At some point today, Major League Baseball is expected to announce the details of the new Collective Bargaining Agreement that was negotiated with the player’s association. While there are some pretty major changes to several areas of the game, perhaps the most influential move is the addition of a second wild card team in each league. While qualifying to participate in a one-game play-in isn’t quite the same as being awarded a spot in the Division Series round, the new rule does essentially give two extra opportunities to play in October, and while it may not seem like a drastic change, I do think we’re going to see significant repercussions in how and when teams acquire talent.
An additional playoff spot has the obvious effect of increasing every team’s chances of making the playoffs, and as a byproduct of that result, the value of short-term wins just increased. Under the old system, a team needed to win at least 90 games to have a legitimate chance at winning the Wild Card. Of the 32 teams to get into the playoffs via the extra playoff spot since 1997, only three had finished with 89 wins or fewer – in fact, in the American League, the 91-win 2011 Rays had the lowest win total of any AL Wild Card team since the 2000 Seattle Mariners. The average wild card team has won 93.3 games per season, so the non-division-winning playoff team has still been quite excellent in most years.
The new system lowers the barrier to entry by a significant amount, however. Back in April, our own Wendy Thurm looked at how interleague play would have affected a hypothetical second wild card team for the National League had it been in place since 1998. As you can see, more often than not, the runner up in the NL Wild Card race finished with a win total in the 80s, and the average win total was just 89.2 wins. There has historically been a pretty significant drop-off in quality between the wild card team and the runner-up, but now that runner up will also get a chance to continue their quest for the World Series.
The result will be a shift in the curve that measures the value of a win. Right now, the value of a win is fairly linear up until about win #85, at which point each additional win (up until about win #98) becomes significantly more valuable, as those wins have the greatest impact on a team’s odds of making the playoffs. The new wild card is going to dramatically increase the value of wins starting at around #82, while also flattening the win curve a bit sooner, as the second wild card will all but ensure that a team with 95+ wins will make the playoffs, and the value of each additional win beyond that will diminish slightly.
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