Actually,
I think the royals are doing the right thing. For the first time in years, the Royals have some young pitchers that look like they can be legit top of the rotation guys.
The only way for a small market team to win is to follow the Marlins Model: use young players with key veterans, and if you are in position to make the playoffs at the trading deadline, get star veteran rentals to make your team competitive in a playoff series.
In years you are not competitive at the trading deadline, you have to deal players that are coming up on free agency to restock your farm system (a la the Beltran deal). If this works, you will have a constant flow of young talent coming to the bigs. BUt, you need outstanding personnel evaluation to carry out this strategy.
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