Payroll Implications After the Trade Deadline
Payroll changes after the trade deadline
For the first time since 2018, the Pittsburgh Pirates were buyers at the deadline.
Okay, so not all-in, go-for-broke kind of buyers, but buyers nonetheless.
With conflicting reports about whether Bob Nutting was or wasn’t allowing some budget flexibility as the team remains in the race for a wild card spot, it’s interesting to see where the team’s payroll fell after the handful of moves.
That’s exactly what I’m here for, so we’ll start right where the team started, a few days before the actual deadline.
Trade Quinn Priester to the Boston Red Sox for minor-league infielder Nick Yorke
The final first-round pick of the prior regime, Priester was never quite able to meet the expectations many had for him, especially after flying up prospect rankings during the 2020 shutdown.
In return, the Pirates acquired another first-round pick, albeit a surprise one from the 2020 draft.
Yorke came out like a house on fire in 2021, seeming to justify that first-round status, but has been more up-and-down since. Recently, he has been more up and certainly has a chance to play some kind of role for the team down the stretch.
If not, he is a slam-dunk add as a first-time Rule 5 eligible player, a very light list for the team this offseason—one that may not have seen a prospect worthy before Yorke’s acquisition.
On the active roster, when he was traded, payroll went down $248,333 for Priester, who in turn was replaced by an activated from the injured list Baily Falter, creating no corresponding payroll shift.
Total Payroll Change: ($248,333)
Acquire Jalen Beeks from the Colorado Rockies for minor league pitcher Luis Peralta
On the eve of the deadline, the Pirates made a more modest acquisition, acquiring the left-handed reliever.
Likely nothing more than a Josh Fleming replacement, Beeks is slated for free agency after the season, so this is more of a short-term acquisition.
As for the prospect return, Peralta was an interesting case, as he’s been around for a while, has been a promising arm, and was really performing well this season between High-A Greensboro and Double-A Altoona.
This would have been Peralta’s fourth time available in the Rule 5 Draft, and of all the chaff among eligible prospects, there was at least an outside shot Peralta was added. He would have needed to be resigned first, however, as he is slated for minor league free agency after the season.
So, while his season has been interesting, there are enough negatives among Peralta’s profile to not bristle too much at his departure.
Beek’s is making $1,675,000 in his final year of arbitration, increasing payroll $558,333 in turn.
Total Payroll Change: $310,000
Acquire Isiah Kiner-Falefa and cash considerations from the Toronto Blue Jays for minor league infielder Charles McAdoo
Despite weeks—okay, months if we’re being realistic—of speculation surrounding the trade deadline, there’s always a name that comes out of nowhere for a surprise trade, and the acquisition of Kiner-Falefa certainly fits that bill.
A utility man who has played all over the field, it’s possible he fills in at both infield and outfield for the Pirates. To get him, the team had to give up a player that prospect wonks are likely to miss, as McAdoo has been skyrocketing up rankings this season.
As far as contracts go, Kiner-Falefa’s is certainly the most interesting. Signing a two-year deal this offseason in his first go-round in free agency, IKF is on the books for $7.5 million both this year and next; however, it came out when the trade was announced that cash was involved.
Coming back from the Blue Jays was $2,216,989, which, if you do the math, puts the Bucs on the hook for the pro-rated minimum for the rest of the season to Kiner-Falefa. The cash will be paid in two installments—both in August—so for Labor Relations Department purposes (LRD), it will all go to this season, meaning the Pirates are responsible for just $242,688 in 2024. However, it’s not quite as simple for Competitive Balance Tax (CBT) purposes.
The CBA requires that cash included to pay down a salary be prorated over the remaining guarantee of a contract. Since Kiner-Falefa is on the books for 2025, a portion of this payment needs to hit 2025. If you’re truly interested in the math, please let me know, but the breakout comes to $547,516 in 2024 and $1,669,473 in 2025.
In the end, since he is due $2,459,677 for the rest of the season, his LRD hit is $242,688, while his CBT hit is $1,912,162 ($5,830,527 in 2025). For those who want to get really deep in the weeds, since his yearly salary in both years matches the Average Annual Value (AAV) of the deal, it doesn’t need to be recalculated after the trade, which is a wrinkle from the newest CBA.
To close this out, IKF was on the injured list when acquired but was activated on Saturday, at which point Alika Williams was optioned in his place. Payroll went down $193,193, offsetting the new acquisition even more.
In total, the net payroll hit after this transaction as a whole was a $49,495 increase.
Total Payroll Change: $359,495
Acquire Bryan De La Cruz from the Miami Marlins for minor league pitcher Jun-Seok Shim and minor league infielder Garret Forrester
Not as much fun to be had in this description, unfortunately, as the De La Cruz acquisition is a whole lot more straightforward. In an effort to help fortify the need for an outfield bat, De La Cruz had seemingly been in the Pirates’ sights for quite a while. As far as the return, Shim is certainly the more notable, as he was a big-time international signing, a player who forwent a likely high selection in the KBO draft to sign with the Pirates for $750,000.
Unfortunately, Shim has just not been able to stay on the field in his short time with the organization, spending a lot of time on the injured list with largely mysterious injuries. It’s certainly possible that he could realize his talent at some point down the road, but right now there’s just not a lot to go off as far as on-field evaluation goes.
De La Cruz is in his final year of pre-arbitration, meaning he’ll be eligible for his first of three arbitration rounds this offseason. This season, he is only on a $768,000 contract, with the Pirates realizing $251,871 of it.
Joshua Palacios went on the injured list when De La Cruz was activated, meaning there was no corresponding payroll change to get him on the roster.
Total Payroll Change: $611,366
Trade Martín Pérez and cash considerations to the San Diego Padres for minor league pitcher Ronaldys Jimenez
If actions speak louder than words, it feels like we know which report was more true when it came to how much money was or wasn’t available at the deadline.
Pérez had $2,623,656 in salary remaining for the season, and while the Pirates are sending half ($1,311,828), that’s obviously enough to swing them back into the negative when it comes to cash commitments.
Also, just in case it wasn’t clear, I had this on my own—I wasn’t working off of anybody. The proof is in the pudding.
Anyway, the Pirates selected Jake Woodford and his $900,000 salary to take Pérez’s turn in the rotation and spot on the roster, even if temporary. That’s an extra $300,000 (for now), but that’s still not enough to offset the outgoing money off the books.
Total Payroll Change: $(400,462)
Just in case anyone is wondering, I intentionally left the acquisition of Josh Walker out of this evaluation. The team had two roster spots open at the time, and it was my opinion that Walker took Fleming's spot as a more normal operating procedure, not as a trade deadline acquisition. If you want to add that in, that move resulted in a $59,544 increase.
Post-deadline, I have LRD payroll projected at $86,345,646, or $1,600,798 less than where I had it to start the season. As for the CBT projection, that is $121,571,537, or $68,676 more, with the difference between the two solely attributable to the difference in cash considerations for Kiner-Falefa.
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I for one appreciate all the time and effort it take to get these payroll numbers down to the dollar
So the Pirates had glaring needs to address at the deadline and somehow BC ended up SAVING Nuttin money. What a surprise.