Bud Selig bemoans the record-shattering contracts as a sign of baseball’s economic balkanization. He states — perhaps correctly — that small and middle-market teams simply cannot succeed in baseball’s current fiscal climate. The sentiment is echoed throughout front offices across the country. As reported by the AP, Bill Bartholomay, chairman of the board of the Atlanta Braves stated, “Something is wrong when you have about 22 percent of players making 70 percent of the money. It just doesn't work right.'' And they are correct. Sort of.
Bad Players, Big Dollars
It is not just the bank-breaking contracts that seem insurmountable (but somehow manage to get surpassed within a year or two). In fact, the “I can buy Mir” contracts are not most of the problem — at least the Rangers got quality for their dough. Baseball’s economic ills stem more from bad contracts given to bad players. Let’s face it: there are many players who could easily be replaced by AAA veterans. But instead, slews of has-beens will find themselves sitting pretty with $3 million come December. And for each one, there’s an equally able player wallowing in the minors, more than willing to show up for $200k per annum.
In most cases, it would go without saying that a player is only worth as much as his best replacement, plus a sum to make up the difference. But baseball ignores this premise; a team with a 70-92 can still go 70-92 if they replace their overpaid veteran (read: “old,” not “good”) middle reliever with a guy making the Major League minimum. Selig et al should be bothered not so much by the $252 million package given to A-Rod or the $20 million annual salary that Manny Ramirez will be receiving. But they should take exception to some really idiotic contracts that bad teams hand out seemingly as an afterthought. Ticket sales, TV contracts, merchandising and other revenue sources will not be helped when the words “Now batting for the Pittsburgh Pirates, playing Right Field, Derek Bell!” boom over the PA. At best, it will receive a collective yawn from the 14 people who bothered to show up to the game that day.
Malignant Foolishness
It is not just Derek “I get $9 million for striking out 125 times three years in a row?” Bell. The Pirates — who haven’t finished .500 since 1992 — have also committed $6 million over the next two years to Terry Mulholland, a spot-starter/long reliever with an ERA usually around 5.00. The Phillies will be shelling out about $3 million a year to Jose Mesa and Rheal Cormier for the next few years. Together, “Joe Table” and Cormier give the Phillies one great nickname, one hard to spell first name, and two guys who can effectively toss batting practice if the pitching coach dislocates a shoulder. In effect, small-market teams are signing the chaff left aside by playoff contenders while paying wheat prices.
The disease spreads quickly to teams that actually have money. At the 2000 trading deadline, Baltimore Orioles (owned by anti-tobacco litigator extraordinaire Peter Angelos) sloughed big-salaried player after big-salaried player for a cast of mediocre minor leaguers. And why not — if you are going to lose, lose cheap. The Orioles — hardly a small-market team — were heretofore PhD candidates in the school of “spend first, think second.” Their flurry of trades at the deadline seemed to be a turning point.
The Rich Get Richer
All for naught. In recent days, Baltimore has committed over $25 million to David Segui, Mike Bordick, and Pat Hentgen. Only Segui — who is getting the plurality of that chunk of change — is a significant improvement for the O’s. It would have been better for Baltimore to save that money and go with younger players. They have made the playoffs only three times since 1980. (In the same period, the Twins have made it twice; the Royals four times.) So what do you do? Add Segui, Bordick, and Hentgen. Subtract one A-Rod-sized salary. Wait one year. For their team’s efforts, Orioles fans will be able to say that the O’s have made the playoffs only three times since 1980. Again. That is, if there are any fans left.
The rich, indeed, are getting richer. Players like A-Rod are getting a disproportionately large part of the pie. A plethora of other alarmist sayings can easily be used to describe baseball’s economic divide; said divide being not just the one separating the teams, but also the one separating the players. The latter — as expressed by Bartholomay — is an economic red herring. Rodriguez, Ramirez, and a few dozen other players get eight-figure salaries; Jeff Tam, Mark Lewis, Joe Oliver, and hundreds of other guys you’ve never heard of don’t break the $1 million barrier. And that is how it should be: pay for quality and find cheap alternatives when possible. Mark Lewis is likely quite happy to have played the game for $600k last year. Why pay more?
(This article can also be found on National Review Online).
