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Sunday, May 03, 2015

MLB’s Evolving Luxury Tax | FanGraphs Baseball

A very good look at the impact of the luxury tax.

The more realistic approach for the players, then, is likely to be focusing their efforts on raising the luxury tax threshold. While the players could obviously simply agree to a more substantial set of predetermined increases to the threshold, they may be better off attempting to have the payroll limit established each year based on a fixed percentage of MLB’s estimated overall league revenues. This would help the players avoid seeing their share of revenues lag during the course of a multi-year CBA should the league’s profits end up growing at a faster pace than the union had expected, as may have been the case in recent years.

Jim Furtado Posted: May 03, 2015 at 09:02 AM | 2 comment(s)
  Beats: economics

Thursday, April 02, 2015

Are long baseball contracts worth it? - Magazine - The Boston Globe

Of course, like his fellow owners, Henry is still making a lot of money

“The difficulty for the average fan is, he doesn’t think a player is worth $32 million, so why would you pay him $64 million” for each good year? Okrent says. “Well, it’s play money if a team’s making a profit. And baseball is making huge profits.”

An owner like John Henry “is not in it to make money, he’s in it to win pennants,” Okrent adds. “And to have a good time. Therefore, whatever he pays a player — if he’s having a good time — is worth it.”

If it feels good, do it. Sounds like a mantra from 50 years ago, back when age 30 was a whole different kind of dividing line.

Jim Furtado Posted: April 02, 2015 at 06:44 AM | 27 comment(s)
  Beats: economics

Monday, March 30, 2015

The MLBPA Has a Problem | FanGraphs Baseball

Nathaniel Grow makes some great points about the growing gap between baseball’s revenues and the players’ share of those revenues. Do you know what be a great thing for the MLBPA to work toward in the next CBA? A guaranteed portion of the revenue for minor leaguers. I won’t hold my breath.

Jim Furtado Posted: March 30, 2015 at 11:55 AM | 42 comment(s)
  Beats: economics, mlbpa

Wednesday, February 25, 2015

Drew Smyly says he has no issue with Yoan Moncada, just the system | Tampa Bay Times

Millionaires vs. millionaires. The players bargain away money for draft picks to line their own pockets.

“I was only trying to say everyone else doesn’t have those opportunities. So I think there should be some way where everyone, every amateur, has the same opportunity and guidelines. And that’s not even America vs. Cuba; Dominican Republic and Venezuela players don’t get that. They have never got close to that signing bonus.

“So I’m all for it. I’m sure Moncada is the real deal; it’s nothing bad about him. I was only stating I think that it doesn’t matter where you’re from, I think everyone should have the same chance to make whatever your value is on the field.”

Jim Furtado Posted: February 25, 2015 at 08:36 AM | 9 comment(s)
  Beats: economics

Thursday, February 19, 2015

Increase in arbitration hearings doesn’t equal labor problems | FOX Sports

Arbitration…where every player wins!

Jim Furtado Posted: February 19, 2015 at 08:52 AM | 0 comment(s)
  Beats: arbitration, economics

Monday, February 16, 2015

The full meaning of signing a minor-league deal | FOX Sports

CJ Nitkowski talks about what a minor-league deal really means.

Jim Furtado Posted: February 16, 2015 at 11:59 AM | 20 comment(s)
  Beats: economics, human interest story, people

Friday, February 06, 2015

Baseball’s Worst Contracts «

When people say, “The (insert team here) HAVE to sign (insert pricey free agent)!” they often ignore the big flashy pitfalls of such acquisitions.

Like all good CEOs, the men who run Major League Baseball’s 30 teams try to be forward-thinking. Even those who have only the most cursory interest in number-crunching understand that baseball players typically peak in their twenties and decline in their thirties. They’re fully aware of the pitfalls of awarding a fat, long-term contract to an aging, one-dimensional slugger or pretty much any pitcher.

Jim Furtado Posted: February 06, 2015 at 09:35 AM | 40 comment(s)
  Beats: economics

Wednesday, February 04, 2015

Solution to MLB draft dilemma: Don’t have one | FOX Sports

This will never happen. What’s he’s essentially suggesting is a fixed salary cap.The owners might go for it because it will fatten their wallets. The union won’t go for it.

Jim Furtado Posted: February 04, 2015 at 05:50 PM | 28 comment(s)
  Beats: draft, economics, international draft

Thursday, January 15, 2015

Wait — the Mets are charging players to attend offseason workouts? Really?

If this is true — and given that Barwis himself is telling people that minor leaguers are paying him, there’s a good chance it is — it’s simply awful. As we’ve discussed an awful lot around here, minor leaguers make peanuts for the most part. And yet the Mets are, allegedly, requiring them to shell out for their own training and, subtly or otherwise, communicating that there is a penalty for not attending the sessions.


Tuesday, December 23, 2014

The Cubs, the Red Sox and a Blank Check | Community – FanGraphs Baseball

An interesting idea.

Jim Furtado Posted: December 23, 2014 at 10:03 AM | 11 comment(s)
  Beats: cubs, economics, red sox

Here’s how MLB teams weigh injury worries. | SportsonEarth.com : Lindsay Berra

As Wade points out, overall risk has increased greatly in recent years, because with the amount of money and years involved, contracts have become virtually uninsurable; endless exclusions and high premiums make them cost-prohibitive when added to the cost of the actual contract.

