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THE BOOK--Playing The Percentages In Baseball

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Tuesday, May 29, 2007

Are GMs as clueless as Boras implies?

By Tangotiger, 08:08 AM

I’m reading this feature-length on Scott Boras where he says:

“It says here Varitek is hitting .129 when the pitch count is no balls and two strikes,” he says ...
an agent or general manager would simply say, “Varitek struggles when he’s behind in the pitch count.”
Here’s what Boras says: “With one ball and two strikes he’s hitting a little better, about .138. But then, with two balls and no strikes, or two balls and one strike, he’s up around .315. So even with health issues last year, he’s still a better than average hitter.”

On 0-2, .129 is below average.  At 1-2, .138 is below average.  And 2-0 or 2-1, .315 is below average.  And yet, he stands there and says: he’s still a better than average hitter on that basis?  Wow.

Last year, another longtime Boras client, Jeff Weaver, was traded to the St. Louis Cardinals after a poor start with the Angels in Anaheim. Weaver was dominant in the postseason, and the Cardinals won the World Series, but St. Louis offered Weaver only a one-year, $5 million contract — which Boras found insulting. “That’s what you’d offer a relief pitcher,” he says.

Weaver eventually signed with the Seattle Mariners for $8.3 million. “You have to respect that teams have a right to make their own decisions,” Boras says, before turning around and passing judgment on Cardinals general manager Walt Jocketty. “Here’s a GM who never played the game saying, ‘We’re going to go with our young guys,’ and I go, ‘You can’t.’”

The Cardinals simply blew it, Boras concludes. “The Cardinals not signing Jeff Weaver is how you don’t win divisions, and my prediction is the St. Louis Cardinals won’t win their division this year.” (At press time, the Cardinals were at the bottom of the National League Central.)

Uhhh… do you think the writer of the article could tell us how incredibly horrible Jeff Weaver was actually pitching this year?  And in the earlier passage, Boras tells the Redsox that they won’t win without Damon.  I suppose you can tell every single team they won’t win, and you’d be right 29 out of 30 times.  At least we know Epstein and Jocketty are not clueless GMs.

When San Francisco reliever Kevin Correia faces Dodger pinch hitter Olmedo Saenz with a runner on third and two out, Giants catcher Bengie Molina has Correia pitch around Saenz — who gets hit by a pitch. Boras notes that now there’s a possible force out at second. “Molina is a smart catcher. He knows that was a bad matchup. Saenz is hitting .400 off this pitcher.” That Boras knows these sorts of things off the top of his head tells you just about everything you need to know about him.

According to baseball-reference.com, he’s 1-1, with 1 HBP.  I guess that means he was 1-1, before that PA.  Does the writer make no fact-checking at all?

Now this I like:

He says he wants MLB to scrap the current World Series format and adopt a nine-game series in one designated city per year — the way it was played in the early 20th century. He’s talked to owners and says some see nothing but upside.

“The TV and advertising and marketing revenue would explode,” he says. “Places that might never have a World Series could compete for the location like they do for the Olympics. Nine games would allow a greater chance for the best team, and not just the hottest team, to win. It would be like the Super Bowl, but better.

You can certainly make the case that MLB is not maximizing the profit potential of the World Series.  So, let the market close the gap.  Heck, who knows, the World Series can be played between the Yanks and Mets in Tokyo.


#1    Pizza Cutter      (see all posts) 2007/05/29 (Tue) @ 10:42

Jaw, meet floor.  Floor, meet jaw.  But then again, I’m someone who BSes for a living (I’m a psychologist) and this is some mighty fine psychology that Mr. Boras is using.  Maybe he missed his calling.  As my father told me, “If you can’t dazzle them with your knowledge, baffle them with your bull.”

On the World Series, I don’t mind a nine game series, but a neutral site?  Forgive me a small traditionalist streak, but that just ain’t right.

I also worry that it might not have the same type of draw as the Super Bowl/Final Four.  A nine game series would take two weeks to play, assuming that they’d still have the usual bunch of off-days.  Are people going to camp out in (insert city here, which given that it’s October would have to be a warm-weather city)?  The Super Bowl and NCAA are win-or-die games.  If you lose Game 1 of the World Series, you come back the next day and play Game 2.  The Super Bowl is one weekend in Miami or Atlanta or New Orleans, you go, get wasted, go to the game, someone wins, someone loses, and you’re back at work on Monday.


