J.T. Realmuto

The Phillies aren’t actively engaged in extension talks with star catcher J.T. Realmuto, but he hasn’t foreclosed the possibility of a longer-term relationship. Team owner John Middleton echoed that sentiment in a recent interview with Jim Salisbury of NBC Sports Philadelphia.

Generally, Middleton continued to express great admiration for Realmuto and optimism about contract talks. The strong underlying relationship provides “a great basis to begin a negotiation,” says Middleton, who also said he has no issues with Bryce Harper’s less-than-subtle campaign for a Realmuto deal.

That said, there were strong undercurrents of baseball’s new realities in Middleton’s comments. For one thing, the just-cited quote rather clearly implies that the team believes that negotiations will need to start fresh in the new COVID-19 world we all live in.

Then, there’s the double-edged sword of the sizable new deal between the Dodgers and superstar Mookie Betts. Middleton lauded the “ingenious deal” for its “creativity” and suggested it could indeed be utilized in the Phillies’ case. “There’s no reason why not,” he said.

But the Phils owner also made clear that the Betts contract was in “reality … much less” than its advertised $365MM price. Betts and the Dodgers agreed upon a heavily deferred contract structure to smooth over the coronavirus-driven economic turmoil.

Middleton’s top baseball ops employee, GM Matt Klentak, recently referred to that wide-ranging uncertainty in discussing the team’s interest in a Realmuto deal. And the team owner used precisely the same terminology, explaining that the Betts deal “reflects the reality of the economic uncertainty that we find ourselves in today.”

The overarching message here seems to be that the Phillies see a pathway to a deal, but that it assuredly won’t be the one the Realmuto camp has long proposed. “I don’t feel pressure to make a deal one way or another,” Middleton noted. “I think you have to make a good deal.”

It’ll be interesting to see whether there’s any realistic attempt to forge an agreement before the 2020 season wraps up. No doubt both sides will want to know first whether the campaign is even going to make it through to the postseason, as that’ll be a key revenue generator and major factor in projecting near-future earnings. Though both team and player clearly maintain interest in an ongoing relationship, striking a deal may well require an open-market test.

There hadn’t been much progress in extension talks between J.T. Realmuto and the Phillies as of two weeks ago, and the All-Star catcher’s latest update revealed that not much has changed.  “Nothing’s happened thus far,” Realmuto told the Philadelphia Inquirer’s Scott Lauber and other reporters.  “To be honest, I’m focused on the season at this point.”

The latter comment could indicate that negotiations may have been somewhat tabled for the time being, given that most players try to avoid having contract talks stretch into the season in order to stay fully focused on baseball.  That logic could be particularly apt heading into the 2020 season, as players already have so many other concerns hanging over them given the unusual circumstances of the 60-game campaign.  The same could also be true on the front office side, as Phillies GM Matt Klentak said almost a month ago that he hadn’t yet spoken to Realmuto’s agents since the team was occupied with the many details involved in launching its Summer Camp.

The Phils still have exclusive negotiating rights with Realmuto until free agency officially opens (five days after the conclusion of the World Series), so there’s plenty of time for the two sides to work out a long-term agreement.  That said, stars of Realmuto’s caliber usually don’t get that close to the open market without indeed seeing what other teams have to offer, especially since Realmuto is now perhaps the biggest name available in the 2020-21 offseason now that Mookie Betts is under contract to the Dodgers through the 2032 season.

Speaking of that extension, Realmuto was pleased by Betts’ mega-deal, saying “it was good to see [Betts] get what he deserves.”  The impact on Realmuto and other top free agents also wasn’t lost on the catcher.

Past reports have suggested Realmuto and his camp is looking for a deal in the range of five years and $130MM, which would set a new average annual value ($26MM) record for a contract given to a catcher.  While a hefty sum, it is still far less what it would have taken for another team to sign Betts, assuming he could have found anything close to the $365MM over twelve years that he got from Los Angeles.  While signing a catcher to such a big deal obviously carries inherent risk, teams that were planning on taking a run at Betts this winter might now shift their attention to Realmuto, who presents a big upgrade on virtually every catching situation in baseball.

