The Latest Thing in Undervalued Commodities
On-base percentage? That's so five years ago.
Flipping a closer fresh off a great year for guys who are cheaper and more valuable? Check.
Hoarding potential starters? Only GMs who live in caves haven't tried or considered the idea.
Players with little major-league service time? Yesterday's news. (Or more accurately, today's news - and therefore, not undervalued).
So what's the latest (and maybe last) frontier in undervalued commodities?
Exploiting the 40-man roster. Update [2007-2-28 20:12:33 by notsellingjeans]: The conversation takes a turn down in the comments section of this diary with a discussion of how the A's should allocate any new additional funds they might enjoy after a move to a new stadium in Fremont. For example, if payroll increased 15 million, should that be spent on a.) one high-priced free agent? b.) more extensions for homegrown guys? c.) international scouting and signing? d.) the draft - picking more guys with "signability concerns"?

Every team obsesses over its 25-man roster. But league-wide, those last 15 spots are almost criminally neglected - littered with frustrating prospects who are four years away from blooming, or grizzled slugs doomed to a lifetime of AAA. And yet in an era where players can no longer take amphetamines or steroids to stay healthy, strong and fresh, the full 40-man roster is more important than ever.
How many teams go a full season without an injury to their 25-man roster? For teams that can't afford stars to be successful, they need to steal Win Shares where they can - at the back end of the roster.
And thus the A's have 30 major-league-ready players, while remarkably still having a lower budget than their competitors. They absorb injuries better than any team in the league because their "replacement-level players" simply aren't replacement-level - they're far better. In anticipation of injuries, they have arguably 15+ pitchers in the system who would be on the 25-man rosters of many other teams.
Examples of how the A's use their full 40-man roster better than any team in Major League Baseball:
Exhibit A:
Chad Gaudin.
The Blue Jays, in their willy-nilly pursuit of free agents in the '06 offseason, needed to clear 40-man roster spots. Knowing this, the A's pounced and became the free beneficiaries of a 23-year-old pitcher who posted a 3.09 era over 64 innings for 380K. They'll have cost control over him for five more seasons.
These are the moves that win playoff berths and contribute to a decade of defying the odds with a lower budget.
Exhibit B(?):
Lenny DiNardo, Scott Dunn, Donnie Murphy.
All three are 40-man roster casualties of teams that didn't have the roster space this offseason.
-Donnie Murphy http://www.thebaseballcube.com/players/M/Donnie-Murphy.shtml
When the Royals wanted to make a splash and sign Meche, they needed to open a 40-man roster spot. For petty cash, the A's acquired a second baseman who posted a .313/.523./.885 line at age 22 in AA. He'll be 24 next month, and has plenty of time to develop into a major league player.
-Scott Dunn http://www.thebaseballcube.com/players/D/Scott-Dunn.shtml
Courtesy of the DRays, who are short 40-man spots in part because of all the high schoolers they've had to nurse along who aren't ready for the league (but have to be protected on the roster for fear of losing them in Rule V). This 28-year-old posted a 2.73 era in AAA last year while striking out 70 in 66 innings. He has consistently struck out over a batter per inning throughout the minors. Maybe with a great A's defense behind him he can become a slightly-below average MLB reliever. Or he could have a great spring and become a trading chip.
And again, he was acquired for free.
-Lenny DiNardo
http://www.thebaseballcube.com/players/D/Lenny-DiNardo.shtml
A roster spot casualty of the Red Sox's off-season largesse, this 27-year-old lefty couldn't hack it in 39 innings in the murderous AL East last year (7.85 era, 2.08 whip). However, he never had a defined role (6 relief appearances, 7 starts), and he was hurt for part of the year. In '05 he had a 3.15 era in 108 minor-league innings as a full-time starter in AAA, and he was lights-out in 8 appearances with the Red Sox the same year (1.84 era, 14 innings).
In an era when a few major league bullpens are lefty-less and Jamie Walker makes 12 million, can a team ever hoard too many potential quality lefty arms on its 40-man roster? Billy seems to have an answer to that question.
