The Papelbon tradeoff

Setting the stage Once upon a time, the Philadelphia Phillies signed Jonathan Papelbon to four-year, $50 million contract with a $13 million vesting option for 2016. Since Papelbon was a Type-A free agent, the Phillies also surrendered their first-round pick—31st overall—to the Boston Red Sox as part of the signing. A short while later, the owners and players agreed to a new five-year Collective Bargaining Agreement which called for several substantial changes, which included releasing all relievers from traditional Type A status. Clubs would not have to give up a draft pick in return for signing a Type A reliever. Formerly, Type A status was best viewed as a tax. Teams might view a particular reliever as worth $6 million for one year, but if Type A status was attached, the reliever would be paid considerably less. The value of the lost draft pick offset a chunk of the reliever’s value. In that sense, the new CBA was a boon for all relievers who would have unfairly los...