Originally posted on Fangraphs  |  Last updated 10/3/12
Before all our attention is focused on the post-season, I thought I’s take a quick look back at free agent signings from the past year and how those deals worked out in 2012. The focus here is just on what teams got for their money. In other words: Did the players meet or exceed the expected value of the contracts they signed? I focused on major league signings only, so the analysis does not include myriad minor league deals — many of which resulted in players accumulating playing time in the majors this year. To get a sense of the how the deals turned out, I compared players’ expected values — which are based on their positions and the annual average value (AAV) of their contracts — to their actual values. I uses Matt Swartz’s research on the differences in dollars per Wins Above Replacement (WAR) by position, rather than assume an average dollar-per-WAR, as is typically done. For reference, here are the positional averages from 2007 through 2011: $/WAR 2007-11 POSITION $10,700,000.
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