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Price for Victory?

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Price for Victory?

Postby ZAZ » Fri Aug 01, 2003 10:31 am

Anyone read the Wall Street Journal today? It has a good read about the price per victory in baseball. Ihope there's no problem about copying the content here, but here it goes:

By ALLEN ST. JOHN
Special to THE WALL STREET JOURNAL


What's a major-league win worth these days? $987,829.

It's no surprise that the price of doing business on the diamond is ever-higher, but now you can know just how much. These newly available salary numbers, compiled as part of Major League Baseball's new luxury-tax rules, show this season's total payroll will be $2,400,424,777. These are true apples-to-apples numbers that do account for the signing bonuses, incentive clauses, deferred payments and other CPA tricks that have obscured the matter for years.

So, with 2,430 games scheduled, that means baseball is approaching an embarrassing threshold of $1 million per win. And the numbers not only illustrate the game's economic gap -- the New York Yankees pay almost six times more than the Tampa Bay Devil Rays -- but they beg the question: Who gets the most for their money?

With a payroll in excess of $180 million, the Yankees are the biggest spenders and the only team that pays the luxury tax. So even though the Yankees may be getting results -- they're on pace to win 100 and chasing their seventh-consecutive American League East title -- their cost-per-win is a heady $1.8 million.

The Money Pits

Lest you think that profligacy is the route to success, look at the woeful Mets: Combining their $116 million budget with a 67-win-pace means $1.7 million per win. The story's the same for the Rangers: A $106 million payroll for a projected 67 wins equals a CPW as big as Texas, at $1.5 million.

WHERE THE MONEY IS



The big spending New York Yankees have the highest cost per win this season, while the miserly Tampa Bay Devil Rays spend the least for each victory. But a closer look at the list reveals that even a team on a tight budget can contend.

Team 2003 Payroll Projected Wins Cost Per Win
THE HIGH ROLLERS
Yankees $180,322,403 100 $1,803,224
Mets 116,253,927 67 1,735,133
Texas 106,277,880 67 1,586,237
Detroit 59,006,941 43 1,372,254
Los Angeles 109,248,680 82 1,332,301
THE PENNY PINCHERS
Oakland $56,596,691 92 $615,181
Montreal 45,853,889 81 566,097
Kansas City 48,475,322 88 550,856
Tampa Bay 31,660,602 60 527,677
THE CONTENDERS
Boston $104,873,607 96 $1,092,433
Philadelphia 95,338,704 90 1,059,319
San Francisco 100,061,211 103 971,468
Atlanta 103,912,011 106 980,302
Seattle 92,268,063 98 941,511
Houston 79,946,964 88 908,488



However, supersize payrolls don't guarantee a place on this list. The Detroit Tigers, with the eighth-lowest payroll in the game -- $59 million -- aren't just bad; they're 1962-Mets bad. Their 43-win pace means that they're paying more than $1.3 million for each precious W.

In the bargain basement, there's good news and bad news for the Devil Rays. The good news: Their $527,677 cost-per-win is the lowest in the game. The bad news: They're on track for just 60 of them this season. Tampa Bay's paying its rookie-laden roster $31 million, a total so low that they could add Jason Giambi's $11.4 million salary and still remain lower than what Montreal's shelling out.

However, a small payroll doesn't mean a season in the cellar. The Kansas City Royals have spent well -- $550,856 per expected win -- and lead the weak AL Central. Prospective buyers of the Montreal Expos should look not only at young talent like Jose Vidro, but the team's $566,097 CPW.

But that's nothing compared with the penny-pinching Oakland Athletics. General Manager Billy Beane locked up his young pitchers at below-market rates, and found budget-friendly successors for free-agent departures, resulting in a CPW of $615,181. More importantly, the A's are again in the hunt in the AL West.

Still think that money is more important than brains? Chew on this: If the playoffs started today, even with the Yankees skewing the curve, the eight qualifiers would have an average CPW of $1,038,450 -- $547,000 less than the last-place Texas Rangers. So it's not what you've got, it's how you spend it.
ZAZ


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Postby blankman » Fri Aug 01, 2003 11:08 am

Detriot 4th in cost per Win! LMAO :-D

good article ;-D
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Postby Madison » Fri Aug 01, 2003 4:45 pm

That was a good article, thanks! ;-D
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Postby orangecrushv » Fri Aug 01, 2003 6:52 pm

very interesting article....
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Postby DieHardCubbie » Fri Aug 01, 2003 10:24 pm

Nice article ZAZ...thanks...
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