Extra 2%

Review: Jonah Keri’s The Extra 2%: How Wall Street Strategies Took a Major League Baseball Team from Worst to First

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You gotta love it when someone messes up an accepted narrative.  And there hasn’t been a narrative in Major League Baseball over the past several years that has been more widely accepted than “The Yankees and Red Sox have an unfair advantage.”  And, sure, structurally-speaking they do. They’re richer than Croesus and are run by the smartest men in the game.

And for two of the past three years they’ve been beat by the Tampa Bay Rays for the division crown. What gives?

The answer to that question is the major draw to Jonah Keri’s excellent new book The Extra 2%: How Wall Street Strategies Took a Major League Baseball Team from Worst to First.  He covers more ground than that, of course, and we’ll get to that in a minute, but really, no one would read a book about how the Yankees exploited all of the resources at their disposal to win. Er, to continue winning.  Keri’s book is about solving what may be the biggest problem in baseball: how to compete on an inherently unlevel playing field.

And there are no easy answers. This is not Moneyball. It’s not about some would-be genius figure thinking circles around the competition through some breakthrough involving esoteric baseball concepts. It’s about how a couple of former Goldman Sachs colleagues — team owner Stuart Sternberg and president Matthew Silverman — and their friend — former private equity whiz and current Rays GM Andrew Friedman — simply worked harder and smarter in incremental ways. How they have literally applied that “extra 2%” to every move they’ve made in order to grab whatever advantage they can.

And despite the investment banking background of the principals and the phrase “Wall Street Strategies” in the title, this isn’t a book about deceptively simple business theories and it’s not the kind of book that consultants will hand out at seminars in which they peddle the latest in management trends. Which may kind of suck for Keri because there’s a lot of money to be made in that racket, but it’s great for baseball fans because its lack of gimmickry is what makes The Extra 2% the best, most fulfilling look at what it takes to run a successful baseball team I have ever read.

And it’s the comprehensiveness that really sets this book apart. Turning the Rays around wasn’t a matter of some simple, Billy Beanian observation about the value of a handful of sabermetric concepts. It was a baseball challenge, a business challenge, a public relations challenge and a morale challenge. Keri explains the problems the former Devil Rays had in all of these areas and explains exactly how the Sternberg/Silverman/Friedman team dealt with them.

In this Keri eschews Michael Lewis’ tale-telling and character-sketching tendencies in the name of straight-forward reporting.  And while I loved Moneyball, I found –and I think most baseball fans will find — Keri’s approach to be more informative and intellectually fulfilling.  Lewis taught us a lot about the inner-workings of a baseball team, but it was always in service of his dramatic narrative, which wasn’t always easy to accept at the time and hasn’t been unequivocally vindicated in the past eight years. Keri, in contrast, plays things matter-of-factly and simply answers more questions all of us have about what it takes to beat the Yankees and the Red Sox at a fraction of the price.

Which isn’t to say that this is a clinical read.  To the contrary, the book is packed with fun, most particularly when dealing with the Rays’ previous owner Vincent Naimoli, who redefined the concepts of ego, greed, cheapness, pettiness and cluelessness when it comes to running a baseball team.  Those who rooted for the Rays between 1998 and 2005 may get sick to their stomaches reliving Naimoli’s follies, but for the rest of us it’s great theater. Deadspin ran an excerpt of all of this last week for those wanting a taste.  My favorite part is the stuff about Naimoli not allowing employees to have Internet access.  As late as 2003. Yikes.

One other thing that those of you who read a lot of non-fiction will appreciate is Keri’s writing style.  There seems to be a tendency these days for non-fiction writers to mess around a lot and get all cutesy in the name of stamping their work with their personal brand. I’m thinking of guys like Malcolm Gladwell and others who mistake sophistry for analysis and who try to infuse every other sentence with a “gee whiz!” tone that tells you that what you are reading Is Truly Important. Keri doesn’t do that. He’s engaging without drawing too much attention himself. He’s straightforward but doesn’t eschew flavor. It breezes along but never feels too light.

