Baseball for the Thinking Fan

Login | Register | Feedback

btf_logo
You are here > Home > Baseball Newsstand > Baseball Primer Newsblog > Discussion
Baseball Primer Newsblog
— The Best News Links from the Baseball Newsstand

Thursday, August 30, 2012

The Economist: Financial strategy in baseball: Everything must go

The Red Sox-Dodgers fire sale trade reveals the perils of having too-passionate fans.

Boston can ill afford to take a few years out of contention to “rebuild”, as typical fire-sale teams in small markets tend to do. The damage to the club’s brand and its fans’ loyalty would be immense, reducing its long-term revenues by far more than the $261m saved in salary. Thus, the question for the Red Sox is whether they can deploy that $261m to buy better players than Mr González, Mr Crawford and Mr Beckett…

Meanwhile, the Dodgers’ all-in move carries significant benefits that are not included in a simple dollars-per-win analysis…For a team in America’s second-biggest media market, a playoff appearance in 2012 might well be worth $60m—almost the entire amount they are thought to be “overpaying” to their new acquisitions…

Having a passionate fan base is a double-edged sword for professional sports teams. On one hand, it allows a club to maximise its revenues when times are good. But on the other, it forces management to try to put a winner on the field no matter what—even if a team is at a point in its “success cycle” when its stars are in decline, and the optimal strategy is to tear down and rebuild.

David Concepcion de la Desviacion Estandar (Dan R) Posted: August 30, 2012 at 08:08 PM | 5 comment(s) Login to Bookmark
  Tags: dodgers, economics, red sox

Reader Comments and Retorts

Go to end of page

Statements posted here are those of our readers and do not represent the BaseballThinkFactory. Names are provided by the poster and are not verified. We ask that posters follow our submission policy. Please report any inappropriate comments.

   1. charityslave is thinking about baseball Posted: August 30, 2012 at 09:26 PM (#4223135)
To keep the rabid fan base, one must ignore the rabid fan base, grasshopper...
   2. Darren Posted: August 30, 2012 at 09:56 PM (#4223153)
Having a passionate fan base is a double-edged sword for professional sports teams. On one hand, it allows a club to maximise its revenues when times are good. But on the other, it forces management to try to put a winner on the field no matter what—even if a team is at a point in its “success cycle” when its stars are in decline, and the optimal strategy is to tear down and rebuild.


I have a hard time believing there's a big downside to having a rabid fan base. The Sox rake in a crap-ton of cash even though they've been down for the past couple years. Yes, they really do have to go out and spend a bunch of cash this year and turn things around pretty quickly, but that's not a function of their rabid fans--every team has to deal with that. The difference is that having rabid fans means you have a way to finance your winning teams.
   3. Bob Tufts Posted: August 30, 2012 at 10:07 PM (#4223159)
When going to Fenway is only a game and not a sportscape experience, when TV ratings and equivalent team RSN deals plummet, when MLBAM and central revenues fall, yes, the Red Sox may be in trouble. Call me when that happens.
   4. Phil Coorey is a T-Shirt Salesman Posted: August 30, 2012 at 11:34 PM (#4223215)
I'm not going anywhere as a fan. Does that matter out here in the sticks?
   5. bob gee Posted: August 31, 2012 at 07:58 AM (#4223319)
these lyrics work well in this different setting:

I look to the future it makes me cry
But it seems too real to tell you why

Freed from the century
With nothing but memory, memory

And I just hope that you can forgive us
But everything must go

And if you need an explanation
Then everything must go

You must be Registered and Logged In to post comments.

 

 

<< Back to main

BBTF Partner

Support BBTF

donate

Thanks to
TedBerg
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogBrisbee: The 5 worst commercials of the MLB postseason
(135 - 8:10am, Oct 21)
Last: vivaelpujols

NewsblogFan Returns Home Run Ball to Ishikawa; Receives World Series tickets
(35 - 8:04am, Oct 21)
Last: Never Give an Inge (Dave)

NewsblogOT: Politics, October 2014: Sunshine, Baseball, and Etch A Sketch: How Politicians Use Analogies
(2776 - 7:59am, Oct 21)
Last: Bitter Mouse

NewsblogCould the Yankees ever be Royals? Young and athletic K.C. is everything that Bombers are not - NY Daily News
(30 - 7:51am, Oct 21)
Last: BDC

NewsblogOT: Monthly NBA Thread - October 2014
(273 - 6:08am, Oct 21)
Last: HMS Moses Taylor

NewsblogDealing or dueling – what’s a manager to do? | MGL on Baseball
(16 - 5:43am, Oct 21)
Last: vivaelpujols

NewsblogOT: NFL/NHL thread
(8367 - 3:29am, Oct 21)
Last: Randomly Fluctuating Defensive Metric

NewsblogHitting coaches blamed for lack of offense - Sports - The Boston Globe
(16 - 3:26am, Oct 21)
Last: ptodd

NewsblogSielski: A friend fights for ex-Phillie Dick Allen's Hall of Fame induction
(71 - 1:20am, Oct 21)
Last: Jacob

NewsblogCalcaterra: So, if you’re not a fan of the Royals or Giants, who ya got?
(93 - 12:26am, Oct 21)
Last: Howie Menckel

NewsblogPitch from Zito helped sell Hudson on Giants | MLB.com
(6 - 9:15pm, Oct 20)
Last: the Hugh Jorgan returns

NewsblogWhy Royals great Frank White no longer associates with the team whose stadium he built - Yahoo Sports
(19 - 9:06pm, Oct 20)
Last: A New Leaf (Black Hawk Reign of Terror)

NewsblogAngell: Gigantic
(38 - 8:22pm, Oct 20)
Last: Jolly Old St. Nick Is A Jolly Old St. Crip

NewsblogMorosi: Could Cain’s story make baseball king of sports world again?
(97 - 6:24pm, Oct 20)
Last: BDC

NewsblogESPN: Brian Roberts retires
(22 - 6:19pm, Oct 20)
Last: Captain Supporter

Page rendered in 0.2120 seconds
52 querie(s) executed