Thoughts On Wren’s Contract Extension

Hello everyone! I’m coming to you today from near Kona on the “Big Island” of Hawaii. Just as background for those who haven’t been here, Honolulu is actually on a much smaller and much more commercialized island named Oahu. For those of you back home in Michigan digging out from the foot of new snow you got yesterday, just know I’m thinking about you as I sip a cold drink under my cabana!

There was interesting news coming from the Braves today. Frank Wren has been rewarded with a two year contract extension that takes him out through the 2013 season. A nice article on the announcement can be read here.

Although I’m sure that my friend Fred will be against the move, I think that I’m more a little more positive than negative in total. I like some of his transactions, dislike others. But that’s only one area of his job, it’s a very subjectively evaluated function, and is best looked at long-term. Most importantly to me, though, the move sends a message that there will be stability at the helm. Wren installed a “player’s manager” in the field and the extension sends a message to potential free agents that a favorable environment, similar to the one under Bobby Cox, will continue to be enjoyed in Atlanta. While I believe that money talks most of the time, this could be a factor in a situation where all other factors are equal. The stability message will be welcome to the current roster as well, as they acclimate to the current round of change.

I think the extension may be more important as to what it signifies about the future ownership of the Braves. It says that the current owners are content with the way Wren manages the team and the way he communicates with them. Interestingly, though, is that the extension was only for two years. If the current owners had a long-term ownership vision, the timing would have ideal to lock Wren up for a longer period, most often five years. I think they view two years as the first time they seriously explore the sale of the team. This would not be in conflict with any of their league covenants, as I understand them. My fear is that they may manage their asset the way 95% of passive investors do in the year or so before exploring a sale (do I need to go into detail on this?). Should they decide to go that way, they’ll have the perfect guy in place.

I hope this isn’t at all what is happening. I also hope that Liberty Media truly understands that the best way to maximize the value of a baseball team is to put a competitive team on the field, and the best way to maximize the probability of that happening is to invest in both payroll and player development.

Any thoughts out there?