Michel Inoa’s Signing Signals New Era In MLB

USA - When the Oakland Athletics signed Dominican righthander Michel Inoa for $4.25 million on July 2, more than a new bonus record for a non-Cuban player from Latin America was set. It also signaled a new era in Major League Baseball.

The average bonus paid to more than 500 Dominican prospects signed last year was double what major league franchises paid in 2005. With the cost of signing top international talent skyrocketing, smaller market clubs have had to become creative with their limited financial resources.

The Athletics trimmed their major-league payroll over the past year trading away several big-name players and their fat contracts in order to make a splash in the Latin market. Oakland used to be a major force in signing top prospects from Latin America until exorbitant bonuses in the mid-90s favored big-budget clubs like the Yankees and Red Sox.

However, a change of philosophy helped the Athletics land Inoa, a 6-foot-7, 205-pound righthander from Puerto Plata with a fastball that consistently comes in at 91-94 mph. With his size, athletic bloodlines and easy mechanics scouts believe the Dominican hurler is destined for stardom.

Known for it’s deep pool of talented minor league pitchers, the American League West franchise is reinvesting money into what it calls the infrastructure - prospects - instead of established Major Leaguers. The Athletics believe that by signing and developing talented future stars, and paying reduced salaries until these players are eligible for arbitration, the large signing bonuses are in effect a cost-cutting measure.

“It’s no secret we had reduced our major-league payroll,” Oakland General Manager Billy Beane told Baseball America. “We wanted to continue to reinvest what would normally be major league payroll into the infrastructure.”

Beane also said it would not stop with Inoa. He is scouting worldwide, and there may well be more signings. It is a change in the Athletics’ philosophy, and Beane backs it with his analysis.

“The money we invested, say $4.25 million, would be better than signing one major league player at 4.25.” he said. “It does relate very much to the major league payroll. The risks and potential of what this kid could do was worth it to us.”

And, the Athletics are not the only franchise going in this new direction. Numerous clubs are re-evaluating the value of international players, who still are generally cheaper than drafted players. And like all homegrown talent, these players can be cost-controlled for their first three years of service time, followed by three seasons at below-market value in their arbitration years.

“Teams who have not had much success in Latin America can point to teams like the Rockies and Arizona,” said one international scout to Baseball America. “Teams going to the playoffs are the ones signing Latin American guys who go to the major leagues. But they don’t spend that much money—it comes down to scouting and how you allocate the money. You see all these teams now, they have done nothing in Latin America and they’re saying they have to do something about it.”

But is it all about the money? Oakland’s reputation for developing pitching prospects (Tim Hudson, Mark Mulder, Barry Zito, Dana Eveland, etc.) played a huge factor in signing Inoa who was reportedly offered bigger signing bonus by both the Cincinnati Reds and the Texas Rangers. The 16-year-old pitching phenom and his parents felt that the Athletics were the superior franchise in terms of developing pitching talent.

And, fortunately, the Inoa’s were right.

Photo/Athletics Cast

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