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Tanaka deal has 'serious inflationary consequences'

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07:35 AM ET 01.24 | Lowering the financial bar on landing a star from overseas helped more clubs get in on the Masahiro Tanaka sweepstakes, but not all saw it as a perfect playing field. The only thing MLB accomplished with the Tanaka signing, the executive contends, was to create a worrisome new precedent, since Rakuten got less and Tanaka got a whole lot more. "Since 1996, the idea has been to have a great player market, but to maintain some kind of controls over player salaries," the executive said. ... "Because of this signing, the entire pitching market will be inflated. This is going to pull up Matt Garza and Jimenez and all these other pitchers, and it's going to help David Price next year. There are serious inflationary consequences that are going to affect every other player on the market."

ESPN.com

Masahiro Tanaka, Icon Sports Masahiro Tanaka, Icon Sports
Comment #1 has been removed
January 24, 2014  08:07 AM ET

And the Kershaw contract will have no inflationary consequences?

January 24, 2014  08:10 AM ET

I suspect the situation is going to escalate to the point that the mass of teams will band against the few big spender teams (Yanks, Bosox, Dodgers, not sure if the Angels are still in that group) and force a yearlong shutdown of baseball following the '16 season in an attempt to get some kind of hard salary controls in place.
It's gonna be ugly, the MLBPA is awfully strong.

In related news, I see a tall, handsome stranger in your future...

January 24, 2014  09:06 AM ET

Too late!

January 24, 2014  09:11 AM ET
QUOTE(#1):

Yeah, and other teams were offering nearly the same amount.The Yankees are partly to blame, but so are the Tigers, Cubs, Brewers, Rays, and every other damn team.To be blunt, every baseball player's salary is too high, just like most every other sport, and other forms of entertainment.Simple economics: the market sets the price.

Exactly. What? Verlander and all those other signings had no effect on the market? There is a reason it cost a team a nearly $14 million contract offer to a free agent to be if you want a draft pick in return. It takes a whole League to raise that.

January 24, 2014  09:12 AM ET

Everybody pays, in the end.

January 24, 2014  09:16 AM ET

That signing is inflationary only if Tanaka is successful in MLB.
That's far from a sure thing. The Yankees just paid $155 million plus bennies for a proven Triple A pitcher, not a proven MLB pitcher.
He could be the next Yu Darvish, OR the next Dice K. The world waits with bated breath!

January 24, 2014  09:19 AM ET
QUOTE(#7):

That signing is inflationary only if Tanaka is successful in MLB. That's far from a sure thing. The Yankees just paid $155 million plus bennies for a proven Triple A pitcher, not a proven MLB pitcher.He could be the next Yu Darvish, OR the next Dice K. The world waits with bated breath!

Good point. That knife cuts both ways. It has already with the 10 signings of a few years ago that look bad now. Only one team would even go near Cano for 10 years, and he was the top FA on the market.

January 24, 2014  09:32 AM ET

The Inflation factor is a direct result of all the new found millions every team gets in the new Mega Media deals. Nothing more than that. Some will just pocket the new found treasure and cry " small market , can't compete," some will spend it. Period.

January 24, 2014  09:52 AM ET

Ya know its funny how every time the Yankees land somebody its a big problem, its gonna have ramifications etc, but when the Red Sox drop 55mill just to talk to Dice K no such issues were mentioned. When they sign Crawford and Gonzalez to ridiculous salaries along w/ the Beckett extension no mention of the effect on the mkt and no mention when the Dodgers shell out 147mill for Grienke then 212 for Kershaw after taking on the Crawford and Gonzalez deals no mention plus they tried to sign Tanaka. The Yankees in dire need of speed sign Ellsbury and Tanaka to big deals but they were glaring needs especially w/ CC on the decline and noone else of note in the rotation, but let Cano walk at 250 mill, and offer budget deals to Beltran and McCann and they get killed for it. Really?

January 24, 2014  09:56 AM ET
QUOTE(#9):

The Inflation factor is a direct result of all the new found millions every team gets in the new Mega Media deals. Nothing more than that. Some will just pocket the new found treasure and cry " small market , can't compete," some will spend it. Period.

