11.04.2006

Free agency

From Baseball Prospectus (I'm pretty sure that it's subscription-only), on the new revenue-sharing agreement:

How much a team spends, though, is dependent not just on how much revenue it gets to keep, but on how much it can generate in the first place--and that calculation of how much new money a player can bring in is going to vary wildly from team to team. Even if an influx of talent would result in the Yankees and the Royals putting the same number of new fannies in the seats, those seats are worth two to three times as much in New York as in Kansas City, and that's before even accounting for the increased value of eyeballs attracted to the team's cable broadcasts.

This discrepancy in teams' marginal revenue potential goes a long way toward explaining why the top-revenue teams hog all the big names at free-agent time. It's not so much that the Yankees have more money than the Twins-[...] It's that players are worth more to the Yankees than the Twins, solely by virtue of the fact that the Yankees play in such a high-marginal-revenue environment.

(Italics original.) See, this is why I can't feel that sorry for Kansas City; New York is a huge town with a huge interest in baseball. Why shouldn't it have the best players?

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