Within the context of MLB free agency, four years and $48 million sounds about right for 30-year-old Ubaldo Jimenez. Within the context of MLB economics, it probably just was a more palatable deal for the Baltimore Orioles than the Cleveland Indians.
You see, even though the Orioles had to sacrifice the No. 17 overall pick1, they’re in a peculiar situation with potentially waning oodles of money to spend and in a division that requires spending. The Indians, although seven games better than the O’s in 2013, already have likely reached their spending limit for the coming season. Indications had been a bound for months that a Jimenez return was unlikely – the two sides reportedly hadn’t talked in weeks.
But the financial flexibility difference between Baltimore and Cleveland, although both face significant pressure for 2014, has a lot to do with TV and its associated boom of sports-related revenue. [Read more...]