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

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  • 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
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    References listed on IDEAS

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    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.
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    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.

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