On Thursday, free agent outfielder Josh Hamilton shocked the baseball world, signing a five-year, $125M contract with the Anaheim Angels.  Hamilton’s deal represents the second time in as many years that the Angels have surprisingly signed the top position player (last year, Albert Pujols) to a long-term contract.  It’s also the second consecutive year the Angels acquired a key player from their division rival Texas Rangers (last year, pitcher CJ Wilson).

The deal pays Hamilton an annual average value of $25M, which represents baseball’s highest AAV tier, shared with Alex Rodriguez, new teammate Vernon Wells (ugh), Zack Greinke, Johan Santana and CC Sabathia. It’s a surprise deal for many reasons:

• Angels went into the offseason stating that pitching was their priority and spent their early offseason efforts on resigning Geinke, before he spurred the club for the cross-town Dodgers,
• Their early offseason moves (signing pitcher Joe Blanton and trading for pitcher Tommy Hanson) were indicative of a club that was operating at its’ max payroll limitations,
• Hamilton’s old club (the Rangers) consistently indicated an interest in re-signing the outfielder, and were willing to review other deals presented to Hamilton with an intent on making a final offer, and
• The Angels have a crowded logjam at outfield and designated hitter.

Further to the last point, Hamilton can be expected to man the Angels’ left or field, alongside Mike Trout in centerfield. It leaves the Angels with speedster Peter Bourjos, underperformer Vernon Wells, Mark Trumbo and Kendrys Morales to rotate between one corner outfield position and designated hitter.  There’s a lot of salary between those excess parts (namely, Wells and his immovable $24M AAV for 2013 and 2014, and Morales with his $10M 2013 salary).  There’s clearly another shoe to drop here – I suspect the Angels will try to parlay Bourjos and/or Trumbo into additional pitching to relieve what is a crowded roster situation.

There’s no doubt Hamilton makes the Angels a better club.  They’ll feature a monstrous middle-order combination of Trout, Pujols, Hamilton and Morales. Hamilton’s averaged a .305 BA/.363 OBP/.549 SLG over the past five years with the Rangers. He’s a premier middle-order hitter that complements a club built to win-now. 

Nonetheless, there are plenty of questions and issues surrounding Hamilton.  He’s now signed to a deal that sees him through his age 37 season. With his much-publicized, prior substance abuse issues and oft-trips to the disabled lists, there are open questions as to whether Hamilton’s body can hold up to the rigors of an MLB schedule as he advances through his mid-30s.  In 2012, he exhibited increasingly poor plate discipline, swinging at a whopping 45% of pitches outside the strike zone and ended the season striking out a career-high 25% of his at-bats.  His diminished defensive value dragged down his value (despite his still-considerable offensive prowess) as he amassed just 4.4 WAR for 2012.

Angels owner Arte Moreno has clearly thrown caution to the wind, recognizing the press and publicity his cross-town rivals (Dodgers) have generated by spending $650M on player signings over the past nine months (including Greinke). Moreno’s clearly concerned with his Angels’ place in the SoCal baseball pecking order and was looking to restore the Angels atop the peak and back into the AL West division lead for 2013.

A signing of this magnitude surely deserves more analysis and print as further details emerge.