order tadacip online diovan price check generic propecia 90 tablets omeprazole to buy online cialis quick delivery can you buy flomax over the counter canada drugs no prescription required nexium 40 mg gerd fortamet online teradoxin tadalafil italiano cheap nolvadex d price of levitra in canada kamagra india online flomax canada prices xenical 120 mg capsulas son buenas what is better cialis or viag... voltaren tablet 50mg cmp sildenafil 150 mg ed brand drugs shopping online candianpharmacies avodart 0.5 mg softgel buy promethiazine from out of usa clomid for men low testosterone betnovate n cream can you buy cialis over the counter order valtrex generic online dapoxetine ebay buy amaryllis online allegra 180 mg walgreens aripiprazole actavis promethazine cost get promethazine prescription buy neo medrol online taladafil 20mg miami estradiol 887 2 sildenafil viagra tadalafil all pill shop inacid retard generic cialis buy diclofenac without a prescription buy viagra in brisbane 58 advair prices at walmart sildenafil kumagai buy xenical from boots buy neurontin online cod naproxen tablet 375 mg viagra canada pharmacy promethazine syrup uk promethazine pch 25 mg bijsluiter order levitra cheap price buy cod sexual pills amnesteem (generic accutane) rx generic fosamax solution metformin cost in india cipro cost per pill kegunaan metformin tablet riomet liquid kaupa viagra flagyl without prescription in the us btt sepins viagra egypt price safe website to buy generic viagra 98 zooloft comprar online best site to buy generic propecia olanzapineprix lipitor for sale in uk buy flomax paypal celebrex available in india ordering drugs from mexico buy orlistat capsules xenical canada online buy cialis online secure best online pharmacy cialis avodart price female viagra sale oral metronidazole online paroxetine in india buy nexium capsule there generic cialis viagra lexapro to buy diclofenac tabletten lisinopril usp 10 mg nexium generic 2011 kamagra 100 chewable tablet proscar buy canada buy viagra uk generic reviews on nizoral cream erection pills for men how to buy xenical diovan purchase in canada generic diflucan 50 mg india orlistat price can you buy augmentin over counter xcheap cialis india ketoconazole in india pantoprazole generic tablets order dapoxetine online buy clomid at cream metformin tablet is used for kamagra amex sildenafil softtabs clomid fast shipping rogaine price in the philippines cheap prozac tablets price topamax 50 mg super active viagra 100mg india sexpower tablet journey stories metformin trade names india caffergot for sale pills that get you high prednisone 40 mg uses buy viagra on line from canada domperidone buy nexium 10 mg mod de administrare keppra no prescription needed zanafex no prescription cheap metformin without meal wellbutrin generic prescription mercury drug philippines canada 100 mg aspirin can i take cipro with almond milk generic viagra paypal buy 240 how to get finasteride canada pharmacy without prescription ed meds nz buy yasmin now furosemide 40 mg untuk apa best place to order generic viagra 410 rogaine price us amoxil 500 mg indicaciones clomid for men reviews plavix 600 vs 300 cost pantoprazole india ww long sexteblet com lipitor generic 80 mg buy gernic levitra on line homeopathic viagra buy nizagara tablets fluoxetine usa red viagra 10 tablet 200 mg hard on pictures get cialis without aprescription nexium price per pill european drugs online order prednisone from canada pill diclofenac sodium 75 mg virgara sales can you get trazodone in australia cafergot tablets no rx trazodone 100 mg for sleep generic cialis safety cost of fosamax in australia buy chlamydia tests at a cheap price buy levitra cheap us purchase finasteride online buy celebrex 200mg cheap 2.5 mg tadalafil avodart 0 5 mg kapsule promethazine 25 mg tablet price cialis 5mg preisvergleich otc tenormin viagra next day delivery usa ed trial packs canada hydrocortisel buy orlistat online without script buy meds overnight cod buy erection pills online buy sildenafil australia