Going Green in Oakland

On the heels of Earth Day and in the foreground of the natural resources debate, the ‘green’ movement seems to be seeping into corners of our public sectors that would not have instantly come to mind. While being a responsible global citizen and practicing the finer sides of home recycling; it appears that the movement has transcended community efforts and found a new home in America’s baseball parks.

More often than not, going green in baseball relates to payroll expenditure or new outfield turf. But, with payroll budgets cinching up in the face of crippling recessionary falloff, teams are looking to reap the benefits of recycling more than just last year’s unsold merchandise. For in an ongoing effort to remain competitive (i.e. profitable) most mid-market teams have to accomplish more for less. It is a constant opportunity for general managers to lure in big name talent at an affordable salary. In the past 5 years, most teams have opted for the new model of player and have heavily invested on the predicted greatness rather than statistical accomplishments to get in front of the inflationary curve. But, these are ultimately risk-reward situations with most players achieving mediocre career milestones or coaching the Durham Bulls.

In the last 5 years established talent has come at staggering mountains of owner’s liquidity. Alex Rodriguez restructures his quarter billion dollar (not a misprint) contract to $275 million and CC Sabathia worked his left-arm charm into the richest pitching contract in MLB history at $161 million. And while the pin stripes were busy stocking their supply shelf, the New York Metropolitans gave Johan Santana his own personal slice of the Big Apple for $137.5 million. But, what do the teams that are not located on Henry Hudson’s old stomping grounds do?

The answer is to recycle. Reach into the 2001 All Star gift bag and see if any players still panhandle for Triple A contracts. Seek out those players whose dominance is still respected though not feared. This has not only given aging veteran’s a much needed second wind, but has given smaller market teams a real opportunity to increase revenues across the board. Bringing in a Ken Griffey Jr. or a Randy Johnson will give your team a better chance to win on the field; but more pointedly it will drive ticket sales, concessions, and merchandise; all key contributors to signing next year’s free agent star.

Over the past decade no other team has better demonstrated the ability to bring in veteran players than the Oakland A’s. Headed by general manager Billy Beane, the A’s have made it a point to bring in other teams waste and turn it into key statistical contributions. Consider the following list: Jason GIambi, Frank Thomas, Mike Piazza, and Nomar Garciparra. Between this quartet, there are 24 All Stars Games, 8,138 hits, 1,574 home runs, and 5,258 RBI’s. Or, for those who like their information consolidated, just think of it as what Willie Mays would have accomplished had he been allowed 3 careers back to back to back.

Now, in all fairness the offensive production and glory days of these 4 individuals were not achieved on the floor of the coliseum. But, bringing in the instant recognition of established players will drive the aforementioned revenue streams. According to Forbes, the Athletics were ranked 27th in Team Value at $234 million in 2006. But, by making venue adjustments and fine-tuning player evaluations made known in the book Moneyball, the A’s team value was up to $323 million in 2008; a 72% increase. This was done is spite of the fact that of the 147 luxury suites in the stadium, 90 are located in the outfield and all Ad signage has to be shared jointly between the A’s, the Raiders, and the Coliseum owners.

More so, the Athletics front office took small hits to a tightly managed payroll by bringing these players to Oakland. In 2006, the A’s only guaranteed Thomas $500,000 plus incentives. When Thomas easily out-performed his contractual obligations in Oakland, winning Comeback Player of the Year, the A’s allowed Thomas to accept a 2-year $18 million contract with the Toronto. To fill the newly created void, the A’s brought in veteran Mike Piazza for a 1-year $8.5 million dollar contract. In 2009, the A’s allowed the pendulum to swing back home as the new free agent Jason Giambi was looking for a new home after a 6 year daze in New York. To help spur offensive output, the A’s also invested in Nomar Garciapara, Orlando Cabrera, and Matt Holiday. And though they have the official Major League Baseball insignia of “This Product is made from 100% recycled Baseball Player;” it has yet to vault the A’s out of the cellar of the American League West.

Ultimately, success is what generates the revenue that allows general managers and personal executives to put a competitive product on the field from April to October. And though we are confronted with being more ‘green’ conscious on a daily basis, it still hasn’t proven to be a key ingredient in post season success. But, there is the one intangible that cannot be quantified on a balance sheet. It is the feeling of watching an aging star swing the bat with the authority of confidence. Though they may not produce the fanfare of yesterday, or put up the numbers that sold countless jersey’s, most veterans are still going to collect more money for any agent than a stadium full of empty cans would for you at your local recycling outlet.