http://www.foxsports.com/ohio/story/a-conversation-with-the-indians-mark-shapiro-102512
Not sure if this was posted yet, but some highlights:
Q: That was a decade and a half ago, really. Fifteen years. Do you think people, the general populace still judges in those terms?
A: I think it frames that very guttural reaction, like, "Hey, if you win it's already been shown people will come." That's what you hear all the time.
Q: Do you believe that?
A: I think more people will come. But the challenge is 2.2 million instead of 1.6 million doesn't change the way we operate. Even that extra 500,000, 600,000 people, even if that's $10-to-15 more million in revenue a year . . . one win in free agency is $9 million. So you're not going to change the context. Again, I don't think people want to intellectualize baseball, and I don't believe you should have to intellectualize baseball . . . and we've made a conscious decision in most of our interviews not to get into these topics and just stay positive and talk about what our aspirations are.
But that revenue swing between 1.5 million in attendance and 2.2 million in attendance . . . meaningful dollars but not dollars that will have us plan dramatically different.
Q: It wouldn't change the amount of money spent?
A: It would change the amount of spent to 15 million dollars a year. What does that buy you in free agency? Very little. One and a half wins.
Q: How is that figure determined?
A: Our analysts can put a value on what it costs in free agency to sign a player and what that means in Wins Above Replacement and what those players end up costing in free agency and that changes every year. They measure all the players signed in free agency and what their history has been and what they offer going forward and they place a value. The challenge in free agency is you're often paying for that in the first year of a contract, and in the out years of a contract the players WAR usually goes down because he's usually past his prime. So it becomes a less efficient contract over time. That's why free agency is never the best way to build. It's a good way to supplement but not build.
Q: So $8 million for one win?
A: It's $9 (million) now. It was $8 (million) two yeas ago. I think at the end of this year they figured out it was nine. And when those wins come in the win curve are important. What does that win mean if it's the difference between 80 and 81? Very little. But if that win's the difference between 89 and 90, that could be a meaningful win.
Q: Aren't there certain players though that could be worth more than that? The right guy and the right fit could mean more than that?
A: I think there are certain players at certain positions that might be able to leverage impact on other players. Like a catcher for sure. Maybe a leadership component. More than stats alone. We factor those things in. There are certain subjective roles to what certain guys bring to the table beyond just the objective analysis of ‘this is what their added value is.'
But you have to find some way to place a value on what guys bring to the table. We don't use those conventional stats. We use our own methodology. It does factor subjective and scouting information and makeup and personality and character and all those things in. In the end you're adding up and trying to determine how many wins that player impacts when you bring him on board. That's what you're trying to figure out.
Q: So at some point you all sit back and say this is what this player could mean in terms of wins.
A: Yeah. Either runs created or runs prevented. Ultimately you're trying to impact those two areas of the team. The position player can impact both those areas, and sometimes the runs created gets looked at disproportionally to the runs prevented. And sometimes the sum of the guy's value in offensive performance is undermined by some of his defensive value.