The San Diego Discount Paradox

The Padres have become (in)famous for their "San Diego Discount". The basic idea is that San Diego is America's self-proclaimed "Finest City". The fantastic weather, almost brand new ballpark and it's excellent playing surface, as well as the highly regarded training staff do come at a price. The San Diego Discount.

Folks like Jake Peavy, Brian Giles, and Phil Nevin have all taken less money to play in the bastion that is San Diego. Kevin Towers seems to seek out Southern California natives that may be even more likely to come back to the future. The trick here is that any player that really can get big money elsewhere rightfully demands some level of no trade powers to take less money. These (relatively) long terms deals seem to frequently lead to players that cannot be moved (despite the front office's best efforts). At some point, the front office has to ask itself what the opportunity cost of the San Diego Discount really is. Otherwise said, how does the San Diego Discount affect the next best opportunity that Padres could pursue.

Often, the San Diego Discount translates to a few million dollars saved on a yearly basis for a declining, unmovable player. See Nevin and Ryan Klesko. Padre fans should consider that the only true offensive threat in the lineup may never have become a force for the Friars if Klesko hadn't injured himself, opening a position for Adrian Gonzalez. Otherwise put, Klesko's San Diego Discount almost cost the Padre's Gonzalez's bat. The front office may argue that this would have only been for one year, while Klesko's contract expired, but that still means that they would have been fielding Klesko solely to justify his unmovable contract.

In the case of Nevin, the opportunity cost of his no-trade powers ended up being Chan Ho Park. For a mid- to small-revenue club, Chan Ho Park at $14M per season seems a little extravagant. Then again, it really wasn't Chan Ho Park's fault - FF would place the causality on the San Diego Discount. (We would be remiss not to note that Nevin did do the Padres a favor by vetoing a trade that would have brought Sidney Ponson to the Friars, but that doesn't justify the San Diego Discount) Nevin also vetoed a trade that would have brought Ken Griffy, Jr. to San Diego, but we digress. The main point here is that Phil Nevin's San Diego discount ended up being more than $15M spent for a marginal pitcher. That money could have definitely been put to better use, but for the San Diego Discount.

This week we saw another execution of the San Diego Discount with Brian Giles killing a deal to Boston, apparently creating something of an uproar in the clubhouse. Giles plays hard, is having a decent season, and is a good clubhouse guy. That said, he's a big investment for a small budget club. FF doesn't fault Giles for vetoing the trade. Here's a shocker - we fault the San Diego Discount. We'd like to see those statisticians and economists that Padres employ take a good look at the San Diego Discount. Given Sandy Alderson's stated distaste for long term contracts, we suspect that no trade powers attached to those contracts only leaves a more bitter taste in his mouth. It certainly does for us.

The San Diego Discount should be abolished. We suspect that paying the market rate where reasonable is likely worth keeping all options open. Players with five years on the same team and ten years of MLB service get the no trade powers they deserve. Let's just leave it at that.

Read Alderson's Lips: No Barry Bonds

God bless Sandy Alderson, who has made it possible for FF to continue on as Friar fans with the following quote from the San Diego Union-Tribune:

“We have no intention of signing Bonds, and that's not a decision predicated on popular opinion, or one based on commercial success, but what we feel is appropriate for the franchise... This is something we're not prepared to consider.”

Can KT Learn From AJ?

San Diego sports fans know about the promise of big names and bold moves. We've heard it all many times and have even experienced it a time or two. But watching the Padres operate this offseason has been painful. I can't actually believe I'm saying this - but I am: Why can't KT be more like AJ? KT is, of course, the esteemed General Manager of the San Diego Padres; AJ the corollary with the San Diego Chargers. FF has a great deal of respect for both. KT is much more open about his plans while AJ is as closed as (ironically) a Marty Shottenheimer practice. I can't quite understand why the Friar front office is making such a big, public deal out of everything this offseason. I'm not big into conspiracy theories and this isn't meant to be one itself, but there is so much telegraphing of moves going on that it makes one feel like they want everyone to know they tried, should they eventually fail. We saw the reports that Milton Bradley, Brett Tomko, and even Glendon Rusch were all but done deals; none of these players has signed (and perhaps that's a good thing). Sandy Alderson even got into the act in regard to Bradley and Kosuke Fukudome (audio clip). I think the Friar's front office is fantastic on the whole - but agents and other teams don't need any help. AJ keeps everything close to the vest and nobody really knows what he'll will do at any given time. In the giant game of chicken that is a pro sports personnel management, it makes sense to keep the rest of field wondering.