While the prospect of owning a professional sports franchise has always been a financially desirable opportunity, it has transformed into a gigantic revenue earner for properly positioned businessmen over the past few decades. Many sports fans prefer to focus on the events that occur on the playing field, but there is no doubt that with the amount of money involved in leagues such as the Major League Baseball, owners along with general managers treat their teams as organizations. Players are referred to as assets (employees) and managers take on the role of director with executives always keeping a watchful eye over their investments. All teams go through their ups and downs which we monitor in the league standings, just as companies experience a similar ebb and flow on in the stock market. A self-aware organization possesses the keen ability to embrace their success when profits roll in as well as knowing when it is time to regroup and cut losses. Professional sports teams are no different and over the past couple MLB seasons, no group has done a better job of identifying their competitive position than the Boston Red Sox.

In 2012, the Red Sox suffered the team’s worst losing season since 1997 and their worst overall record since 1965. A big reason behind this disaster was a case of bad judgement when ownership decided to hire manager Bobby Valentine, someone who proved to be the wrong fit for a clubhouse in need of some order and discipline (chicken and beer anybody?). Along with some highly paid acquisitions not panning out (the name Carl Crawford rings a bell), it was clear that some drastic changes needed to occur. Toward the end of the season when playoff aspirations were unrealistic, Red Sox management was able to pull of a masterful salary dump trade as they gladly bid farewell to Josh Beckett, Carl Crawford, and Adrian Gonzalez by sending them to the Dodgers for prospects. This move put the team in a more financially comfortable position for 2013 and after the obvious firing of Bobby Valentine was executed, the bad vibes were rinsed away. Rather than repeat their previous mistake of putting all their eggs in a few expensive baskets, the Red Sox chose to sign a variety of well-regarded veterans over the off-season which included the likes of David Ross, Mike Napoli, Jonny Gomes, Koji Uehara, and Shane Victorino. The managerial hiring of a familiar coach in John Farrell sealed the deal, and the rest is history. With the right group of guys maxing out their potential on the field and a magical aura of team chemistry surrounding Fenway Park, the 2013 Boston Red Sox won the World Series. Ownership rejoiced in their feeling of directorial accomplishment and continued success appeared to be on the horizon.

However, things have not gone according to plan in 2014 as the seesaw nature of the Red Sox has stayed on its wild course. The team essentially fell out of contention within the first half of the season (due to a woeful offense and an unfair reliance on production from prospects), and upper management had some key decisions to make leading up to the July 31st trade deadline. Buyers or sellers…every team has to decide what side of the fence they are on when discussing potential trades with other clubs. Rather than hold onto any jaded hope that the Red Sox could still sneak into the playoffs as a wildcard, management chose the selling route and they held nothing back. Jon Lester, John Lackey, Jake Peavy, Felix Doubront, Stephen Drew, Jonny Gomes, and Andrew Miller were all traded away since the majority of them were becoming free agents at the end of the season. In this respect, it made complete sense to acquire some decent returns for their value rather than let them walk away.

The biggest name out of that bunch was Jon Lester and there was a great deal of outrage in Boston over his departure. Although management may have squandered their chance to resign their number 1 starter by offering him a rather insulting contract offer before the season started, the team made the best of their debacle and were able to acquire slugger Yoenis Cespedes in return. All in all, the Red Sox were able to bring in some major league ready talent as well as high ceiling prospects in return for players that were most likely not returning for the 2015 campaign. Management did not have to part ways with their multitude of prospects and the team freed up enough cap space to go after a bonafide ace in the off-season (hell there is even a chance of Jon Lester returning). So while fans of the Red Sox may be sad to see some familiar faces in opposing uniforms, the team was a huge winner at the trade deadline when viewing the situation with a long term outlook.

Plenty of teams have trapped themselves in the vicious cycle of trying to buy their way out of their struggles and it is a dangerous approach. The Red Sox management team should be applauded for their ability to adapt to the marketplace and take advantage of opportunities presented to them. Every organization makes mistakes and miscalculations; the Red Sox are no different. However, their business mentality has proven to be effective as it pertains to making the correct adjustments based on the teams’ results. No matter what industry your company is in, this transformational business model can be implemented in a similar fashion. Whether you are an owner of a professional sports franchise or the marketing director of a start-up company, the same rules apply. If the economics of a business situation calls for restructuring, be confident in taking a stance that is grounded in innovation. Using creative thinking in a problem solving situation will prevail over being hard-headed and staying set in your ways solely because they have worked in the past. By making the right business decisions and acting with this school of thought in mind, the Red Sox made deals that will only benefit them in the future and their execution in the clutch will pay dividends later.