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Albert Pujols Contract Backload is Pragmatic, Not Panic

The Texas two-steppin' bro-fest fistbump and pump is underway in earnest among Rangers fans at news that the Angels contract with Albert Pujols is heavily backloaded in pay (MLB Daily Dish Breaks It Down). By the final season of the contract (2021), Pujols will be getting paid $30 Million per season to compensate receiving "just" $12 Million in 2012 and $16 Million in 2013. They are popping champagne corks in Arlington just like they did with one strike to go in the elimination game of the 2011 World Series. And just like then, it is too soon before the days of never begin.

In paying Pujols an escalating salary over ten years and C.J. Wilson a gradually increasing payday in each of his five seasons in Anaheim as well, Arte Moreno has simply compensated for the bloated contracts of Vernon Wells (who the Angels will pay $21 million in each of the next three seasons) and Torii Hunter ($18.5 Million in 2012, the fifth and final year of his contract). In 2012, the salaries of Pujols, Hunter and Wells will add up to $52 Million. In 2016, the salaries of Jered Weaver, Wilson and Pujols will add up to $56 MIllion. Oh wow, $4 million that the Angels are spending in their terror of Texan dominance? No Angel except Albert is signed beyond 2016 - so the costs then can be mitigated from then on if necessary. In other words: This is dull bean-counting with little emotion and no mind paid to the Arlington Whiteline addictions.

This is as far from a panic move as can be imagined. Any attempt to sell the Angels pragmatism as scaredy-cat-itis is coming from one place: the gulf of agony between the baseball and the tip of that extended Nelson Cruz glove in Game 6.

Comment 72 comments  |  2 recs  | 

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Are you saying that Adam J. Morris is a spy?

If the Halos don't care about the way they play, then why should I?

by red floyd on Dec 30, 2011 7:50 AM PST up reply actions  

LoneStarBall continues to amaze me with the shit tsunami of hatred they generate.

They think the Angels will be selling Top Ramen at the concession stands to make ends meet or something.

Unlike this cat, my love for the LAA will never die.

by NathanielS on Dec 30, 2011 12:21 AM PST reply actions  

Personally, I am hoping for Corn Dogs in the concession stands in 2012.

Think about it. How many kids would get their parents to buy them and how much easier are they to eat in a stadium seat than a regular hot dog? Plus they smell REALLY GOOD from far off.

"Grantland Rice, the great sportswriter, once said 'It's not whether you win or lose, it's how you play the game.'
Well, Grantland Rice can go to hell as far as I am concerned." - Gene Autry

by Angelsfan015 on Dec 30, 2011 3:01 PM PST up reply actions  

Actual Post

Idea: Hit Pujols with pitch #1
I know a lot of you guys will disagree with that. But that is exactly what I would do as the first pitcher facing him. The stakes are high. I would try to get in his head as early as possible.

“It’s incredibly hard.” – Ronald Washington
by 3Bagger on Dec 29, 2011 6:44 PM PST reply actions

Unlike this cat, my love for the LAA will never die.

by NathanielS on Dec 30, 2011 12:37 AM PST reply actions  

Actual Post

Can we stop putting pictures of Pujols and Wilson on LSB?
Unless/until they are horribly maimed in a thresher accident?

I really can’t fathom writing this for the general public to see. Then again, I also don’t fuck my cousin.

Tim Salmon: The once and future Kingfish.

by Teixeira Who? on Dec 30, 2011 1:07 AM PST up reply actions  

Interesting.

Another idea would have been to have Endy Chavez in right field for the 9th inning of Game 6. He would have caught the ball hit by Freese. Fortunately some managers are too busy running on the spot to make strategic decisions during a game.

by XYZ123 on Dec 30, 2011 9:48 AM PST up reply actions   1 recs

I love the comments about how this changes the view of Jerry DiPoto.
I think the deals
also say a lot about Jerry DiPoto’s level of competence.

by Brett Perryman on Dec 29, 2011 5:07 PM PST reply actions
He isnt going to be around long enough to deal with the problem side of the deal.

by Josh Lile on Dec 29, 2011 7:18 PM PST up reply actions

Winning doesn't matter. -Lyle

by 5thStarter on Dec 30, 2011 4:33 PM PST up reply actions  

False

I think the hillbillies over at LSB know exactly why this was done. They are clearly more business savvy than Arte.