#2    tangotiger      (see all posts) 2007/05/29 (Tue) @ 11:48

If that’s the case, then Tokyo won’t be able to match the bid of NYC, or NYC+LA (or whoever makes the finals), then.  Of course, NYC won’t know if the Yanks or Mets will make the finals.  The key here is to determine if the teams and MLB can extract the maximum value, or can a bidding city extract that value the most?

I don’t know if local interest trumps global interest in terms of getting maximum value for the World Series asset.

And, you can even have registration bids, so that you can generate easy money, so that even if the actual World Series teams and MLB can extract the most value, the registration fee for bidding might tip it the other way.

What I like about the Boras plan is the Outside The Box thinking.  It deserves to be debated, because it has at least something of potential.

If PizzaCutter is playing Devil’s Advocate, that’s ok.  But, if he’s simply coming to a conclusion prior to debating…


#3    Pizza Cutter      (see all posts) 2007/05/29 (Tue) @ 13:13

Oh a little bit of both on my part, I suppose.  I remember 1995 and 1997 in Cleveland.  Absolutely magical.  (Not a good Sabermetric argument, but then again, not everything in life reduces to cold hard utility.) Hard to imagine what that would have looked like had those World Series been transported to LA.  You can perhaps appreciate how the traditionalist in me is outraged by the very thought.

The question of whether there could be more money made under Boras’s proposal is open (although I do have my doubts), but to what end?  Let’s say that after looking into and considering everything, that it is more profitable.  Is baseball hurting that badly for money?

But, let’s consider this from a business model standpoint.  Let’s say that I’m the mayor of San Diego (the city itself is irrelevant) and I bid to have the World Series in San Diego in 2008 knowing full well that the Padres aren’t likely to be in it.  Where do I recoup the money for my bid and turn a profit?  Using last year as an example, the Tigers and Cardinals will be coming to town to play in the WS.  As mayor, I can gather taxes on the game tickets, which will be bought by whom?  Sure, some folks from St. Louis and Detroit will make the trip out, but how many can afford a plane ticket plus the surely exaggerated prices of the game tickets?  The Super Bowl has the advantage of being on a weekend.  Some of these games would have to be mid-week (how many people can do that?).  So, my guess is that locals would pick up some (many?) of the tickets.  If locals are picking them up, that means that as mayor, I’m not collecting hotel taxes, and fewer of the fans will eat in the restaurants downtown by the ballpark (they can eat at home).  Then again, how much are locals really willing to pay to watch a game between two teams to which they have no emotional attachment.  Sure, they would come for the right price, but lower ticket prices mean that tax revenue can’t be as high.  Come to think of it, how many fans make the trip to see their actual team now play on the road in a World Series (i.e. Cardinal fans who made the trip to Detroit last year)?

The Super Bowl is a cultural event, no matter who’s playing in it.  You could put tickets (and ad space) on sale for Super Bowl 2012 and have no idea who was going to be in it, and they’d sell out in half an hour.  Culturally, the World Series doesn’t work that way.  In ‘97, NBC complained that no one wanted to watch a Marlins/Indians World Series and they were openly hoping someone would sweep to get it over with.  If the Browns played Tampa Bay in the Super Bowl, everyone would still watch.  Could the WS be built into that kind of event?  Maybe, but it would take a while before that was a possibility.

There’s some extra tax money to be made there, but as the mayor, could that money be gotten in other ways?  It’s not exactly hard to get people to want to come to San Diego or some other nice warm-weather place in late October.  Perhaps I would be better served taking my registration fee and actual bid and telling the head of my board of tourism to go buy some radio ads in the Midwest.  I might generate the same revenue to the city through the taxes that those people would pay and do it for less money.  The amount I’m willing to spend on registration and bidding would have to be lower than that.

Yeah, baseball could probably squeeze a few million bucks more out of this, but I’m not seeing a cash bonanza here.


#4    tangotiger      (see all posts) 2007/05/29 (Tue) @ 14:03

The question of whether there could be more money made under Boras’s proposal is open (although I do have my doubts), but to what end?  Let’s say that after looking into and considering everything, that it is more profitable.  Is baseball hurting that badly for money?

Change “baseball” to “football”.  Since the NFL is not hurting badly for money, they may as well have the Super Bowl in the city of one of the two teams in the Finals.  It’s not a question of “hurting” for money, but maximizing profitability.

The rest of your post is good.

***

As for your example, the bid would or could include the tickets themselves.  Everything is up for grabs here.  Hotels in the city could sell ticket packages.

