beckdawg
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It is baseball there are of course going to be cases where a #25 pick will pan out better than a #1 pick. Again you are relying on anomalies and not averages here.
http://viewfromthebleachers.com/blog/2012/08/23/success-rate-of-mlb-draft-picks-by-slot/
There are also going to be cases where a team heavy with FA's might win a WS. But again we are talking averages here not anomalies.
I will take the empiricism of history and over 100 years of evidence that farm systems combine with timely free agents bring sustained success over the randomness of the Yankees winning it once, even though they also had HOF'er like Jeter, Cano, and Rivera as the main cogs on that team all products of the farm.
You're missing an aspect here. All of this was prior to the new CBA which drastically changed the draft. In the past someone outside the top 10 could offer way over slot to stop a player from going to college. In essence, if a player felt they would be a top 5 pick after a year or two in college they would hold out for top 5 money and say they wouldn't sign unless x amount of money was given which would scare some teams off given they may not have been a top tier talent yet. This in turn lead to teams with money drafting later being able to acquire perhaps riskier but still very good talent later in the draft.
That system is no longer the case. On the contrary, now the lower you pick in the draft the less slot money you can spend. So, it's not just about picking in the top 10 vs picking lower in the draft. It's also about having the additional slot money to acquire guys who other teams can't afford because of those restrictions. Additionally, it's also about the amount you can spend in IFA which previously could be similarly exploited by teams with lots of money. And yet another aspect is that signing a FA who has a qualifying offer not only costs you a pick but the slot money for that pick. Given that a player like Ervin Santana was giving a QO, the players you can acquire without giving up picks/slot money is quite limited.
Quite frankly, the new CBA has given incentives to tanking if you're not in contention.