Wednesday, January 5, 2011

Making Money With Options


Yesterday we learned that talks between the Astros and Yankees about Jeff Keppinger didn't get very far. The 30-year-old utility player appeared to be a fine fit for a team in need of bench help, but New York could instead turn to rookie Eduardo Nunez to fill the role. That, however, seems like a Plan B more than anything right now.


If the Yankees want to sift through other options on the open market they'll find that there isn't much left to choose from. Former Yankee prospect  Cristian Guzman is still available after posting a less-than-stellar .648 OPS with the Nationals and Rangers. Despite a solid body of work throughout his career, Julio Lugo disappointed in Baltimore last season, hitting .249/.298/.282 in 93 games. Both players offer average defense at shortstop (-0.2 and -0.4 career UZR/150, respectively) but Lugo has more experience playing second base. Those two are essentially the cream of the free agent utility infielder crop.


The Yankees have had trouble signing bench players in recent years in part because no free agent in their right mind would join the Yanks only to sit on the bench behind their impressive cast of regulars. They've had to trade for bench help as a result, grabbing the likes of Wilson Betemit, Jerry Hairston Jr., Eric Hinske, and Austin Kearns at the deadline in recent years. John Hickey of Sportspress Northwest writes that the Mariners need to make a deal if they hope to free up spending cash this winter, so perhaps a deal involving Jack Wilson and the $5MM left on his contract deal could make sense for both sides. 


GM Brian Cashman has started each of the last two seasons with young gloveman Ramiro Pena on his bench, so the team could go with him again if they feel Nunez needs more minor league seasoning. The Yankees have money to spend after missing out on Cliff Lee, but quality reserve players are tough to find these days. Overpaying for bench players is a good way to waste money, so don't be surprised if New York starts the season with Pena before making yet another in-season trade. What do MLBTR's readers think the Yankees will do with their bench during before Spring Training?


Mike Axisa contributed to this post.














Making the Pay-What-You-Want Business Model Work



Pay-what-you-want has become an interesting alternative business model online, with bands like Radiohead demonstrating that it can be an even more successful than traditional pricing. The key to success, however, may be the amount of attention you can generate for your campaign. Pay-what-you-want is often a trade-off between a making small number of full-price sales and a large number of sales at what's likely a far lower price. One of the games in the bundle Machinarium, for example, normally sells for $20. But by being part of the Humble Bundle, certainly it sold many times more copies than normal.



Of course, not everyone can generate quite the buzz of Radiohead or Humble Bundle for that matter, and a recent study pointed to another option for helping make pay-what-you-want endeavors successful: combine it with a voluntary payment to charity, and people then tend to give more. Indeed, Humble Bundle customers can flag some of the money to go towards charity - either Child's Play or the EFF - and some of it towards a tip for the Humble Bundle itself.
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