clomid questions prednislone next day estradiol cheap citalopram cost how to buy viagra in india viagra in saudi arabia canadian pharmancy get accutane out of system fastest shipping generic viagra trazodone pill buying diclofenac potassium buy propecia online forum online levitra paypal lithium 48v battery taking clomid without knowing you are pregnant fluticasone 120 spray buy accutane online yahoo 24 hour viagra buy synthroid levothyroxine online uk how much is cialis promethazine codeine canada helthy man india lasix buy nolvadex and clomid uk buy generic viagra online from canada canadian generic cialis cheap alli 60mg capsules uk order diovan no prescription ed meds pharmacy supply at cheap cialis pharmaceuticals on line valtrex without rx levitra online drugs buying authentic cialis buy prevacid medicine valtrex pills for sale viagra riyadh inhouse pharmacy australia tamoxifen generic buy overseas viagra genuine viagra tablets zyvox onlineerertiledysfunctionpillss buy prednisone 20mg online can i buy viagra online topamax lilly script canada actonel buy quetiapine online uk gabapentin gel mail apotheke hufschmid.ch loc:hk order inderal online i want a prescription for propecia celebrex 100 mg effets secondaires canadian pharmacy cialis 5mg nolvadex 20 mg para sirve canadian pharmacies no script price zyprexa pills celebrex medication cost rosuvastatin x-plended buy propecia cheap himalaya speman tablet price mirapex without prescription cipro 750 mg. for uti viagra pills australia effexor generic australia buy medrol dose pack instructions over night presidone levitra online coupons propecia price nz cheap dutasteride china buy xenical no prescription uk cialis sale usa xenical 120 mg wirkstoff nolvadex online shop levitra online usa no prescription online pharmacy 100mg clomid no period buy wellbutrin xl 150 the most inexpensive cialis valtrex mg dosage can i buy subutex online nolvadex tabs for sale sale prednisone viagra online pagamento alla consegna wellbutrin dosage 450 plavix discount vouchers zithromax 200 mg 5 ml lisinopril cost uk buying viagra isotretinoin oral buy propranolol canada no prescription avalide canadian online pharmacy buy tramadol tetracycline staining compensation uk cost of nexium in canada buy online letrozole buy decadron online viagra pharmacy online diflucan one pill or two clomid fertility drug imitrex treximet buy mircette without prescription dapoxetine and priligy accutane gp uk advair patient assistance program zithrogen 500 mg used for generic prevacid usa avodart buy discount tadalafil buy online usa actonel get ventolin 2mg /5ml walmart pharmacy drug list trusted generics viagra sildenafil cymbalta pill dosages levetra no prescription cheapest tadacip how much is flovent without insurance suhagra cipla dangers buying levithyroxin prednisone 10 mg tablet dosage cheap fosamax buy viagra online in malaysia online medication store diflucan cost per pill warfarin buy online uk when will cymbalta generic be available crestor get you high omeprazole discount india fortamet how much do viagra cost buy viagra online us pharmacy is healthy man legitimate obat neurontin salbutamol pay pal xenical online discount cheap viagra super active plus vigara master card payment indian tadalafil where is bora bora buy tetracycline acne buy zyrtec allergy medicine lexapro generic in canada shop 365 pills original viagrakagra pfizer get rosuvastatin dove acquistare sildenafil low cost cialis 2.5 mg prednisone dosage lupus buy florinef prednisone generics viagra in pakistan lahore on line pharmacy with no prescription viagra online in usa generic viagra amex diflucan 150 mg and breastfeeding cost accutane ontario vibravet antibiotic lexapro generic pharmacy valtrex uk price where can i buy predisolone 5mg tablets metformin mg/kg order xenical online pharmacy cialis order online canada generic diovan india diflucan 3 tablets thebest worldwide pharmacy shop wellbutrin pill dosages valtrex dosage prescription on line purchase cialis from singapore