LEVERAGING DATA | 1
Billy Beane knew better.
As the Oakland A's general manager, he knew he couldn't rely on traditional scouting methods
to rebuild his player roster. He'd just lost three of his top players (Jason Giambi, Johnny
Damon, and Jason Isringhausen) to other bigger baseball teams. And he knew Oakland
couldn't compete with the likes of the New York Yankees, especially when his player salary
budget was just $44 million -- and the Yankees could muster up to $125 million. It was clear
that old-fashioned recruiting methods were not going to be able to fill those gaps.
So, in 2002, he took a different approach. He decided to leverage statistical analysis to help
him evaluate players and build a better roster -- using a lot less money. In the "old" system,
players were judged by batting average, stolen bases and runs batted in. His "new" method
used analytics that focused on slugging percentages and the ability of players getting on-
base. This system allowed him to analyze hundreds and hundreds of players. The key was not
to find the best players. The key was to identify those individuals with the strengths and
abilities that could be leveraged to "piece" together a new team at a third of the cost.
The result of Billy Beane's innovative approach?
The Oakland A's went on a 20-game winning
streak that year, stretching from August 13 to
September 4, and setting an American League
record. The team ended the regular season with
103 wins. And the A's became champions of the
American League Western division. They were
eventually defeated by the Minnesota Twins by a
score of 3-2 in the divisional series playoff. But
the results of that amazingly successful season
had repercussions for the entire baseball league.
In fact, the Boston Red Sox "copied" that
statistical method and ended up winning the
World Series just two years later.
It is interesting to note that this analytical
concept was epitomized in the book "Moneyball:
The Art of Winning an Unfair Game" written by
author Michael Lewis in 2003. This was followed
by the release of the "Moneyball" movie in 2011
starring Brad Pitt and Jonah Hill.
