Jun 9, 2021
Skyrocketing player salaries profoundly altered the economics of professional baseball in the early 2000's and ushered in an era dominated by wealthy teams like the Yankees and Red Sox who could afford to acquire the game's biggest stars on the free agent market. The Oakland A's recognized critical inefficiencies in how a major league player's salary was valued and exploited this inefficiency to build a perennial play-off contending team while spending 90% less than the competition.
As real estate investors, it's critical that we properly assign value to statistics and KPI's that have the highest influence on future returns and avoid overpaying KPI's that contribute less to the bottom line.