NFL Free Agency is a firestorm for creating football discussion. It garners the majority of attention, while often the true mechanisms of winning go unnoticed. One such organization that has taken steps necessary to be an elite organization is the San Francisco 49ers.
On March 1, the San Francisco 49ers announced a partnership with SAP, becoming the first NFL organization to partner with big data to improve inefficiencies in their system. More importantly, it provides a measuring stick, and this system provides it on the fly. Every other organization that has not embraced this system or something very similar has no chance for success in a league built on parity and difficult financial decisions. The longer organizations wait to embrace analytical based systems, the wider the gap will grow between have and have-nots.
The Baltimore Ravens punctuated this further by bringing home a Super Bowl trophy. They are one of the few NFL organizations with an analytical department. The parity environment that the NFL has setup is one that manifests a snowball effect. For every personnel decision that is above the league average success rate, it will create winning momentum. Success percentage over the league average provides the ability to play with house money. Every organization that is below the league average in success percentage is handing over wins to those willing to take them.
To highlight a recent example, lets compare two personnel decisions. One of these decisions is a great decision because it has a high probability of returning success. The other decision has a low probability of success.
Transaction 1: The San Francisco 49ers acquire Aquan Boldin from the Baltimore Ravens for a 6th round pick and pay him $6 million.
Transaction 2: The Miami Dolphins sign Brian Hartline to a 5 year deal valued at $30.775 million, including $12.5 million guaranteed. It is an amazing figure for a player that was the #1 WR a year ago yet only scored 1 TD. There are four years of data to also demonstrate that the 1 was not an aberration. It was his season total in three of four seasons.
Boldin equaled or bettered the number in 10 of his 10 seasons in the league and has scored 7 or more TDs in half of his 10 seasons. Boldin is an investment in winning while Hartline is just an investment in a player that plays wide receiver. As long as Miami makes personnel decisions with no fruit in winning, they will be handing over wins to organizations willing to take them, like the San Francisco 49ers.