Have the White Sox "spent the money" that Rick Hahn promised?

[VAfan]

Back in February 2019, right after the White Sox lost the Manny Machado sweepstakes, Rick Hahn gave the following quote:

"The money will be spent. It might not be spent this offseason, but it will be spent at some point. This isn’t money sitting around waiting to just accumulate interest. It’s money trying to be deployed to put us in best position to win some championships."

Here's a link to the article I pulled this from.

Manny Machado' contract called for him to get $300M over 10 years.  That was Feb 2019.

Now the Sox didn't commit to $300M, which is part of the reason they lost. Their offer was speculated at around $250M. So let's use that latter number to assess whether Hahn has in fact spent that money. 

In 2019, the Sox had an active payroll of just over $70M. (All numbers from Spotrac.)  In 2020, their active payroll was $107M.  In 2021, it is $117M.  I'm leaving out several spending categories from these numbers -- Injured list, reserve/exempt, retained salaries, player pool, and signing bonuses. 

So, if you compare just that number, the Sox went from $70M up to $107M in the first year after they lost on Machado. That's a $37M increase. 

What did they spend that money on? 

• Yasmani Grandal: $18.25M/year
• Dallas Keuchel: $18M/year
• Jose Abreu extension: approx $18M average for 3 years
• Luis Robert contract
• Yoan Moncada extension
• Edwin Encarnacion: $13M
• Gio Gonzalez: $4.5M
• Nomar Mazara: $5.5M
• Aaron Bummer 5-year extension with 2 club options at $7.5M each
• Lance Lynn: $8M for 2021
• Liam Hendriks: 4 years, $54M
• Adam Eaton: $8M avg for 2 years
• Attempt at signing Zack Wheeler, who took the Phillies offer of $23M/year. Signed Keuchel and Gonzalez instead for about the same amount. 

If you look at these numbers, I would think it would be pretty easy for Rick Hahn to defend the comment he made in February 2019. The Sox active payroll is $47M higher than it was when he said that, and with built in escalators for all the players they have locked up long term, or who will enter arbitration over the next several years, that number is just going to go higher during this window of Sox contention whether or not they add more free agents.  See my 3-5 year window post here.

I know we all want the Sox to spend more. Me included. 

But, in fairness to Rick Hahn, I don't think he was lying to the fans. I think the plan all along has been to spend about what they've spent while trying to put the best club on the field that they can for that money. I think they've done better at that this year than last year, when they wasted money on EE, while Gio and Mazara were busts. 

[southsideirish71]

You could fill a large lake with the water you carry for this organization.   I am sold.  They did their best.  

If we dont win the division or any playoff games this year. We can always have this.

 

 

Edited February 5, 2021 by southsideirish71

[Texsox]

I really don't care how much they spend if they are winning. 

[ChiSoxFanMike]

Long answer: no they have not

Short answer: no 

[Chicago White Sox]

Using their ridiculously low payrolls at peak rebuild to suggest they spent most of the Machado money is poor logic.  The reality is that money has not been spent at this point in time.  However, if they can extend Giolito & Lynn and possibly add a few years onto Anderson’s deal I’d probably change my tune.

[Ducksnort]

Depends on what your spending window is. Are you looking at beginning of rebuild to beginning of contention window, or beginning of contention window to end of contention window? I choose to believe the latter. And the contention window just opened.

[Rey21]

No it has not been spent, and will never be spent in the context that we want it to be (Machado/Harper/Cole/Springer) types 

[RagahRagah]

37 minutes ago, Chicago White Sox said:

Using their ridiculously low payrolls at peak rebuild to suggest they spent most of the Machado money is poor logic.  The reality is that money has not been spent at this point in time.  However, if they can extend Giolito & Lynn and possibly add a few years onto Anderson’s deal I’d probably change my tune.

A part of me honestly believes they were never serious. 

At this point the suggestion JR wants second place every year is 100% feasible.

Edited February 5, 2021 by RagahRagah

[southsider2k5]

The Sox have historically spent around winners, but there has only been one pandemic during the last 5 generations.  Once things get back to normal, I am going to bet so does that historic spending.

