A CITIZEN'S BLOG

In the foreward to Michael Lewis’ Moneyball the author starts by talking about the A’s interest in market efficiency, making the most of their limited dollars and cents. Lewis’ references the work of Doug Pappas, who has studied major league payrolls and made two observations: most teams can expect to win 49 games in a season and all teams are required to expend a minimum of $7 million on their payrolls. Thus, Pappas says, any dollar over the $7 million mark is going to the team’s “marginal wins”: wins over the 49. How did the baseball world do in 2004?

The Phillies spent over $93 million to win 86 games. Their marginal wins cost them $2,350,247.00 That’s pretty poor: most teams don’t spend over $2 million. At least it wasn’t the worst: the Diamondbacks shelled out over $31 million each for their two marginal victories.

The Yankees are profligate spenders at $3,391,067 per victory, while the Red Sox did it with a “mere” $2,412,419.00 …

Who were the most efficient spenders?:

1. Cleveland: $889,332
2. Florida: $1,032,883
3. Tampa Bay: $1,033,650
4. Minnesota: $1,083,372
5. Oakland: $1,257,742

I should note that the Indians and Marlins were .500 teams and that the A’s and Twins won 90+ games. (And, I should note, the A-Rod-less Rangers weren’t far off at $1.3 million a win.) You can be a winner in MLB on the cheap.