Dunn, Murphy, and DiNardo: If even one of these three becomes a major league player, it's a testament to brilliant scouting and management of roster space. All acquired for pennies.
Exhibit C:
Ryan Goleski, Jay Marshall
http://www.thebaseballcube.com/players/G/Ryan-Goleski.shtml, http://www.thebaseballcube.com/players/M/Jay-Marshall.shtml
The Rule V draft - One man's trash is another man's treasure.
Here's what happens when you're a major league team that doesn't manage your 40-man roster well:
1.Your 40-man roster is cluttered with players who are minor leaguers over the age of 29 (you'd be amazed how many teams have four Hiram Bocachicas on their 40-mans).
2.You have 3-5 Dominicans or Venezuelans who are 23 and have been on your 40-man for 2 years already (for fear of losing the next Johan Santana in the Rule V), yet they're STILL 3 years away from even potentially being a major league contributor. In the meantime, they'll eat up valuable 40-man roster spots - preventing you from acquiring above-replacement-level depth in case of injuries, and also preventing you from dipping into the Rule V draft. Unlike the A's, you rarely draft college players (21-22 year olds) who will have revealed their MLB potential by the time the team is required to protect them on the 40-man at age 25/26.
3. You also don't even leave an open roster spot to SELECT a Rule V draft pick, which would give you the extra time to evaluate him and keep or trade him in spring. Nobody knows why you do this - maybe because you choose to study your team only by reading the wisdom of Ray Ratto's column and the local sports page, or you just haven't learned how to email and use computers yet. Maybe you're afraid of Roman numerals. Again, no one's really sure what you're doing.
In short, you have either no balls or vision, or both, and your last name is Bavasi, Stoneman, or Hendry. Maybe a few others.
Here's what happens when you manage your roster better than any team in the league, and Michael Lewis follows you to the john:
You plan ahead to enter the Rule V draft with not one but TWO extra 40-man roster spots, planning to find hidden gems with meticulous research.
You research every 40-man roster in the league. Then you research every minor league system in the league. Using your own scouting department and metrics, you find the 41st-best player in every major league system (which, in a few cases, is in fact their 30-35th best player and the team hasn't evaluated its own talent well).
In your rigorous analysis, you decide the best unprotected player in baseball is Ryan Goleski. You are almost certain he's a future big-leaguer. So you pay the DRays 100K for the rights to a future major league player - a pittance in exchange for the incredible value of a player's 0-3 service years. And you pounce.
You don't have room in your OF, but you know that if Goleski's hurt, you can use a Rule V loophole to play up his injury, stash him on the DL for a whole year and wait until '08 when three of your outfielders are FAs (Bradley, Stewart, Kielty), and he's infinitely more likely to earn a roster spot.
If Goleski is healthy and productive, and the rest of the outfield is as well, he can be yet another trading chip at the tail end of spring.
For the coup de grace, you'll use your second Rule V pick on a LOOGY - the easiest type of Rule V player to stash for an entire year without stunting his development. If he proves to be overmatched, you can use him to mop up games; if he's decent, you can build his confidence by throwing him only in favorable matchups vs. lefties.
Jay Marshall may only have pitched as high as single A, but he does two of the most projectible things a pitcher can do - he induces a phenomenal number of groundballs, and he has a tremendously low BB/9 rate (8 in 62 innings last year).
Hmmm...undervalued side-armer in the White Sox system with great groundball and walk rates?
I'm experiencing Chad Bradford-induced deja vu, my friends - LEFT-HANDED Chad Bradford-induced deja vu. Except that it's without those silly foreign marks that are supposed to be above the letters in deja vu, because I don't know how to type them on a computer.
If even one of these five new additions to the 40-man roster pans out, the A's will earn an incredible return on their nearly free investments.
It's this type of creative, one-step-ahead-of-the-pack thinking that keeps our favorite team in perennial playoff contention despite their budget.
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41 comments
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déjà vu
But Goleski has been declared healthy by the team,so I have a hard time imagining him going to the DL,that means that if he stays,either Kielty or Johnson leaves.
