The Goodyear City Council and Arizona Sports and Tourism Authority today approved the framework of an agreement to fund a new spring training facility that will return the Cleveland Indians to Arizona and pave the way for the expansion of the Cactus League.

Over at mlbtraderumors.com, there was a blurb recently about Miguel Cabrera's upcoming free agency (after the 2009 season, so don't hold your breath, Yankees fans). Cited therein was a blurb from Juan C. Rodriguez of the Sun-Sentinal.

Mr. Rodriguez suggests, "The same team unwilling to give Cabrera a $22 million AAV over eight years ($176 million) may deem six years and a $29 million AAV ($174 million) more palatable."

And mlbtraderumors.com asks, "I'm no economist, but does that make sense to you? I get the whole higher AAV, fewer years/risk concept. But explain to me why you wouldn't want two extra years for $4 mil more?"

Let's consider some hypothetical salary progressions for these two contracts:
Contract 1: 23-26-29-29-32-35 (avg 29)
Contract 2: 16-18-20-22-22-24-26-28 (avg 22)

First off, a lot of the valuation of these deals will be based on the concept of "Net Present Value", or how many 2010 dollars each future season will be worth. Using a 10% depreciation, the yearly values are:
10% annual discount rate:
Contract 1: 23-23-23-21-21-21 (avg 22)
Contract 2: 16-16-16-16-14-14-14-13 (avg 15)

Then, for purposes of risk management, always in the back of the mind for a team is going to be their exposure. If something catastrophic happens to their investment, and they get zero additional value from him for the length of the contract, how many "real" dollars are they out (adjusted to 2010 dollars). By year, here is the exposure each team has (in 2010 dollars):

2010: $133 (6-year contract), vs. $120 (8-year contract)
2011: $110 (6-year contract), vs. $104 (8-year contract)
2012: $86 (6-year contract), vs. $88 (8-year contract)
2013: $63 (6-year contract), vs. $72 (8-year contract)
2014: $42 (6-year contract), vs. $56 (8-year contract)
2015: $21 (6-year contract), vs. $41 (8-year contract)
2016: $0 (6-year contract), vs. $27 (8-year contract)
2017: $0 (6-year contract), vs. $13 (8-year contract)

So, if a team assumes that it is much more likely to be able to accurately project the next two years, and that M-Cab is very likely to be be worth the $23 and $26 in those years, they reduce their exposure starting in year 3.

I'm not saying it's a good idea, but that's the thinking that could make a shorter deal appear better.

(All dollar values are in $millions.)

Cincinnati Reds executive vice president/general manager Wayne Krivsky today announced the acquisition of IF/OF Jeff Conine from the Philadelphia Phillies in exchange for minor leaguers IF Brad Key and OF Javon Moran.

To make room on the 40-man roster, the Reds designated for assignment IF Brendan Harris.

Last season Conine combined to hit .268 with 10 home runs and 66 RBI for the Baltimore Orioles and Phillies. He began the season with the Orioles, then on August 27 was traded to Philadelphia, along with cash, for a player to be named.

The 16-season veteran was a National League All-Star in 1994 and 1995 and was a member of the Florida Marlins’ World Series championship teams in 1997 and 2003. In 1993, his first full big league season, Conine finished third in the NL Rookie of the Year voting. He has a .286 career batting average in 1,923 games.
In his Major League career the versatile Conine has appeared in 935 games at first base, 928 games in the outfield and 67 games at third base.

Key last season played at Class A Dayton and Sarasota, while Moran spent time in Sarasota and Class AA Chattanooga. Harris, acquired from the Washington Nationals as part of an 8-player deal in July, spent most of last season at Class AAA but also made 17 appearances for the Nats and 8 appearances for the Reds.

The Tampa Bay Devil Rays have agreed to terms with right-handed pitchers Gary Glover andAl Reyes and outfielder Jason Grabowski on minor league contracts with invitations to major league spring training, it was announced today.

Glover, 30, owns a career record of 21-18 and a 5.03 ERA in 149 games, 47 starts, over parts of six seasons with the Blue Jays, White Sox, Angels and Brewers. A graduate of DeLand High School in Florida, Glover last pitched in the majors in 2005 when he appeared in 15 games, making 11 starts, with Milwaukee (5-4, 5.57 ERA). He pitched last season for the Yomiuri Giants of Japan’s Central League.

Reyes, 36, re-signs with Tampa Bay, the club that signed him as a free agent in March, 2006. He owns a 3.60 ERA in 297 career games over 11 seasons with the Brewers, Orioles, Dodgers, Pirates, Yankees and Cardinals holding opponents to a .215 batting average. He last pitched in the majors in 2005 with St. Louis going 4-2 and ranking among the National League’s top 10 relievers in ERA (2.15) and opponent’s average (.177). He tore his Ulnar Collateral Ligament in the season finale and missed the postseason and most of the 2006 season recovering from ‘Tommy John’ surgery. He returned to action last August appearing in two games with AAA Durham (3.0-IP, 3-H, 1-ER, 3-SO). Reyes was also a non-roster invite with the Rays in 2004.
Grabowski, 29, has appeared in 190 career major league games over parts of three seasons with the Athletics and Dodgers. He has a career average of .196 with 11 home runs. His most extensive action came in 2004 with Los Angeles when he played in 113 contests and led all of baseball with 69 pinch-hit at-bats. He played last season with the Orix Buffaloes of Japan’s Pacific League.