J.C. Gets $12 Million Deal

Well, not this J.C.; I am referring to J.C. Romero’s new three-year $12 million contract with the Phillies.

In my opinion, this is a real stinker of a deal. Last year, I have him valued at $2.45 million. If we assume he continues to pitch at this level for the next three years and salaries increase at ten percent a year (generous assumptions), he’ll be worth about $9 million over the course of the contract. And, I’m being quite optimistic. I suspect that there is very little danger of the Phillies wanting to pick up the $4.75 million option for the fourth year.

There are going to be a lot of free agent contracts signed this offseason that seem to be outrageous at first, but upon further inspection appear to be on target. In this case, the second glance only confirms the first.

2 Responses “J.C. Gets $12 Million Deal”

  1. Jared says:

    I’ve searched your site but haven’t been able to find how you determine player value (in dollars). Have you published your method? If not, could you tell me how you valued replacement level pitchers and hitters in 2007? Thanks.

  2. JC says:

    I explain the method in chapter 13 of my book, The Baseball Economist. 🙂