The bullpen is already more than full (halsey,windsor,komine macbeth,dinardo,dunn and castilla can come in if a bullpen member goes on the DL)
Unless jay marshall retires all the lefties he's asked to then he's gone.
Of course injuries in spring training could just "solve" the problem,we'll have to wait and see (kotsay's already having back problems for exemple)
by J Rod on
Feb 28, 2007 4:04 AM PST
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Love the analysis
by JJ on
Feb 28, 2007 7:46 AM PST
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I don't know about that last point...
by Cutthemullet on
Feb 28, 2007 10:23 PM PST
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and, of course...
by Cutthemullet on
Feb 28, 2007 10:28 PM PST
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Building positions of strength
Last year, if player health weren't such a crisis, our bullpen was so deep that we could have traded decent relievers at the deadline. Health was atrocious, and no one was that desperate for relievers, so it didn't work out, but that's part of the risk of the approach. Not every position can be one of strength; Billy uses his roster to fill out a couple of positions that he thinks teams will be desperate for mid-year.
This year, those positions are relievers (potential closers?) and outfielders. Good bets, since those are the two least specialized positions on a roster.
by oblique on
Feb 28, 2007 7:47 AM PST
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we may have stockpiled a few extra OF's...
by Cutthemullet on
Feb 28, 2007 10:31 PM PST
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Of course, we still need some help in
by salb918 on
Feb 28, 2007 7:54 AM PST
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Hmwuwhuwha! My hair!
by monkeyball on
Feb 28, 2007 9:34 AM PST
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Good post.
by talex on
Feb 28, 2007 8:38 AM PST
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diary of the month
by xbhaskarx on
Feb 28, 2007 9:05 AM PST
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(non-Ghostriding division)
by FreeSeatUpgrade on
Feb 28, 2007 12:25 PM PST
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make up your mind
by Cutthemullet on
Feb 28, 2007 10:34 PM PST
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your diary won in the BAC > .20 division
by xbhaskarx on
Mar 2, 2007 9:52 AM PST
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I need some challengers in that category...
by Cutthemullet on
Mar 2, 2007 11:12 AM PST
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also...
Tell me the GEICO cavemen aren't going to be offended by that line.
by Cutthemullet on
Feb 28, 2007 10:39 PM PST
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Dominicans and Venezuelans
More importantly, one of the reasons the A's farm system has been in decline is a lack of foreign prospects. Not only did the A's get very important players such as Tejada and Ramon Hernandez through international signings, but they also got a bunch of trade chits in Colome, Ortiz, Encarnacion, Vizcaino, German(s), Berroa, and Olivo. Those trade chits (partially) netted the A's Dye, Mecir, Ellis/Damon/Lidle (which led to Swisher), Duchscherer, Bradford, and others.
I wish the A's had more of these players clogging their 40 man roster rather than guys like Murphy and Dunn--who are nice emergency options, but don't have much hope of ever being above average.
by Danny on
Feb 28, 2007 9:16 AM PST
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Right Danny,
However, I believe the point of the diary still stands. Good 40 man roster management is an essential part of being an effective GM, and one area (Harang, Duke, Gaudin, Harville for Saarloos, etc...) where Beane earns his salary.
But having very good/great prospects and more of them is still the ultimate way to build a great team and keep it great.
by jakarta on
Feb 28, 2007 9:55 AM PST
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I didn't spend enough time on that part
-International prospects can sign at age 16. The Rule V bylaws state that a team has to protect an international player who has been in the system for five years, and protect a U.S.-drafted player who has been in the system for four years, or risk losing them in the Rule V draft.
The teams that sign international guys when they are 16 have to start carrying that guy on the 40-man roster at age 21...whereas a player selected after his junior/senior year of college (21,22) doesn't need to be protected until age 25/26.
Very few prospects are major-league-ready at age 21, 22, or even 23. That means the team is carrying dead weight on its 40-man roster for a few years until they are certain the prospect has MLB potential.
