Batter's Box regular Mike Moffatt edits the About.com Guide to Economics, and has used the Blue Jays offseason as the basis of a feature on that site. Called "Baseball Players and Opportunity Costs", it examines the Toronto club's decision, questioned at the time by some fans, to non-tender a contract offer to Jose Cruz Jr.:
So we see that the Jays did not give up Jose Cruz for "nothing". Instead they gave up Jose Cruz and the opportunity to play 5 minor league players and received the opportunity to play Bordick, Catalanotto, Creek, Myers, Sturtze, and Tam instead. So when a team decides not to retain the services of the player, they always receive two things in return: the money it would have taken to retain the player, and the spot on the 25 man roster that the player would have taken.
There's even a poll, where you can vote on the following question: "Has General Manager J.P. Ricciardi used the concept of opportunity cost effectively when creating his roster of players?" I cast the second ballot, and it's unanimous so far.
So we see that the Jays did not give up Jose Cruz for "nothing". Instead they gave up Jose Cruz and the opportunity to play 5 minor league players and received the opportunity to play Bordick, Catalanotto, Creek, Myers, Sturtze, and Tam instead. So when a team decides not to retain the services of the player, they always receive two things in return: the money it would have taken to retain the player, and the spot on the 25 man roster that the player would have taken.
There's even a poll, where you can vote on the following question: "Has General Manager J.P. Ricciardi used the concept of opportunity cost effectively when creating his roster of players?" I cast the second ballot, and it's unanimous so far.
