The Business of Baseball vs. Fantasy Baseball

by Josh Hermsmeyer

So this is interesting.

I’ve become increasingly aware of the split between fantasy analysts and pure sabermetricians since I began actively developing and marketing Rotobase to the public. I haven’t personally had any negative experiences with either camp, indeed my experience so far has been universally positive, but I have noted that there is a definite “credibility gap” between the two worlds.

If an analyst uses advanced metrics to shed insight on how to play the former game (fantasy) better, he will, on average, accrue less respect from the community than if he had applied his analysis to the latter game (real baseball). There are a couple of likely reasons for this, none of which hold up under much scrutiny, as I’ll explore below.

First, some context. I make wine and run a vineyard. Why does this matter? It matters because as passionate as I am about baseball and as much fun as I have playing with numbers, I’m twice as passionate about crafting great pinot. And I am not alone. Not by a long shot. There are many, many talented and passionate individuals just like me who make, or want to make wine. Sound familiar?

While doing something you love is a blessing, there are certainly trade-offs. To continue to do the thing I love I’ve had to become adept at marketing, selling, and managing a business. In fact, those three things now constitute my core competency, not making wine.

The reality is, the hardest thing isn’t making a great wine. In fact it’s not even close. The hardest thing, by far, is selling it.

On to baseball.

It seems that one of the main drivers of the credibility gap between fantasy analysts and “real baseball” analysts is something to do with the fact that one is considered frivolous (fantasy) and the other is considered important and “impactful” on real world business (real baseball).

Besides the fact that I loathe biz speak like impactful, I submit the the converse of the above is generally more true.

How many sabermetricians will ever go on to to actually work for one of the 30 major league baseball teams? Answer: very few. How many make a living providing analysis solely on real life baseball for a media company, or pay information site? Again, very few.

The vast, commodious majority do the work they do out of a passion for the game, and the folks who are fortunate enough to be paid for their work often do so at a steep discount or work at it only part time (again, much like wine).

Against this gloomy monetary backdrop are the trade-offs inherent in making your passion your work. You lose autonomy in choosing your projects. Business politics become a factor. Marketing yourself well, and developing the skill, becomes the highest value endeavor you can engage in. All of this comes at the expense of baseball research, which is ostensibly the reason you were attracted to the job in the first place.

And, again, we’re talking about a vanishingly small percentage of saberists here. Most do it for free, out of love. And while that is a beautiful thing, it doesn’t really justify holding a pure baseball analyst in higher regard than a fantasy analyst who is also motivated by the same love of the game.

The real kicker however, is this: while there are only 30 possible places of employment for someone bent on working in the business of major league baseball, there is unlimited potential for the entrepreneur to parlay his or her baseball passion into the business of fantasy. Fantasy Sports Ventures pegs the market at something like 2 billion. I think that overstates the case, as it includes things like internet connection speed upgrades and other ancillary expenditures, but it does illustrate that demand for fantasy products is there, and growing.

You stand a much, much greater shot at turning your passion into a viable business via fantasy than you do in real baseball. In fact, I would submit that you stand to earn more at every level of success in the fantasy sphere verses real baseball, with the exception of general manager. And there are only 30 of those spots to go around.

So a credibility gap that is based on money or real world relevance doesn’t wash, at least from my point of view.

Strangely, there is another reason for the credibility gap that is the polar opposite of the above. Many fantasy business people are seen as hucksters by the community, shilling their snake oil to the uninformed; motivated solely by profit. You’ll get no argument from me that there are aspects of fantasy that reek of sleaze. But I think the same is true for the hot dog and beer vendors at “McAffee” coliseum, especially on Bank of America souvenir blanket day.

Again, I don’t see why the folks who devote their efforts to helping billionaire owners run their clubs full of millionaire players more effectively should have any kind of moral or intellectual high ground compared to folks who devote their efforts to helping Joe six-pack win his fantasy league.

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I’m a big believer in the sharing of data. Analysis, now that you should pay for.

Too often folks on both sides (fantasy and saberiests) hoard data, formulae, and processes (this of course doesn’t apply to the awesome folks who have helped supply data to the community for years – Retrosheet, Lahman, Tango, Smith, Szymborski and companies like Roto Sports Inc. who generously share their data). But the thinking elsewhere is that it will provide them a defensible moat. It never works. A dedicated analyst will find ways to achieve a similar result.

The only way to succeed in any business is to consistently delight your readers/customers and add value by communicating knowledge (or providing a great product) in a frictionless manner. Much better to take the lead in the sharing, earn goodwill through cooperation, and gain customers and brand advocates through genuine affection.

Your true moat is how you treat people, your personality and your passion. Your true moat is your writing style, your insights, and your aesthetic sense.

Data is not your moat.

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Frankly, I would never want to work in real baseball. I just don’t care that much about franchises and their machinations. I don’t get fired up at the prospect of joining a large company that is unable to treat its customers to the type of hands-on, high-touch attention they deserve. I wouldn’t want to sacrifice my autonomy, or my roots. I’m attached to the land on which I live and work. It is one of the true joys of my chosen profession.

No, if I were to try and make a buck in baseball, it would be in fantasy. And there’s no shame in that game.

What do you think? Did I miss something in my analysis. Think I’m full of it? Leave a comment and let’s have a conversation.