Tim Salmon: The once and future Kingfish.

by Teixeira Who? on Dec 30, 2011 1:01 AM PST reply actions  

So I think that puts our new estimated payroll for 2012 at around $154 million

Meaning, even without moving Wells or Abreu (so far), we have added Albert Pujols and C.J. Wilson to the team while increasing the budget just $14 million. That’s astounding.

I still think that DiPo flips Wells for minor salary relief (say, $9 million of the $63 million owed). That would put the payroll at around $151 million. IMIH (if Morales is healthy), you could flip Abreu too, and maybe lose another cupla mil. If he ends up with a 2012 payroll south of $150 million, plus Pujols/Wilson, while otherwise improving the remaining roster spots, I’ll be flabbergasted.

Though I’d also guess/hope that Howie and Aybar are working on extensions that could boost their estimated arbitration payouts.

by mattwelch on Dec 30, 2011 1:06 AM PST reply actions   1 recs

Team loses $37.5 million in payroll after 2012 in Hunter/Abreu/Izzy/Taki/Kazmir buyout

Offset by about $13 million in planned 2013 raises for Pujols/Weaver/Wilson/Haren/Santanta/Ianetta, assuming the last three have their club options picked up.

Of course, there will be plenty of Arb raises (and hopefully that Aybar/Kendrick extension as well), so that $24 million gap could evaporate quickly. But it looks to me like Arte hasn’t totally increased his budget, nor completely lost his taste for payroll stability over time (keeping in mind that salaries from 2004-10, adjusted for inflation, were totally flat).

by mattwelch on Dec 30, 2011 2:06 AM PST up reply actions  

Dipoto is planning for room for future moves, this guy gets it

I think he gives more though to how to properly sculpt his hair gel in the morning than Tony Reagins gave anything.

What I’m curious about is how he’s going to go about restocking the farm teams.

Unlike this cat, my love for the LAA will never die.

by NathanielS on Dec 30, 2011 8:23 AM PST up reply actions  

IMIH is going to be the hottest HH meme of Spring Training

Scioscialist Party of America - Redistributing your defense since 2000.

by Commander_Nate on Dec 30, 2011 9:04 AM PST up reply actions  

Mega-contracts are quite frequently backloaded

what’s the big deal, exactly?

$254 million is $254 million.

It just means that in a given season, Pujols will now be grossly underpaid at the beginning and overpaid at the end. Which will still, in the end, average out to exactly the same value, while giving management some year-to-year flexibility.

Anyone trying to spin this negatively for the Angels is a moron or biased or both.

This is a sig.

by Caseys Kiss of Death on Dec 30, 2011 2:32 AM PST reply actions  

Right

you have to take the “whole” contract in to account. Failure to do so is Failure.

by Xeifrank on Dec 30, 2011 8:07 AM PST up reply actions  

Its actually a big positive for the angels

In terms of raw buying power, inflation will eat up around 3% in an average year. Baseball salaries have grown far quicker than that 3% pace however. Regardless of the details, 254 million in 2011 is worth more than 254 million in 2021 money. backloading is a great deal for the angels.

by Balls and Strikes on Dec 30, 2011 9:34 AM PST via mobile up reply actions  

Also, by backloading it this way

don’t they pay less in luxury tax per year by having the lower payroll?

How many millions do they save by doing it this way?

This is a sig.

by Caseys Kiss of Death on Dec 30, 2011 2:38 AM PST reply actions  

Lux Tax

Is calculated using AAV, I think. Specifically so that you cannot backload just to avoid it.

