Peacock Scholarship

Examining if High-Team Payroll Leads to High-Team Performance in Baseball: A Statistical Study

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Does high payroll necessarily mean higher performance for all baseball statistics? Major League Baseball (MLB) is a league of different teams in different cities all across the United States, and those locations strongly influence the market of the team and thus the payroll. Year after year, a certain amount of teams, including the usual ones in big markets, choose to spend a great amount on payroll in hopes of improving their team and its player value output, but at times the statistics produced by these teams may not match the difference in payroll with other teams. This observation invites a few questions for investigation. • Are high-payroll teams actually seeing an improvement in results? • Are the results between high-payroll and non-high-payroll teams actually statistically different? • What statistics present the strongest relation with high payroll increase? • What statistics present the weakest relation with payroll increase? The questions and possibilities are endless, so those are just the beginning, but the purpose of this study is to answer the questions raised above and to investigate if high-payroll teams truly perform better, and then interpret what the results actually mean.

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  • 10/14/2020
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