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Baseball, Commentary, News, Yusei Kikuchi

Meet MLB’s new deal

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On Jan. 3 in Japan, news broke on MLB.com about the details of Yusei Kikuchi’s contract with the Seattle Mariners. According to the report, Kikuchi gets a guaranteed three-year, $43-million deal, with a $13-million player option for 2022, and a four-year, $66-million team option should he decline to exercise his.

Had the Mariners made this a straight-up $109-million deal. They would have had to fork over to the Seibu Lions a $18.225 million transfer fee. Instead, Seattle will pay considerably less.

Welcome to the future of the posting system.

Other than the standard evaluation of a player’s talent and future value, there are other issues at play here. By making this a three-year deal, the Mariners minimize the amount of money they will have to forfeit to the Seibu Lions.

The current posting fee is an amount of money equal to:

  • 20 percent of the first $25 million of the guaranteed contract.
  • 17.5 percent of the next $25 million of the guaranteed contract.
  • 15 percent of everything else including bonuses, incentives paid and options.

That means the first part of the Mariners’ payout to the Seibu Lions in addition to Kikuchi’s contract, provided MLB.com’s numbers of a $43 million guarantee are accurate, will be worth $8.15 million in addition to another amount equal to 15 percent of any bonuses and incentives.

But here’s the sweet part for the Mariners — and why will likely see more deals like this in the future. Seattle can bank everything else until the decisions are made about team and player options after 2021. If the Mariners do exercise their option on Kikuchi, who will then be 30, the share of the posting fee they will then pay will be the repayment of a three-year, $9.9 million, interest-free loan from the bank of Seibu.

The second trick is that by making the rest an “option,” all of Kikuchi’s future income from this contract will only require the Mariners to pay 15 percent of that amount to Seibu.

It’s a small bit, but changing the posting fee on the first $7 million paid to Kikuchi after 2021 to 15 percent from 17.5 percent, will save Seattle another $175,000 for good measure.

Commentary, News, Yusei Kikuchi

Boras: Kikuchi interest “intense”

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Agent Scott Boras tells a throng of reporters at the winter meetings in Las Vegas about his clients.

 

LAS VEGAS – Agent Scott Boras called the interest in Seibu Lions left-hander Yusei Kikuchi “intense” on Wednesday, when he held court at baseball’s winter meetings.

Kikuchi has been on the market since Dec. 5, has already had his physical, and is expected to arrive in Los Angeles in the coming days, Boras said.




“He’s the only 27-year-old left-handed starting pitcher on the market,” Boras said “He’s viewed very differently, because of the acquistion cost. You have to pay a posting fee. Clubs feel he has a very fresh arm, unlike a lot of Japanese pitchers. He did not throw in NPB at 18 or 19, so he has very limited innings compared to some of the other Japanese pitchers that have come over.”

“We think the teams are very aware of his value. Remember, too, that a Japanese pitcher of reputation may offer major league teams an economic incentive. Because there’s a lot about the partnership with Japanese companies that bring value. They’re very pleased about having in their market place a star Japanese player.”

Kikuchi has been deactivated three times when the Seibu Lions attributed the reason as shoulder issues:

When he was left off the Opening Day roster in his first year (2010) and was not activated until the end of September.
When he missed one start in the middle of the 2013 season.
When he missed five weeks at the start of this past season with shoulder stiffness.

“People write that he’s had a history of shoulder trouble, but that is not accurate,” a member of Boras’ staff said.




When he was Daisuke Matsuzaka’s agent in 2006, Boras reportedly encouraged Matsuzaka to turn down a last-minute offer from the Boston Red Sox and return to his Japanese club, the same Seibu Lions. But at that time, posted players were limited to speaking with the lone team that bid the highest for his negotiating rights in a closed bid.

“If we strike a deal we could have it done in a short period of time,” Boras said. “We’re still negotiating,” Boras said. “Normally, you get things done in advance of a deadline, because that makes it a little more difficult. I’m sure he’ll have a deal before Jan. 2.”

“We’ve had many meetings. We have all of his physicals in order for the team. And all that’s final. He’s ready to sign at any time.”

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