"If a woman has to choose between catching a fly ball and saving an infant's life, she will choose to save the infant's life without even considering if there are men on base." ~Dave Barry

by LAASurfin on Dec 30, 2011 10:24 AM PST up reply actions  

So it doesn't bother anyone

That the Angels will be playing a 40 year old Pujols 30+ mill per year to likely be a DH with much reduced ability? I think the deals are structured to try and win now, things will not look so rosy in the second half of the Pujols deal though. CJs contract is much shorter so not really an issue.

by Aircooled on Dec 30, 2011 5:49 AM PST via mobile reply actions  

If Pujols helps the Angels get even one WS ring then the money was worth it.

But I anticipate that between his ability on the field and his leadership/charisma throughout the organization that there will be many more dividends down the road.

A wise man does not need advice and a fool won't take it.

by angelslogic on Dec 30, 2011 6:00 AM PST up reply actions  

No, doesn't bother me

What you’re saying is that our team will look different in several years, and maybe, maybe we won’t be in quite as good a position as we are now. Well, far too many assumptions go into that prediction for me to lose sleep over. The bottom line for Arte and the Angels organization is that Pujols pays for himself, with merchandise, tv revenue, etc. He makes the team wealthier as time goes on, so we can afford him and new contracts as they’re needed. And, Texas, if your only consolation is that you might compete with the Angels seven years from now, well that’s just sad, for you.

by Rock Island Line on Dec 30, 2011 7:14 AM PST up reply actions  

If the Angels win a World Series in the next three years

Then the Pujols deal will be seen as ok by fans. The problem is you still have to go through the Yankees, Red Sox, Tigers and yes the Rangers to get there. All those teams have good rosters too, some are saying the Rangers lineup is STILL better than the Angels even with Pujols in there.

If we fast forward three years when Pujols will be 34, CJ 34, Haren likely gone, Wells gone, etc, you start to see that window closing. Bad news is these are the same years the Rangers figure to be peaking so it will be a dogfight in the West. Should be fun to watch.

by Aircooled on Dec 30, 2011 12:58 PM PST up reply actions  

weird forecast on your part

so the angels have no chance of acquiring any talent after three years but the ranegrs will most ertainly do so and face no roadblocks in that talent manifesting with dominance.

Should be fun to watch your prediction stink.

by Rev Halofan on Dec 30, 2011 1:04 PM PST up reply actions  

Didn't say that

What I said was the Angels are pushing in a lot of chips to try to keep up with a Rangers team that will have its current core intact for the same time frame.

And yes, I am a Rangers fan, doesn’t mean I can’t talk baseball with fans of other teams…

by Aircooled on Jan 1, 2012 8:03 PM PST via iPhone app up reply actions  

"Bad news is these are the same years the Rangers figure to be peaking..."

You lost me. Are you talking about 2010-11 or the future?

Winning doesn't matter. -Lyle

by 5thStarter on Dec 30, 2011 1:31 PM PST up reply actions  

Rangers Fan

In sheep’s clothing.

"If a woman has to choose between catching a fly ball and saving an infant's life, she will choose to save the infant's life without even considering if there are men on base." ~Dave Barry

by LAASurfin on Dec 30, 2011 7:35 PM PST up reply actions  

a Rangers fan in Rangers clothing

Well, come see a fat old man some time!

by Moondoggy on Jan 1, 2012 4:41 AM PST up reply actions  

The only money issue for Arte is staying below the luxury tax

There is no doubt in my mind that when all economic factors are evaluated after the end of the 10 year contract, Pujols contract will have been a net positive investment for Arte’s business and will have generated a healthy ROI for the franchise.

The luxury tax threshold:

2012 – $178m
2013 – $178m
2014 – $189m
2015 – $189m
2016 – $189m

I reject your reality and substitute my own.

by mustard_man on Dec 30, 2011 7:50 AM PST up reply actions  

Pujols is not a regular player though

Look at the career arcs of the guys he compares to, not miguel tejada, manny ramierez, etc… Look at what babe ruth, hank aaron, willie mays, etc… Did when they were 40 to get a good idea of what pujols will be like.
Probably not the best player in the league, but among the best even at age 40

by Balls and Strikes on Dec 30, 2011 9:38 AM PST via mobile up reply actions  

No actually it really doesn't bother me.

