Thursday, March 25, 2010

The Myth of the $42 million Padres Payroll.

Thursday March 25, 2010

The Myth of the $42 million Padres Payroll.

Lets start by explaining split contracts:

Who is eligible for split contracts?
From the MLBPA/MLB CBA - A player who signs a Major League Contract which sets forth a separate rate of pay for Minor League service.

So players who were signed to a minor league deal like Matt Stairs, Chris Denorfia, and Chris Stewart are not eligible.

What do they get paid?
60% of their combined earnings the previous year.

On a split contract, a player who was signed to a major league deal last season and then spend a portion or all of this season in the minor leagues are paid 60% of their total major and minor league earnings for the previous season while they are in the minors.

The major league minimum is $400,000.00 or $2,185.79 per day and the AAA minimum is $2150.00 per month or about $12,900.00/year.

The largest split contract for a Padres would be around $240,000.00 and the only ones who could earn that if they are sent to the minors are Luis Perdomo and Everth Cabrera who spent the entire year with the Padres.

They were both on Major league contracts last season because as Rule V draftees they must be kept on the major league team for the year.

Perdomo has already been sent down so we can assume he will earn a minimum of $240,000 in 2010. Cabrera will begin the season on the ML roster and with the dearth of ML quality shortstops in the system will likely spend the netire year in SD even if he struggles.

Next lets cover what can and cannot be counted towards the 2010 payroll
Corey Brock at said that Garland and Torrealba's combined buyout ($1.1 million) will be factored into the 2010 payroll, but according to the MLB/MLBPA CBA it is part of NEXT season's (2011) payroll.

Much of the agreement between the league and the players is based on the % of revenue dedicated to ML player payroll so how & when it is counted is spelled out in the CBA. The Padres don't have a choice as to what costs they can include for this season.   

Now the reality of the Padres 2010 Payroll                       
This list below is from the Union Tribune's Bill Center and includes 32 players so it is representative of the 2010 Padres Payroll for the 25 man roster + MLB minimum salary or more for any injury replacement players called up from the minor leagues during the season.  This is at an injury rate of 7 players per day or more than double the 2009 NL average for players on the DL.

The list also includes all the players who may be eligible for a split contract. Since all those players are included at the full major league payroll, we can completely disregard any effects of split contracts on payroll over and above the listed salaries.           
Chris Young - $6,250,000.00                    
Adrian Gonzalez - $4,750,000.00                    
Jon Garland - $4,700,000.00                    
Heath Bell - $4,000,000.00                    
Kevin Correia - $3,600,000.00                    
Scott Hairston - $2,450,000.00                    
Jerry Hairston - $2,125,000.00                    
David Eckstein - $1,000,000.00                    
Mike Adams - $1,000,000.00                    
Yorvit Torrealba - $750,000.00                    
Matt Stairs*- $700,000.00                    
Chase Headley - $427,700.00                    
Clayton Richard - $423,700.00                    
Edward Mujica - $419,800.00                    
Tony Gywnn Jr. - $419,800.00                    
Everth Cabrera - $418,800.00                    
Joe Thatcher - $417,700.00                    
Luke Gregerson - $416,500.00                    
Nick Hundley - $415,700.00                    
Tim Stauffer - $415,100.00                    
Sean Gallagher - $413,500.00                    
Will Venable - $412,800.00                    
Kyle Blanks - $410,600.00                    
Oscar Salazar - $408,500.00                    
Mat Latos - $407,800.00                    
Luis Perdomo - $405,100.00                    
Adam Russell - $405,000.00                    
Radhames Liz - $404,200.00                    
Ryan Webb - $402,400.00                    
Aaron Poreda - $401,200.00                    
Wade LeBlanc - $400,000.00                    
Cesar Ramos - $400,000.00                    
TOTAL 2010 PADRES PAYROLL - $39,970,900.00
Includes injury replacement players & any split contracts at             

* If Matt Stairs does not make the team his replacement will be at or near the major league minimum and the total payroll would be about $300,000.00 less or $39,670,900.00.
Conclusion -                        
Being extremely generous in salaries, the Padres are still under $40 million.

$2 million less than they tried to claim through's Corey Brock. 

That was for you JBOX.