Analysis

The Cost of a Draft Pick is Probably Greater Than You Think

The Cost of a Draft Pick is Probably Greater Than You Think

Dan Szymborski, the creator of ZiPS, took a look at the cost of the qualifying offer to free agents like Kendrys Morales and Stephen Drew. Szymborski looked at the values of draft picks based on his studies on the topic in the past, and came up with the numbers that losing a first round pick to sign a player would be the equivalent of losing about $23 M in future value.

What this means for guys like Morales and Drew is that declining the qualifying offers has basically killed their markets. Szymborski uses ZiPS projections to say what players would be worth on the open market, without compensation. He comes up with a two year, $20 M deal for Stephen Drew, and a two year, $24 M deal for Kendrys Morales. However, when you add in compensation, Drew would only be worth a two year, $3 M deal, and Morales would only be worth a two year, $1 M deal.

It's unlikely that any player would take this kind of drastic pay cut, especially when these guys turned down a one year, $14.1 M offer.  Th...

This content is for Pirates Prospects subscribers only. Subscribe today to access all of our daily coverage of the Pirates' system, with rates lower than $2.25 per month. If you're already a member, you can log in below. If you think you're receiving this message in error, please e-mail tim@piratesprospects.com.

Analysis
@http://twitter.com/timwilliamsp2

Tim is the owner and editor in chief of Pirates Prospects. He started the site in January 2009, and turned it into his full time job during the 2011 season. Prior to starting Pirates Prospects, Tim worked with AccuScore.com, providing MLB, NHL, and NFL coverage to various national media outlets, including ESPN Insider, USA Today, Yahoo Sports, and the Wall Street Journal. He also writes the annual Prospect Guide, which is sold through the site. Tim lives in Bradenton, where he provides live coverage all year of Spring Training, mini camp, instructs, the Bradenton Marauders, and the GCL Pirates.

More in Analysis

(Photo Credit: David Hague)

What Did Josh Bell Accomplish in Altoona?

Sean McCoolAugust 2, 2015
Tyler Glasnow 7

Tyler Glasnow Sees Mixed Results in His Triple-A Debut

Ryan PalencerAugust 2, 2015
Adrian Sampson

How Adrian Sampson Went From Rotation Depth to a Trade Chip

Ryan PalencerAugust 1, 2015
Tyler Glasnow 3

Don’t Expect Tyler Glasnow in the Majors This Year

Tim WilliamsJuly 27, 2015
(Photo Credit: David Hague)

Pirates Continue to Roll, Led By More Strong Pitching

Sean McCoolJuly 26, 2015
(Photo Credit: David Hague)

Middle Relief Problems Continue For Pirates in Loss

Pete EllisJuly 26, 2015

Pirates Prospects is an independent media outlet, and is in no way affiliated with the Pittsburgh Pirates, their minor league affiliates, Major League Baseball, or Minor League Baseball.

Copyright © 2015 Pirates Prospects