Signings for the Future

The Royals’ General Manage Dayton Moore seems to be taking a page out of John Hart’s General Managing handbook.  Hart, of course, was the GM for the Cleveland Indians in the 1990’s.  Hart found himself loaded with a stable of young stud players such as Kenny Lofton, Carlos Baerga, Jim Thome, Omar Vizuel, and Albert Belle, just to name a few.  Hart aggressively signed his young players to early, long term contracts, locking them up and buying out their arbitration years.  The Indians were very successful and these players made the Indians an AL powerhouse in the 90’s.

Dayton Moore has spent much of this spring locking up some of his younger players to long term contracts.  Moore started off by signing 21-year old catching phenom Salavador Perez to a club friendly, 5 years, $7 million deal, plus club options for 3 more years and up to nearly $20 million more.  The Royals are forecasting Perez to be an above average MLB catcher and were willing to buy out his arbitration years at slightly below market value.  If Perez proves to be a catching stud muffin, the Royals will be able to lock him up for 3 more years at below market value.  Of course, Perez promptly went down with a torn meniscus, which will set back his development 3 months.  Still, Moore’s thinking was sound.

Next, the Royals bought shortstop Alcides Escobar out of his arbitration years with a 4-year, $10 million signing.  In addition, the Royals hold two options years for an extra combined $11.75 million.  Escobar may never be a great hitter but he is so incredible with his glove.  The Royals have NEVER had a shortstop with the defensive skills of Escobar.  I love watching this dude with the leather.  He makes the routine plays and he makes the fantastic plays.  His range is terrific in every direction and he has a rocket launcher for an arm.  It wouldn’t surprise me if Escobar eventually develops into a guy who can consistently hit around .275 with 10-12 home runs.  He has the speed to swipe 25-30 bases a year as well.  Make no mistake though; this contract for his defense.  The Royals again guaranteed long term money in exchange for locking up a top notch defensive player through the arbitration years and if Escobar can improve his overall hitting, Kansas City will have a terrific shortstop below market value through 2017.

This last week, Moore finally locked down Alex Gordon.  Gordon was drafted second overall in 2005 and was immediately (unfairly) crowned the savior of the organization.  After ripping through minor league pitching, Alex Gordon struggled in the majors with both poor performances and injuries.  At times, he looked like a colossal bust.  In 2011, he finally broke out, hitting .303 with 23 homers and 87 RBI and winning a Gold Glove in left field.  Gordon finally showed the talent that made him a top two draft pick.  Moore signed Gordon to a 4-year, $37.5 million deal, with a player option for a 5^th year for an additional $12.5 million.  This signing was as much of a public relations coup as anything else.  Fans wanted Alex Gordon signed long term.  The Royals went out on a limb with Gordon because he has only had one very good year.  Now he is locked up for 4 years. If he performs as he did in 2011, this contract pays Gordon fair market value.  If Gordon falters, Moore and the Royals may regret this deal.

What is important to the long suffering fans of the Royals, who have watched the team ship off their best players year after year with poor returns, is that Kansas City is putting forth the effort and money to lock these players up long term.  Another star, Billy Butler, was extended in 2011 and he is locked up through 2014, with a club option for 2015.  Young stars like Eric Hosmer and Mike Moustakus have just finished their rookie seasons and are under team control for 5 years.  Dayton Moore has a core set of players he can build upon.  By signing these longer contracts, he is trying to fray the costs down the road.  It will be difficult for Kansas City to ever have a $100 million payroll, so taking a few chances on some players now can only be a good thing.  Even if some of these players do not pan out completely, these contracts are not going to be crippling.  The Royals want to try to keep some long term cash in reserve in case Hosmer and Moustakus turn into the players the organization hope they can.  I am sure Moore is making an effort to lock up Hosmer as well, but signing a guy of that caliber of talent will not be easy. 

It is a delicate balance for small markets teams to lock up cash for long periods of time and to be competitive.  Teams like the Royals have a hard time convincing stars to sign with their team and coming up with enough money.  Small market teams have to develop their own players and find a way to keep them long term.  Two decades ago, John Hart made up the blueprints; Dayton Moore is trying to copy his results.  Hopefully, he can add a World Series Championship that eluded Hart and the Indians.

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