515 return per year FOREVER the actual formula to calculate your return is just to divide by the discount rate. So if your required rate of return is 10%:

If you invest this at age 30 and expect to live to 80 and see 50 years of $515 payments, it would seem like it would be a great deal, afterall, $515x50 is $27,750, but its really not that great of a use of your money if you're looking to beat the average investment, which all businesses are looking to do. Keep in mind also his children's children and any holder of Dewitts Estate in the future would also receive $515 a year.

Calculated, -5,000+515/.1 is only a $150 return, or 3%, above the average alternative investment.

Lets say Dewitt could wait three years and put this money in the next Albert Pujols instead, who will earn 3x his paid value, so in this example 200% more

-5,000+1545/.1= $10,450. I have to leave but you have to discount this back another 3 years but as you can see the difference is huge to not put it in a deal thats just, okay, or almost break even like Pujol's contract would have been, even if it turns out to be a decent deal, which it most likely wouldn't.
Last edited by AdmiralKird on December 9 11, 11:01 am, edited 4 times in total.

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Re: Pujols Signs With Angels

Post by ghostrunner »

I have to say, if we did come in with shorter offers after the season, I don't blame him for being pissed. I don't know why they'd think that would fly when clearly the length of the contract was important to him. They may as well have just said goodbye then.

I don't know that I'd want them to match the Angels offer, but if there was ever a time to break with their customs on contract lengths, IMO this would have been it.

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Re: Pujols Signs With Angels

Post by Slider »

Spider John wrote:
Cardinals fans are predictably very upset with Albert Pujols for choosing to leave St. Louis and sign with the Angels for considerably more money, but it’s worth remembering that because of MLB’s service time and financial structure he’s spent most of his career being significantly underpaid.

Pujols was paid around $104 million for his 11 seasons with the Cardinals, during which time Fan Graphs calculates his overall value as being approximately $330 million.
http://hardballtalk.nbcsports.com/2011/ ... -paid-for/

Bill DeWitt is a business man, and it occurs to me that he considers that he received ten years of HOF performance at below market value as a win on the Good Business Scoring System. If he had signed AP at his market value today then this business deal would have been reduced to, at best, break even , and likely a loss.
I really DISLIKE those type of articles. No one forced AP to sign through arb. and his first 4 years of FA. He could have easily went to arb. each year raked in a bunch of dough and left in his first year of FA...yankees or red sox would have gladly given him 10/300. It is careless journalism...Pujols is the one who chose security over the $ first time around. No one to blame but himself

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