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Wednesday, November 26, 2014

Boston Red Sox prove (once again) that competitive balance in baseball will never exist | cleveland.com

The way the Yankees and Dodgers have dominated the last few years proves that topping the payroll list guarantees World Series appearances and championships. There is no way teams like the Royals, Rays, A’s, and the Cardinals can compete.

There is never going to be competitive balance in baseball. In a game where the players have proven time and time again that they will strike to prevent it, perhaps it was never meant to be.

Jim Furtado Posted: November 26, 2014 at 01:34 AM | 24 comment(s)
  Beats: economics

Wednesday, November 19, 2014

The three people who explain baseball right now | FOX Sports

A few interesting tidbits.

(Does anyone know why JABO doesn’t note the publication date of articles?)

Jim Furtado Posted: November 19, 2014 at 11:32 AM | 0 comment(s)
  Beats: economics, front office, gabe kapler, hank conger, michael cuddyer, sabermetrics

Saturday, November 15, 2014

Local TV riches have transformed baseball—but will trend last?

Sorry, the biggest markets still have a big advantage.

“I don’t think we have the financial advantage that we used to,” Yankees general manager Brian Cashman said. “We have a lot of resources, but with revenue sharing and luxury tax and the penalties associated with certain activity, it’s restricted a lot of the past practices that we were able to maximize our efforts in.” “It plays out in so many forms and fashions,” Cashman continued. “We’ve been beat out or stepped out of competition on international players because of the luxury-tax attachment at times. We’ve been beaten out on Cubans by the Cincinnati Reds on two occasions. The commissioner has definitely leveled the playing field.”

Jim Furtado Posted: November 15, 2014 at 09:51 AM | 13 comment(s)
  Beats: economics

Tuesday, October 21, 2014

DeWitt expects ‘significant’ rise in payroll in coming years : Sports

“We have forecasted increases over the next three to five years that will accommodate what we need to do with the young players we have,” Cardinals chairman Bill DeWitt told The Post-Dispatch this past week. “We knew as younger players matured at the major-league level they would get to arbitration and into free agency. We wouldn’t be able to retain them at the current payroll level, so we’re forecasting fairly significant increases in the next three to five years.”

Jim Furtado Posted: October 21, 2014 at 08:13 AM | 0 comment(s)
  Beats: cardinals, economics

Tuesday, September 30, 2014

Brown: Winners And Losers: MLB Attendance In 2014, Nearly 74 Million Through The Gate

Major League Baseball’s regular season ended on Sunday and with it, paid attendance for the league (the number of tickets sold) came in at 73,739,622 with average attendance per game at 30,346. Year-over-year attendance was ostensibly flat, down 0.3 percent from the 2013 season when average attendance was 30,442. Overall, it ranks as the seventh most-attended season ever behind 2007 (79,503,175), 2008 (78,588,004), 2006 (76,042,787), 2012 (74,859,268), 2005 (74,702,034), and 2013 (74,026,895). This season marks the second consecutive year that attendance has dropped, albeit only slightly since then. Total attendance has dropped 1.5 percent since 2012.

That’s a lot of peanuts and crackerjack.

Infinite Joost (Voxter) Posted: September 30, 2014 at 07:38 AM | 33 comment(s)
  Beats: attendance, economics

Tuesday, August 26, 2014

Posnanski: Money money money

 

You probably know that one of Bud Selig’s big objectives as commissioner of baseball was to even the playing field – that is, to give the small-market teams a chance to contend… Funny thing: Here at the end of his tenure, baseball is closer to Selig’s nirvana than perhaps ever before. As Brian McPherson writes in the Providence Journal, the correlation between money spent and winning is at its lowest point in a long, long time. McPherson writes that the correlation right now between wins and money is actually smaller than the correlation between wins and alphabetical order.

Why is this a funny thing?

Because, I believe the reason for whatever actual effect we are seeing is pretty directly tied to the steroid years that Selig has been running away from for more than a decade… I have a theory – one that directly relates to my belief that many baseball teams are doing something that is monumentally stupid. I’m referring to the huge, long-term deals that they are giving players – deals that last until the players are in their mid-to-late 30s, and sometimes even carries them into their 40s. These contracts are a death trap, a suicide rap, and while there are exceptions to every rule, there are never more than a few exceptions…  in the late 1990s and early 2000s… we suddenly started seeing 35-year olds performing at very high levels… My guess is that this seemingly reasonable conclusion that baseball players had started to beat the aging process was, in fact, quite unreasonable and it is probably the biggest factor in these massive, sprawling and utterly doomed long-term contracts… Baseball owners’ and GM’s madness for big money contracts to aging players has, in its own way, evened the game more than anything else Selig or any other commissioner has done.

The District Attorney Posted: August 26, 2014 at 03:15 PM | 26 comment(s)
  Beats: bud selig, economics, joe posnanski

Tuesday, June 17, 2014

Contextualizing The Jon Singleton Extension – MLB Trade Rumors

Here’s a great look at the Singleton extension.

If anything, perhaps, the Singleton extension really marks the latest instance of a general trend away from formulaic contractual models. His deal opens new doors, especially, for players who did not have the opportunity to capture downside protection at their point of entry into the professional ranks, at which time they immediately become subject to the limitations of the reserve clause (as expressed in the collectively bargained Basic Agreement). There are potentially other, yet more creative options as well, such as private insurance (assuming it could be had by a prospect at a reasonable rate) or even public investment. But all players and teams will not pursue such a path; indeed, several of Singleton’s teammates (and others) have declined the opportunity, while some (if not most) clubs will remain largely uninterested in making such early commitments.

History teaches us that, even at his relatively exalted place in the eyes of the game as a top-100 prospect, Singleton was not assured of cashing in on his talent until he decided to forego the chance of becoming the next Fielder. That he chose to do so should have relatively minimal impact on those other players who have the means and desire to bear the inherent risk of transitioning from top prospect to established major league player.

Jim Furtado Posted: June 17, 2014 at 06:44 AM | 7 comment(s)
  Beats: astros, contract extensions, contracts, economics, jon singleton

Thursday, June 05, 2014

The Economist: A singularly team-friendly deal

The magazine’s sports blog argues that human-capital contracts are the solution to the imbalance in bargaining leverage demonstrated by Jon Singleton’s team-friendly deal.

If players like Mr Singleton are willing to offer such generous deals to their employers to lock in a few million, presumably they would give outside investors similarly advantageous terms. With today’s low interest rates, a well-heeled speculator could surely have achieved an expected return far above the market average by giving Mr Singleton a few million dollars, even accounting for the high risk premium associated with the future cash flows of a player with no experience in MLB. Investors could do even better by buying a portfolio of young players, balancing out their individual risks just as insurers do while still pocketing the same profit. The lack of correlation between baseball players’ performances and the gyrations of financial markets is a further selling point.


 

 

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