Money Doesn't Count for Much in Baseball
BOSTON -- If you just go by the money, the World Series, which starts tonight, would hardly seem like a fair fight.
After all, the surprising Colorado Rockies have a total payroll of just $54 million.
For the heavily favored Boston Red Sox, the figure is $143 million -- or nearly three times as much.
Maybe the Rockies should be allowed to draw on the bench of, say, the $89 million Phillies as well, just to even things up?But here's the great thing about baseball, at least recently. Funny things seem to happen when people get to the playoffs. Money doesn't count for as much as you think. Call it Steinbrenner's Law. Since 2001, Yankees boss George Steinbrenner has spent a staggering $1.2 billion on his team's payroll in a desperate, and so far unsuccessful, bid to win yet another championship. Here at TheStreet.com, we're always looking at returns on investment. So we've run the numbers for all postseason series -- including division, league and championship -- since 2001, and compared them to team salary data. The bottom line? There is little correlation, if any, between payroll and playoff success. The team with the higher payroll beat the team with the lower payroll in 113 games. But the team with the lower payroll won ... 112.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV