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The Value of Signing All Our Picks

In 2009, the highest Orioles' draft pick to go unsigned was 8th round pick Devin Harris, a sophomore-eligible corner outfielder from East Carolina.  Harris was a first year starter as a sophomore, and showed plus power to go with a plus arm, but struggles with his routes to the ball and with pitch recognition.  Harris performed well down the stretch, however, including a huge game in the NCAA regional, but his time at the Cape Cod League was cut short after six games due to a bacterial infection in his eye from a contact lens.  While Harris and the Orioles were reportedly close on an overslot deal, negotiations fell apart and Harris returned to East Carolina for his junior year.

So far this season, Harris is batting .330/.425/.661.  Aaron Fitt of Baseball America recently projected Harris to go in the first three rounds of this year's draft.  I asked Andy Seiler about him, and while he wasn't as high on him as Fitt, he sees Harris as a 4th to 6th rounder.

Star-divide

In 2008, the top draft selection of the Orioles to go unsigned was Alvin CC C Chris Hermann, their tenth round pick.  Hermann did not sign, transferred to Miami, and was taken in the sixth round of the 2009 draft by the Minnesota Twins, Hermann signed for $135,000 and splitting time between catching and the outfield put up an OPS of .851 with seven home runs in 60 games in the Appy League.

Harris and Hermann are examples of what I think should be a draft mantra: sign your picks, particularly in rounds 4 through 15 (picks in the first three rounds are protected, and a failure to sign a selection gives the team a compensation pick in the following year's draft, significantly reducing the downside).  This is not a period in the draft where teams are selecting organizational players, if they are smart.  Most of them will not be blue-chip prospects.  But all have upside, and value to a smart organization.

Not every player who the Orioles draft but fail to sign ends up improving their stock.  The Phillies released pitcher Eryk McConnell a couple weeks ago, the Orioles top unsigned pick from 2007 (10th round, 309th overall).  McConnell, who was a year older than his class due to Tommy John surgery in 2004 went back to N.C. State for his senior season, was moved from the bullpen into the rotation, and struggled, and ended up going to Philadelphia in the 20th round in 2008.  But McConnell did show promise at first, with a 22/2 K/BB ratio in 21 innings in the Sally League in 2008.  Injuries limited McConnell to 30 1/3 innings in 2009, and his stuff was no longer getting strikeouts, so after looking at McConnell in Spring Training this season, the Phillies let him go.

But the virtue here is that these are almost risk-free investments for the Orioles.  In most cases, like Hermann's, signing picks in the 4-15 range is a matter of tens of thousands of dollars.  Even in a case like that of Harris who has improved his stock a bit more this year, Harris himself said the Orioles offer was "not far off" from what he was looking for.

In 2009, two teams failed to sign their fifth round picks, four failed to sign their sixth rounders, one failed to sign their seventh round pick, two eighth round picks went unsigned, one ninth rounder and five tenth rounders.  Some of those unsigned picks, like Sam Dyson and Jabari Blash, are now on top 100 lists for the 2010 draft.  But these numbers are shrinking relative to years past.  The market for young baseball talent is becoming more and more rational.  These opportunities will not last much longer.

The Orioles have proven that they have scouts who are consistently successful at recognizing talent whose stock is improving.  All it takes is a small sum of money, probably about what we're paying Julio Lugo this season, to add a few more prospects to our organization.  Sometime early this draft, someone is going to call Devin Harris' name.  Let's hope that it is a reminder to Andy MacPhail: Sign your picks!

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Agreed

Signing your picks is huge. Just as important is making over-slot picks. I would rather see us take over-slot guys in rounds 4-15 and not sign 3 of them than us just selecting slot guys and signing all of them. The draft is a huge way to build up your team, especially areas like your bullpen. Average pitching prospects become good and cheap arms in the bullpen. Something we really could use right about now.

"I have seen the future and his name is Matt Wieters." Keith Law

by Reddrummer9187 on Apr 21, 2010 2:08 PM EDT reply actions  

The reality is that we should sign overslot guys...

….and all of our slot guys too.

This is peanuts in the operating budget of the Orioles. And nearly every single player we draft will have higher value at some point than on draft day, be it as a player to be named later in a minor deal, part of a package of prospects in a trade, or as an eventual member of the Orioles. The draft is an opportunity to buy low on almost every name called.

It is worth it.

To be understood is to be a prostitute. ~ Fernando Pessoa

by James F on Apr 21, 2010 4:09 PM EDT up reply actions  

Great post.

It’s infuriating how the team is sometimes penny-wise and pound-foolish.