And like I said, it could be in Tokyo or really anywhere in the world.  Heck, what if Fox buys all things World Series?  They own everything about it.  The “Fox World Series”.  They decide they’re going to put games in Fenway, Wrigley, Yankee, and Tokyo.  Whatever.

Basically, the questions are this:
1 - Can greater profits be made from the World Series?

2 - How much more?

3 - How do you do it?

I’m sure there’s some business genius out there could come up with a scenario that puts, say, an extra 30 million$ in the pockets of MLB.

The question is not “is this a bad idea?” The idea itself is good.  The question is “is the implementation of this idea good?”.  And since we don’t know what the implementation is, we can’t answer that, until said proposal is proferred.


#5    Pizza Cutter      (see all posts) 2007/05/29 (Tue) @ 14:30

I don’t think it’s a bad idea to have an actual home team for the Super Bowl.  Maybe have the winner of the Pro Bowl from the year before can determine who gets home field advantage!  Have Bud Selig call the NFL!

I think this is the same argument that was had about interleague play.  It’s been a financial boon to MLB and managed to anger the traditionalists at the same time.  From a business standpoint, this idea could, in theory, work out.  (Another thing my father told me: Everything works in theory.) From a baseball fan standpoint, I’d hate it.


#6    tangotiger      (see all posts) 2007/05/29 (Tue) @ 14:42

Tradition also keeps some cultures from having the wife and husband attend their own ceremony in the same place and time.

If the word “tradition” was actually “stubborn-and-close-minded” or “ted-stevens”, then upholding “ted-stevens” would be a bad thing, not a good thing.

Tradition keeps the US from adopting the metric system.  Believe me, kids will learn whatever we teach them (Canada is metric), and kids (who usually become adults) will love baseball the game, regardless of how MLB implements the structure of its teams. 

Sometimes I wish Topol would have sang “Tradition, Schmradition”.


#7    tangotiger      (see all posts) 2007/05/29 (Tue) @ 14:49

Here’s some more “Tradition, Schmradition”:

For the longest while, hockey was played goalies plus 6-on-6 (the extra player was the rover).  Finally it’s 5-on-5.  But in overtime (for regular season), it’s 4-on-4.  The traditionalists were appalled, but OT flows real well.  And then, we have the shootout (skater-v-goalie).  Traditionalists were mortified, players too.  Now, most agree it’s very exciting.  All you had to do was watch the 1994 Olympics to see how gripping the shootout can be.


#8    Peter Jensen      (see all posts) 2007/05/29 (Tue) @ 17:57

Tango - I agree with your point that not all new ideas are bad and that if we argue “tradition” to try and stop any innovation then we have no chance to weed out the good from the bad.  However, not all new ideas are good and I certainly don’t believe that the maximizing of profits should be the sole, or even primary reason for making major changes.

For example, I am sure that baseball makes more money having the world series games played at night.  But I think that it is the wrong policy.  Besides the ridiculous temperatures of a night game played in November, the excitement that a 9 or 10 year old felt watching the series live made for life long fans.  I am certain that sacrificing that for an immediate gain in profits was not in the long term best interests of baseball.  Another example is the elimination of double headers.  I understand the team’s desire to charge for two tickets rather than one, but double headers even for Washington Senators games were packed with families trying to get the most entertainment on a limited budget.  Sometimes in business you have to give a bargain to build a loyal customer.


#9          (see all posts) 2007/05/29 (Tue) @ 18:31

Profit shouldn’t be a short term goal, but a long term one.

If moving WS games to the evening best maximises long term profit in the game then it should be done.  If it does harm the long term interest of the game (and presumably profits too) then it is a bad thing.

Same with the double header. Why should the Sox charge once when the can charge twice (theyt’ll fill the stadium both times). Unfortunately, in this situation the loyalty economics (probably) aren’t that compelling.


#10    tangotiger      (see all posts) 2007/05/29 (Tue) @ 20:16

Peter, I also long for those earlier games.  And those double-headers when I was a kid was a great 2-for-1.

But, what has happened since?  Attendance has shot up.  I don’t know the cause-effect, or if these changes actually made the attendance gain to be lesser than it could have been.

In essence, there’s been a shift in target audience.  And, it seems, that shift meant an increase.  Again, no idea as to cause-effect.

I would speculate that the increase in profitability meant all the other good things that come with it.  Players see more money, so they ask for more, which forces teams to innovate more, attracting more players, good players, who ask for more, and fans see all the action, and want in on it, etc.

Rather than it being a cool niche attraction, it’s a global business.

It’s hard to tell if the change was “better”, but there’s a change, and their still in the growth phase.


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