For obvious reasons, a 25/26 year-old is easier to evaluate. By the time a college draft pick needs to be protected on the 40-man roster (age 26), his team knows what they have...and whether he warrants a spot on the roster. He should be in the bigs or close to it if he's ever going to make an impact.
That's one major reason to draft and cultivate college guys over high schoolers and international players.
by notsellingjeans on
Feb 28, 2007 10:40 AM PST
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great diary by the way
But you are right that college draftees make 40 man roster management easier. Part of this is the age bias in the industry. Brian Stavisky and Vasili Spanos might generate some interest if they were younger, even though their ceiling were the same. But by being older, they are not as desirable to other teams and do not merit any thought of protection on the 40 man rosters. This is another way to keep a better AAA team with emergency fill-in possibilities and the rare chance of a 26 or 27 year old break through season happening with little to no opportunity cost.
But this is still stuff at the margins. I'll take all the Javier Herreras and Jose Tabatas and Franklin Moraleses we can find.
by jakarta on
Feb 28, 2007 10:56 AM PST
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thing is...
by Cutthemullet on
Feb 28, 2007 10:48 PM PST
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The A's do sign Latin players
by jarforcefatherofforce on
Feb 28, 2007 6:35 PM PST
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excellent diary, but
Nevertheless, very good.
by bigelephant on
Feb 28, 2007 9:18 AM PST
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depth trickles down
First, none of those guys probably will put up large Win Shares, but they might avoid putting up negative Win Shares compared to their replacements. (I know James doesn't have negative WS, but you know what I mean.) Case in point: Ryan Glynn, who made a large negative contribution in his year here, as measured by WS above bench, winexp or most other measures.
Second, having depth at the AAAA level may help our tempo in developing AAA players. As the diary notes, there is some advantage to the flexibility of having slots 26-40 filled with MLB ready players who can develop in the majors, so we don't have to rush Daric or Travis up.
I loved the diary. It's nice to see all these ideas put together in one coherent story.
by Apricot on
Feb 28, 2007 10:37 AM PST
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Ryan Glynn
Beane probably plays the odds a little better than others when it comes to these back of the roster players, but when you're talking about freely available talent the odds are very long no matter who's playing.
by andeux on
Feb 28, 2007 11:31 AM PST
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good point
by Apricot on
Feb 28, 2007 1:02 PM PST
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Ginter
by OAKobsession on
Mar 1, 2007 8:54 PM PST
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worse
by Cutthemullet on
Mar 2, 2007 5:28 AM PST
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Nice article and comments
by Charlie Brown on
Feb 28, 2007 11:02 AM PST
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Good Job
What's sad about the lack of latino influx into the organization is that I think prospects would be attracted by Oakland's rich past of developing players such as Tejada. Who wouldn't want to "be like Miguel". But the A's have to continue to make the committment to develop those players as before. I don't know if they have closed down their academy in the Dominican Republic.
Big E's point is well taken in that these are marginal players, yet with the potential of having an impact. If successful, Beane's reputation will continue to grow.
by Gerard on
Feb 28, 2007 11:12 AM PST
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See A's notes...
by Donner on
Feb 28, 2007 3:09 PM PST
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The Academy is still open
by grover on
Feb 28, 2007 3:20 PM PST
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True to form for Beane
Let's hope they can bring the academy back up to the level and prestige it once had. Donations anyone?
by Gerard on
Mar 1, 2007 8:40 AM PST
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I like this diary, really I do
DiNardo, Dunn and Murphy all have a chance to be solid role players but the A's are going to win the bulk of their games thanks to the contributions of Chavez, Crosby, Bradley, Piazza and Harden. Those guys have the talent to help the A's get to the playoffs but they also have HUGE question marks after their names. (I know Haren, Street, Duke, Kendall and Swisher are also going to carry a significant chunk of the load but they have fewer question marks than the first group.)
You spend a lot of time talking about how "smart teams" invest in older prospects because they'll have a better read on their major league potential by the time they need to be protected on the 40 man roster and then you talk about Jay Marshall and Ryan Goleski, two players who'll be 24 and 25 (respectively) come Opening Day and have combined for half a season of success above A+ ball. You mock other teams for using up 40 man roster space for guys that are a couple years away from being ready to contribute in the Show but praise the A's for having two guys who are probably not ready for the Show who need to be kept on the 25 man big league roster or lost to other teams!
