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I might be ok with a cheap enough Vargas. I don't expect him to be better, but I know what he is. He is not Garland, Harang or Bonderman. If Vargas is your worst pitcher and becomes the Lefty before Felix, Paxton could maybe be 3rd though I'd be fine switching that too. He's only 30, for a LHP that's like 125k on a Honda. If you prefer 2 LHP in the rotation and are spending most of your resources on a leadoff and #4 bat I think Vargas is worth looking at. He's not the sexy choice.
I'd rather have Lee. Even more than that, I'd rather see hitting become contagious here again. I don't think the position player version of Vargas is worth as much to us as he should be. That'd be about like Matt Joyce I think. If he didn't have the history here I would probably have a harder time seeing it work. If the money is available after acquiring a cleanup hitter and filling out positions I'd rather have better than Vargas, but I can see the scenario that Vargas would make sense.