John Henry

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When I read the recent Businessweek profile of Boston Red Sox owner John Henry, it reminded me of something that drives me a little batty. In January, Sox pitcher Jon Lester said that he would take a “hometown discount” to remain with the team rather than trying to get fair market value. That’s a phrase your hear sometimes that overjoys many fans and sportswriters because the player is making a sacrifice for the organization, and by extension, the fans. But it’s ridiculous and bad economics.

Why exactly would Lester give a billionaire like Henry a hometown discount? If it’s in the player’s best interests to accept a lesser contract earlier because of fear of injury, so be it. But he should never take a “discount” to accommodate an owner. That’s just silly. If Henry doesn’t want to pay market value, that’s fine, it’s his decision, but he shouldn’t be given corporate welfare from a player any more than team owners should have their stadiums paid for in part by taxpayers. This isn’t 1904 and it’s not the Boston Beaneaters: Billionaires should have to navigate the free market like everyone else. From ESPN in January:

“Red Sox pitcher Jon Lester, who is eligible for free agency after the 2014 season, emphatically stated Thursday that his desire is to remain with Boston, and he expressed a willingness to take a discount in order to do so.

‘These guys are my No. 1 priority,’ Lester said during media availability at the Boston Baseball Writers’ Association of America awards dinner. ‘I want to be here ’til they rip this jersey off my back.

Lester said he not only expects to have to take a discount in order to sign an extension with the team, but he is willing to do so.

‘It’s like Pedey [Dustin Pedroia, Red Sox second baseman]. He left a lot of money on the table to stay here. That’s what he wanted to do. I understand that. That’s my choice, that’s his choice.'”

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From Joshua Green’s Businessweek profile of Boston Red Sox savior John Henry, a thumbnail sketch of the owner who initially married a Moneyball mentality to a big-market budget and has since overseen the franchise as its remade itself as a relatively austere and even more analytical organization:

“For so prominent a figure, Henry is a bit of a mystery. He limits contact with the press and, when he does communicate, prefers e-mail. In person, he’s so reserved that it often appears as if he’s working out a difficult algebraic formula in his head. Which is what he may, in fact, be doing. ‘He’s the most mathematically talented person I’ve ever met,’ says Lucchino, the team’s co-owner and chief executive officer. ‘I think that element of the game very much appeals to him. And he’s a competitive guy. He wants to win. He wants to measure his success. When you put it all together, he’s got more dimensions than most baseball owners.’

As different as he may seem, Henry captures baseball’s current era. A mathematical whiz who made a fortune as a pioneering trader of commodities futures, he’s part of a wave of owners from the financial world that’s sweeping professional sports. In baseball, this includes Tampa Bay Rays owner Stuart Sternberg, a former Goldman Sachs partner, and Milwaukee Brewers owner Mark Attanasio, founder of the investment firm Crescent Capital Group. All are keenly attuned to the statistical revolution that has upended the game and compete as vigorously against each other as anyone on Wall Street. Last year, Henry shut down his commodities trading firm to concentrate on his many other endeavors. In addition to the Globe (where I’m a contributor), he and his partners own the English Premier League soccer team Liverpool and a stake in Nascar’s Roush Fenway Racing team. But just as his trading algorithms did, baseball has furnished him with the most spectacular payoffs.

Henry provides an especially good lens into how the game is changing and why the Red Sox appear poised for further success. It isn’t just that financial types are applying their smarts to baseball, it’s that baseball success has come to hinge less on signing expensive stars, as George Steinbrenner’s Yankees once did, and much more on making smarter bets than the competition on which young players will emerge as the next stars. Winning in baseball is becoming a lot like winning in futures trading.”

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As the foundering Boston Red Sox attempt to collapse across the finish line and win the American League Wild Card, Steve Wulf of ESPN profiles their genius owner, John Henry, who applied objective analysis in business before bringing it to big-market baseball. An excerpt:

“Henry loves facts — ‘I don’t read fiction’ — so here are some. He was an asthmatic farm boy who grew up worshipping a miner’s son named Stan Musial; a philosophy major who fell under the thrall of Indian individualist Jiddu Krishnamurti; a rock musician who shaved his eyebrows to play a space alien in a rock opera; a mathematical whiz who was banned from Las Vegas blackjack tables; a commodities trader who watched soybeans grow into a beanstalk that eventually yielded ownership of some of the most storied franchises in Major League Baseball, NASCAR (Roush Fenway Racing) and the Premier League (Liverpool FC). You have to make this stuff up.

But it’s not just Henry’s bio that makes him interesting. He’s a whole host of contradictions. He uses dispassionate analysis in pursuit of his own passions. He’s a serious thinker given to practical jokes, a shy fellow who counts Bill Clinton, Michael Douglas and Steven Tyler among his friends, an owner of a 164-foot yacht who will dash from the owner’s box above home plate at Fenway to the first-aid room to check on a fan who’s been hit by a foul ball. He may be a 62-year-old father of two girls (a 14-year-old and a 1-year-old), but he has never lost his own childlike sense of wonder.

He’s also the kind of person who politely declines personal interview requests, then spends hours thoughtfully responding to e-mail questions — at 12:32 a.m. To a query about the major influences in his life, he writes, quoting mythologist Joseph Campbell, ‘If you follow your bliss, you put yourself on a kind of track that has been there all the while, waiting for you …’ That’s what led me into the financial world. I started John W. Henry & Company because I enjoyed applying mathematics to markets, and it was a profound challenge that resonated within me.”

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John Henry enters the womb-like studio of wealthy workaholic, Charlie Rose:

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1972 footage of Elvis, already pretty much ruined, five years before dying.

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“He was all alone…in a long decline…thinking how lucky John Henry was that he fell down dyin’.”

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