I think you've touched on a lot of good points but I feel you're too generous with the praise. Beane has a done a great job with his limited means but he's made his share of mistakes and there are holes in the organization.
by grover on
Feb 28, 2007 3:19 PM PST
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Very true Grover
But I think that given the lack of resources and the inevitable ensuing holes in the organization, the A's strategy to turn away from scouting and signing international prospects is a smart budgeting of our limited money for a few reasons:
a.) We are at an inherent negotiating disadvantage with foreign-born prospects, because most guys want to remain closer to home and in baseball it doesn't get much further away from the Dominican than Oakland, CA. Touted prospects will take discounts to sign with teams closer to home (Miguel Cabrera did this for the Marlins much to Steinbrenner's chagrin), and to stay in more "Latin-friendly" environs (like NY or FLA). With those obstacles, you could almost envision a top prospect demanding extra money on top of the best offer to sign with Oakland, and we never pay $1 to acquire .50 cents.
b.) International players often sign with teams that have an established recruiting foothold in their country, like the New York teams and L.A. do. If the international agents are used to dealing with those teams, that's a tough edge to cut through.
c.) Economics - all other access to players and data being equal, when do the A's outbid anyone for a coveted player?
I wholeheartedly agree that when your team is as successful as the A's and you never have a draft pick in the top 15, your only chance at acquiring very high-ceiling young talent is by mining the international prospects. But I also think that given the budget constraints, the inherent risk of young international players (who's doping? how will they adapt stateside? What will this guy be like after he hits puberty?), and the A's geographic disadvantage makes it a wise move to forego this market altogether.
The real pisser about that philosophy is that we never have very high-ceiling players, which is a constant annoyance of our system. But perhaps it's a necessary evil to avoid the type of terrible sunk cost that torpedoes a string of successful seasons.
My vision for the Fremont A's would be to add 15 million to the payroll, but spend it below the major league level, while continuing to fill the big club with 0-3 year service time players and economical extensions through the arbitration years and a few years of FA for our homegrown guys (Swisher, Barton, Buck types).
I'd try to use that extra hypothetical 15 million that Fremont might yield to do two things:
- Become a player internationally and take a 2-million flyer on the next Cabrera, and
- Never, ever again have to have a Moneyball draft...and by that I mean, selecting players that we damn well know aren't the most talented at that draft slot (Jeremy Brown, who agreed before the draft to sign for way less than his draft slot would typically get) just because we can't afford to pay them typical first-round/sandwich pick money.
The Angels (Jered Weaver) and DBacks (little Drew) know all about the benefits of swallowing hard and drafting a guy who slipped because of signability concerns. I'd rather we used some newfound money and became a player in that market (and potentially get six cost-controlled years of a talented player every once in a while)
than spend 15 million more at the major league level on just one past-his-prime slugger in FA.
by notsellingjeans on
Feb 28, 2007 4:59 PM PST
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a is almost never true
by Cutthemullet on
Feb 28, 2007 11:08 PM PST
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I'm going to send Beane some coprolalic verse
by monkeyball on
Feb 28, 2007 5:59 PM PST
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You've got competition
by salb918 on
Feb 28, 2007 6:28 PM PST
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In the category he's talking about
by andeux on
Feb 28, 2007 6:34 PM PST
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Monkeyball'll totally pwn that first guy
by FreeSeatUpgrade on
Feb 28, 2007 7:34 PM PST
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Great analysis
One comment regarding the A's drafting high school players. In the last couple of years the A's have moved away from college players and more towards high school players. Seems like the Moneyball concept utilized college players in the annual baseball player draft. I believe the Moneyball book chronicled the 2002 draft, of which, most of the players signed were college players.
by cowman on
Feb 28, 2007 9:17 PM PST
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Rgearding your newly added question...
by Cutthemullet on
Feb 28, 2007 11:12 PM PST
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