Owning a small market team with today's revenue sharing and luxury tax rebates is a very profitable business if they don't pay big to re-sign their home grown talent, or sign FAs.
Plus, draft signings are much less expensive, so the small market teams can build a minor league system as easily as the big market teams, and get more draft picks when the kids mature and go to free agency (think Tampa Rays or Oakland).

January 24, 2014  09:58 AM ET
QUOTE(#10):

Ya know its funny how every time the Yankees land somebody its a big problem, its gonna have ramifications etc, but when the Red Sox drop 55mill just to talk to Dice K no such issues were mentioned. When they sign Crawford and Gonzalez to ridiculous salaries along w/ the Beckett extension no mention of the effect on the mkt and no mention when the Dodgers shell out 147mill for Grienke then 212 for Kershaw after taking on the Crawford and Gonzalez deals no mention plus they tried to sign Tanaka. The Yankees in dire need of speed sign Ellsbury and Tanaka to big deals but they were glaring needs especially w/ CC on the decline and noone else of note in the rotation, but let Cano walk at 250 mill, and offer budget deals to Beltran and McCann and they get killed for it. Really?

Who's killing them for it?
We've seen it for years, and it has worked for them so far.
We will wait to see if it works this time?

January 24, 2014  10:11 AM ET

How stupid....like this is the very first signing with inflationary consequences. Who comes up with this crap 10 year olds?

January 24, 2014  11:10 AM ET
QUOTE(#1):

Yeah, and other teams were offering nearly the same amount.The Yankees are partly to blame, but so are the Tigers, Cubs, Brewers, Rays, and every other damn team.To be blunt, every baseball player's salary is too high, just like most every other sport, and other forms of entertainment.Simple economics: the market sets the price.

But if the market is setting the price, how can you say he, or any other player, is paid too much?

January 24, 2014  11:10 AM ET

Is That a Horse Running out of The Barn? Hal Steinbrenner!

January 24, 2014  11:53 AM ET

The problem in baseball is and always has been that the owners cant govern themselves. It has nothing to do with players, agents, other countries, or anything else. One owner does a greedy desperate move and the rest have to deal with it. The other 29 teams can OUTVOTE the Yankees on any proposal. But then the Yankees remind the Dodgers that they arent so unsimilar and they cycle continues. There is no correlation between high spending and winning the world series. That is what makes the game great! TEAMS win world series. Not collections of 25 high paid stars.

January 24, 2014  12:02 PM ET
QUOTE(#2):

And the Kershaw contract will have no inflationary consequences?

Kershaw's contract is considered a win-win because he is young, has proven his performance at MLB level, and is considered MLB's top pitcher. If Yu Darvish had not seen some success in MLB, there is no basis to pay Tanaka such an exorbitant salary.

January 24, 2014  12:05 PM ET
QUOTE(#16):

The problem in baseball is and always has been that the owners cant govern themselves. It has nothing to do with players, agents, other countries, or anything else. One owner does a greedy desperate move and the rest have to deal with it. The other 29 teams can OUTVOTE the Yankees on any proposal. But then the Yankees remind the Dodgers that they arent so unsimilar and they cycle continues. There is no correlation between high spending and winning the world series. That is what makes the game great! TEAMS win world series. Not collections of 25 high paid stars.

There may be some correlation between the perennial Yankee FA big ticket signings and Yankee WS wins.

January 24, 2014  12:36 PM ET
QUOTE(#17):

Kershaw's contract is considered a win-win because he is young, has proven his performance at MLB level, and is considered MLB's top pitcher. If Yu Darvish had not seen some success in MLB, there is no basis to pay Tanaka such an exorbitant salary.

Paying a starting pitcher $30,000,000 is so ridiculous when you look at your investment through the course of a season. Kershaw averages about 33 starts a season which breaks down to a little less than $1,000,000 every time he starts a ball game?!?!?!? That's insane on every level.

 
January 24, 2014  12:42 PM ET
QUOTE(#16):

The problem in baseball is and always has been that the owners cant govern themselves. It has nothing to do with players, agents, other countries, or anything else. One owner does a greedy desperate move and the rest have to deal with it. The other 29 teams can OUTVOTE the Yankees on any proposal. But then the Yankees remind the Dodgers that they arent so unsimilar and they cycle continues. There is no correlation between high spending and winning the world series. That is what makes the game great! TEAMS win world series. Not collections of 25 high paid stars.

The 2009 Yanks beg to differ...

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