Baseball Players and Opportunity Cost

Late last December, the Toronto Blue Jays decided not to resign star outfielder Jose Cruz. By not signing Cruz, he became a free agent, allowing any of the other 29 teams in the majors to pick him up. The reaction from the media in Toronto was as predicted, with many quesitons as to why the team would not resign one of their best outfielders. Major league baseball teams only have so much money at their disposal. Most teams do not have enough money to sign every player they want, with exception to the New York Yankees, who seem to buy anyone they please (Moffatt). If the Blue Jays would have offered arbitartion to Cruz, his salary for the 2003 season would have been decided by an arbitrator. Sources within the Blue Jays orginization estiamted the Cruz would have been paid $5 million dollars that season. This is money that the team could not spend elsewhere. During the offseason, the team picked up 6 new players, all for under $5 million total. So although the Blue Jays lost their star center feilder, they picked up 6 new players for the price of one.