The Key Dilemma Around Moneyball

The key dilemma around Moneyball, the book by Michael Lewis and the movie based on it (I recommend both), is pretty simple.

The New York Yankees had a payroll of $126 million in 2002. The Oakland A’s had a payroll of only $40 million. How does an underfunded, outgunned outfit like the A’s compete with the Yankees? As A’s General Manager Billy Beane puts it in the movie: “There are rich teams, and there are poor teams. Then there’s 50 feet of crap. And then there’s us.” - in Daily Reckoning