Baseball Musings: More Money, Less Talent

November 25, 2007

More Money, Less Talent

Lisa Gray rails against baseball owners as most National League teams decrease payroll as baseball revenues soar:

I hear tell that McLane is planning on lowering the payroll again this year to 80 mill (approximately) in spite of the fact that the Astros pulled in over 3 million fans last year and in spite of the fact that he's raising ticket prices. Let's start demanding to know why he won't sign decent bench players for a couple mill instead of the Blums and Abercrombies of the world. Yes, I know we don't have anyone to trade for Miggy Cabrera or even Tejada, so I'm not complaining about that. And yes I am GLAD we didn't sign either Linebrink or Cordero. But we can't get rid of 2 of the 5 guys on the team (Luke Scott and Mike Lamb) who actually had positive RCAA and still expect to actually score runs.

I'm not sure that the owners are just being cheap here. A number of National League teams have taken the "build from within" option, which is great for lowering cost. With the Diamondback, Phillies, Rockies and Brewers showing success with this method, other teams are going to join in. And with the National League so well balanced, having eight to ten teams competing for playoff spots keeps crowds big and interest high.

For thirty years the players exploited free agency and arbitration to keep salaries growing. Now teams are exploiting the control they have over players for their first six major league seasons. Many teams sign arbitration eligible players to contracts to take that uncertainty out of the equation and control costs even more. Yes, there are teams that are being cheap, but most are just being smart given the constraints of the CBA.

Posted by David Pinto at 11:35 AM | Management | TrackBack (0)

Comments

Does the Astros farm actually have pieces to "build from within" though?

The Central (like the NL) is pretty wide open. If the 'Stros could sign an impact player, it could be theirs.

Posted by: Ankur at November 25, 2007 02:58 PM

The real point here is that the rich owners use taxpayer funded stadiums to help defray costs. How taxpayers/legislatures allow this to happen in beyond me, and in this day and time of crumbling infrastructure downright criminal. I say no more tax dollars to support ANY sports facilities. Let's see how that affects payroll. It's multi-millionaires fighting with billionaires over tax dollars. What a total rip off. The public is being defrauded.

Posted by: snuffy at November 25, 2007 06:00 PM

I think her point is a very valid one. MLB pulled in 6 billion in revenue, and based on that, only 40% or so went to the players. Which is low compared to other sports. Football it's fixed at 60% or so.

Even at its highest in baseball, it was only at 56% or so.

The owners aren't lowering prices or anything, the opposite. They are simply pocketing more money than ever.

Posted by: JeremyR at November 25, 2007 06:06 PM

Another point that shouldn't be forgotten: the free agent market is horrible. Who exactly do you want to your teams to spend money on? Teams like the Stros are better off reigning in their spending and reallocating it towards building up the farm system and perhaps signing some draft picks over slot. It would be interesting to find out where that money is going.

Posted by: Keith at November 25, 2007 07:50 PM

I agree that the even bigger problem is that the Astro aren't just being cheap at the major league level, they are even CHEAPER in the minor league level.

it was so downright ridiculas this year... they spend less than everyone else in the draft by a HUGGGGE margin. they didn't have any pick in the first 2 round or the supp round AND they didn't overslot AND they didn't manage to sign the first 3 guys they did pick .WOW.

being wise in spending is good, but in the Astro's case, they are quickly looking more and more like the Pirates.

Posted by: RollingWave at November 26, 2007 04:12 AM

re: the current lack of free agent signings, etc.

if it walks like a duck, quacks like a duck, and looks like a duck, it's probably a duck.

what this all looks like is collusion.

we all remember collusion I aund collusion II from the 80s.

this will eventually go to arbitration and end up badly for the owners unless there is something in the collective bargaining agreement which allows for collusion between the owners such that they can agree, for example, not to bid against each other on alex rodriguez.

it's the same thing with players with less than six years service, it seems to me.

at the same time, we should take lisa gray's argument seriously as well, that players have a claim of justice of some kind on owners' moneys. it's persuasive and a good moral argument for players to be paid.

however, in the end, it's the labor/collusion argument that will prevail.

--art kyriazis, philly

Posted by: art kyriazis at November 26, 2007 07:30 AM

I don't think this is collusion. Take a look at this free agent market. Who out there would you want to spend big money on besides the CFers? Carlos Silva? Livan Hernandez?

Could it be that teams are finally starting to understand how to utilize free agency?

As for the ARod scenario, I think all that went down since his signing with Texas soured a lot of teams on him. His public image has also taken a hit since he's then as well. As good as ARod is, is he really worth that much money to any team other than the big spenders?

Plus, who was going to sign him? The Mets made some noise, but as a Mets fan, I couldn't see them moving Wright or Reyes. The Sox resigned Lowell. The Angels were on record not wanting to sign one player to that large a deal. The Cubs are in ownership limbo and the Dodgers haven't had the stomach for free agency since signing Kevin Brown to that horrendous deal. So who exactly was shelling out cash for ARod? The Yankees were the only logical fit.

I really don't see how the players can cry collusion when a guy just landed a 10 year 275M deal and Santana seems headed towards the highest contract ever for a pitcher.

Posted by: Keith at November 26, 2007 09:16 AM

Isn't it a business?

Posted by: Bandit at November 26, 2007 01:46 PM

How bizarre. Teams actually using their own farm system to develop players that could be useful on the major league level. WOW! Branch Rickey should've thought that one up.

Sorry, can't resist the sarcasm every time I hear about these teams treating this concept like it's fresh and they had no idea it could work.

Posted by: Devon Young at November 26, 2007 02:15 PM

Isn't the point here that the Astro's lowered payroll and RAISED ticket prices.

If I'm the customer, and Lisa Gray is, I want to know where the additional value is for the extra money. The farm system isn't more expensive, the team isn't more expensive, and the stadium isn't more expensive. What gives? Why am I paying this and what do I get for it. Lisa has a legitimate gripe.

Unfortunately, it's simple economics. More people went to the games so the owners raised the price to reflect the increased demand. As long as the revenues grow there is little incentive for the owners to invest more into their teams...other than ego. Let's see the Astro's attendance decline while the market is booming and the reaction will be different.

Posted by: thumble at November 26, 2007 03:57 PM

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