Why the New York Yankees Win
Three Reasons Why Rich Teams Win in Major League Baseball
Why teams like The Yankees with large payrolls are consistent winners in major league baseball.
It can take a good organization, superb coaching and excellence in judging talent to be a consistent winner in baseball. A weakness in any of the above can be overcome by money and the willingness to spend it on established talent.
Every year, certain teams, including the Yankees, Red Sox, Mets, Dodgers, Braves and Angels are always near the top of the standings in Major League Baseball. They may not win the World Series all the time, but they are perennial contenders, and not coincidentally have the largest payrolls.
For several years, the Yankees have led in spending for player salaries. This generates a three-fold advantage in remaining a cut above the pack during the regular season.
Free Agent Signings
The clearest advantage is the ability to sign high-priced free agents. When young all-stars reach their prime earning years, they will often test the free agent market, and only those teams with large disposable incomes will be able to compete in the bidding.
The Angels are able to sign players like Torii Hunter and Bartolo Colon, the Yankees can pick up a Mike Mussina or Roger Clemens, and Red Sox can obtain Manny Ramirez at the market price without providing compensation to their former team, other than draft choices.
Trading for Potential Free Agents
Similar to the outright signing of free agents is the ability to trade for players in the year before they are eligible for free agency. The teams with large war chests can deal with the have-nots, using prospects with low salaries as bait to acquire stars about to gain large contracts. This is how large market teams acquire players like Miquel Cabrera and Johan Santana.
The rich teams can use the player that year, with the expectation that they have a strong chance of signing the player before they opt for free agency. Even if the player does test the market, the wealthy teams remain in the bidding.
Retaining Home Grown Players
One of the least examined advantages that the rich teams like the Yankees have is the ability to retain their home-grown players. Teams like Kansas City can produce excellent players such as Johnny Damon and Carlos Beltran, only to see them leave by free agency or by trade as their abilities and salaries outgrow the resources of the team.
The Yankees are reasonably assured that when it comes to retaining players they wish to keep, money is not an issue. Derek Jeter, Mariana Rivera and Jorge Posada might have chosen to leave New York in the prime of their careers, but it would not have been for higher salaries.
The ability to manage the market in these three ways provides a tremendous advantage to these teams. It is a credit to the other teams that they are able to be competitive without these resources.
