So two-thirds of the teams in baseball have had a "good shot" at the World
Series over the past five years. How is this not parity?

On Mon, Nov 16, 2009 at 11:18 PM, William Marino <[email protected]>wrote:

>  This stat is misleading. Since the wild card, 8 teams make the playoffs a
> year.  Thus it is distribution of teams that take those spots that is
> revealing.  Take a look on wikipedia.  High payroll teams are
> disproportionately represented.  There is not parity in baseball. The
> Yankees didn't buy the WS.  They bought the playoffs, again.  This gave them
> a good shot at the WS.
>
> Ray, your world view is safe.
>
>
>
>
>
> -----Original Message-----
> From: [email protected] <[email protected]>
> To: [email protected] <[email protected]>
> Sent: Mon Nov 16 21:25:34 2009
> Subject: Like I was saying
>
>
> The Yankees Didn't Buy the World Series
>
>
> Since 2004, 20 of baseball's 30 teams have made the playoffs.
>
>
> By ANDREW ZIMBALIST <
> http://online.wsj.com/search/search_center.html?KEYWORDS=ANDREW+ZIMBALIST+&ARTICLESEARCHQUERY_PARSER=bylineAND
> >
>
>
>
> Judging from the media coverage, it seems that the only thing the Yankees
> didn't do on their way to buying the 2009 World Series is ask the federal
> government for a bailout. But is it true that the Yankees bought their
> trophy? Are the championship rings the players will take home simply a
> byproduct of the largest payroll in Major League Baseball? And if so, how
> come the Yankees haven't won the fall classic since 2000, even though the
> franchise led the way in payroll each year and actually spent more last year
> (when it missed the playoffs) than it did this year?
>
> It's a little surprising, but the statistical relationship between a team's
> winning percentage and its payroll is not very high. When I plot payroll and
> win percentage on the same graph, the two variables don't always move
> together. In other words, knowing a team's payroll does not enable one to
> know a team's win percentage.
>
> More precisely, depending on the year, I find somewhere between 15% and 30%
> of the variance in team win percentage can be explained by the variance in
> team payroll. That means between 70% and 85% of a team's on-field success is
> explained by factors other than payroll. Those factors can include front
> office smarts, good team chemistry, player health, effective drafting and
> player development, intelligent trades, a manager's in-game decision-making,
> luck, and more.
>
> Wealthy teams do have an advantage, but it is not true that they can buy
> championships. Further, although the cries for parity among teams are loud,
> MLB has a good deal of competitive balance. Since 2004, 20 of baseball's 30
> teams have made the playoffs.
>
> Since 1996, MLB has had a growing revenue-sharing plan and a luxury tax on
> teams with very high payrolls. In 2009, the Yankees will pay around $150
> million into baseball's revenue-sharing and luxury-tax systems. The next
> biggest payor into these systems will contribute less than $90 million.
> These payments are shared with teams in smaller markets, such as the Tampa
> Bay Rays, Minnesota Twins and Colorado Rockies. One might as well argue that
> the Yankees bought these teams their playoff opportunities in 2008 and 2009.
>
> A cursory look at postseason television ratings should make it clear that
> it is in baseball's interest to have its popular teams from populous cities
> appear in the playoffs. Since there are more people in big-city markets,
> there are more fans who tune in when the big-city teams play. The fact that
> certain teams, such as the Yankees and Boston Red Sox, have very strong
> brands, due to their history and promotion, reinforces this tendency.
>
> Baseball still has some work to do, however, to ensure that there is more
> rotation of teams that find themselves at the bottom. One way would be to
> tweak revenue sharing to give small-market teams a stronger motivation to
> improve. A good opportunity will come in two years, when MLB negotiates its
> next collective bargaining agreement.
>
> Imperfect though it may be, baseball has a system, and the Yankees play by
> its rules. Its success this year depended significantly on the acquisition
> of pitchers A.J. Burnett and C.C. Sabbathia, along with first baseman Mark
> Teixeira. But the Yankees did not sign these players to one-year contracts
> (though the team did sign pitcher Andy Pettitte to a one-year deal).
>
> Mr. Sabbathia was great in 2009, but he is signed through 2015 when he will
> be 36 years old; Mr. Burnett through 2013 when he'll be 36; and Mr. Teixeira
> through 2016 when he'll be 37. Many of the team's other stars are also
> signed to long-term contracts. Third baseman Alex Rodriguez is signed
> through 2017 when he will be 42 and catcher Jorge Posada through 2011 when
> he'll be 40.
>
> It's possible that the positive correlation between payroll and success the
> Yankees experienced this year will turn into an inverse correlation. After
> all, player performance tends to wane with age. But these players have
> contracts that require the Yankees to increase their annual pay in the years
> ahead. Those salaries will weigh on the team's ability to acquire other
> players.
>
> Fortunately for Yankee fans and Yankee haters alike, Treasury Secretary
> Timothy Geithner doesn't seem to have any plans to help the team out.
>
> Mr. Zimbalist is an economics professor at Smith College
>
>
>
>
>
> >
>

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