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Finance and Financial Management

Senior Honors Theses

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Baseball

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Payroll Disparity Among Major League Baseball Teams: Building A Competitive Team Despite Limited Resources, Sarah Holtschneider Apr 2020

Payroll Disparity Among Major League Baseball Teams: Building A Competitive Team Despite Limited Resources, Sarah Holtschneider

Senior Honors Theses

There has been an inequality in payroll among Major League Baseball teams for many years that became increasingly evident in the late 1990s. Revenue disparities among teams cause a competitive imbalance for the league and make it harder for small-market teams to compete with large-market teams with much higher payrolls. MLB has attempted to alleviate this disparity, but the implementation of revenue sharing and the competitive balance tax alone is not enough for small-market clubs to build a competitive team. There are a number of ways that small-market clubs can build a competitive team despite limited resources, including employing the …