[Chicago White Sox]

10 minutes ago, southsider2k5 said:

The Sox have historically spent around winners, but there has only been one pandemic during the last 5 generations.  Once things get back to normal, I am going to bet so does that historic spending.

I’d normally agree, but we do have CBA expiring next offseason and Reinsdorf doesn’t have the best track record when it comes to uncertainty.

[southsider2k5]

Just now, Chicago White Sox said:

I’d normally agree, but we do have CBA expiring next offseason and Reinsdorf doesn’t have the best track record when it comes to uncertainty.

The Albert Belle deal came very close to after the last strike.

[Chicago White Sox]

2 minutes ago, southsider2k5 said:

The Albert Belle deal came very close to after the last strike.

After is not the same as before though.  I think we’ll start spending more once we get through this shit, but definitely an nervous about next offseason with the risk of a work stoppage in the air.

[southsider2k5]

Just now, Chicago White Sox said:

After is not the same as before though.  I think we’ll start spending more once we get through this shit, but definitely an nervous about next offseason with the risk of a work stoppage in the air.

No one is going to do anything next off season.

[South Side Hit Men]

2 hours ago, Chicago White Sox said:

Using their ridiculously low payrolls at peak rebuild to suggest they spent most of the Machado money is poor logic.  The reality is that money has not been spent at this point in time.  However, if they can extend Giolito & Lynn and possibly add a few years onto Anderson’s deal I’d probably change my tune.

The OP had the right $ amount but wrong year ($71M was spent in 2018, not 2019). Paul Sullivan quoted the correct year, but was $3M different for both years than amounts reported by Cot's Contracts / Baseball Reference.

I am waiting for the first post linking a "journalistic" article this year, praising Dear Leader for nearly tripling payroll from $50.2M (2020) to the current amount of  $128M (2021) in one season.

https://www.chicagotribune.com/sports/white-sox/ct-chicago-white-sox-liam-hendriks-jerry-reinsdorf-20210116-rhgupqhn5rhivlpu7xh5jyqnxq-story.html?outputType=amp&__twitter_impression=true

 

Quote

Paul Sullivan 1/16/21: After the Sox signed closer Liam Hendriks to a four-year, $54 million deal Friday, their payroll is an estimated $131 million for 2021, according to rosterresource.com, nearly double the payroll of $68 million at the end of the 2018 season.

 

WHITE SOX PAYROLLS
Year	Opening Day 26/30	Year End 40-man	CB Tax 40-man
2020	$ 50,204,444 (17)	$  52,591,640 (20)	$178,251,672 (12)
2019	$ 88,902,000 (26)	$ 97,304,607 (25)	$115,472,746 (24)
2018	$ 71,217,000 (29)	$ 71,604,110 (29)	$ 82,889,649 (30)

Edited February 5, 2021 by South Side Hit Men

[caulfield12]

Going by the White Sox payroll of $128 million in 2011, a full decade ago...increasing by roughly the inflation rate of 3% per year, we would now be at approximately $172 million. 

[HOFHurt35]

2 minutes ago, caulfield12 said:

Going by the White Sox payroll of $128 million in 2011, a full decade ago...increasing by roughly the inflation rate of 3% per year, we would now be at approximately $172 million. 

By that same measure, the Yankees would be close to $300 million today and everyone else in line the same way.

Is that happening?  No, I don't think so.

[caulfield12]

4 minutes ago, HOFHurt35 said:

By that same measure, the Yankees would be close to $300 million today and everyone else in line the same way.

Is that happening?  No, I don't think so.

Which leads to the conclusion that overall salary increases for MLB players are not even close to rising at the inflation rate over the last decade, despite a historic ten year stock market return when the billionaire class is getting exponentially richer and player share as a proportion of total team revenues (at least until 2020) has been decreasing by 0.xx% per year over that time.

They’re rising at the top and bottom, but the “middle class” veteran players in their 30s are getting crushed.  One of the few areas where salaries have risen during that time is for higher leverage relievers...a consequence of the Royals’ run, Andrew Miller in the postseason and the emergence of dominant multiple inning guys.

