This is Matt Swartz’ first piece as part of his July residency at FanGraphs. A former contributor to FanGraphs and the Hardball Times — and current contributor to MLB Trade Rumors — Swartz also works as consultant to a Major League team. You can find him on Twitter here. Read the work of all our residents here.
I’m excited to begin my FanGraphs Residency this month, during which I’ll present an updated analysis of the Dollars per WAR estimates that I’ve used for a long time. I’ve written about the Dollars per WAR framework for analyzing the free-agent market for nearly a decade now, most recently in a three–part series at Hardball Times using data through the 2013 season. In that collection of posts, I established the important definition of Dollars per WAR that I will use throughout this series of articles — namely, the average cost of acquiring one win above replacement on the free-agent market.
Since I’ve written about this, however, there has been a progressively minded, labor-sympathetic pushback against this framework that I felt it was important to address, because if the criticism were fair it would cast a long shadow across all of the analysis in the coming articles. Fortunately, I believe that this criticism is misguided, even if you accept the value system that proponents of this line of criticism generally espouse.
From my perspective, I will remain agnostic on the value system itself in these criticisms, but simply explain why I think this type of analysis does not line up with an anti-labor view at all. I will admit up front that I consult to a Major League team and therefore, when working for them, I do represent the interests of that employer. What I say in these articles, however, will represent only my own views — and, in general, I’m writing this from my perspective as a frequent contributor on this topic predating this good fortune, and as an economist — but neither as a team employee representing ownership nor as a former Department of Labor employee, either.
I’d like to address two well-written and well-argued articles here that I believe characterize some of the labor-related concerns. One by Mike Bates asks if statheads are pro-ownership and another by Michael Baumann reframes a series of team-friendly contracts as inherently bad and unfair. What I’d like to consider here is the implicit suggestion made by both authors that, when teams individually target lower cost-per-WAR players, that this doesn’t affect the prices of these lower cost-per-WAR players and drive them up, but rather that it serves only to drive down the price of higher cost-per-WAR players. This seems very unlikely to be true according to some of the increased prices for lower cost-per-WAR categories of players I find in later pieces in this series.
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