Personally I am in favor of picking up his option. There's not much out there on the market after CC, just other injury prone guys along with the likes of Jon Garland. I think its worth gambling on Penny that he stays healthy. McDonald looked good in limited action but I don't know if throwing him into the rotation is the best thing for him. Kershaw is legit but he can't be counted on for 200+ innings yet. Who knows what Schmidt will bring and our other pitching prospects are nowhere near close to being ready.
I would really like to see Martin at third everyday. A well rested RM all season long, could put up some pretty good numbers. Keep DeWitt at second, and sign a decent defender behind the plate.
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Martin could very easily be a subpar defender at third, and there's no guarantee he explodes offensively after being moved. Sure it will probably help, but is it worth moving him and having a subpar player at catcher? I don't really think so. Above all Martin takes care of the pitching staff well, he had a down year defensively behind the plate but he's still better than most and we had one of the best pitching staffs in baseball.
Martin will more than likely move away from catcher at some point, but I don't think would be smart to due so in the near future.
Here's a blurb regarding DeWitt and 2B
Interesting, it is clear that DeWitt seems himself as a 3B. Personally I think his bat plays better at 2B.The position change that DeWitt had in the middle of this season from third base to second base probably won't be permanent. He said he scrapped the idea of playing winter ball to better learn how to play in the middle of the infield.