canadian medicine cost lexapro 5mg crestor 5 mg dosage cheap amitriptyline tadalafilo generico buy duloxetine india how to get samples of viagra cialis special price buy clomid and hcg online online clomid pharmacy accutane and seizure disorder cost of augmentin best sex tablet name cost of cipro at walgreens online pharmacy in australia hairy generic metformin canada is it safe to buy antibiotics online lamictal from canada buying augmentin buy prednisone online without a script do lexapro pills expire fucidin cream in india buy valium uk cheapest generic microzide sildenafil citrate powder get abilify online buy generic celebrex no perscription dog drugs discount health and beauty products buy wellbutrin sr 150 mg cost diovan walmart pharmacy get xenical canada onde comprar dapoxetina no brasil caverta 50 mg oratane singapore dr cialis super active generic replacement for synthroid viagra alternatives cialis metformin used to lose weight viagra for men for home delivery clomid in usa viagra for men price in bangalore 77 ventolin generic date buy clomid online in south africa diclofenac mastercard online buy yasmin canadian pharmacy welbutrin sr overnite no prescription viagra instructions for use cost avodart prescription actonel ndc simvastatin 02 viagra pfizer tablet celexa online pharmacy viagra soft cipla ltd indore tindimax canada isotretinoin fda zyprexa 10mg side effects cialis prices online nolvadex for sale canada cialis generico prezzi online.vigara.no pharmacy that ships to us over the counter deltasone medication sex viagra tablets video 109 when will alli be sold again 40 viagra online cheap cialis 20 mg imitrex buy u.s canada cialis soft tabs dosage greenvigra trazadone europe order pain pills online no prescription prescriptions without prescriptions cheap lexapro canada lexapro 2.5 mg dose viagra generic for women buy 100 mg viagra cialis combo best online pharmacies canada nexium generic prevacid what kind of doctor prescribes cialis amoxicillin cost uk lisinopril no prescription needed diflucan costco price vendita online viagra pharmacy prices for levitra discount generic viagra usa rx buy manforce sildenafil citrate online buy femara uk purchase tramadol overnight delivery januvia without prescription low cost buy effexor cheap lisinipril without a prescription celexa cialis 20mg online viagra online in south africa generic valtrex 30 buying plavix without prescrition doxycycline no pres online.rs generic viagra for sale canada 800 mg zoloft cialis buy online from india buy viagra with green dot card topiramate generic canada get protonix prescription diovan amlo 320 5 mg order strattera online no prescription where to buy lipitor cheap is the hills scripted uk paroxetine price for nexium 40 mg xenical buying it in the uk generic xenical by mail online wellbutrin xl price lamictal online buy cialis in the philippines 18 buy triamterene online isotretinoin from india buy singulair pharmacy lowest price cialis online generic lipitor and high blood pressure effexor xr yasmin cost canada purchasing vardenafil lithium orotate in canada cheap propecia online pharmacy canada pharmacy 24h reviews best place to order generic cialis buy generic viagra online pharmacy allegra 180 mg hives non prescription viagra online super viagra deutsch feldene discontinued viagra tablets india buy metformin england for sale fluoxetine synthroid white pill cost of speman ventolin inhalers wo prescription prometerium without prescriptions citalopram order celebrex 400 mg bid yasmin buy cheap no prescription motrin 600mg generic brand strattera xenical singapore cialis and afib sildenafil citrate 100mg for women where to buy avodart spray ventolin tablet body what does viagra do to men purchase atomoxetine sildenafil purple india oxibutuinina best prices propecia inderal over the counter does cialis daily work lipitor 40 mg uses levofloxacin 500 mg for tooth infection fucidin cream for acne
Home All Articles Inside the Numbers: Ranking the 30 Clubs by Marginal Payroll/Marginal Wins

