In today’s column, Nick Cafardo of the Boston Globe spoke with managing general partner of Sapient Global Markets Dave Donovan, who is trying to apply banking principles to baseball in order to help limit risk on the part of teams.

“Because there’s such an emphasis by teams on acquiring the right players, especially now where you have financial constraints with luxury taxes, etc., we’re looking at it the same way as we do with banks,” Donovan said. “Banks want to make as much money as they possibly can. Their constraint is regulation. They have stress tests they have to do for the government after banks almost took down the world because they weren’t financially compliant. We’ve been working with these banks to measure their risks and you can apply the same concepts in sports…Your roster is no different than a portfolio of securities. Those are your assets. That’s what you’ve put your investment in, so it only makes sense that you should monitor your assets”

When considering risk management, Cafardo wonders aloud if the Red Sox’s decision to sign David Price to a seven-year, $217MM was a prudent one. Cafardo speculates that the hedge fund operator in owner John Henry probably wasn’t thrilled about the move. However, in the short-term, he knew that Boston needed an ace pitcher.

Here’s more from today’s column: