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Major League Baseball’S Biggest Failure – The Competitive Balance Tax, Michaela T. Faunce
Major League Baseball’S Biggest Failure – The Competitive Balance Tax, Michaela T. Faunce
Haslam Scholars Projects
This paper seeks to discover if there exists a relationship between spending and a team making the playoffs in Major League Baseball in order to determine the strength of the Competitive Balance Tax as a deterrent. This research was done using historical data about opening day payrolls, win percentages, and playoff results from the years 2018-1988. For a better comparison, each year’s spending was adjusted to 2018 dollars using the years consumer price index. By using these time periods, time periods including a competitive balance tax and not including a competitive balance tax are included. The results indicate that there …