As a lifelong Minnesotan, I’m used to the Twins refusing to spend money. They said they’d spend when they got a new stadium. That didn’t happen. They said they’d spend when their competitive window opened. They sort of did that, but it’s still less than I was hoping for. Now they’ve been given the granddaddy of all opportunities. Will they spend now? Probably not.
This offseason is expected to be a rough one for baseball’s free agents. Teams across the league are worried about the drop in revenue last year and what will be coming next year. Player salaries are expected to decline. I see this as a big opportunity. Revenues ought to rebound within a year. Now is the time to buy when things are on sale.
Stocks dropped over 35% this spring when businesses were shuttering. It was a buying opportunity for people with extra cash and a long time horizon. Billionaire baseball owners ought to have extra cash and a long time horizon. Why not spend a little extra now while things are cheap?
I can appreciate that the Twins are frugal. They want to get solid value for the money they spend. They need to be mindful that their sport is in decline. Yet their competitive window is open and revenues ought to rebound within a year. Look at the bigger picture and buy talent while it’s on sale. I know I will the next time stocks go on sale.
About the Author: John O’Connor
Legal Disclaimer: These posts do not constitute an offer or recommendation to buy or sell any securities or instruments or to participate in any particular investment or trading strategy. They are for informational purposes only. CTW gathers its data from sources it considers reliable. However, CTW makes no express or implied warranties regarding the accuracy of this information or any opinions expressed by the author and may update or change them without prior notification.