Does the principle of investment diversification apply to the starting pitching staffs of major league baseball teams?

Financial advisors often emphasize asset diversification as a means of limiting losses from investments that perform unexpectedly poorly over a particular time period. One might expect that this perceived wisdom could apply in another high stakes arena-professional baseball-where player salaries comprise a substantial portion of a team's operational costs, year-to-year player performance is highly variable, and injuries can occur at any time. These attributes are particularly true in the case of the starting pitching staffs of professional baseball teams. Accordingly, this study analyzes starting pitcher performance and financial data from all Major League Baseball teams for the period 1985-2016 to determine whether the standard investment advice is applicable in this context, understanding that the time horizon for success for an investor and a baseball team may be distinct. A multiple logistic regression model of playoff qualification probability, based on realized pitcher performance, measures of luck, and starting pitcher staff salary diversification is used to address this question. A further stratification is conducted to determine whether there are differences in strategy for teams with allocated financial resources that are above or below league average. We find that teams with above average resources increase their post-season qualification probability by focusing their salary funds on a relative few starting pitchers rather than diversifying that investment across the staff. Second, we find that pitcher performance must align with that investment in order for the team to have a high qualification probability. Third, the influence of luck is not negligible, but those teams that allocate more overall funds to their pitching are more resilient to bad luck. Thus, poorly resourced teams, who are generally unable to bid for pitchers at the highest salary levels, must adopt alternative strategies to maintain their competitiveness.

Cost analysis of Tommy John surgery for Major League Baseball teams.

BACKGROUND: The economic loss following ulnar collateral ligament reconstruction (UCLR) in Major League Baseball (MLB) pitchers has not been evaluated. The purpose of this study is to quantify the financial impact of UCLR on MLB teams. We hypothesize that MLB teams incur significant losses annually as a result of salaries paid to injured players following reconstruction. METHODS: Public records were accessed to identify MLB pitchers from January 1, 2004, to December 31, 2014, who had undergone UCLR. Contract terms and time away from competition were used to approximate economic loss. Successful return was considered when a pitcher returned to play in at least 1 Minor League Baseball (MiLB) or MLB game. RESULTS: One hundred ninety-four MLB pitchers underwent UCLR from 2004 to 2014, missing on average 180.2 days of the MLB regular season. Cost of recovery (COR) amounted to $395 million, averaging $1.9 million per player. Starting pitchers accounted for the largest total COR at $239.6 million, whereas closers had the largest economic loss per player ($3.9 million/player). Only 77% of pitchers returned to MLB play. CONCLUSION: UCLR has a substantial economic impact on MLB teams. Starting pitchers represented a majority of team cost, but closers represented higher costs per pitcher.

Injury Trends in Major League Baseball Over 18 Seasons: 1998-2015.

Since Major League Baseball (MLB) expanded to its current size of 30 teams in 1998, a comprehensive and longitudinal study of injury trends has not been performed. The purpose of this work is to report the epidemiology of injuries in MLB over that time utilizing disabled list (DL) data. Additionally, we sought to determine the financial impact of these injuries for MLB teams. During this analysis, we focused special attention on injuries of the medial ulnar collateral ligament (MUCL) and conducted a comprehensive review of all MUCL reconstructions ever performed on MLB players. Over the study period, there were a total of 8357 DL designations (mean of 464 annually). Players lost a total of 460,432 days (25,186 days annually) due to injury. Both the number of DL assignments and number of DL days increased from year to year (P < .001 and P = .003, respectively). Average length of DL assignments remained steady over time at 55.1 days (P = .647). Although shoulder injuries decreased (P = .023), this was met with a reciprocal increase in elbow injuries (P = .015). The average annual cost of designating players to the DL was $423,267,634 and a total of $7,618,817,407 was spent over the entire 18 seasons. Regarding MUCL injuries, a total of 400 MUCL reconstructions were performed in MLB players between 1974 and 2015, and the mean time to return to MLB competition was 17.1 months. The annual incidence of MUCL reconstructions increased dramatically from year to year (P < .001) and nearly one-third (n = 131, 32.8%) of all procedures performed over the 42-year period occurred in the last 5 years (2011 to 2015). In summary, overall injury rates and DL assignments continue to rise. Although shoulder injuries are declining, this improvement is countered by increasing elbow injuries, and these injuries continue to represent a significant source of lost revenue.

Investigating customer racial discrimination in the secondary baseball card market.

A growing body of literature in a variety of disciplines has appeared over the last 20 years examining customer racial bias in the secondary sports card market; however, consensus on the matter has yet to emerge. In this article, we explore the more subtle ways that a player's race/ethnicity may affect the value of his sports card including a player's skin tone (light- to dark-skinned). Data were obtained for 383 black, Latino, and white baseball players who had received at least one vote for induction into Major League Baseball's Hall of Fame including their career performance statistics, rookie card price, card availability, Hall of Fame status, and skin tone. Findings indicate that card availability is the primary determinant of card value while a player's skin tone has no direct effect. Subsequent analysis demonstrates that a player's race (white/non-white) rather than skin tone did have an effect as it interacts with Hall of Fame status to influence his rookie card price.

The prevention of baseball and softball injuries.

Forty million individuals participate in organized softball leagues each year in the United States. Eighteen million additional student athletes and young adults also participate in organized baseball league play. In addition to being two of the most popular team sports in the United States, they also are responsible for a significant percentage of sports-related injuries that are sustained in the United States. Fortunately, numerous interventions independently have been shown to be effective at reducing the injury scenario, which has grown to be of epidemic proportion. Interventions such as break-away bases, batting helmets, face shields on helmets, lighter mass baseballs, and teaching and reiteration of the fundamentals of softball and baseball all have been effective in preventing millions of injuries and billions of dollars in healthcare costs each year in the United States.

The later evolution of modern sport in Latin America: the North American influence.

American impact on modern sports in Latin America overlaps geographically and chronologically with the European, especially British, impact. Principally baseball in the Caribbean basin, more recently basketball and volleyball across the hemisphere and occasionally American football in more limited areas illustrate a north-to-south movement executed by businessmen, educators, missionaries, military personnel, returning travelers (often students), sports entrepreneurs and television. Often initially supported by promoters of development within Latin America, this transfer has altered local recreational patterns and attracted Latin athletes to pursue careers in North America, provoking accusations of cultural imperialism and exploitation.