Money Bag

These days, the correlation between payroll and winning is historically weak

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It has been repeated so often that it has turned into a religion more than anything else: rich teams can buy their way into contention, poor teams cannot. Books have been written under that assumption. A swath of people who claim they were baseball fans have cited it as a reason for tuning out the game. Those rich teams like the Red Sox and Yankees have an unfair advantage, the story goes, and the other teams have no shot, it is claimed. Baseball needs a salary cap or something!

Except, even if there was some truth to that ten or fifteen years ago, it’s certainly not the case now. Today Brian MacPherson Providence Journal tells us just how un-true that is. He has run the payroll numbers against the W-L records and has found that a list of teams in alphabetical order has greater predictive power of team success than does a list of team payrolls from highest to lowest:

Ten years ago, by correlation calculations, a team’s payroll accounted for around 25 percent of its success . . . By correlation statistics, payroll accounts for barely more than four percent of teams’ success now.

The correlation coefficient between payroll and wins this season (0.202) is even smaller than the correlation between the standings and the first letters of the cities in which teams play (0.24). In other words, you’d have a slightly better chance of predicting playoff participants simply by using alphabetical order than by using payroll numbers.

There are a lot of reasons for this, many of which we’ve talked about around these parts for years. Smarter front offices, locking young players up to long term deals before they get too expensive. More overall money available to smaller revenue teams due to TV deals and the like. Changes to the draft and international free-agent signings. The reduction of PEDs in the game which means fewer older guys (i.e. the guys who can be acquired via free agency) making impacts.

I doubt this will change the mindless talking points of the baseball bashers. They’ll still auto-pilot on “baseball needs a salary cap” talk next winter when big free agents sign someplace. Or they’ll just change their complaints, moving from “The Yankees and Red Sox win it all the time because they’re rich!” to “No one can get excited about baseball now that marquee teams like the Yankees and Red Sox stink! Who wants to watch a Royals-Brewers World Series anyway?”

But the cool thing about facts is that they remain facts even if idiots ignore them. And the fact is, baseball has a far more level playing field now than it has had in a long time.

Casey McGehee signs one-year deal with Yomiuri Giants

DETROIT, MI - AUGUST 19: Casey McGehee #31 of the Detroit Tigers singles in the fourth inning of the game against the Boston Red Sox on August 19, 2016 at Comerica Park in Detroit, Michigan. (Photo by Leon Halip/Getty Images)
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Former Tigers infielder Casey McGehee has reportedly signed a one-year deal with the Yomiuri Giants of Nippon Professional Baseball, according to FOX Sports’ Ken Rosenthal.

It’s the fourth move the corner infielder has made in the last two seasons after seeing short-term stints with the Marlins, Giants and Tigers. He signed a minor league deal with the Tigers prior to the 2016 season, providing the club with some infield depth behind 24-year-old Nick Castellanos. When Castellanos hit the disabled list in August with a broken hand, McGehee was recalled from Triple-A Toledo for a 30-game stint and slashed .228/.260/.239 with one extra-base hit in 96 PA. His career batting line (.258/.317/.384 over eight seasons) isn’t too shabby, but his age and a long history of knee injuries puts a damper on his potential.

McGehee last appeared in the NPB circuit in 2013, when he signed a one-year, $1.5 million deal with the Tohoku Rakuten Golden Eagles. He spent the bulk of his season at the hot corner, batting an impressive .292/.396/.515 with 28 homers in 590 PA and appearing in the Eagles’ first and only championship run to date.

The deal comes with a club option for 2018, Rosenthal reports, though no figure has been specified.

Report: Dodgers could pursue three-year deal with Rich Hill

LOS ANGELES, CA - OCTOBER 18:  Rich Hill #44 of the Los Angeles Dodgers pitches in the first inning against the Chicago Cubs in game three of the National League Championship Series at Dodger Stadium on October 18, 2016 in Los Angeles, California.  (Photo by Harry How/Getty Images)
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Free agent left-hander Rich Hill is rumored to be entertaining a three-year, $40+ million offer from the Dodgers, reports Peter Gammons. The Boston Globe’s Nick Cafardo corroborated the report, adding that Hill could receive somewhere between $46 and $48 million from his former team.

Hill, 36, pitched to a 2.12 ERA and 3.91 FIP in back-to-back stints with the Athletics and Dodgers in 2016. While a chronic case of blisters on his pitching hand limited the frequency of his starts, he still figures to be one of the most productive and noteworthy starting pitchers on the market this winter.

The Orioles, Yankees, Red Sox, Rangers and Astros have all been mentioned as potential suitors for the left-hander’s services, though Orioles’ GM Dan Duquette said the club has yet to make a play for Hill and ESPN’s Jim Bowden pointed out that the Red Sox are less involved in trade talks than other interested parties.