Trends in Free Agent Spending on Pitchers
In my previous articles in this series, I have looked at trends in free-agent spending over time, and specifically I have reviewed more recent data to see if market inefficiencies that I discovered in earlier work have disappeared over time. In this piece, I will review the findings on pitchers in my 2013 Hardball Times Annual article. In that piece, I discovered that teams tended to overvalue old-school statistics that did not translate to actual value. This included wins for starting pitchers and saves for relief pitchers. I also noticed that free-agent pitchers with strong peripheral statistics (e.g. those with good FIPs, usually) were often undercompensated, suggesting teams did not all realize the importance of peripheral statistics in projecting future performance. Much of this seems to have been corrected by the market over the years, although a handful of players have created some noise.
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