Economics in Sports | Bob's Blitz

Economics in Sports

Middling baseball pitcher Yu Darvish just signed for a less-than-he wanted six years and $126 million with the Chicago Cubs; we should all be so lucky, right?. The MLBPA is stomping their collective feet about collusion. That's their job but they don't understand economics. Trust me - they do - but they still stomp their feet.

Meanwhile, a guy with 7 days on the job, Jimmy Garoppolo, just got handed $137.5 million ($49 million cash up front and and another $26 million coming unless he finances a dog-fighting ring).

And Kirk Cousins has dollar signs spinning in his eyeballs right now like a fucking slot machine.

What the MLBPA doesn't get, or more likely just refuses to acknowledge, is they made this bed. The MLBPA set a loose salary cap, aka Luxury Tax. This was collectively bargained with every MLB team and is legally binding. And sometimes things bite you in the ass.

The monkey wrench in the sprockets is #2 in your program and #1 in your heart, Derek Jeter*. In his new role as COO of the Miami Marlins, Jeter has dumped over $500 million in talent on the other MLB teams and that is going to suck up free agent spending like a Thai hooker**.

And there is this little matter of the spending cap reset in 2019 every team is trying to Limbo underneath so they can unleash the checkbooks next year. And 2019 has a plethora of free-agent talent.

So, while nothing-special NFL QBs are getting obscene amounts of cash thrown at them, the baseball players just aren't (although $126 million is pretty obscene). Not until next year at least. In 12 months we will all be stunned at what Manny Machado and Bryce Harper get paid. And the MLBPA will be happy.

*Shout out: Steve Sommers
**I have never been to Thailand, but I know a good Pad Thai place on 64th St.


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