Baseball for the Thinking Fan

Login | Register | Feedback

btf_logo

News

All News | Prime News

Old-School Newsstand


Contributors

Jim Furtado
Founder & Publisher
Repoz
Editor - Baseball Primer

Syndicate

Marvin Miller Newsbeat

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.


 

 

BBTF Partner

Support BBTF

donate

Thanks to
Forsch 10 From Navarone (Dayn)
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogHall of Fame Announces Changes to Voting Process for Recently Retired Players, Effective Immediately
(84 - 6:38am, Jul 28)
Last: Sunday silence

NewsblogSchoenfield: Why didn't the Braves win more titles?
(50 - 6:23am, Jul 28)
Last: Jolly Old St. Nick Still Gags in October

NewsblogFull Count » Mike Carp, Felix Doubront and the challenges of player discontent on a struggling team
(7 - 6:19am, Jul 28)
Last: Jim Furtado

NewsblogOTP - July 2014: Republicans Lose To Democrats For Sixth Straight Year In Congressional Baseball Game
(3292 - 6:14am, Jul 28)
Last: Jolly Old St. Nick Still Gags in October

NewsblogDJ Short: Maximum stay on Hall of Fame ballot changed from 15 to 10 years
(57 - 6:05am, Jul 28)
Last: Sunday silence

NewsblogDodgers and Diamondbacks Triple-A teams involved in wild brawl
(12 - 5:43am, Jul 28)
Last: Robert in Manhattan Beach

NewsblogFull Count » Mike Carp explains why he requested a trade from Red Sox
(18 - 3:18am, Jul 28)
Last: ellsbury my heart at wounded knee

NewsblogGossage on Bonds, McGwire Hall hopes: ‘Are you f–king kidding?’
(106 - 3:02am, Jul 28)
Last: Walt Davis

NewsblogRoger Angell goes into the Hall of Fame
(28 - 12:49am, Jul 28)
Last: bobm

NewsblogOT: Monthly NBA Thread- July 2014
(967 - 12:31am, Jul 28)
Last: clowns to the left of me; STEAGLES to the right

NewsblogGiants purchase contract of 2B Uggla
(8 - 12:09am, Jul 28)
Last: Rickey! On a blog from 1998. With the candlestick.

NewsblogOMNICHATTER 7-27-2014
(145 - 11:46pm, Jul 27)
Last: Los Angeles El Hombre of Anaheim

NewsblogHoVG: John Rocker Shows Up in Cooperstown… “Survivor” Up Next
(31 - 10:52pm, Jul 27)
Last: depletion

Hall of MeritMost Meritorious Player: 1956 Ballot
(7 - 9:28pm, Jul 27)
Last: neilsen

SABR - BBTF ChapterWho's going to SABR??
(100 - 6:40pm, Jul 27)
Last: Scott Fischthal

Page rendered in 0.9842 seconds
47 querie(s) executed