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Theo Epstein’s history of arbitration offers

11.23.10 at 8:27 am ET
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The Red Sox have until Tuesday to decide whether to offer salary arbitration to their free agents. Of utmost interest is how the team will proceed with its four free agents who would entitle the club to draft pick compensation should they reject arbitration and sign elsewhere.

The team is virtually certain to offer arbitration to Type A free agents Victor Martinez and Adrian Beltre. Both have markets so robust that teams will be likely to sign them even if they must sacrifice a draft pick to do so. Thus, should they elect not to re-sign with the Sox, the Sox are likely to get a pair of draft picks (one from the team that signs them, and another as a compensatory sandwich pick from Major League Baseball).

The team is also likely to offer arbitration to Type B free agent Felipe Lopez, a player whom the club signed in the final days of the season specifically in hopes of offering him arbitration, having him turn it down and seeing him sign elsewhere. As a Type B free agent, a club that signs Lopez will not have to part with a pick; the Sox would, however, get a sandwich pick from MLB.

The biggest dilemma facing the club is whether to offer arbitration to Jason Varitek, a Type B free agent who could net the team a draft pick if he departs, but who might well be inclined to accept an arbitration offer in order to return to the Sox. (For more on the Varitek situation, click here.)

The Red Sox have made no secret of how much they value the draft picks that can be gleaned through free agent compensation. Under GM Theo Epstein, the team has been willing to risk overpaying players who might accept arbitration in order to secure a chance at a pick should the player sign elsewhere. Notable examples of that stance include Jason Varitek and Paul Byrd following the 2008 season and Tony Graffanino following the 2005 campaign.

That said, while the Sox have offered arbitration to all of their Type A and Type B free agents in the past three offseasons, the team has, at times, resisted making such offers for players. Indeed, between the 2003 and 2006 offseasons, the Sox declined to offer arbitration to several of their free agents. (Caveat: it is worth noting that, whereas Type B free agents no longer require a signing club to part with a draft pick, until 2006, a team that signed a Type B free agent needed to part with a second-round pick.)

Most notably, the team declined to offer arbitration to Trot Nixon and Mark Loretta after the 2006 season, and to Kevin Millar after the 2005 campaign.

Here is a look at how the Sox have proceeded since the 2002-03 offseason under Epstein with regards to free agents who could net the team draft pick compensation.

Read More: Adrian Beltre, arbitration, felipe lopez, Jason Varitek
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