IDEAS home Printed from https://ideas.repec.org/a/bpj/jqsprt/v5y2009i2n6.html

`If the Team Doesn't Win, Nobody Wins:' A Team-Level Analysis of Pay and Performance Relationships in Major League Baseball

Author

Listed:
  • Miceli Nicholas S

    (Concord University)

  • Huber Alan D.

    (Crown Equipment Corporation)

Abstract

This analysis of team-level major league baseball performance, for the 1985 through 2001 seasons, addresses four questions: (1) 'Is there a relationship between winning and performance?' (2) 'Is there a relationship between pay and performance?' (3) 'Is there a relationship between winning and pay?' and (4) 'Is there interaction between batting and pitching?' The findings are that: (1) the relationship between performance and winning is significant. Pitching explains 2/3 of the variance, with batting covering the other 1/3; (2) the pay and performance relationship is significant, but the practical importance of the relationships is low, because non-performance factors exert stronger influence on pay levels; (3) the pay and winning relationship is significant, but becomes non-significant when performance variables are used to predict winning; and (4) the batting and pitching interaction is significant, but weak, with limited effects. This type of analysis should help teams be managed more effectively than may presently be the case.

Suggested Citation

  • Miceli Nicholas S & Huber Alan D., 2009. "`If the Team Doesn't Win, Nobody Wins:' A Team-Level Analysis of Pay and Performance Relationships in Major League Baseball," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 5(2), pages 1-20, May.
    • Handle: RePEc:bpj:jqsprt:v:5:y:2009:i:2:n:6
    DOI: 10.2202/1559-0410.1170
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1559-0410.1170
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.2202/1559-0410.1170?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Scully, Gerald W, 1974. "Pay and Performance in Major League Baseball," American Economic Review, American Economic Association, vol. 64(6), pages 915-930, December.
    2. Olson, David L., 2001. "Comparison of three multicriteria methods to predict known outcomes," European Journal of Operational Research, Elsevier, vol. 130(3), pages 576-587, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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. Pavitt Charles, 2011. "An Estimate of How Hitting, Pitching, Fielding, and Basestealing Impact Team Winning Percentages in Baseball," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 7(4), pages 1-20, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Benno Torgler & Markus Schaffner & Bruno S. Frey & Sascha L. Schmidt, 2008. "Looking Awkward When Winning and Foolish When Losing: Inequity Aversion and Performance in the Field," CREMA Working Paper Series 2008-11, Center for Research in Economics, Management and the Arts (CREMA).
    2. Mohammad Rezaei & Saeedeh Ketabi, 2016. "Ranking the Banks through Performance Evaluation by Integrating Fuzzy AHP and TOPSIS Methods: A Study of Iranian Private Banks," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(3), pages 19-30, July.
    3. Stephan Kampelmann, 2011. "The Socio-Economics of Pay Rules," ULB Institutional Repository 2013/268040, ULB -- Universite Libre de Bruxelles.
    4. Rodney Fort & Young Hoon Lee & Taeyeon Oh, 2019. "Quantile Insights on Market Structure and Worker Salaries: The Case of Major League Baseball," Journal of Sports Economics, , vol. 20(8), pages 1066-1087, December.
    5. A. Sepehr & C. Zucca, 2012. "Ranking desertification indicators using TOPSIS algorithm," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 62(3), pages 1137-1153, July.
    6. Hsuan-Yu Lin & Chih-Hai Yang, 2016. "Uncertainty, specific investment, and contract duration: evidence from the MLB player market," Empirical Economics, Springer, vol. 50(3), pages 1009-1028, May.
    7. Renaud, J. & Thibault, J. & Lanouette, R. & Kiss, L.N. & Zaras, K. & Fonteix, C., 2007. "Comparison of two multicriteria decision aid methods: Net Flow and Rough Set Methods in a high yield pulping process," European Journal of Operational Research, Elsevier, vol. 177(3), pages 1418-1432, March.
    8. Francisco González-Gómez & Andrés J. Picazo-Tadeo, 2010. "Can We Be Satisfied With Our Football Team? Evidence From Spanish Professional Football," Journal of Sports Economics, , vol. 11(4), pages 418-442, August.
    9. Michael Lewis & Yeujun Yoon, 2018. "An Empirical Examination of the Development and Impact of Star Power in Major League Baseball," Journal of Sports Economics, , vol. 19(2), pages 155-187, February.
    10. Jorge Tovar, 2020. "Performance, Diversity And National Identity Evidence From Association Football," Economic Inquiry, Western Economic Association International, vol. 58(2), pages 897-916, April.
    11. Young Lee, 2011. "Is the small-ball strategy effective in winning games? A stochastic frontier production approach," Journal of Productivity Analysis, Springer, vol. 35(1), pages 51-59, February.
    12. Martin Schmidt, 2011. "Institutional Change and Factor Movement in Major League Baseball: An Examination of the Coase Theorem’s Invariance Principle," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 39(3), pages 187-205, November.
    13. Kevin G. Quinn & Paul B. Bursik & Christopher P. Borick & Lisa Raethz, 2003. "Do New Digs Mean more Wins?," Journal of Sports Economics, , vol. 4(3), pages 167-182, August.
    14. David J. Berri & John Charles Bradbury, 2010. "Working in the Land of the Metricians," Journal of Sports Economics, , vol. 11(1), pages 29-47, February.
    15. Robert Breunig & Bronwyn Garrett-Rumba & Mathieu Jardin & Yvon Rocaboy, 2014. "Wage dispersion and team performance: a theoretical model and evidence from baseball," Applied Economics, Taylor & Francis Journals, vol. 46(3), pages 271-281, January.
    16. Austan Goolsbee & Chad Syverson, 2023. "Monopsony Power in Higher Education: A Tale of Two Tracks," Journal of Labor Economics, University of Chicago Press, vol. 41(S1), pages 257-290.
    17. Dobson, Stephen & Goddard, John, 2003. "Persistence in sequences of football match results: A Monte Carlo analysis," European Journal of Operational Research, Elsevier, vol. 148(2), pages 247-256, July.
    18. Stefan Kesenne, 2007. "Belgian Football," Journal of Sports Economics, , vol. 8(6), pages 670-674, December.
    19. Jennifer K. Ashcraft & Craig A. Depken, 2020. "The introduction of the reserve clause in Major League Baseball: evidence of its impact on select player salaries during the 1880s," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 14(1), pages 105-128, January.
    20. R. Antonietti, 2006. "Human Capital, Sport Performance, and Salary Determination of Professional Athletes," Working Papers 561, Dipartimento Scienze Economiche, Universita' di Bologna.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:jqsprt:v:5:y:2009:i:2:n:6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyterbrill.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.