A new year and in turn, a new decade is now upon us! We have begun the Roaring Twenties once again. More importantly, fantasy baseball draft season is now upon us.

I am not one for paying large amounts of attention to positional rankings. Knowing who is valued as the 7^th best shortstop, or who the 11^th ranked second baseman is – is helpful no doubt, but that alone will not win you your fantasy leagues. We can spend time debating whether Rhys Hoskins is better than Trey Mancini, but since the duo have similar profiles, the discussion isn’t all that helpful on its own.

To me, the task that needs the higher priority – is the comparison of market prices to player valuations. The greater assignment is to determine the players which the market undervalues. One of the first exercises that I engage in – is to find the players which projections foretell a superior year as compared to where they are currently being priced.

The two needed components to complete this analysis are very generally:

• Projections
• Market

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Introduction

I thought it would be an interesting exercise today to look at fantasy baseball in a different way – profitability at the major league team level. Certainly, the better real-life clubs consist of not only more fantasy relevant players, but also of the higher quality ones.

But what else can be said about the profitability of the fantasy player pool at the team level? Does a higher spend translate to more value for fantasy owners? Does winning ball games correlate with higher levels of fantasy profitably? What can we learn from looking at player investments from this unique ball club perspective?

Let’s dive in and see …

Definitions & Methodology

For today’s analysis, I have used the same pre-season pricing and full-season valuations as in my game theory projections comparison. There are three specific quantities that are relevant here:

• $Value – This is the 2019 full season rotisserie value that each player provided this season. I use my own auction calculator which employs a Z-score methodology to generate the $Values. Standard NFBC 15-team settings are assumed (Mixed AL/NL, $260 budget, standard NFBC positions). I assume that players are only eligible at their original 2019 positions + any positions that they were expected to gain in the first 2 weeks of the season.
• $AAV – Average Auction Value – This is the average of what NFBC owners paid to acquire players during the heart of the 2019 draft season. These values come from all NFBC auctions between March 15, 2019 and March 25, 2019.
• $Profit – The difference between the $Value and the $AAV per player.

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In my previous article, I compared a number of baseball projection systems for the 2019 season using a game theory approach. We looked at the profitability of each projection system in the context of simulating what would transpire at a fantasy baseball auction. We measured each projection’s successes and failures.

Several readers had approached me to further split out the resulting analysis into the hitter and pitcher components. By popular demand, I have decided to do exactly that. Today’s article will detail the analysis by its offensive and defensive elements.

For a refresher on the process and methodology, or for reference, please refer to the original post which can be found here.

Overall Results:

First, let’s quickly remind ourselves of the results of overall total profitability by projection system in 2019.

As we previously saw, ATC and Steamer were the two best overall systems according to this analysis in 2019.

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Introduction

Last year, I introduced a game theory approach for comparing baseball projection systems. Today, I have once again applied the same methodology in order to evaluate which set of baseball projections excelled in 2019.

Most others who venture in such a comparative exercise make use of some type of statistical analysis. They calculate least square errors, perform a chi-squared test, or perhaps do hypothesis testing. I won’t be engaging in any of these capable methods.

Instead, I will look to determine the profitability potential of each projection system by simulating what would have happened in a fantasy auction draft. Instead, I’ll play a game.

What do I mean by this?

First, think about what happens in a fantasy baseball draft auction.

Suppose that Rudy Gamble of Razzball (or anyone who exclusively uses the Razzball projections) walks into a rotisserie auction league prior to the 2019 baseball season. Let’s say that Rudy decides to participate in an NFBC auction league. Mr. Gamble would take his projections and run them through a valuation method to obtain auction prices. He would generate a list that looked something like this …

Razzball Projected Values: Chris Sale 49, Mike Trout 45, Jacob deGrom 44, Max Scherzer 44. Mookie Betts 42, J.D. Martinez 37, Giancarlo Stanton 36, Justin Verlander 35, … , Brandon Lowe 1, Josh Reddick 1, Mark Melancon 1, etc.

In addition to the raw projected values generated by the Razzball system, Rudy would then establish a price point that he is willing to pay for each player. There might be a premium that he will pay for the top ones, and a discount that he expects to save on lower cost players. He may be willing to bid up to $46 on Jacob deGrom (valued at $44), but would only pay $1 for a $4 Jason Kipnis, etc. Read the rest of this entry »

Last week, I looked at the largest auction player bargains of 2019. These were the players who were highly profitable after considering their opportunity cost of acquisition. We defined the bargain amount as:

$Bargain = $Value – $AAV

We defined $Value as the accumulated 5×5 full season rotisserie value of each player, and $AAV as the average auction cost to purchase the player pre-season. We make use of the NFBC Average Auction Values which are readily available to us.

For the full methodology of how these player bargains are calculated, please refer to my introductory post.

Today’s attention will be directed to what I refer to as the value drainers. These are the largest “rip-offs” of 2019 – i.e., the players who earned the most negative profits for fantasy owners on a full season basis (net of their auction price). Read the rest of this entry »

Winning Fantasy Baseball is All. About. Value.

Introduction:

Several years back, a friend of mine was preparing for his fantasy baseball auction. He asked me a simple question –

“How much is Lorenzo Cain worth according to your projections?”