More generally speaking, it’s a book in which the subject — and not the author’s decision to tackle the subject — is the main point.  That may seem like an odd thing to say, but for most of the non-fiction I’ve read in the past five years, it seems like the majority of the effort was put in the book proposal and, once it was accepted and the advance paid, the rest was just filled out around it.  “See my neat nut of an idea!” the author seems to say. “Now let’s see how many anecdotes I can string together in order to show you just how neat an idea I had!”  To the contrary, Keri tells a story that teaches us stuff. He didn’t set out to make a point and then search for a story that supported it.

The Extra 2% is one of the best baseball books I’ve read in recent years and I recommend it highly.  If you care a lick about what it takes to run a baseball team — or if you care a lick about the inequalities between baseball’s haves and have-nots — you should definitely pick up a copy.

And stay tuned, because later this morning I’ll be running a Q&A with Jonah in which he (a) reveals the single most important move in the ascendancy of the Tampa Bay Rays; and (b) explains why — contrary to everyone who is sleeping on them — the Rays will most certainly be in the thick of things in the AL East this year.

Tim Lincecum to hold long-awaited showcase on Friday

SAN FRANCISCO, CA - JUNE 16:  Tim Lincecum #55 of the San Francisco Giants pitches against the Seattle Mariners during the game at AT&T Park on Tuesday, June 16, 2015 in San Francisco, California. (Photo by Brad Mangin/MLB Photos via Getty Images)
Brad Mangin/MLB Photos via Getty Images
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At long last, the Tim Lincecum showcase has an official date: this Friday, May 6 in Scottsdale, according to CSN Bay Area’s Alex Pavlovic (citing a report from MLB Network’s Jon Heyman). Lincecum, still a free agent, has been allowed to throw at the Giants’ facility in Arizona.

Lincecum, 31, has reportedly still drawn the interest in at least half the league. San Francisco remains Lincecum’s preferred landing spot, however, per Pavlovic.

The right-hander showed better results in 15 starts last season after three consecutive tough campaigns. He finished the 2015 season with a 4.13 ERA and a 60/38 K/BB ratio in 76 1/3 innings. Given how starting pitching is always in demand, Lincecum should walk away with a handful of offers.

Video: J.J. Hardy collects carom off Manny Machado’s glove, converts the out

A ball hit by Chicago White Sox' Todd Frazier gets by Baltimore Orioles third baseman Manny Machado during the fourth inning of a baseball game, Sunday, May 1, 2016, in Baltimore. Baltimore Orioles shortstop J.J. Hardy, not seen, was able to get the ball and throw it to first to get out Frazier on the play. (AP Photo/Nick Wass)
AP Photo/Nick Wass
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Some great defensive plays leave you saying, “Wow!” This one will leave you saying that, and, “How the heck did that happen?”

In the top of the fourth inning at Camden Yards, White Sox slugger Todd Frazier lined a Ubaldo Jimenez offering right at third baseman Manny Machado. The ball skipped and caromed off of Machado’s glove, creating what seemed to be an easy single for Frazier. Shortstop J.J. Hardy, however, was ranging to his right and used his cat-like reflexes to snag the redirected ball. He planted and threw a one-hopper to Chris Davis at first base to convert the out.

The replay at about 21 seconds really does the play justice. Outstanding stuff by Hardy. The Orioles, however, wound up losing 7-1 to the White Sox.

Clayton Kershaw K’s 14 in three-hit shutout, provides Dodgers’ only run

National League pitcher Clayton Kershaw, of the Los Angeles Dodgers, throws during the second inning of the MLB All-Star baseball game, Tuesday, July 15, 2014, in Minneapolis. (AP Photo/Jeff Roberson)
AP Photo/Jeff Roberson
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You could say Clayton Kershaw had a pretty good day. The Dodgers’ lefty limited the Padres to three hits over nine scoreless innings, striking out 14 while walking none. The Dodgers won 1-0, and Kershaw provided that lone run with a single up the middle in the third inning off of Drew Pomeranz.

Kershaw amassed a game score of 95 with the effort — the third game of his career with a game score of 95 or better. The others: a 97 game score against the Giants on September 29 last year, and 102 against the Rockies on June 18, 2014.

