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The impact of payroll allocation has on winning in major league baseball

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  • Robert Killins

Abstract

This article presents evidence that allocating additional payroll to specific positions is positively related to the overall success of a sample of Major League Baseball from 2011 through 2015. When examining the two subsamples of the group, American League versus National League, the results show that the management staff of teams from respective leagues would be well served to increase payroll to certain positions such as catching and pitching. Additionally, this article investigates the impact payroll allocation has on runs scored, runs against and attendance and finds some significant relationships.

Suggested Citation

  • Robert Killins, 2017. "The impact of payroll allocation has on winning in major league baseball," Applied Economics Letters, Taylor & Francis Journals, vol. 24(16), pages 1189-1193, September.
    • Handle: RePEc:taf:apeclt:v:24:y:2017:i:16:p:1189-1193
    DOI: 10.1080/13504851.2016.1265067
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    References listed on IDEAS

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    1. Stimel Derek S, 2011. "Dependence Relationships between On Field Performance, Wins, and Payroll in Major League Baseball," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 7(2), pages 1-19, May.
    2. Stephen Hall & Stefan Szymanski & Andrew S. Zimbalist, 2002. "Testing Causality Between Team Performance and Payroll," Journal of Sports Economics, , vol. 3(2), pages 149-168, May.
    3. Annala, Christopher N. & Winfree, Jason, 2011. "Salary distribution and team performance in Major League Baseball," Sport Management Review, Elsevier, vol. 14(2), pages 167-175, May.
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