Here is how we're now figuring the monetary value of individual players.
This article will follow up on the new version of MORP that I introduced yesterday with a more thorough description of my methodology and my reasoning for it. Firstly, I will restate that the definition of MORP (Market value Over Replacement Player) is the marginal cost of acquiring a player’s contribution on the free-agent market. The basic structure that I am using includes adjusting for draft-pick compensation, which adds to the value of free agents by 10-20 percent. It also looks at all players with six years or more of major-league service time, all years of their free-agent contracts, and makes valuations of their performance based on actual performance rather than the projections, which are biased. I am also adjusting MORP so it is linear with respect to WARP. The discussion of linearity and of the decision to use actual rather than projected performance to evaluate contracts has been detailed in earlier articles, and I won’t reiterate them here in the interest of space. The basic reason why linearity is a fair assumption is that teams frequently have enough vacancies that they can add the number of wins they choose without filling them all. There are exceptions like the 2009 Yankees, who added three front-of-the-rotation starters and an elite first baseman in one offseason. However, even the Yankees do this infrequently enough that it does not regularly impact the market, and without two teams bidding for several superstars every offseason, this is not a large issue. The reason that using projection is so problematic was detailed last week, when I showed how free agents who reach the open market are a biased sample and regularly underperform their projections. For more details of these results, please see my previous work. Here are links to my threepartseries as well as my article on free agents underperforming their PECOTA projections. I will introduce some of the newer concepts in this article.
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With the CBA due to run out after the 2011 season, the industry is considering reforms of the ways amateur talent gets brought into the game.
When looking back at the economics of signing July 2nd talent, the amateur draft kept coming up. The draft indirectly ties to the Latin American market in a number of ways, and this relationship could be changing due to the other topic that kept coming up: the Collective Bargaining Agreement, which expires in December of 2011. The most talked-about reforms-mandated slots in the draft and a worldwide draft-have been kicked around in the past, but have gained more support in recent years. Covering amateur baseball is about looking forward, so I'll spend the next few articles breaking down the issues that both sides will be considering when they come to the table.
Everything you wanted to know about the BP Kings Charity Scoresheet Draft.
Peter Gammons' unfortunate incident focused the spotlight on cerebral aneurysms, but my connection is more personal. My mother had a cerebral aneurysm rupture way back in 1977 and was fortunate to survive.
Draft Strategy: Be strong at scarce positions offensively, avoided the dreaded Pitcher-AAA as always, and work on building a better bullpen to compensate for the lack of early starting pitchers. I sort of strayed from that strategy by taking John Lackey relatively early, and I might have a problem at second base if Jose Lopez doesn't pan out. I wanted to build a good core under the age of 30, and I did a fairly decent job of that. One of my harder decisions was my first one--Grady Sizemore vs. Joe Mauer. The consensus seems to be that I went the wrong with Sizemore--the consensus could be right, but I get the idea that three years from now Mauer won't be catching as often, to preserve his knees. Maybe that's too far forward to look, but at the same token, I see Sizemore as basically being risk-free.
I participated in the Mock Draft in the Scoresheet newsgroup, and because of that I expected the draft to be a little more prospect-heavy early-on. With the notable exception of Nate Silver, it wasn't, which suits me fine. I'm happy to have Brignac and Adam Miller among my top prospects.
Draft Strategy: Our only real strategy was to get big bats with the first few picks, then turn to pitching. Other than that, we basically reacted to the draft. We had the third pick, and in a league with an obvious top three, that made things easy. The one who's left is your guy, and that was Joe Mauer, whom we were happy to have. When Vernon Wells fell, we felt, to us at No. 22, we had our theme for the early part of the draft: Young, studly up-the-middle guys.