Thursday, September 6, 2012

Failure of Baseball Economics: Who is to Blame?

For those of you who haven't heard, there was a ridiculous trade in Major League Baseball a couple weeks ago.  Why was this such a record deal? Lets consider the numbers.  The Los Angeles Dodgers received 11 All-Star appearances, 3 Gold Glove Awards and wait for it- a whopping $261 million in salaries through 2018.  These numbers are combined achievements of Adrian Gonzalez, Carl Crawford and Josh Beckett: some of the best players in the game.  So in the return the Red Sox must have acquired some pretty outstanding prospects or young talent, right? Wrong. This trade was purely a way for the Boston Red Sox to dump their high paid, under performing athletes in order to rebuild with all of the money saved from the traded contracts.  The Red Sox received a couple mediocre major league players along with $11 million in monetary consideration if clearing $261 million off their books wasn't enough.  So not only did the Red Sox dispose of their biggest contracts, they received a little cash on the side to "sweeten the deal." 

In a Huffington Post article analyzing the trade, Red Sox General Manager Ben Cherington said,

"It gives us an opportunity to build the next great Red Sox team.... We just felt like to get to be a team we believe in and a team the fans deserve, to sustain winning year after year, it was going to take something more than cosmetic changes. It was going to take something bold."

But is this the way to win? By signing huge contracts to high profile players and the organization promises them hundreds of millions of dollars.  If and when the team doesn't win the organization can just dump all their future monetary promises and start over?  This sounds pretty slimy to me.  But, unfortunately, what the Red Sox did is totally leagal, only if approved by the one and only- MLB Commissioner, Bud Selig.

Never having been a huge fan of Bud Selig, this trade, needless to say, infuriated me because the commissioner had to approve the deal since it was completed after the July trade deadline.  In his blog, Rob Rains of The STL Sports Page called out Bud Selig (picture below) for the only thing he really cares about:

"By allowing the Red Sox and Dodgers to complete one of the greatest heists in baseball history, commissioner Bud Selig showed his true colors once again – pure green, as in money.  This is all the man cares about. Competitive balance? No chance. A level playing field? forget it. The integrity of the game? Pardon me while I try to laugh that one off."

I could not agree more with Mr. Rains- all Selig cares about is money.  There will never be a time where a small budget team like the Pittsburgh Pirates has a legitimate shot at winning the World Series with Selig being blinded by dollar signs.  This sounds very similar to some liberal views of American society today- no chance for the little guy to succeed in a world dominated by the small rich percentage.  Well folks, Major League Baseball is no different.  This trade along with numerous acts by Bud Selig prove that changes need to be made in society to "level the playing field," if you will, in order to allow people and organizations with limited income the same opportunities as the wealthy. Otherwise the rich will continue to succeed and grow, while the poor, or the Little Guys, struggle with no blue skies in the future.

2 comments:

  1. Do you think there is a solution to this problem? How do you feel about salary caps? Obviously hockey is a much different sport, and ran differently, but the NHL implemented salary caps, which I think would make a trade like this nearly impossible, but then again hockey players do not make nearly as much money as a player in the MLB or NFL. Is this the answer? I'm not sure, salary caps still have their faults, there are plenty of teams that cannot compete when it comes to star players, but I think it offers a more level playing field than baseball seems to offer.
    But your point here also brings up the questions of the role of commissioner. I follow hockey much more than any other sport, and have to say that the way in which the commissioner runs the NHL sounds very much like Bud Selig, where dollar signs mean more than anything else.

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  2. Due to so many large contracts in baseball and the mass amounts of revenue earned by the MLB and individual ball clubs, I honestly don't know of a solution at this point. Implementing a salary cap at this time in the MLB history would be near impossible due to the number of multi-million dollar contracts. I also follow hockey much closer than baseball and feel that the salary cap works but still causes problems between the players and owners every 5-7 years. This is evident in the potential lock out for the upcoming season. While I personally feel that hockey players deserve the most money out of any professional athlete, this just is not possible due to the smaller revenues and fan base. The hockey salary cap improves the game, but, as you mentioned, the competition is still not level. While I do not have a solution to this problem in professional sports, something needs to be done to stop this reoccurring theme of rich teams having unfair advantages and dominating the game.

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