Edited February 5, 2021 by caulfield12

[VAfan]

3 hours ago, ScooterMcGee said:

Depends on what your spending window is. Are you looking at beginning of rebuild to beginning of contention window, or beginning of contention window to end of contention window? I choose to believe the latter. And the contention window just opened.

I agree the contention window opened in 2020, and the Sox spent on major free agents - Grandal, Keuchel, Encarnacion - that they hadn't before, and committed much more to extend Jose Abreu than most fans thought wise. They also locked up two cornerstones in Robert and Moncada. 

This year they added Lynn. It's a one-year deal but gives them an inside track on extending him if it makes sense. They added Hendriks for several years. Eaton, meanwhile, is just a bridge player. But they are also bringing up Vaughn and Kopech and giving Collins a chance as backup catcher. 

The payroll is going to grow considerably as all the young guys move gain experience, and as their contracts call for. Take any of the studs they have on long term deals.

Moncada - 2021 $6.8M, 2025 $25M

Robert - 2021 $3.5M, 2025 $15M

Jimenez - 2021 $4.3M, 2025 $16.5M

Anderson - 2021 $7.25M, 2024 $14M

Just for these 4 guys, 2021 $21.85M, 2025 $70M (fudging b/c Tim Anderson signed only through 2024).

Add in potentially doing something about Giolito, who only receives 4.15M in 2021 and you have the potential to increase payroll with just 5 guys by $70M.

If looked at this way, you can see why the Sox weren't in on Springer or Bauer, especially on long term contracts. They have been willing to supplement the core with short term free agents - 3-4 years tops - who they desperately have to replace with younger players in their cost-controlled years. So Lynn and Keuchel are bridges to Cease and Kopech and Crochet becoming TOR starters. Eaton is a bridge to Cespedes and/or Colas (if we sign him). It's hard to believe Collins will ever be a front line catcher, but he has 3 years to learn under Grandal before the Sox have to decide. Vaughn will eventually take over for Abreu. 

We all think the Sox are a major market team and should act like one. But we all know the Sox play second fiddle to the Cubs financially, even when the Cubs are bad and the Sox are good. Chicago is likely never going to become a Sox town. Though another World Series title would help. 

So I don't fault the team for it's approach. They have financial limits. I might not like them, but I can understand them. I don't think they are just cheaping out. I just want them to spend the money they have wisely, and to develop the players they have to play their best, and to win games with good management. 

I'm excited about the prospects for this team and think we have a shot. I think we'll win the division by several games and are set up well for playoff baseball. But that's another post. 

[caulfield12]

Still a bit early to think about extending Lynn...need to see him for at least a couple of months, as those long-term deals for players in their 30’s have the highest bust rates.

You were talking about trading an Anderson/Giolito (well, maybe more in a general sense, just following the logic) for more pieces to extend the contention window beyond 2023-24.

That’s a tricky game.

Moncada and Jimenez certainly have their flaws/limitations...and even Luis Robert has a lot left to prove.  Vaughn, as highly-regarded as he is by many, has to hit at the same clip as Jimenez or even higher to make up for speed/baserunning and defensive deficiencies.  Madrigal’s weaknesses have been dissected to death.  That said, it’s challenging to think of any combination of six hitters in MLB under age 27 that’s as highly-regarded.

At any rate, it keeps circling back to either Anderson or Giolito.  Those are the two at closest to peak value.

 

 

If if weren’t for the Padres having Tatis, Jr., and Machado, a rotation that goes 7-8 deep, STILL one of the Top 5-7 farm systems in the game...it wouldn’t be nearly so annoying.

They’re clearly a much smaller market team, but they operate like they’re unafraid of anyone.  Imagine what Reinsdorf would do if we were in the same division as the Dodgers every year?  We’d turn into the Cincinnati Reds.  We can barely put the foot on the gas pedal when the Indians are basically surrendering and the Twins went for months without doing much.

Edited February 5, 2021 by caulfield12

[jenksycat]

It's not really about "did they spend what they were trying to spend on Machado".  

