10/20/07 Incentives

incentives

Ok, so one of Joe Torre's reasons for declining the Yankees offer was because of not needing the incentives and feeling insulted by them.

I understand that because of the history and he was not coming into a new job. I agree with his assessment.

Now, on the other side I would LOVE to see the sports world transform to a highly incentive based pay world.

For example, as long as the baseball world is center stage we'll continue with that. How about having a salary cap in baseball but have bonus pay for playoff appearances that make it extremely important for players to make the playoffs. Lets say a cap prohibits teams from spending to the level the Sox and Yankees have, say a cap around $100M per year, still lots higher than most teams spend but cap the big spenders.

Now, have a postseason reward for every player on making the playoffs of $1M. If you make it to the second round you get an additional $1M per player. If you make it to the world series you get an additional $2M per player. If you win the world series you get an additional $5M per player. Lower amounts could be factored in for coaches, other people in the organization.

So if you were the world series winner, you would have your base salary plus $9M more, even if you were the 25th man on the roster...think the team would pull together more? Have accountability more for screwing up?

Now the only downside I can think of quickly while typing this is that small market teams or teams rebuilding would have no pull for free agents, free agents would have even more reason to go to teams willing to spend the $100M cap and teams already in contention.

The only thing that would still work would be teams that use their low cost minor league call ups etc. to build would still have their chance to succeed. Oakland, Minnesota, Colorado would still be able to groom young talent and make their runs. The teams that would suffer would be the middle of the road spenders, teams that spend but not top dollar, and teams that might not manage and have prospects coming up to help as much. These teams would lose some free agents over time and drop down in the standings.

Overall a system like this in all sports would allow for more intense competition because the thrill of being a winner would be coupled with monetary rewards. Boxers that lose in a title match would get something but not 10's of millions of dollars for appearing, the winner would be like the winner at a poker championship...

Where does the money come from? The leagues would throw in some (popularity would continue to rise and income for the league would rise with it) as well as each team contributes cash into a fund. Why? If a team has to contribute to the fund, then they will be more likely to "go for it" more. Winning is boss.

whatcha think?