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Payroll Newsbeat

Monday, January 04, 2021

Did Payroll Matter in 2020?

When it came to winning baseball games last year, payroll was not a significant factor. It’s worth noting that if we used BaseRuns standings, the correlation coefficient (r) moves up to .3, which is in line with what it was for actual wins and payroll for most of the last decade. Here’s a year-by-year look at wins and payrolls over the years….

On its face, last year’s correlation is the lowest since before baseball’s strike. As with much of 2020, the lack of a full season tends to distort the numbers and our ability to get value from them. Would the Marlins and Astros have maintained their roughly .500 trajectories, or would they have moved more toward their projected status? Looking at BaseRuns shows a significantly higher correlation between expected wins and projected payroll, and it’s likely that a full season would have resulted in a much stronger relationship, but the shortened season limits certainty.

RoyalsRetro (AG#1F) Posted: January 04, 2021 at 06:14 PM | 0 comment(s)
  Beats: payroll

Sunday, December 20, 2020

Report: Major League Baseball payrolls tumble nearly $2.5 billion in 2020

Major League Baseball payrolls plunged to $1.75 billion during the pandemic-shortened season from $4.22 billion, and the World Series champion Los Angeles Dodgers led with $98.6 million—the smallest payroll for the top spender in 20 years.

Base wages for 40-man rosters tumbled to $1.54 billion, according to information sent from Major League Baseball to teams on Friday night and obtained by The Associated Press. That was down from $3.99 billion in 2019.

Prorated portions of signing bonuses totaled $120.6 million, down slightly from $122.8 million. Earned bonuses fell to $25 million from $26.9 million.

Buyouts of unexercised 2021 options came to $58.2 million, more than double the $26.9 million for buyouts of unexercised 2020 options, a sign of expense-cutting amid the revenue loss.

RoyalsRetro (AG#1F) Posted: December 20, 2020 at 09:59 AM | 2 comment(s)
  Beats: payroll

 

 

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