A Retrospective Look at the Price of a Win
Barry Zito got paid $18.5 million last year and produced -0.4 Wins Above Replacement. You and I checked in at about 0 WAR — and by staying off the field, we out-produced Zito. I don’t know about you, but my paycheck didn’t look anything like Zito’s last year. And while my employer might be happy about that, the Giants are wondering what they got for their millions. In the everyday business world, an employer could find a way to get rid of a guy like Zito — an under-performing, overpaid employee. The Giants can’t. In fact, to get another team to take him, they’d need to pay most — if not all — of his salary. Regardless of his performance, Zito’s getting his money.
Then there’s Albert Pujols. He was paid $16 million last year and he produced 5.1 WAR. There’s nothing wrong with $16 million, if you were the St. Louis Cardinals. In fact, Pujols was worth a lot more. Teams fell over themselves trying to give Pujols a 50% raise this off-season, and that was no surprise.
So we know that the Giants had a bad deal with Zito, and the Cardinals had a good deal with Pujols. Those are extremes, and they’re obvious. But baseball, like life, is usually lived in a gray area — like the players who got the medium deals. But to figure out who those guys are, a more sophisticated analysis is required.
In today’s and tomorrow’s articles, I’ll determine the average price paid for a win in the past five years. To do this, I’ll first explain the difference between the expected price of wins before a season begins and the actual price paid after a season is finished. There are several important differences between expected price and actual price, and they’ll matter when we take a retrospective look at these contracts.