John Henry thinks Red Sox fans don't understand economics

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John Henry, regretting that the Red Sox are raising ticket prices again:

“I am concerned with how expensive it is for four people to attend a game these days . . . Unfortunately virtually all contracts in baseball go up each year for on-field and off-field members of the organization.”

As Baseball Prospectus’ Joe Sheehan so eloquently put it nearly eight years ago “The price of tickets is not set to recoup costs, but to maximize revenue.” Indeed, this is how the price of just about every item in the stream of commerce is set (the price of razor blades and printer ink is apparently set by the Russian mob, however). Supply and demand you know.

If you don’t believe it, ask yourself why it costs so much to go to a Notre Dame or Ohio State game. They don’t have any salary expenses to recoup. Or the NFL, NHL and NBA, where salary caps have kept overall costs basically constant and certainly predictable, yet ticket prices have spiraled in ways wholly unrelated to expenses.

A smart organization sets ticket prices at the absolutely highest level they can be set without negatively impacting demand. The Red Sox sold out their games at last year’s prices. They will likely sell out their games at 2010’s prices. Those prices will continue to be raised until the exact moment people decide they are not worth the price and cease to buy Red Sox tickets. John Henry’s suggestions to the contrary are exercises in public relations.

Henderson Alvarez signs with Tigres de Quintana Roo

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Free agent right-hander Henderson Alvarez signed a deal with the Tigres de Quintana Roo of the Mexican Baseball League earlier this week, FanRag Sports’ Jon Heyman reported Friday. The righty wasn’t necessarily too fringey a player to hack it in the big leagues, but there were no MLB takers in attendance during his showcase in Venezuela last month and he clearly felt it best to try his luck elsewhere.

The 27-year-old’s last major league gig came with the Phillies, for whom he delivered a 4.30 ERA, 6.8 BB/9 and 3.7 SO/9 over 14 2/3 innings in 2017. While he’s not too far removed from his first and only All-Star bid in 2014, he was besieged by shoulder issues in 2015 and 2016 and underwent season-ending surgeries as a result.

That added injury risk, coupled with the fact that he hasn’t pitched more than 22 innings in a single season since 2014, may have been too much for major league teams to take on this spring. Assuming he steers clear of further injuries, however, a return to the majors may not be entirely out of the question in years to come.