FanPost

Is the Gavin Floyd signing smarter than we think?

How much of a commodity is a 1 year contract in today’s market? I do not have the economic background to analyze this, but it is fun to play around with in my head. For example, how much would it take to sign Robinson Cano to a one year contract. 50M? Certainly much more than the AAV he signed for.

We have signed Gavin Floyd to a 1 year contract, meaning we stand to benefit from the signing while also taking on minimum risk. These low-risk contracts are hard to find in today’s market. Even a 1yr/10M contract like the one Jim Johnson signed became appealing to a cost conscious team like the A’s (as a side note, this makes Kimbrel look like a bargain, regardless of the arbitration decision). This is a result of contract inflation in years (not just money) – players are demanding more years on their contracts, and they are getting them. I like to think of it this way: suppose we had 10M to spend on the free agent market. Anyone who would deserve 1/10M, could definitely ask for 3/30 or even 4/40 (see: Infante, Omar).

I am starting to think that the Gavin Floyd signing is smarter than we think. The worst case scenario is that he provides us with nothing, but in that case, at least his injury concerns gave us the leverage to minimize our risk to one year (even O’Flaherty got 2 years in this market). The best case scenario is that he provides us with valuable innings as some of our starters inevitably start to break down. The best-best case scenario is that his performance warrants a QO and rejection.

This FanPost does not express the views or opinions of Talking Chop.

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