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 924 guests online

Atom RSS

Inside the Numbers: Ranking the 30 Clubs by Marginal Payroll/Marginal Wins PDF Print E-mail
User Rating: / 52
PoorBest 
Articles & Opinion
Written by Maury Brown   
Friday, 24 October 2008 12:28

 

Efficiency and effectivity; two words that are the hallmarks of any well run organization. In Major League Baseball, often times, you can win the World Series, and have one but not the other.

In a league where there is a soft salary cap in the form of the competitive balance tax, or as it is more commonly known, the Luxury Tax, clubs that have deep pockets to work from can spend far more on player payroll than the majority of the other 30 clubs in the league. As an example, the New York Yankees had an Opening Day payroll that was almost as much as the player payroll for the bottom six teams by player payroll combined (Nationals, Pirates, Athletics, Rays, and Marlins).

But, as we saw this year, all that money could not get the Yankees’ foot in the door of the playoffs. As the old adage goes, it’s not how much money you spend, it’s how well you spend it.

With that, we can look at how much a team spends per win – a bang-for-the-buck metric called Marginal Payroll/Marginal Wins.

The formula works like this.

As a baseline, we’ll create a fictitious marginal team. Even the worst teams made up of near minor league players would not lose every game. So, we’ll say that a truly mediocre team would win only 30 percent of their games. For salary, we’ll set every players at the league minimum, which for 2008 was $390,000 . And finally, we’ll make the roster 25, plus 3 replacement players to allow for the DL..

By having this baseline team, we can use the winning percentage for each team in MLB for 2008 at the end of the season, along with their Opening Day payroll to determine what their marginal payroll would be and how much it costs a club per marginal win. We'll use Opening Day payroll instead of end of year payroll as a measurement of the intent of the club's spending as the season started. The formula, created by the late Doug Pappas, looks as follows:

(club payroll - (28 x major league minimum) / ((winning percentage - .300) x 162)

So, the lower the figures derived out of this formula, the better. In other words, if your cost per marginal win is lower, you are spending less per win – you’re efficient.

But remember, being efficient isn’t always being effective. As an example, Oakland spent $1,387,533 per marginal win this season based upon the third lowest Opening Day payroll of $47,967,126. The problem is, the A’s were second to last in the AL West with a 75-86 record. It didn’t cost the A’s much per win, but then again, they didn’t win enough games to make the playoffs.

On the other hand, you can be effective but inefficient. The Dodgers spent $3,040,001 per MW and won the NL West, but they spent nearly twice as much per win as the Diamondbacks ($1,655,171 per MW), who just missed the playoffs.

And, then there is the ultimate yin and yang of this formula: those teams that spent little per marginal win, but still won enough games to reach the playoffs, and those that spent a truckload of cash on player payroll only to sit at the bottom the standings.

Select Read More to see the rest of this article

Select to view PDF

As we present analysis around the figures for this past season, we encourage you to view the PDF file we have provided breaking down all 30 clubs by this “bang for the buck” metric (select the image to view).

Spending by the Truckload, and Losing Anyway

Of the four categories your team could land in, this is the one you’d least like to be in. It’s never easy having a large player payroll, but it’s beyond painful to spend money, only to flush it down the drain.

The unfortunate leader in this category for 2008 was the Seattle Mariners who had Opening Day player payroll of $117,993,982 but wound up losing 101 games or 39 games out of first place. For every one of the scant 61 wins the Mariners had, it cost them a staggering $8,634,999 per marginal win. It will be interesting to see how much salary the M’s shed in the off-season under new general manager Jack Zduriencik.

The other clubs that spent wildly but finished poorly include the Detroit Tigers (74-88, ODP of $138,685,197, cost per MW $5,030,126) and the San Diego Padres (63-99, ODP of $73,677,617, cost per MW $4,358,168) And while they didn’t finish in the cellar, we’d be remiss if didn’t mention the Yankees. With MLB’s largest player payroll at $209,081,579 and spent $4,904,990 per marginal win. The Bronx Bombers went 89-73 and missed the playoffs for the first time since 1995.

We should mention the New York Mets, who for the second season in a row, missed the playoffs on the last day of the season while posting an Opening Day payroll of $138,293,378, went 89-73 and posted $3,152,806 per marginal win, and the Washington Nationals, who had a reasonable Opening Day payroll of $54,961,000 but posted the worst record in the league at 59-102. Put them together, and the Nationals had a cost per marginal win of $4,115,981.

Spending, but Getting to the Playoffs

Call this the “burning money but we don’t care because we made the playoffs” category. These teams may not be efficient, but at least when they spent they can say that it garnered results.