While it is true we will be paying him 30+ over the last 2-3 years of his contract that is only 2-3 years. Also during this time and after 2016 as of right now he is the only contract on the books. This now comes down to roster management and the way the team is built from 2016 on when they basically get a clean slate with Pujols as the main guy and all others they sign into those years will go into formation of the new look Angels or old kept the same in style of player.

But we basically have 6 or 7 years to figure out who we want to spend on and how we want to do other contracts to fill those 3 years of 30+ years so while those years he may not be worth the contract in his production for those years he is worth it cause of all he did beforehand and fans will know it. It is different than having Wells contract in that he came to us as a overpaid player (didn’t do anything for us before his contract got up where it is) and that we had no time before hand to make other contracts on our roster that made his easier to swallow like we have with Pujols.

by MoralesHomers on Dec 30, 2011 10:16 AM PST up reply actions  

HH: "Wah! We never do what it takes to get the best players."

[Arte/Dipoto go get the best player in baseball]

HH: “Wah! We paid to much. Shouldn’t do that!”

"If a woman has to choose between catching a fly ball and saving an infant's life, she will choose to save the infant's life without even considering if there are men on base." ~Dave Barry

by LAASurfin on Dec 30, 2011 10:28 AM PST up reply actions  

Yep - we do need help.....



I reject your reality and substitute my own.

by mustard_man on Dec 30, 2011 12:12 PM PST up reply actions  

* "too much"

Ugh!

"If a woman has to choose between catching a fly ball and saving an infant's life, she will choose to save the infant's life without even considering if there are men on base." ~Dave Barry

by LAASurfin on Dec 30, 2011 10:27 PM PST up reply actions  

in 2021 he will be at least an Edgar Martinez DH

With rings.

Overpaid and Overloved and Overperforming.

by Rev Halofan on Dec 30, 2011 10:29 AM PST up reply actions  

The future value of money should be factored in

$30M in 2012 and $30M in 2021 are not the same value just like $20M today is not as big a deal as it was 10 years ago in MLB

RIP Nick Adenhart

by ihearhowie2.0 on Dec 30, 2011 8:36 AM PST reply actions  

I keep thinking that

I am surprised this fact is mentioned more. Actual inflation plus the gradual increase of player salaries should mitigate the real impact of Pujols salary 10 years from now.

by UCIHalo on Dec 30, 2011 9:02 AM PST up reply actions  

When the deal was being discussed incessantly on MLB Network when it first happened,

the analogy of the older Pujols compared to Edgar Martinez was made.

The dollars involved approach multiplicaton by a factor or ten, but if Martinez is the absolute worst case scenario, I think we’ll do OK.

Just think: All-Time MLB Home Run Leader. Arte can put that up on a billboard if he wants.

by wumbug on Dec 30, 2011 10:06 AM PST reply actions  

Hadn't noticed anyone comment on this before, but

Pujols, while he did not hit for average in both World Series, he did have those 3 bombs in one game last year.

Also, from 1997-2010 Albert is the major leagues’ leading hitter in interleague play (180 for 518, .347 average). So I guess that should ease any concerns about him moving to the American League.

Don't call me Bugs. Although Bugs Bunny could do it all on the baseball field.

by highlandhalo on Dec 30, 2011 10:33 AM PST reply actions  

My FANTASY

Like mattwelch said up there, dump VW somewhere by eating most of his salary.
But I had in mind (this is where it gets crazy?) that we trade for Choo after this season to replace Hunter in RF. Lefty bat with avg/obp abilities and some pop.
Not that the Indians have any desire in letting him go :(

I have a secret place, inside my mind, where I keep hidden inspiration you wont find.

by Tapatio Man on Dec 30, 2011 11:06 AM PST via mobile reply actions  

Same here.

