If you discuss player valuations with anyone who plays Ottoneu, chances are the word “surplus” has come up. Fellow Rotographs contributor Justin Vibber and his robotic heart love the S word, while others believe it to be a catch all that does a poor job of incorporating context, and therefore should be applied a little more conservatively. Maybe the S word isn’t used; maybe owners mention a player is “overpaid” or “underpaid.” Maybe they mention that they prefer talent they “view as a keeper.” Or maybe they claim someone is a “$30 player” without defining what they mean by “$30 player” and without acknowledging that they actually own this player for $15 salary.
As with all areas of life, communication comes with barriers. Written communication creates more barriers than most. Whatever jargon or form of communication is being used, we should recognize that owners tend to skew heavily toward talent that fits these descriptions “surplus”, “keeper”, “underpaid”, etc. We’re all very loosely trying to define the same thing. First let’s talk about why paying a player less than he produces is important.
If Mike Trout is a $70 player (generally), and you own him for $60, that would be viewed as a very good contract. It doesn’t matter that Trout is eating up $60 of your budget (especially if acquired via trade with a loan), because if he was cut, he would auction for more than $60. So, let’s say this hypothetical Trout is $10 underpaid. Does that change the fact that he is still producing $70 of production? No. Regardless of the salary I own Trout for in my league there is zero impact on his on field production. However, he is certainly more valuable to me at a $1 salary than a $99 salary (extreme I know). In this example, his salary of $60 would allow you to buy around $10 dollars more of production in the auction next season. If I bought Trout at $70, I would still have $70 dollars of production. However, I would now be unable to spend $10 on something else compared to if I had owned Trout at $60. If I owned Trout at a $90 salary, well I am still banking a $70 dollars of production, but now I have given up the ability to spend $20 later. Make sense? Because of this, players who are underpaid tend to be the building blocks of successful teams. They are the most highly coveted assets across leagues.
First, Let’s define a few terms. Then we’ll come back to this example. Read the rest of this entry »