Sports General Managers – How To Do More With Less

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A GM’s Goal: build a consistently competitive team, without depleting the teams’ future.

A competitive team brings glory, fans, and revenue.

Being a GM is easy when you have money:

In the last decade of World Series:
75% of World Series winners had budgets over $98 mil, the league average budget.

The GM Challenge is Base Ballin’ on a budget

Follow your head or your heart?

GM Game changer: the 2003 Michael Lewis book “MoneyBall”

Today’s new GMs are typically younger and highly educated in statistical analysis.

Which GM’s got the most bang per buck in 2012?

The 2012 average MLB cost per win: $1.22 Million
Most expensive wins: The Yankees spent $2.08 Million per win
Least expensive wins: The Oakland Athletics $590,000 per win

Win to Salary %

GM Winners:
Oakland A’s: Paid -44% less salary for a good season, won 16% more games
+60% difference in salary and wins

Tampa Bay Rays: Paid -35% less salary for a good season, won 11% more games
+46% difference in salary and wins

Washington Nationals: Paid -17% less salary for a good season, won 21% more (best record in MLB)
+38% difference in salary and wins

Honorable Mention: A cost effective losing season
Padres: Paid -44% less salary for a bad season, won -6% less games
+38% difference in salary and wins

GM Losers:
Boston Red Sox: Paid +77% more salary for a bad season, won -15% less games
-92% difference in salary and wins

Miami Marlins: Paid 20% more salary for a bad season, won -15% less games
-35% difference in salary and wins

Philadelphia Phillies: Paid 78% more salary for an average season, won 0% more games
-78% difference in salary and wins

Honorable Mention: Expensive winning season:
New York Yankees: Paid 102% more salary for a good season, won +17% more games
-85% difference in salary and wins

3. Classic Cost Effective GM winners:

Billy Beane and the Oakland A’s
A’s are the 3rd poorest team in MLB (In terms of revenue and value)
Using MoneyBall strategies
Oakland has made it to the post-season six times since 2000

Andrew Friedman and the Tampa Bay Rays
Their first decade, [1998 through 2007] The Rays never had a winning season.
2006 hired a 32 year old former investment banker as their new GM
2008 went 97-65 (a 31 win improvement from the previous year) and went to the World Series.
Payroll of $43.7 million, 29th lowest out of 30 teams.

4. The 2013 draft saw new steps taken to increase parity in the MLB

Here’s why:

Top Payroll: New York Yankees$228,995,945

Bottom Payroll: Houston Astros: $24,328,538

Alex Rodriguez of the Yankees will make more money than the entire Houston Astros roster ($29,000,000 vs $24,328,538)

The Competitive Balance Lottery

Gives teams with minimal revenue additional high draft picks

Who’s in the lottery

10 clubs with the lowest revenue
10 clubs from the smallest markets

Chance of winning is based on losing% of last season

6 extra picks at end of the first draft
6 extra picks at end of the second draft

The 2014 draft winners of the 12 picks are:

Comp Round A:
1. Colorado Rockies
2. Baltimore Orioles
3. Cleveland Indians
4. Miami Marlins
5. Kansas City Royals
6. Milwaukee Brewers

Comp Round B
1. San Diego Padres
2. Arizona Diamondbacks
3. St. Louis Cardinals
4. Tampa Bay Rays
5. Pittsburgh Pirates
6. Seattle Mariners

Sources:

http://www.allsportstalk.net/mlb-baseball/high-mlb-payroll-more-wins/1442

http://content.usatoday.com/sportsdata/baseball/mlb/salaries/team/2012

http://espn.go.com/mlb/worldseries/history/winners

http://www.forbes.com/mlb-valuations/list/

http://oaklandnorth.net/2012/10/05/despite-small-budget-oakland-as-triumph-in-american-league-west/

http://www.piratesprospects.com/2010/12/the-prestige-of-small-payroll-baseball-tampa-bay-rays-2008-10.html

http://www.sbnation.com/mlb/2013/7/17/4533072/2014-mlb-draft-competitive-balance-lottery-results

http://deadspin.com/oakland-athletics-chris-young-8-700-000-yoenis-cespede-462773606

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