FORT LAUDERDALE, Fla. -- Loaded with multi-year contracts and again possessing the game's most veteran clubhouse, the Orioles have committed $81.485 million to their 23 players under contract and are virtually assured of carrying a payroll exceeding $82 million this season.
The figure, compiled from labor and management sources, represents about an initial 6.5 percent increase over last season's payroll, but will allow the club to cede the title of most expensive clubhouse to the New York Yankees.
In fact, the Orioles have slipped to third. The Los Angeles Dodgers also jumped over the Orioles after signing free-agent pitcher Kevin Brown to a seven-year, $105 million payroll. Both the Yankees and Dodgers are expected to approach $90 million.
Including payments to players released or traded during the season, the Orioles finished 1998 with salary commitments of $77.11 million, a fraction of which was deferred at no interest.
This year, Orioles will carry 13 contracts of $3 million or more, leaving them a projected average salary of $3,283,400 based upon a total projected payroll of $82,085,000. Shortstop Mike Bordick's $3,083,333 salary represents the club median. Eight players will make $1 million or less.
Of the Orioles' projected Opening Day roster, only pitchers Sidney Ponson and Doug Johns remain unsigned. Possessing less than three years of major-league service, both players are "renewable" and may be assigned salaries by the club. The two are expected to sign within the next week for a combined $600,000-$800,000.
Figures do not reflect money deferred at no interest, a staple of long-term contracts negotiated by majority owner Peter Angelos.
This year's escalation reflects both the game's spiraling marketplace and the modification in Angelos' longstanding fiscal policy. The Orioles last May awarded No. 2 starter Scott Erickson a five-year, $32 million contract, making him the club's first pitcher with anything more than a three-year deal.
Desperate for an offensive centerpiece, Angelos then approved signing free-agent outfielder Albert Belle to a five-year, $65 million contract. Angelos previously had vowed to hold the line against bestowing $10 million per season to any player.
"Circumstances within the market dictated that we needed to cross that threshold," said Joe Foss, the Orioles' chief operating officer. "It's entirely in keeping with our promise to provide our fans a contending, entertaining team."
A season-opening salary represents only a base line. The Orioles have never been shy about acquiring high-priced players during a season. Incentive clauses based on number of appearances and awards earned also force payroll higher. Erickson's package even includes a clause stipulating his incentives be increased to the same level of No. 1 starter Mike Mussina should Mussina renegotiate his contract.
Expenses don't stop there. Each major-league team typically spends about $5 million per season on player benefits. By ranking among the freest-spending teams, the Orioles also are subject to a season-ending "luxury tax," which is redistributed to the industry's pauper franchises. Total expenditures associated with payroll could reach $95 million this season.
Belle, who also will receive a $1 million bonus should he be named American League Most Valuable Player, remains the only Oriole making more than $7 million this season. Erickson ($6.43 million), Mussina ($6.825 million), third baseman Cal Ripken ($6.3 million) and center fielder Brady Anderson ($6.2 million) will make more than $6 million. Every Orioles starting position player will earn at least $3 million. Last season right fielder Eric Davis' $2.5 million represented the low for a starting position player.
The Orioles, who entered last season with an industry-leading 14 pending free agents, were forced into an off-season shopping spree, signing second baseman Delino DeShields, first baseman Will Clark and relief pitcher Mike Timlin to multi-year packages before retaining incumbent left fielder B. J. Surhoff. Relief pitchers Heathcliff Slocumb, Ricky Bones and Mike Fetters were subsequently signed to one-year contracts. Fetters' deal is not guaranteed.
Angelos never has apologized for his free spending. The Orioles trail only the Yankees in revenues and Angelos maintains the ownership group never has received a dividend on its investment.
"Everything is reinvested into the club," said Foss.
While this winter's escalation continues a disturbing trend within the industry, the Orioles believe they may soon receive a reprieve from such spikes. What was once a fallow player development system is expected to offer several major-league ready players within the next several years.
"You would like to have young players advance for at least two reasons -- one being that they have shown that they belong here by producing in the minor leagues, and also because young players serve as a form of cost containment," said general manager Frank Wren. "I think this organization has looked forward to that day for quite a while when it could replenish from within. I'd like to think that day is close."
At the same time, the Orioles have allowed themselves a degree of cost certainty by having 11 veterans signed through 2000.
The Orioles also hold an option for next season on Ripken. Plus Bordick's contract vests for a fourth season should he receive 500 plate appearances this year.
"We would like to think we may have reached a plateau in salaries," said Foss, "but at the same time we are subject to the whims of the market. We don't operate within a vacuum. In addition, given the resources we have invested in player development, that should become a more viable avenue for us as well."
Player 1999 salary
Rich Amaral $500,000
Brady Anderson $6,200,000
Harold Baines $1,500,000
Albert Belle $13,000,000
Ricky Bones $800,000
Mike Bordick $3,083,333
Will Clark $5,000,000
Delino DeShields $3,833,333
Scott Erickson $6,430,000
Mike Fetters* $750,000
Juan Guzman $5,250,000
Chris Hoiles $3,700,000
Doug Johns Unsigned
Charles Johnson $3,600,000
Scott Kamieniecki $3,350,000
Mike Mussina $6,825,000
Jesse Orosco $800,000
Sidney Ponson Unsigned
Jeff Reboulet $525,000
Arthur Rhodes $2,200,000
Cal Ripken $6,300,000
Heathcliff Slocumb $1,000,000
B.J. Surhoff $3,833,333
Mike Timlin $2,250,000
Lenny Webster $755,000
Current total $81,485,000
Estimated total** $82,085,000
*-Signed minor-league contract.
**-Includes estimated $600,000 that will be needed to sign Johns and Ponson.
NOTE: Salaries do not reflect deferred money but do include pro-rated shares of signing bonuses.
Compiled by Joe Strauss from labor and management sources.
Pub Date: 2/27/99