"Competitive Balance and Team Payroll: The Case of Major League Basebal" by Tyler Veach

Article Title

Competitive Balance and Team Payroll: The Case of Major League Baseball

Authors

Tyler Veach, University of Northern Iowa

Document Type

Article

Abstract

I examine the connection between Major League Baseball (MLB) team payrolls and team success. Previous studies attempted to quantify the effect that increased spending has on success. In 2000 MLB commissioned a study of competitive balance. The Blue Ribbon Panel concluded that MLB had lost its competitive balance and measures were needed to save “America’s pastime.” Since 2000 new data has become available. I have used the new data to update the Blue Ribbon Panel’s study. I show that the dominance of the high-spending teams in the 1990s did not continue, and that competitive balance exists in MLB.

Publication Date

Spring 2010

Journal Title

Major Themes in Economics

Volume

Issue

First Page

Last Page

Copyright

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Language

File Format

application/pdf

Recommended Citation

Veach, Tyler (2010) "Competitive Balance and Team Payroll: The Case of Major League Baseball," Major Themes in Economics, 12, 71-88.
Available at: https://scholarworks.uni.edu/mtie/vol12/iss1/6