Baseball Loses It

“You could agree there is more competition to get the number 1 pick in the draft than to win the World Series.”
— Jerry Dipoto, General Manager of the Seattle Mariners
That one quote illustrates the current crisis baseball finds itself in, where more teams are trying to lose, and lose rather badly, than trying to win. That isn’t good for a competitive sport.
With Spring Training just days away, more than a hundred free agents remain unsigned, including premium players like Eric Hosmer, J.D. Martinez, Jake Arrieta and Yu Darvish. Many baseball pundits have broken down the reasons why, but at the end of the day it is an all too familiar problem that all Americans face: the unintended consequences of rules and regulations.
The thing to understand about baseball’s business model is that it’s like the real estate racket, i.e., it’s all about location, location, location. Since big market teams earn more

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