Trumbo fits with the Angels, he’s just going to need to find a few different places to fit for 2012.

Winning doesn't matter. -Lyle

by 5thStarter on Dec 30, 2011 1:40 PM PST up reply actions  

Yea I had that in mind,

I was just considering potential openings and finding a strong bat from the left side.

I have a secret place, inside my mind, where I keep hidden inspiration you wont find.

by Tapatio Man on Dec 30, 2011 1:53 PM PST up reply actions  

Oh, believe me, I'd much prefer Choo in RF.

I just don’t see it happening.

Winning doesn't matter. -Lyle

by 5thStarter on Dec 30, 2011 2:04 PM PST up reply actions  

Couldn't care any less about what Ranger fans think...

We got CJ and we got Albert. To me it sounds like jealousy on their part.
They’ve had their 2 tries at a WS title – I believe it’s the Angels turn now. Can’t wait for Spring Training and the Regular Season to start.

by angelsfan7 on Dec 30, 2011 2:31 PM PST reply actions  

Everyone in Texas is fat

"Bloody your hands on a cactus tree/
Wipe it on your dress and send it to me."

by Hutch83 on Dec 30, 2011 7:22 PM PST via mobile reply actions  

Everyone in Texas is fat

"Bloody your hands on a cactus tree/
Wipe it on your dress and send it to me."

by Hutch83 on Dec 30, 2011 7:22 PM PST via mobile reply actions  

Is everyone in Texas fat?

Don't call me Bugs. Although Bugs Bunny could do it all on the baseball field.

by highlandhalo on Dec 30, 2011 9:13 PM PST up reply actions  

Backloading, it's older than the worlds oldest profession..dig it.

Pujols loaned Arte Moreno 12 million dollars in year one, to play MVP caliber baseball for the Angels, right now. Pujols will loan Arte 8 million dollars in year two, to play MVP caliber baseball for the Angels. Period. Arte can invest it along with the 10 mil thats deferred…30 mil for ARte to invest/double and pay off a big chunk of the tail end of this deal. That makes it more like a 200 million dollar investment in reality…

by Monk e on Dec 30, 2011 7:44 PM PST reply actions  

Dude!

Are you an investment advisor professionally? This makes TOO MUCH sense.

by Rev Halofan on Dec 30, 2011 8:09 PM PST up reply actions  

Imagine Pujols Smacking Million Dollar Baseballs into our nachos...priceless

I’m happy about 30 million in 2021! Imagine the salary reversed 10 million signing bonus, 30 million year one, 29, 28 etc and at the end 16, 12… that would cost the Angels TWICE as much in reality. But that would be more inline with his true value…. he cut us a deal on the financing, this is sweet.

by Monk e on Dec 30, 2011 8:51 PM PST up reply actions  

So sensible it's sick, love it Monk

Don't call me Bugs. Although Bugs Bunny could do it all on the baseball field.

by highlandhalo on Dec 30, 2011 9:06 PM PST up reply actions  

The only thing that could implode this incredible logic

Is if Albert Pujols does not live up to his usual standards. Most recent comparison I’ve seen to Pujols is Joe DiMaggio, not bad at all.

However our owner and new GM are smart and are thinking on your lines. Reagins traded for Vernon Wells to the only GM who would speak to him, and then promptly flipped Napoli to the Rangers.

I for one expect a big resurgence out of Vernon Wells with Pujols’ bat in the lineup, I hope most share my optimism.

Don't call me Bugs. Although Bugs Bunny could do it all on the baseball field.

by highlandhalo on Dec 30, 2011 9:12 PM PST up reply actions  

Idk about a big resurgence but

I think he will be much better. Think we will see a rebound in OBP and batting average which were his biggest issues last year.

by MoralesHomers on Dec 30, 2011 10:28 PM PST up reply actions  

Hey Highland

Is that a prediction that Pujols is gonna marry Marylin Monroe?

by Rev Halofan on Dec 31, 2011 10:58 AM PST up reply actions  

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