Extension talks between catcher J.T. Realmuto and the Phillies have not progressed much since the two sides held initial talks back in Spring Training, Realmuto himself said yesterday at Phillies Summer Camp (Twitter link via Todd Zolecki of MLB.com). The free-agent-to-be made clear that he’s not frustrated by the situation and voiced his fondness for the organization. Realmuto’s assessment of the situation aligns closely with recent comments from general manager Matt Klentak.

“Candidly, we’ve been kind of nose to the ground — intake screenings and getting people here — so I haven’t touched base with [Realmuto’s camp],” Klentak said as players prepared to report to Summer Camp. The GM added that the “landscape” has changed since initial talks in early March but stressed that he’d love to sign Realmuto to a long-term deal.

Of course, that’s not entirely up to Klentak and his front office. Realmuto is the top catcher on the upcoming offseason’s free-agent market and quite arguably the top overall catcher in the game. He’s been open in the past about advancing the market for future catchers and figures to come with a substantial asking price. He may not be able to approach the total guarantees in record contracts signed by Joe Mauer (eight years, $184MM) and Buster Posey (eight years, $159MM), as he’ll turn 30 before Opening Day 2021. However, a record annual value topping Mauer’s $23MM over a shorter term would line up with that goal. The Cardinals guaranteed Yadier Molina $20MM annually for his age-35 through age-37 seasons. All of that will factor into the asking price for Realmuto and his agents at CAA.

As is the case with all financial matters in baseball right now, that’s where the uncertainty lies. Phillies owner John Middleton hasn’t been shy about spending in the past — see: the infamous “stupid” money quote from 2018 — and has dished out a nine-figure contract in each of the past two offseasons (13 years, $330MM for Bryce Harper; five years, $118MM for Zack Wheeler). However, Jim Salisbury of NBC Sports reported in early June that Middleton projected more than $100MM in losses in an email to employees. His willingness to continue aggressively spending despite those unprecedented and previously unforeseeable revenue losses is the key factor in the ongoing Realmuto saga.

Notably, the Phillies do have some substantial money coming off the books this winter. Jake Arrieta’s three-year, $75MM deal came with a two-year club option that won’t be exercised. David Robertson’s two-year, $23MM contract seemed like a quality value for the Phils at the time it was signed, but he underwent Tommy John surgery last summer. His $12MM option will very likely be bought out for $2MM. Didi Gregorius is playing on a one-year deal worth $14MM, and Jay Bruce will be off the books as well (though the Mariners are already covering much of Bruce’s salary).

In all, the Phillies have about $113MM on the 2020 books. Next year’s arbitration class doesn’t feature many big names aside from Rhys Hoskins and a bump for second-time-eligible Zach Eflin. Odubel Herrera’s contract will expire after the 2021 season, creating further flexibility.

All of that would be critical context under normal circumstances. To an extent, it likely still is. But it’s difficult to tell right now just what type of long-term dollars Middleton is willing to commit amid these revenue losses. That’s true of just about any owner in the league at the moment, really; since transactions resumed, we’ve yet to see Yasiel Puig land with a team and haven’t seen any dollars given out beyond the prorated $700K salary that reliever Jared Hughes agreed to in his deal with the Mets.

Realmuto said back in May that prior to the shutdown, he had gotten the sense in talks with the front office that negotiations “were about to start moving pretty quickly.” As we’re all aware, though, early March in many ways feels like a lifetime ago.

The Phillies and pending free-agent catcher J.T. Realmuto discussed a contract extension before Major League Baseball put a freeze on transactions in March because of the COVID-19 shutdown. That freeze lifted last week, but the Phillies and Realmuto have not restarted talks, as Scott Lauber of the Philadelphia Inquirer relays.

Addressing Realmuto’s status Monday, general manager Matt Klentak said: “Candidly, we’ve been kind of nose to the ground — intake screenings and getting people here — so I haven’t touched base with [Realmuto’s camp]. As fas as a timeline, I just don’t know. I need to talk to them.”