That was a straightforward question for me to answer. I ran the ATC Projections through my valuation model. I set the league parameters to match his specific league settings, and I generated a value for Cain of $18.

A few days later, my friend came back to me and said,

“Ariel, I bought Lorenzo Cain at my auction for $18! Isn’t that awesome?!?!”

I responded “No, that’s awful. If Lorenzo Cain is worth $18, you need to only pay $14 or $15 or $16.”

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The 2019 MLB regular season has concluded. Two Astros may very well finish 1-2 in the AL Cy Young award. The Brewers went on an unbelievable Yelich-less run to make the playoffs – only to be eliminated in the wildcard game with their best pitcher on the mound. A new record was set for rookie homeruns in a single season. The Yankees hit 306 HRs as a team, and yet that did not set a record; the Twins hit 307! Baseball set a new collective HR record. It was the year of the longball, or as Jeff Zimmerman calls it, “Happy Fun Ball.”

It is now time to check back on how we fared this year in fantasy. Let’s start with a review of this season’s bold predictions.

As I often remind my readers – we will never succeed in getting the entirety of our bold predictions correct, or even realize a majority of them. If I wanted to achieve a high success rate, I could simply have filled up my list of predictions with easy ones such as “Justin Verlander will win 10+ games this season.” That class of prediction would have been too easy.

Rather, the point of the exercise is to highlight certain undervalued (or overvalued) players by choosing a few unlikely, yet achievable outcomes. The idea is to target somewhere between the 70^th and 90^th percentiles of possible outcomes – predictions which are 10-30% likely to occur.

I often use the ATC Projections as a guide for these bold predictions. I look at where the ATC projections generate an outcome which varies significantly from what the general public perceives will happen. Some other times – I just go with my gut and with my own intuition.

Let’s recap!

#1: Matt Barnes will finish as a top 5 saves leader in 2019

There are two elements that need to occur for a relief pitcher to accumulate saves. The pitcher needs to:

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Should you spend for an elite closer?

Earlier this year, I broke down the profitability potential of the starting pitcher tiers. We learned that it was profitable from a return on investment perspective to purchase an “ace” starting pitcher in your auctions and/or drafts. I am referring to the article entitled, “The Case for An Ace”.

Today, I dive into the hit rates and profitability for various relief pitcher tiers. Sure, there will always be hits and busts in each draft round. If you happen to strike the right player, you will be set … and vice versa if you happen to draft a dud. From a game theory perspective, knowing the more profitable price points for players at particular positions (or for particular scoring statistics) is extremely valuable to the shrewd fantasy owner.

In the long run – it is better to know that saves have a better ROI in Round X vs. Round Y, whereas steals have a better ROI in Round W vs. Round Z, etc. Why not maximize your potential sources of profit in fantasy baseball, by being efficient with your draft selections and with your auction dollars? Sure, you are free to draft Aristides Aquino in the 1^st round if you so choose – but it is prudent to keep in your back pocket what the numbers say about what the best investments are.

The Experts / Tout Wars

In my days of playing fantasy baseball, I have come across two opposing strategies regarding closers. Both approaches have been heavily publicized over the years.

• Never. Pay. For. Saves.
• Buy a top closer.

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Introduction

Does it make a difference as to a fantasy baseball team’s starting draft position? Are all draft slots created equally? Is it better to be at the ends (wheel/turn), or rather, is it more opportune to make one’s selections from the middle of the order?

To try and help us answer these questions, let’s look at what happened in 2019. Now, of course, the current season isn’t over just yet – there are still a few more weeks of baseball. However, now in mid-September, it is sufficiently late in the season for us to analyze how the draft positions played out over the course of 2019.

Sources Used

For this study, we will observe the standings for three different league types:

• TGFBI – 21 Leagues
• NFBC Main Event – 38 Leagues
• NFBC Draft Champions – 230 Leagues

TGBFI (The Great Fantasy Baseball Invitational) is our own Justin Mason’s creation. It is a compilation of 315 fantasy baseball experts, divided into 21 NFBC-Style divisions. The 315 experts are also pitted against each other in a large overall competition. [I am the host of the TGFBI Beat the Shift Podcast, which can be found right here.]

The NFBC (National Fantasy Baseball Championship) Main Event is a set of high money entry leagues, with large financial payouts for the victors. As with TGFBI, the teams are all additionally entered into an overall contest with even larger payouts for the top finishers.

The NFBC Draft Champion leagues are money league contests as well (although their cost and payouts are far less than that of the main event leagues). As I will further describe below, they are 50-round slow drafts.

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Introduction

On the latest episode of The Great Fantasy Baseball Invitational Podcast, I posed the following question:

In 2020 fantasy baseball drafts for roto leagues, which will you do early on?

A) Draft Speed Early
B) Pound the Power

Simultaneously, I posed the identical question on Twitter, yielding the following results:

The Twitter responses, as well as the members of the TGFBI Beat the Shift Podcast panel were pretty evenly split on what was more important to focus on. Obviously, fantasy owners need to focus on both; players who can amass a broad base of stats are ideal. But the question is still a valid one – in a vacuum, all things being equal, which player type should you favor in a draft?

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