Eric Hosmer is in the first year of an 8-year contract. When the news broke back in February, the general consensus considered this a perplexing deal. It was an extended contract for a team that’s three-plus years away from competing. Hosmer will be 31 years old when games start to matter in San Diego, on the downswing of production if he tracks like most players leaving their 20’s.
I like to deviate from the pack. Part of it is for me to make sure I understand both sides of the argument before subscribing to one. The other part is simply my enjoyment of debate – I like disagreement. This lead me to consider whether backloading the deal actually made the signing significantly more tolerable over the long haul.
Hosmer is making $20 million through 2022 and only $13 million for the final three years of his contract. Going inside the mind of A.J. Preller, for this contract to make sense, he’d expect surplus value on Hosmer for the first few years. If dollar-per-WAR estimates say a 1-WAR player is worth around $8 million and Hosmer produces another 3- to 4-WAR season, he would be underpaid for his level of prouduction. Preller can rationalize the back half of the contract by saying Hosmer already produced enough to fulfill the cost incurred. Add in inflation and the likelihood that by the year 2025, a 1-WAR player might be worth around $12-13 million makes it easy to see how this contract isn’t terrible.
The issues with the above train of logic are apparent, which is why contract evaluation pre-mortem is complex.
Please, blog, may I have some more?
