Dodgers win Hector Olivera Sweepstakes

[Villain]

The rich get richer:

Dodgers To Sign Hector Olivera MLB Trade Rumors

The Dodgers have reportedly landed yet another high-profile Cuban talent by agreeing to a six-year, $62.5MM contract with infielder Hector Olivera. The deal contains a $28MM signing bonus and is pending a physical. Olivera is represented by Greg Genske of the Legacy Agency.

John Lackey, whose free agent deal with the Red Sox included a similar provision that ultimately gave the team a valuable additional season of control.

Olivera’s signing process was a long and often controversial one, including an agent change, contested reports of a damaged UCL (which now seem to have had validity) and a wide spectrum of possible contracts ranging from four to six years in length and between $30MM to over $70MM in value. In the end, Olivera and Legacy have to be pleased to have landed an agreement near the highest end of those projected deals. The Dodgers outbid several teams for Olivera’s services, as the Padres, Marlins, Braves, Giants, Mariners, Yankees, Twins and A’s were said to have varying degrees of interest.

The signing represents the Dodgers’ most expensive dip yet into the Cuban market. The club has also added Yasiel Puig ($42MM), Alex Guerrero ($28MM), Erisbel Arruebarrena($25MM) and Pablo Fernandez ($8MM) within the last three years, yet they’ve managed to add this significant international talent without going over their international bonus pool limit. While clubs like the Red Sox or Diamondbacks are prevented from signing international players for more than $300K until July 2017 for exceeding their pools, the Dodgers have largely targeted players who aren’t pool-eligible, like the 29-year-old Olivera.

Beyond the UCL rumors, some scouts were also concerned that Olivera missed over a season in Cuba recovering from a blood clot in his arm, and he played mostly DH after returning to action in 2013. Still, MLB scouts were very impressed with Olivera’s right-handed hitting approach, his ability to play at either second or third base, and his potential to contribute right away, as Baseball America’s Ben Badler notes. In a more detailed scouting report available to BA subscribers, and Badler writes that Olivera “compares favorably to the two top recent Cuban signings who received major league contracts,Yasmany Tomas and Rusney Castillo.”

Olivera still needs to obtain a visa, and as Yahoo Sports’ Jeff Passan notes, he’ll likely need about a month in the minor leagues, so May is probably the earliest we’d see Olivera in a Dodgers uniform. L.A. has no need to rush Olivera as they already have Juan Uribe at third and Howie Kendrick at second; ironically, of all Olivera’s suitors, the Dodgers were perhaps the team least in need of immediate infield help. With Uribe and Kendrick both free agents after the season, however, it seems that Olivera will replace one (probably Uribe, as most feel Olivera is best suited to third) as the Dodgers’ long-term solution.

Notale inclusions:

• $28MM signing bonus (dirty math makes that $5.75 million per year if the remainder is spread evenly). Source:
  
• Clause giving the Dodgers a 7th year at $1 million if Olivera needs to have Tommy John surgery. Source:
  

 

[Erie Warrior]

A lot of years and cash for a 30 guy who is unproven at the MLB level.

 

[Arizona_Sting]

Who? Yasmany Tomas says he don't currrrrr.

 

[calsnowskier]

6 years for a 30 yo unknown quantity? That is a bad deal for a known quantity.

And the dogs don't even need a middle infielder.

 

[SlinkyRedfoot]

6 years for a 30 yo unknown quantity? That is a bad deal for a known quantity.

And the dogs don't even need a middle infielder.

The Dodgers have cash coming out of their ass. If it's true that almost half of the deal is in the signing bonus, then that won't count against their luxury tax and they're only paying him $5MM or so per year. That's nothing for a team that could likely afford a payroll around $300MM.

 

[calsnowskier]

The Dodgers have cash coming out of their ass. If it's true that almost half of the deal is in the signing bonus, then that won't count against their luxury tax and they're only paying him $5MM or so per year. That's nothing for a team that could likely afford a payroll around $300MM.

I am almost positive that this is not accurate. MLB deals get averaged for Lux Tax purposes.

 

[SlinkyRedfoot]

I am almost positive that this is not accurate. MLB deals get averaged for Lux Tax purposes.

You may be right, but I don't think so. You'll have to provide some support.

