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Fox Sports: Teams overestimate total wins available for purchase in the market.


weams

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I am a retired Financial/Accounting Mgr. with an MBA in Finance. In my 75 years, I have been called many things, but never a wild spender. Quite the opposite. However, since MLB has designed the system as it is at this time, Sometimes it is necessary to spend at the Current market value, especially on good players who have proven that they are valuable for the team. Other wise, it is on the outside looking in and hoping that we get lucky again and again. Anyone who has played poker, etc., knows a person is not lucky All the time. I trust our team will be a champion this year regardless the route that is taken.

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Very few rational fanatics out there.

At the same time, rationality itself can be considered a form of fanaticism: "[W]hat is the mere madness caused by the loss of reason compared to the madness of reason itself?" (Slavoj Zizek, Event: Philosophy in Transit)

In the early stages of capitalism, people are often urged to develop a passion for the rational (savings, avoiding waste, etc.). It is only as a passion that it can thoroughly permeate...the soul.

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Pretty dense reading in that article. I think the main point was a player will almost always go to the team that overvalues him. Makes sense to me.

He also demonstrates that with projection systems that are sometimes wrong, even if teams are attempting to be conservative they still end up causing overall prices to increase higher than the observed 'value' of a win.

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It's what the MLB and the union have created. It's why Cano, Pujols, A-Rod, etc... salaries are one thing and Trouts, Bumgarner, Machodos, etc... are another.

Maybe the manditory minmums, the union and/or the influx of too much money are to blame.

It reminds me of the gold standard. We had minimums. I was raised in a family that made 12k a year. Frank Robinson made 66k. Suddenly 'we' started printing money (we never stop it seems) and the gap between the haves and haves not is HUGE.

Maybe we need to address guys like Bumgarner making 500k a year.

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That's a very long article that just could have said, "People who win auctions as the highest bidder often overpay - when buying paintings, houses, coins and baseball players."

Of course they do. By winning an auction you have shown that you value the object more highly then everyone else with the means to purchase it.

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