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Payroll and Success in  Major League Baseball Payroll and Success in  Major League Baseball

Payroll and Success in Major League Baseball - PowerPoint Presentation

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Uploaded On 2018-10-30

Payroll and Success in Major League Baseball - PPT Presentation

Motivation and Background Major League Baseball is unique among professional sports in that until 2003 it had no salary cap This leads to debate as to whether every team has the same fair odds of ID: 703859

league baseball luxury team baseball league team luxury tax tax

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Slide1

Payroll and Success in

Major League BaseballSlide2

Motivation and BackgroundMajor League Baseball is unique among professional sports in that, until

2003, it

had no

‘salary cap.’

This leads

to debate as to whether every team has the same fair odds of

winning.

In 2003

, a luxury tax, or a ‘competitive balance tax’, was levied on the league.

Baseball

is the only national professional sport where the competing teams have such discrepancies in their comparative

payrolls across the league. Slide3

Research QuestionsIs money a deciding factor in a baseball team’s

success?

By analyzing the ratio of number of wins of a baseball team and the money spent by that team, we found a medium-strong

correlation.

How has the implementation of a ‘luxury tax’ affected this relationship?

We

found that the

luxury

tax actually

increased the correlation,

but decreased the effectiveness of

a payroll’s influence. Slide4
Slide5