Jim Furtado Posted: December 23, 2014 at 08:10 AM | 0 comment(s)
  Beats: economics, free agents, injuries, trades

Saturday, December 20, 2014

Angels, Red Sox discontinue pension plans for non-uniformed personnel - LA Times

Any experts on pension plans have a comment?

Jim Furtado Posted: December 20, 2014 at 08:44 AM | 26 comment(s)
  Beats: economics

Friday, December 19, 2014

Do MLB Owners Wield Sabermetrics as a Hammer? – The Hardball Times

What a bunch of gobbledygook.

*Hamels will earn $22.5 million per season through 2018 with a $19 million vesting option for 2019. Since becoming a full-time starter in 2007, he’s been worth 32.4 fWAR — about four wins per season. Most people in the advanced stats community seem to agree that a win is worth somewhere between $6 million and $8 million. With that in mind, Hamels’ contract is at market value or below. Even if Hamels’ production begins to decline toward the end of his contract, he should be close to producing at market value unless he completely falls off the table.

I keep reading people claim a win is *worth* somewhere around $6-$8 million a year. It’s not. $6-$8 million a year is approximately what a win *costs* on the free agent market. Teams might want to buy players at top dollar to fill particular needs but evaluating deals by using the most expensive mechanism for getting players is flawed.

Jim Furtado Posted: December 19, 2014 at 07:18 AM | 3 comment(s)
  Beats: economics

Sunday, December 14, 2014

Sunday Notes: MiLB Money vs Japan & Words from the Winter Meetings

Minor leaguers really do get screwed. The Players Union stance on this issue is appalling.

Minor-league salaries are abysmal. The standard salary for first-year players is $1,100 per month. At the Double-A level, players get approximately $1,500 per month. Triple-A players can make markedly more, depending on experience and 40-man-roster status, but some earn as little as $2,150 per month. Major League Baseball’s minimum salary recently increased to $507,500 per year.

Minor-league players only receive paychecks April through August. They aren’t paid during spring training, instructional league, or during the offseason. For seven months out of the year, they’re training on their own dime. According to Garrett Broshuis, the Uniform Player Contract “requires players to perform work throughout the year, but teams aren’t paying them for that.” A prospect-turned-attorney, Broshuis is involved in a class-action suit to improve compensation for minor-leaguers.

Jim Furtado Posted: December 14, 2014 at 08:32 AM | 8 comment(s)
  Beats: economics, sunday notes

Friday, December 05, 2014

NY Post: Is Jeter Gearing Up To Buy The Marlins?

Jeter has declared repeatedly for quite a while now he intends to own a baseball team someday .  .  . He even told reporters in June he intended to reach out to team owners upon the season’s (and his playing career’s) conclusion. And if you want to bet which team he’ll eventually own? You won’t find a safer wager than the Marlins.

The Marlins said Jeter simply stopped by because he happened to be in town, and maybe that’s all it was — for now. Jeter figures to approach his goal smoothly and deliberately, and there’s only upside by spending some time with Marlins owner (and huge Yankees fan and George Steinbrenner admirer) Jeffrey Loria.

The 74-year-old Loria made the industry’s biggest splash of this offseason when he committed $325 million over 13 years to his stud outfielder Giancarlo Stanton. .  .  . Yet the Stanton contract’s dramatically backloaded structure, with modest payments of $6.5 million, $9 million and $14.5 million coming from 2015 through 2017, just raises more questions about the franchise’s future. Will Loria try to cash out now that he has stabilized the situation in the wake of the 2012 trades of Mark Buehrle, Hanley Ramirez and Jose Reyes? The Manhattan resident has long denied the notion he’ll be selling anytime soon. Yet industry speculation persists because the multiple times Loria has shot himself in the foot with rebuilds, manager changes and strikingly low payrolls — and most of all the public funding he secured for his new ballpark.
.  .  .
Enter Jeter, whose representative Casey Close didn’t respond to a request for comment. He lives in Tampa, a short flight (or approximately four-hour drive) away, and he sure seems to enjoy Miami, based on repeated Page Six sightings there. Purchasing the Marlins, unlike the Rays right in his backyard, would keep him out of direct competition with the Yankees.
.  .  .
He needs to put together a consortium that would in turn appoint him as the control person. He surely knows this already, and it isn’t outrageous to think that Jeter, based on his income not only from the Yankees but also from his endorsement deals, could chip in a sizeable portion himself. Maybe $100 million?

Major League Baseball folks naturally would be thrilled to welcome Jeter into the ownership fold, and all the more so into a sad-sack market like Miami.
Now, the simplest solution doesn’t always become reality. Maybe Loria and his controversial team president David Samson will hang on for the long haul. Maybe Jeter will be wooed by another ownership shift. How about he takes over the A’s and finally moves them out of the O.co Coliseum, even though that’s where he made his Flip Play?

Probably better than putting your money into video games.


Tuesday, December 02, 2014

Arbitration Notes: Ogando, Moreland, Russell, Parra, Descalso – MLB Trade Rumors

MLB Trade Rumors has a nice post about tonight’s 11 PM deadline for tending contracts.

Jim Furtado Posted: December 02, 2014 at 06:51 AM | 75 comment(s)
  Beats: economics, non-tenders, rumors

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 12:34 AM | 55 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 10:32 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 08:51 AM | 13 comment(s)
  Beats: economics

 

 

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