At the top of this list sits the Los Angeles Dodgers who went 84-78 and won the NL West. The club posted $118,536,038 on Opening Day player payroll or $3,040,001 per marginal win. To place this in perspective, the Dodgers spent almost twice as much per win as the second place Diamondbacks who had a skinny $1,655,171 per MW.

Other notables in this category include the Chicago White Sox (89-74, ODP $121,152,667, cost per MW $2,748,944), Chicago Cubs (97-70, ODP $118,595,833, cost per MW $2,211,003) Boston Red Sox (95-67, $133,440,037 ODP, cost per MW $2,640,518), and the Angels (100-62, ODP $119,216,333, cost per MW $2,106,933).

Being Efficient, but Not Making the Grade

These were the teams that knew well enough not to spend every cent they had, but had to have done so knowing they had little to no chance making the playoffs when the season began, or in some cases, overachieved and wound up on the edge of making the playoffs.

The Florida Marlins are the best example, and with this year's figures, maybe ever. Owner Jeffery Loria snubbed his nose at the revenue sharing system, and rolled out a team with by far the lowest payroll in MLB at $21,836,500. To place this in perspective, the Rays had the second lowest Opening Day player payroll in the league at $43,820,598, over twice what the Marlins opened the year with. Still, in a weak NL East, the Marlins very nearly made the playoffs posting an 84-77 record, or a staggering $305,784 cost per marginal win. Just imagine if Loria had spent at a remotely respectable level of player payroll. Would there have been both South Florida teams in the playoffs?

Other examples include the Pirates (67-59, ODP $49,365,283, cost per MW $2,089,418), Kansas City (75-87, ODP $58,245,500, cost per MW $1,792,633, and Cincinnati (74-88, ODP $74,277,695, cost per MW $2,494,397).

Your Efficiency and Effectivity Winner

Here’s where you want to be. You spent wisely and went deep into the playoffs. And while everyone may look at the Tampa Bay Rays’ figures (they are hands down the winner in this category), we need to add a bit of a footnote.

Yes, the Rays had the second lowest Opening Day payroll in the league at the aforementioned $43,820,598, won the AL East with a 97-65 record, which comes to an incredible $679,764 per marginal win. The footnote? The roster is almost entirely the creation of draft picks meaning the club has offered this incredible collection of talent a fraction of what they will be worth when they hit arbitration eligibility and free agency. None the less, it is an incredible feat that the Rays have pulled off this year. To place this in perspective, with the exception of the Brewers at $1,692,854 per marginal win, no team that made the playoffs spent less than $2 million per marginal win. The only team that came close to matching Rays and Brewers were the Twins who just missed winning the AL Central with an 88-75 record, $62,182,767 ODP, which translates to $1,311,068 per marginal win.

Conclusions

This season wound up being a wonderment on a number of levels. Who would have thought that predictive contenders in the Tigers and Mariners would end the season so horribly? Who in their wildest dreams would have expected to see the Rays in the World Series, or the Twins and the Marlins post respectable records?

It seems that there is a new world order in MLB these days. Some have contended, and it's looking more truthful by the day, that the drug testing policy has changed how GMs build their teams. Veteran free agents, that at one point were viewed as effective well past their prime, have been passed over in favor of developing talent internally.

With that change, young talent is in again. That bodes well for those clubs that have stunk up the standings in the past (that would be you, Tampa Bay) and are now parlaying good draft picks into the core of their teams. Low revenue-making clubs are also seeing the value of wrapping up this young talent by way of long-term contracts. Players such as Evan Longoria and Troy Tulowitzki have signed contracts that will keep them with their respective teams through their arbitration eligibility years and early free agency.

As the numbers show, it is now possible for teams with low payrolls to have a successful regular- and post-season. As reported earlier this week, the challenge is for these teams once deemed to be nothing more than doormats of the league to contend over multiple seasons. That is the challenge of the low- to mid-revenue making clubs going forward.


Maury Brown

Maury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He is contributor to Baseball Prospectus, and is available as a freelance writer.

Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network.

Don't forget to register and log in on The Biz of Baseball site to get updates via your in-box, and see information only logged in members can see.

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?