 

[calsnowskier]

You may be right, but I don't think so. You'll have to provide some support.

Will Tigers' payroll be limited by luxury tax in 2015? - Bless You Boys

The MLB calculation uses the average annual value (AAV) of the current contracts for each of the players on the roster, including those optioned to the minor leagues. You also have to figure in bonuses that may not be known until after each season is completed.

 

[SlinkyRedfoot]

Will Tigers' payroll be limited by luxury tax in 2015? - Bless You Boys

Personally, I wouldn't use www.blessyouboys.com to support a point of mine, and it also doesn't say if a signing bonus specifically counts towards the AAV.

However, I did a little research myself and found that you and blessyouboys.com are right.

I stand corrected. Thank you for bringing this to my attention, cal.

 

[calsnowskier]

Personally, I wouldn't use www.blessyouboys.com to support a point of mine, and it also doesn't say if a signing bonus specifically counts towards the AAV.

However, I did a little research myself and found that you and blessyouboys.com are right.

I stand corrected. Thank you for bringing this to my attention, cal.

I am 100% not familiar with the site. It was just the first story I found that referenced how the salary was calculated for use with the lux tax.

I was relying more on my memory (as flawed as it often is) of how it is calculated...

 

[SlinkyRedfoot]

I am 100% not familiar with the site. It was just the first story I found that referenced how the salary was calculated for use with the lux tax.

I was relying more on my memory (as flawed as it often is) of how it is calculated...

Your memory was right. I remembered that it was AAV, but I wasn't aware that signing bonuses counted against the AAV, which I confirmed on cot's baseball contracts. It makes sense. I was letting the Japanese posting system cloud my mind - those don't count toward luxury taxes.

 

[Davis_Mike]

Congrats. Now that it's almost certain he will have TJ surgery, the Dodgers now have the right to only pay $1 mil for a late 30s infielder.

 

[Villain]

Who? Yasmany Tomas says he don't currrrrr.

What does that even mean?

6 years for a 30 yo unknown quantity? That is a bad deal for a known quantity.

And the dogs don't even need a middle infielder.

I don't think it's fair to say "unknown." I get what you mean that he's not proven against big league hitters, but he's had multiple showcases, a career in Cuba, and several private workouts. The teams involved in the bidding vetted this guy through and through. He is way less of an unknown than Puig was.

And yeah, the Dodgers don't have a glaring need for a middle infielder this season, but this deal was clearly made with the big picture in mind. Not a single of Kendrick, Uribe, or Rollins is signed for next season. The third base market for next winter is a tirefire. Uribe is going to be 37.

Olivera doesn't even have a visa yet, the team is concerned about his non-throwing elbow, and he needs to get some time in the minors to get into baseball shape. He's not expected to land in the US and then walk onto the 25-man roster.

 

[tducey]

He's 30, bit of an overpayment here IMO.

 

[Villain]

He's 30, bit of an overpayment here IMO.

Yeah, it's a ton of money. The big things at that it's so heavily frontloaded with that signing bonus. That makes it so it's not a contract that'll weigh down a payroll in the years to come. Any team in MLB can handle ~6million per year for a decent position player.

 

[SlinkyRedfoot]

Any team in MLB can handle ~6million per year for a decent position player.

Absolutely. Further, a team with the Dodgers' revenues could handle $6MM per year for their hot dog vendors.

 

[SlinkyRedfoot]

Test.

 

[calsnowskier]

Yeah, it's a ton of money. The big things at that it's so heavily frontloaded with that signing bonus. That makes it so it's not a contract that'll weigh down a payroll in the years to come. Any team in MLB can handle ~6million per year for a decent position player.

Sure, 6M for the top 10-15 salary teams ain't no thang, but it isn't 6M. The dogs will be paying the 40% lux tax on the 10M, not the 6M. They can afford it, but it is still expensive.

 

[Villain]

Yeah, it's a ton of money. The big things at that it's so heavily frontloaded with that signing bonus. That makes it so it's not a contract that'll weigh down a payroll in the years to come. Any team in MLB can handle ~6million per year for a decent position player.

Man, I was so close to calling his future as a trade piece.

 

[Villain]

Update: Dodgers also win the Hector Olivera Trade.

Braves OF Hector Olivera suspended 82 games