Spring Training is winding down and soon the meaningful games will begin. Every team is hopeful at this point and some have justification to be hopeful, as do the Sox. Being an older fan, I tend to look to eyeball tests and accumulated wisdom tomake judgments, but also realize the statistical approach has its place. DD and the front office must have to use the statistical approach primarily to structure the team but how do they really look at making those judgments?
1. They have an amount of money to spend based on the competitive balance tax. That amount is known and they may exceed it but need to reset to it to avoid serious penalties. Hopefully they never exceed the second tier unless perhaps they foresee a championship.
2. They have to apportion the spending to cover 13 field players and 12 pitchers, with room to allow for adjustments based on the inevitable injuries and major underperformance. They also have to account for dead money contracts (ala Pablo and Justin last year). In addition there are non salary related costs to consider.
3. How do they look at apportionment? Probably based on WAR as the major guideline. I have always been a little confused by that term. If I had all 0 WAR guys on the team, does it mean I can win 81 games per year? If so, I would look to have some guys who would contribute to the 25 WAR number needed to be a champion. If I was DD, in simplistic terms I could pay a percentage of the money left in the competitive balance tax maximum over what a group of 0 WAR guys would earn, based on the contribution to the necessary additional WAR. It doesn't appear to make sense that you can pay that way as the big stars gets so large a slice of the pie that there isn't enough for the remaqining guys. In reality, young stars coming up get significcantly less than their value so a consttant stream of them is needed to keep a team competitive while staying under the competitive balance cap.
4. Team balance is also needed and DD has got to keep a functional team throughout the season. Utility players and call ups need to be budgeted for.
5. Risk assessment has got to be a key area Risk includes health, injuries and declining performance. The front office probably has a model for declining performance and can see from injury histories the liklihood of lost time duriing the year. Risk has to go up for a player if long term contracts are given as the models are probably less reliable over longer terms. The larger the contract given and the span of time envisioned increases the risk involved to the team achieving its goal of winning a championship.
6. There is also a Chaos factor involved in any decision. One that is unpredicatable. That can come in and throw all the good planning into a mess.
So given this line of thinking, first is it sound? If sound, then what would I advise?
1. Get rid of all underperformers based on WAR rating
2. Avoid long term contracts with the term of contract based on the age of the player. Maybe 10 years for a star 25 or 26 years old. years for a guy just past 30 and 2 or 3 years max for those 33 years old. If the contract demand exceed value to thee team, trade the player.
3. Put money and effort into the farm team and develop ew young players who can make contributions beyond their cost.
4. Reset the competitive balance tax limit (at least as long as there is one) to enhance the ability to strengthen the farm team.
How this thinking applies to our existing players is the big question. Is Mookie worth $35 million AAV for 10 years? Similar questions for JDM, Bogaerts and so on. Tough position to be in as a top exceutive. Money Ball suggests a way of thinking that has a hard edge but one that makes some sense.