The invisible hands that guide the baseball marketplace: Analysis of baseball General Managers

The purpose of the present study was to analyze the responsibilities and characteristics of General Managers (GM) in Major League Baseball. Baseball (MLB) GMs play vital roles in the success of each organization. Though their importance to the organization is large, GMs are not publicly glorified and their impact seemingly goes unnoticed by fans in the general public. Baseball GMs are responsible for constructing a winning ball team. GMs do this through player acquisition via trading, free agency, the minor league system, and scouting talent for the MLB draft. Another vital responsibility for GMs is revenue maximization via ballpark revenue, media revenue, corporate sponsorship, and merchandise revenues. Characteristics of baseball GMs have changed over the years coincidently with the changes of MLB. Baseball GMs today have evolved from having baseball experience into younger, better educated individuals. The importance of education is due in large part to the moneyball era brought on by sabermetrics. The increasing use of sabermetrics and increasing payrolls of large market teams may cause more rule changes in baseball, specifically the institution of a salary cap. Benefits of a salary cap go far beyond increasing competitive balance. A salary cap would also have an effect on necessary GM characteristics, leading to a reemergence of baseball experience. No matter the rule changes, GMs will continue to play an important role in the success of organizations across baseball for years to come