Thursday, December 10, 2020

Newsletter Preview, December 10, 2020 -- "The Money Doesn't Matter"

This is a preview of the Joe Sheehan Baseball Newsletter, an e-mail newsletter about all things baseball, featuring analysis and opinion about the game on and off the field from the perspective of the informed outsider. Joe Sheehan is a founding member of Baseball Prospectus and a contributor to Sports Illustrated and Baseball America. He has been writing about baseball for nearly 25 years.


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(Today's excerpt originally was published in November 2013.)
 
"The money doesn't matter. It's not about whether the marginal cost of a win on the free-agent market is five million bucks or $7 million or $13 million; it's about that framework no longer being the way to evaluate signings. The extra dollars a team might spend to bring a player into the fold -- and turn a contract from a sabermetric win to a sabermetric loss -- are meaningless in the big picture because there's just no other good application of those dollars. The opportunity cost of not signing the player isn't 'having the money to sign someone else,' it's 'having cash and no good way to use it.'"