"I doubt he could reach [second base]...mostly cuz his fucking arm was in Aybar's nuts." – twistedlogic

by zknower on Apr 21, 2010 3:56 PM EDT reply actions  

Not to mention the fact that our payroll has been pretty reasonable

And if we’re really rebuilding, then fucking rebuild right?

Jesus, you’d think it is common sense.

by Y Not on Apr 21, 2010 5:15 PM EDT up reply actions  

Good post

As you pointed out, it’s especially inexcusable to leave high draft picks unsigned considering that there’s no cap.

"There's only one cure for what's wrong with all of us pitchers, and that's to take a year off. Then, after you've gone a year without throwing, quit altogether." -Jim Palmer

by Baltimo on Apr 21, 2010 4:44 PM EDT reply actions  

Great post.

I may be misunderstanding this, so I apologize if I am…

Even though the first 3 rounds are protected, it still seems potentially disastrous to not sign those picks. Not that Wade Townsend (who the O’s didn’t sign) or Adam Loewen (who they did at the last minute) is going to amount to anything, but for example if you don’t sign your first round pick that’s still a supposedly blue chip talent that you’re not getting into your system that year. It seems like that Wieters guy is going to work out ok.

Even if you get an extra high pick the next year, it still probably delays your rebuilding process.

by BrianS on Apr 21, 2010 5:42 PM EDT reply actions  

It is certainly bad not to sign those picks

Although for what it is worth the Townsend disaster was even worse because at the time, those picks were not protected. The O’s ended up with nothing.

But the difference between the value of who you pick now and who you pick a year from now, while significant, is no where close to being as huge as the difference between the value of the guy you pick now and nothing.

To be understood is to be a prostitute. ~ Fernando Pessoa

by James F on Apr 21, 2010 5:51 PM EDT up reply actions  

I think they were protected

Just not as well, I believe we got a sandwich pick (turned into garret olson i believe) instead of getting pick 4a the next year (i think it was the 4th pick). The biggest travesty about that pick was it was simply a signability pick and he would have signed for slot. These are the biggest reasons why we sucked for so long.

Although you lose the year of development as Brian said, and your negotiations the next year are less favorable because if you dont sign that player you lose the pick. So the team really should be getting it done every year but sometimes things change.

The biggest problem is if a player raises his demands significantly from when you drafted them. Lets say a player your third round pick that you thought you could sign for $250,000 based on discussions suddenly wants $750,000. If you decide he’s not worth that amount then i see no problem not signing him. If you cave into demands like that every time then agents know they can exploit that. So sign every pick within reason i guess.

"I have seen the future and his name is Matt Wieters." Keith Law

by Reddrummer9187 on Apr 21, 2010 6:56 PM EDT up reply actions  

Thanks for the clarification. I’m not very good at this stuff.

I remember this because at the time I joked that the O’s should just not sign any draft picks and eventually after many years they would have the whole first round and their master plan would come to fruition.

The good folks at Birds in the Belfry educated me that if they didn’t sign the compensatory pick then they’d lose it.

by BrianS on Apr 21, 2010 8:38 PM EDT up reply actions  

it is tough

While theoretically I definitely agree that the team should sign all its picks, it’s also important to keep in mind that you have to have a budget and a value on all the guys you pick. Each draft every team will have the guy that got away. Sometimes it’s for dumb reasons no doubt, see Wade Townshend, who wound up in the form of Felix Pie! I think the question that I have is if the Orioles sign Harris, do they not sign Coffey? For the most part I’m pleased that the Orioles are in the top 10 or so in terms of spending each draft. And while some of that is due to draft position, the team could be worse. I think.

Librarians are hiding something

by dfa on Apr 21, 2010 7:34 PM EDT reply actions  

wait I'm confused

How did Wade Townsend end up on the form of Felix Pie?

Rub some $100 bills on it, you sell-out. -duck

by O'sFan21 on Apr 21, 2010 11:19 PM EDT up reply actions  

Ah ok

just didn’t follow

Rub some $100 bills on it, you sell-out. -duck

by O'sFan21 on Apr 22, 2010 2:17 AM EDT up reply actions  

didn't mean to be vague

But yeah, the comp pick for not signing Townsend turned out to be Garrett Olsen, who was then dealt for Pie. I have no doubt that MacPhail would’ve turned a signed Wade Townsend into something less, like Neifi Perez.

Librarians are hiding something

by dfa on Apr 22, 2010 2:23 AM EDT up reply actions  

At best

hasn’t he had like 3 arm surgeries since then?

Rub some $100 bills on it, you sell-out. -duck

by O'sFan21 on Apr 22, 2010 10:52 AM EDT up reply actions  

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