Behavioral Economics and the Rise of the Player Opt-Out (via Baseball Prospectus)

“The logic of the opt-out clauses for the club escapes me.” —Commissioner Rob Manfred

Nothing gets the baseball internet writer hot like a newly popularized contract structure. Rob Neyer has weighed in on the potential benefit to team of a player opt-out, and Dave Cameron has weighed in on how these cannot be seen as anything but additional costs. Neyer’s point is that giving a player an opt-out is often preferable to giving a player more money. Cameron’s point is that giving a player an opt-out is less preferable than not giving a player an opt-out. Both points are correct. Like most things, if we change the perspective, then we can look at anything as a positive or a negative. More simply, everything is better than a worse scenario and everything is worse than a better scenario.

So why the need for another article? Because unaddressed remains the most curious question about the player option: Why has it become so popular? Put differently, what benefit does the structure provide for each side as an alternative (in most mega-deals) to just agreeing on more money? … Read More

(via Baseball Prospectus)

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