FIP assumes a league average BABIP for a pitcher. You look at pitchers with long careers and it's clear that being able to suppress hits on balls in play is a real skill, however. The problem is that it takes a HUGE sample size to estimate a pitcher's "true" BABIP. One or two season isn't going to do it. Greinke has 1,400 career IP, though, so it's at least worth taking a peak. League BABIP over the last 5 years has averaged about .297. Greinke has a career BABIP of .314. This year, it's .338. Last year, it was .323. Data source: http://www.baseball-reference.com/players/g/greinza01-pitch.shtml#pitching_batting::none Part of the recent increase can be attributed to Greinke turning into more of a ground ball pitcher: http://www.fangraphs.com/graphs/1943_P_season_full_9_20120716.png Part of it could also just be statistical noise ("bad luck"). Of course, perhaps Greinke has dramatically changed his approach the last couple of years (there was an article about him pitching to FIP a few years ago. Someone would have to dive into the pitch FX data to see if they could find anything interesting, though. Otherwise, it's all just speculation. Long story short, Greinke has a career BABIP that is above average and has turned into more of a groundball pitcher, so I would expect his FIP to be at least a little optimistic. But FIP is not a projection.... it's FIP. I would expect advanced projection systems like ZiPS to take those kind of things into account, however. His current ZiPS projected ERA is 3.03. Before his last two crummy starts, his ERA was 3.17. Now it's 3.57. If Melvin wants to be a little conservative, maybe he assumed a projection of 3.25 ERA and 200 IP for 2013. That makes him worth around $20 mil for that year. Then Melvin has to estimate how much his production will fall as he ages and also estimate the odds of him getting hurt. Finally, Melvin will need to assume some level of inflation. I guess to me, if we are talking about a long term deal averaging $20 mil, I would just let him walk.