Kershaw improves to 3-1 on the year with a 1.96 ERA and a 54/3 K/BB ratio in 46 innings. He’s had double-digit strikeouts in each of his last four starts and he’s yet to go fewer than seven innings in all six starts this season.

Wanna work as a baseball broadcaster for free?

Two drake Mallard ducks fly over Lake Erie near the Cleveland shoreline, Tuesday, April 1, 2014, in Cleveland. Warming temperatures have brought a variety of waterfowl to the area as they stage for the northern migration. (AP Photo/Mark Duncan)
AP Photo/Mark Duncan
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(Hat tip to @ItsTonyNow on Twitter for pointing this story out.)

The Madison Mallards are a collegiate summer baseball team in Wisconsin. College players join the league to have an opportunity to showcase their talents for scouts. Though they’re not exactly the New York Yankees, the Mallards do relatively well for themselves. In 2013, they had the highest average attendance among amateur teams, per The Capital Times.

That makes one of their latest job postings seem rather curious. The Mallards are looking for someone to handle both play-by-play broadcasting duties as well as media relations, as seen in this post. Only one problem: the position is unpaid. Here’s the full description (emphasis mine):

The Madison Mallards are looking for an enthusiastic and ambitious individual to join the front office as the Radio Broadcaster.

This position will manage all day-to-day media relations duties and act as the traveling secretary on all road trips. This is a seasonal position, beginning in May 2016 and ending in mid-August. This position is unpaid. The candidate will serve as the full-time radio broadcaster, traveling with the team during the season.

Duties and responsibilities include but are not limited to:
* Write press releases promoting team initiatives including post-game recaps for the team website.
* Coordinate all aspects of team travel including notifying restaurants, hotels, and other teams, getting team orders, room assignments, etc.
* Broadcast all 72 Northwoods League games on 1670 The Zone including pre- and post-game shows, during the regular season (and playoffs if necessary).
* Ability to work long hours, including weekends, as business indicates.
* Strong written and verbal communication skills
* Produce radio commercials for the Mallards and business partners
* Work closely with GM and Corporate Service team to include all sponsor and promotional live reads each gameUpdate the Mallards website daily
* Other duties as assigned by GM

The habit of baseball teams looking for free labor isn’t exactly new. The U.S. Department of Labor investigated the Giants and Marlins in 2013 for possible wage law violations. That included the Giants being investigated for “possible improper use of unpaid interns.” The Giants ended up paying $544,715 in back wages. In a memo that year issued by Rob Manfred, he cited the Department of Labor believing that MLB’s habit of taking advantage of unpaid interns was “endemic to our industry.”

According to U.S. law, a for-profit company can hire an unpaid intern by meeting each of six criteria, according to FindLaw:

  • The internship is similar to training which would be given in an educational environment
  • The experience is for the benefit of the intern
  • The intern does not displace regular employees but works under close supervision of existing staff
  • The employer providing the training derives no immediate advantage from the activities of the intern and on occasion its operations may actually be impeded
  • There is no guarantee of a job at the conclusion of the internship
  • Both parties understand that the intern is not entitled to wages for the internship

It would seem that the third and fourth criteria wouldn’t be met.

The Mallards are almost certainly looking for a college student — not a well-credentialed media veteran — looking to add to his or her resume. They are also very clearly looking to take advantage of that student given the plethora of job responsibilities with no pay. Current college students are part of the millennial generation which has increasingly been taken advantage of through unpaid internships. Steven Greenhouse wrote for the New York Times in 2012:

No one keeps statistics on the number of college graduates taking unpaid internships, but there is widespread agreement that the number has significantly increased, not least because the jobless rate for college graduates age 24 and under has risen to 9.4 percent, the highest level since the government began keeping records in 1985. (Employment experts estimate that undergraduates work in more than one million internships a year, with Intern Bridge, a research firm, finding almost half unpaid.)

In a capitalist society, businesses are always going to search for the cheapest source of labor. Considering how bad the economy is and has been for millennials, they’ve had a pretty good time finding it. It’s hard to fault college students jumping at the opportunity to work in an industry they like in the hopes of one day landing a dream job. But as much as those businesses might loathe admitting it, that labor is worth something whether it’s for an amateur baseball team or a major league team.