Opportunity cost is the effects of not making a particular choice. Opportunity cost can be applied to all kinds of different decisions, ranging from small decisions like the type of toothpaste you're going to use, to very big decisions like buying a house for your family.
Opportunity cost can be applied to sports as well. Big decisions are being made in the sports world all the time. Whether it be a trade, or signing, or even something as big as moving the franchise.One particular sports event that can be related to opportunity cost, is the Toronto Blue Jays choice no to re-sign their outfielder Jose Cruz, back in 2002.
When the Jays made the decision to no re-sign Cruz, they were able to do it by looking at the opportunity cost of all the different outcomes. Instead of re-signing Cruz for an estimated 5 million dollars, the Jays instead signed 6 new players, whose salalries totaled 6.5 million dollars. The opportunity cost comes into play when they look at what would have happened if the did resign him. If the Jays were to re-sign him they would have to match the 6.5 million they spent on players if they did not sign him. If he was not signed the Jays would use the extra 1.5 million dollars to sign 5 minor league players. In my opinion looking at the opportunity cost the Jays made the right decision. By not resigning him they were able to get six new players, who all had the potential to be just as good as Cruz, which is much better than getting unexperienced minor league players. In this case not re-signing Cruz had a low opportunity cost.
