Limited payroll is an objective reality for the Cleveland Indians. Whether the problem is the market size, the owners, or both – the Indians have and will continue to rank among the league’s lowest payrolls for the foreseeable future. For several years, that reality was a glaring hindrance to the Indians’ on field success. Specifically, between 2008-2012, the team went a woeful 363-447 (.448). Naturally, Cleveland fans began to grow convinced that without spending more money, the Indians would never be able to win on a consistent level. However, with Cleveland posting a winning record in each of the last three seasons, and currently being tied for the best record in the American League, the Indians have proven they can win despite the constraints of their market.
So just how has Cleveland managed their success? Namely, through patience and low-risk/high-reward contracts and trades that have allowed them to maximize the value of their limited payroll. Before anything else, the Indians had to lay the groundwork for their success internally by developing their minor league players and extending them to team friendly contracts. Jason Kipnis, Carlos Santana, Corey Kluber, and Carlos Carrasco all have played like All-Stars and all were developed and given contract extensions by the Indians. Further, Danny Salazar, Trevor Bauer, Francisco Lindor, Jose Ramirez, Lonnie Chisenhall, Tyler Naquin and Cody Allen are also playing at a high level while still on their affordable rookie contracts or in arbitration. All things considered, those 11 players account for just $35.42 million in salary this season, while totaling 24.3 (and counting) Wins Above Replacement: When the free agent market rate for 1 WAR is usually around $7-8 million, it is clear the Indians have produced excellent value internally.
No doubt, the Indians were able to establish a young, talented, affordable core. Largely, that is what allowed the team to have winning seasons in 2013, 2014, and 2015. Still, as good as that core was, Cleveland was not a championship-caliber team. Fans called for drastic action to “get over the top.” In 2013 and 2014, some wanted the Tribe to trade Francisco Lindor for an established MLB player, like Josh Donaldson. In 2015, I begged the Indians to trade for Carlos Gomez at the trade deadline, while others thought the Indians should trade Carrasco or Salazar for Yasiel Puig. As recently as this offseason, Cleveland fans coveted Justin Upton, and hoped the team would find a way to sign him in free agency
Had the Indians decided to be bold in free agency or in the trade market as many fans hoped, they wouldn’t be sitting in first place at the moment. Trading Lindor (or even Jose Ramirez) would have a disaster. Similarly, going after Gomez (62 wRC+ in 2016), Upton (85 wRC+ in 2016), or Puig (94 wRC+ in 2016) would have been a big mistake considering the cost of acquiring those players compared to their on-field production.
Instead of making a high-risk move that could have crippled the team just as easily as it would have improved it, the Indians stuck with their classic low-risk, high reward moves: during the 2015 season, the team signed Josh Tomlin to a very cheap extension, at just $2.25 million this season and next. Then, in the 2016 offseason, Cleveland signed veterans Mike Napoli and Rajai Davis to relatively cheap one-year contracts at $7 million and $5.2 million, respectively. At the time, none of those moves were lauded by fans as what would help put the Tribe over the top – but today, it looks like they very well could have.
Just like all the young talent Cleveland developed and extended the past few seasons, the Indians are getting incredible value out of Tomlin, Napoli and Davis. From a WAR perspective, the three have exceeded their contract value, combining for 3.9 WAR while only costing the Indians about $15 million this season. Still, comparing WAR to salary doesn’t paint the whole picture: Tomlin has arguably been the Indians’ most consistent pitcher, and can easily be considered one of the best #5 starters in baseball. Meanwhile, all Davis has done is stolen 27 bases, good for fifth in all of baseball. Davis has also been a solid leadoff hitter against left handers for Cleveland, slashing .252/.325/.383. In many cases, Davis has created runs by himself using his speed, like this sequence from Thursday’s game against the Twins.
In Napoli’s case, WAR may not give him the all the credit he deserves. While his 1.4 WAR is respectable, his team-leading 27 home runs (tied for 4th in MLB) from the cleanup spot in the order have been huge for Cleveland this year. No doubt, Napoli has been the “right-handed power bat” Indians’ fans have demanded the Indians acquire for years – and he only cost the team $7 million. Beyond the thump Napoli provides in the team’s lineup, it is also clear his presence has been a blessing in the clubhouse.
As frustrating as the “patient” approach taken by the team can be at times, with the Indians currently sitting in first place, it is hard to argue that the waiting didn’t pay off: the patience provided the Indians the resources to add an impact reliever in Andrew Miller when it mattered most. Even more importantly, even though Miller’s services cost the steep price of Clint Frazier, Justus Sheffield, Ben Heller, and J.P. Feyereisen, the team’s farm system is still far from depleted.
Ultimately, the Indians front office deserves credit for the work they have done within the confines of a small market. Not only has the conservative, patient approach taken by the Indians made them one of the best teams in baseball this season, but has promised them a chance at contention for the next several years – despite having one of baseball’s lowest payrolls.
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