There’s some argument that the Phillies’ payroll isn’t really capped at $140 millionish, and thus that Werth isn’t necessarily gone. You can ask where any additional money would come from given that they played to 103% of capacity plus maximum playoff rounds for the last two seasons, but that might be the wrong way to frame the question.
The question isn’t whether they can make as much money as they did in 2008 and 2009, it’s what makes them the most money in 2011 and 2012 and 2013. (Let’s just go ahead and assume that in 2014-2016 they are old and screwed.)
One of the big pushes in sabermetrics the last few years is to determine not just how many wins above replacement a given player is — what BP calls WARP and Fangraphs calls WAR — but also how much money those wins are worth. The basic premise is that winning teams get better attendance and make more money, but even more importantly, teams that make the playoffs cash in big time. So wins up to about 81 are worth the same amount, then each win is suddenly worth a lot more, peaking at about 91, then coming back down again because there’s no point paying for more wins than it takes to make the playoffs.
So wins are worth more money to contenders, which is why they’ll pay the premium. And it’s not the same for every contender, either; the Twins don’t make as much money as the Red Sox no matter what.
The market price of a win, from free-agent signings, appears to be about 4.5 million dollars this year. For a big-market contender, like the Phillies, it might be more like 6 million.
In other words, all other things being equal, the Phillies are MORE LIKELY to turn a profit paying $160 million for a team that should win about 93 games than they are to turn a profit paying $140 million for a team that should win about 89 games.
Which makes the question: Can Jayson Werth get them those four wins?
Werth’s WAR the last two years was 5.0 and 4.8. That means he was worth $22.5 million and $21.8 million, based on each year’s market prices, to the average team. He was worth more to the Phillies. (BP has him at 4.8 and 5.8 WARP those two years, about the same.)
$22 million! No one is saying Werth is going to get that kind of money. $16 or $18, which is more like what I’ve heard, would be a steal for five wins.
But let’s remember that the Phillies’ other choice isn’t a replacement-level player getting paid the minimum, it’s Domonic Brown getting paid the minimum. Here are PECOTA’s projections for the next three years:
Werth 2011 4.0 WARP
Werth 2012 3.7
Werth 2013 3.0
Brown 2011 2.1
Brown 2012 2.3
Brown 2013 2.4
So PECOTA thinks that Werth would gain them 1.9, 1.4, and 0.6 wins each of those years.
That’s only worth paying a premium of about $12, $9, and $4 million. So there’s obviously no way the Phillies want to do that.
But — PECOTA always predicts declines for guys over 30, because that’s the safe bet. Let’s give Werth credit for being a stud who should have been good years earlier if not for the Dodgers medical staff, and suppose that he will retain values more like 5.0, 4.5 and 4.0 wins those years.
And, let’s suppose Brown isn’t really a major leaguer yet and is only worth 1.0 wins each of those years. Or that they move Brown to left and play a 1-win guy like Ben Francisco in right.
Now Werth gains them 4.0, 3.5, and 3.0 wins. That would be worth a premium of $24, $21, and $18 million.
If that’s how the next three years go, then the Phillies can, and should, keep him at the prices I’m hearing, like 5 years/$80 million.
Unfortunately I just gave the same presentation to Theo Epstein.