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Baseball Pay and Performance

Baseball Pay and Performance. By: Mikhail Averbukh Scott Brown Brian Chase. Outline. Introduction Research Objective Roles Existing Research Data Source and Collection methods Selection Criteria Findings Conclusion References. Intro to Baseball. Objectives. Roles. Research.

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Baseball Pay and Performance

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  1. Baseball Pay and Performance By: Mikhail Averbukh Scott Brown Brian Chase

  2. Outline • Introduction • Research Objective • Roles • Existing Research • Data Source and Collection methods • Selection Criteria • Findings • Conclusion • References

  3. Intro to Baseball

  4. Objectives

  5. Roles

  6. Research Pay, Productivity and Aging in Major League Baseball, 2007, Turner, Chad and Hakes, Jahn. Average Salary and Contract Length in Major League Baseball. Meltzer, Josh. Free Agency and Contract Options: How Major League Baseball Team Value Players. Dinerstein, Michael. Are baseball players paid too much? Moorehand, Timothy. Desperate GM can cripple a franchise. Law, Keith. 2007.

  7. Data source and Collection • Lahman database from baseball1.com • Used Java and SQL queries • Access Database to store data • Data from 2000-2007 for salary and player statistics • Inflation in baseball salaries • Median salary goes up 100k/year • Data put into Excel • Analyzed with Excel and Minitabs

  8. Attributes – Pitchers

  9. Attributes – Batters

  10. Experience

  11. Playing Time

  12. Results - Pitchers Correlation: 0.670 R-Squared: 0.436

  13. Results - Pitchers Correlation: 0.657 R-squared: 0.420

  14. Results - Batters Correlation: 0.737 R-Squared: 0.544

  15. Results - Batters Correlation: 0.722 R-Squared: 0.521

  16. Results – Batters top 10% R-Squared: 0.243

  17. Results – Batters bottom 90% R-Squared: 0.221

  18. Results – Players with equal performance

  19. Results: Salary vs On Base Percentage Salary = ln(OBP/0.3196) * 108 The formula is 90% accurate for 17 % of players, 80% accurate for 28 % of players, not applicable for 30% of players(OBP < 0.3196)

  20. Results: Team budget vs pay • Teams with higher budgets are able to attract better players

  21. How Teams choose and pay their players • Tampa Bay Devil Rays • Smaller budget so they look for player’s with less experience, but higher statistics where the player will be satisfied with their salary. • Carl Crawford 2002-2006 makes $4.125M • New York Yankees • High budget so more players will have a lot of experience playing with good teams, higher statistics, and be more recognized • Derek Jeter 1995-2006 makes $21.6M

  22. Experience to Salary Correlation based on Team Budget

  23. High Market Teams

  24. Lower Market Teams

  25. Conclusion

  26. Conclusions

  27. References • Pay, Productivity and Aging in Major League Baseball, 2007, Turner, Chad and Hakes, Jahn. • http://mpra.ub.uni-muenchen.de/4326/ • Average Salary and Contract Length in Major League Baseball. Meltzer, Josh. www.econ.stanford.edu/academics/Honors_Theses/Theses_2005/Meltzer.pdf • Pay for Play: Are Baseball Salaries Based on Performance? Watnik, Mitchel. Journal of Statistics Education v.6, n.2 (1998) • Free Agency And Contract Options:How Major League Baseball Teams Value Players. Dinerstein, Michael. http://www-econ.stanford.edu/academics/Honors_Theses/Theses_2007/Dinerstein2007.pdf • Are baseball players paid too much? Moorehand, Timothy. http://www.helium.com/items/154172-imagine-which-employees-could • Desperate GM can cripple a franchise. Law, Keith. http://insider.espn.go.com/mlb/hotstove06/insider/columns/story?columnist=law_keith&id=2728948&univLogin02=stateChanged

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