The Battle Between Payroll and Parity
Over the All-Star break, MLB Commissioner Rob Manfred addressed the Oakland A’s, their quest for a new ballpark, and their remarkably low payroll. With regard to the last of those items, Manfred exhibited little concern, suggesting there was almost no correlation between a club’s capacity to spend money and its ability to win games. John Shea reproduced and retransmitted the following comments, care of Manfred, at the San Francisco Chronicle.
“I categorically reject the notion that payroll should be the measure of whether somebody is trying to win in our game today. I reject that not because I prefer low payrolls to high payrolls. I reject that because I know that the correlation between payroll and winning in baseball is extraordinarily weak.
“You do not guarantee yourself wins by having a high payroll, and as the Oakland A’s have showed, you can win with a low payroll. So I really reject the premise of that question. Those are the economic facts.
“Falling into this notion that payroll is a measure of whether an owner is trying to win is literally sophistry.”
I’ve got good news and bad news for the Commissioner. The good news is that, in six out of the last seven individual seasons, the correlation between wins and payroll hasn’t been very strong, as the graph below suggests.