Realmuto expressed optimism about a potential extension just a month and a half ago, but the game’s financial situation has certainly worsened since then. Therefore, it’s highly questionably whether any soon-to-be free agent – even a star like Realmuto, who’s regarded as the sport’s foremost backstop – will do as well on his next contract as he would have before the pandemic.

Klentak, for his part, acknowledged that the game has changed from a monetary standpoint in the past few months, saying “The landscape that we left in March is different from the one we return to now.” And while the Phillies would “still love to have [Realmuto] in red pinstripes for the long haul,” according to Klentak, he added that “there’s a lot of uncertainty in the game right now on a variety of levels. We just need to play that out.”

Before extension talks came to a halt, Realmuto’s agent, Jeff Berry of CAA Sports, may have been seeking a contract in the five-year, $130MM range for his client, Lauber reports. That payday – one that would average $26MM per year – would make Realmuto the highest-paid catcher in baseball history on an annual basis, surpassing the $23MM the now-retired Joe Mauer collected from the Twins on the mega-deal he inked in 2010 (Mauer, though, was on a much longer and more expensive contract worth $184MM over eight seasons). Whether that was a realistic asking price in the first place is debatable, but considering the sport’s less favorable financial circumstances – not to mention that Realmuto will turn 30 before the 2021 campaign begins – it will likely be even more difficult to obtain in the coming months.

Neither the Phillies nor J.T. Realmuto had been quiet about the fact that the two sides were exploring an extension prior to the league’s shutdown in mid-March. However, the roster freeze that was implemented back in March also prohibits teams from negotiating long-term contracts with their players, so talks between the two sides were halted. In a new interview with The Athletic’s Matt Gelb (subscription required), Realmuto indicates that the Phils had yet to present a formal offer, but he also speaks optimistically that a deal indeed could have come together.

“There was definitely a feeling that things were about to start moving pretty quickly,” Realmuto tells Gelb in a wide-ranging interview that discusses his mindset during the pandemic shutdown, the upcoming free-agent landscape and the league’s attempt to reboot the 2020 season. (Phillies fans, in particular, will want to read it in its entirety.)

The Phillies sent three players — catcher Jorge Alfaro, top pitching prospect Sixto Sanchez, young lefty Will Stewart — and international bonus allotments to the Marlins last winter in order to acquire Reamluto’s final two pre-arbitration seasons. However, it has long seemed that the goal all along was to entice Realmuto to sign a long-term deal in Philly, adding him to a core group including Aaron Nola, Bryce Harper, Rhys Hoskins and Scott Kingery. General manager Matt Klentak has gushed about Realmuto’s importance to the club and had no qualms about labeling him the game’s best backstop — an opinion with which many onlookers would agree. It’s understandable that there’d be strong interest in locking the 29-year-old up for the long term.

Whenever the transaction freeze is lifted, the two sides will be able to resume negotiations. The Phils surely still have interest in retaining Realmuto long-term, but mutual interest between the two parties may be the only constant that carries over from previous talks. With a surefire loss of revenue on the horizon, there’s no guarantee that owner John Middleton will be willing to put forth the same number he might have under normal circumstances — or whether he’ll be willing to put forth an offer at all.

There’s also no telling how the looming uncertainty will impact Realmuto’s asking price and desire for stability. The catcher says to Gelb that the “top tier” of free agents “always seem to find a way” to get paid. However, the forthcoming offseason has the potential to be even chillier for free agents than the tepid 2017-18 and 2018-19 offseasons that led to allegations of collusion and set the stage for what should be an extraordinarily contentious wave of collective bargaining. (The current clash over player compensation in a shortened season only figures to exacerbate that tension.)

Given that owners are already seeking additional concessions from players who’d previously agreed to prorated salaries, it’s hard to envision many teams handing out lucrative multi-year extensions when the freeze is lifted — at least extensions that are deemed reasonable on the player side. Deferred money and backloaded structures might curb some concerns from the team perspective, but the wide-ranging economic uncertainty will complicate extension negotiations in an unprecedented manner.