Its: "the window is wide f'in open right now"...and they're rolling with no right fielder, a rookie DH, 2 young wildcards in the rotation, all while having a cheap core.  Holes could EASILY be filled by JR parting with a couple of his coins.  Instead what I fear is this time next year we go in saying "man if we just get a right fielder, a DH, and another starter and we just might make it to the ALCS"

[South Side Hit Men]

3 hours ago, caulfield12 said:

Going by the White Sox payroll of $128 million in 2011, a full decade ago...increasing by roughly the inflation rate of 3% per year, we would now be at approximately $172 million. 

 

3 hours ago, HOFHurt35 said:

By that same measure, the Yankees would be close to $300 million today and everyone else in line the same way.

Is that happening?  No, I don't think so.

You know what has vastly exceeded inflation, whereas salaries lost real value for MLB players (and most workers)?

Most recent available data:

Chicago White Sox ML Player Salaries increased 0.15%

• 2011 $127.8M
• 2021 $128.0M

Chicago White Sox Net Income increased 239.1%

• 2011 $27.6M
• 2019 $66.0M

Chicago White Sox Current Value increased 313.7%

• 2011 $526M
• 2019 $1,650.0M

And Jerry and the other 29 lying owners all pose like this

 

And before a pinhead replies "what about 2020", A. The players had to risk their lives and had their pay cut by 63%. Meanwhile, clubs continue to sell, even in COVID, for record amounts. They make so much net income in 99 of the past 100 years, and their valuations increase by such a high rate, that billionaires are fighting each other and outbidding each other by record amounts to get a piece of the action.

[Chicago White Sox]

4 hours ago, jenksycat said:

It's not really about "did they spend what they were trying to spend on Machado".  

Its: "the window is wide f'in open right now"...and they're rolling with no right fielder, a rookie DH, 2 young wildcards in the rotation, all while having a cheap core.  Holes could EASILY be filled by JR parting with a couple of his coins.  Instead what I fear is this time next year we go in saying "man if we just get a right fielder, a DH, and another starter and we just might make it to the ALCS"

I’m trying to remain positive given how good the bulk of our roster is, but I do fear what happens at the deadline if our lack of depth finally leaves us exposed.  Right now we could add decent depth pieces just for money, but come July even decent rentals will cost a pretty penny and that will hurt an already weak farm system.  Just got to hope our players mostly stay healthy, which is asking a lot when you have injury prone guys like Eloy, Robert, Eaton, Madrigal, & Moncada in the lineup.  We also desperately need one of Cease or Kopech to step up, because we can’t survive two black holes at the back end of the rotation.

[Flash]

Angels picked up Dexter Fowler for a PTBNL and Cards are covering all but @$1M of his remaining contract. SH who can cover all 3 OF positions and bring clubhouse value. Not exactly a need for Sox today (w/Leuery) but he compares favorably to Eaton for a fraction of the cost.

[Flash]

Given Covid related uncertainties re: revenue, I'm not terribly disappointed with the off-season moves (so far). Lynn was an excellent pick up and if he can remain effective, should be a rotation piece beyonnd '21. Hendriks makes our BP nails . Eaton was a puzzling addition, mostly due to salary coming off a down year but I'll reserve judgement. My only real disappointment is/was our inability/unwillingness to effect a trade for another strong rotation arm...Burnes, Castillo, Marquez (or Darvish at the time). I understand our lack of minor league trade chits such as the Padres had but my guess is there was//is(?)  business to be done with the Reds (i.e. Castillo + Moustakas for ???) or Rockies for Marquez and salary relief i.e. Blackman. Can you imagine the rotation if with either Marquez or Castillo added to the mix?

[CentralChamps21]

3 hours ago, South Side Hit Men said:

 

You know what has vastly exceeded inflation, whereas salaries lost real value for MLB players (and most workers)?

Most recent available data:

Chicago White Sox ML Player Salaries increased 0.15%

• 2011 $127.8M
• 2021 $128.0M

Chicago White Sox Net Income increased 239.1%

• 2011 $27.6M
• 2019 $66.0M

Chicago White Sox Current Value increased 313.7%

• 2011 $526M
• 2019 $1,650.0M

And Jerry and the other 29 lying owners all pose like this

 

While I agree with the sentiment you are trying to convey, your numbers look more extreme than they really are because you cherry picked 2011 as the highest salary year. A better comparison would be 5 year averages from 2008-12 with 2017-21.