For many years now, when us sports fans thought of parity we always thought of the NFL. The NFL has been extremely unique in that aspect. Yes there are dynasties in the NFL, but its almost certain that there will be different teams in the postseason year after year. Just look at the NFC South. Over the last 4 years there has been a different division winner for every year. People attribute parody to the salary cap. The salary cap is supposed to give every team an equal opportunity to win, so teams in Jacksonville, Tennessee, Buffalo and San Diego can compete with the bigger markets. There is a salary cap in the NBA as well, but the NBA is a different animal. The NBA is a star driven league. Just look at the small market Cleveland Cavaliers and they are one of the most profitable teams in the NBA, because of Lebron. The reason the NBA is so star driven is because the players don't wear helmets or hats. The players are larger than life, literally. So teams will go over the salary cap and pay the luxury tax, just to keep their stars happy and their fans happy. In the MLB there has always been this theory that the league needs a salary cap. That theory could be further from the truth. Baseball is a game of value. Would you rather have one starting pitcher that makes $15 million per year or 3 stellar relievers that combine for that amount? Teams have to make those decisions every year. Lets break this down further, by looking at teams records and salaries as of 6/28/09. The Yankees have baseballs highest total salary at $201 million and the Marlins have baseballs lowest salary at $37 million. That's a difference of $164 million dollars! As of right now the Yankees are only 5.5 games better than the Marlins. The Yankees are paying $164 million dollars to be 5.5 games better than the lowest salary in baseball. That doesn't make sense does it? Baseball over the years has transformed incredibly. Baseball GM's are no longer former players or former coaches/ Instead they are Harvard graduates with business degrees or Wall Street tycoons. General Managers value players, just like they value stocks. When stocks are over valued, you sell. When players are over valued you trade them. The same theory of "By low, sell high" works for baseball, just like it works for stocks. We no longer just look at they basic stat cateorgies which include, HR, RBI and AVG. We now look at OPS, PECOTA, Range Factor, Win Shares and Runs Created. These advanced statistics allow us to look at players differ
ently then before. Baseball is all about value like I have said many times. According to x, y and z we will only pay this player this amount, as opposed to lets out bid the market on this guy, because we can. Because of Bill James and Billy Beane baseball certainly doesn't need a salary cap. Sabermetrics (Society For American Baseball Research) has changed the landscape of baseball. It is truly the search for objective knowledge about baseball. It separates the objective from the subjective. For example, "Who has created the most runs scored for the Los Angeles Angels?" is an objective question. How we used to think about baseball was "Who is your favorite player?" or "Who do you like at second base?". By creating these objective questions, GM's can now predict the future of player results within a fairly reasonable standard deviation.
ently then before. Baseball is all about value like I have said many times. According to x, y and z we will only pay this player this amount, as opposed to lets out bid the market on this guy, because we can. Because of Bill James and Billy Beane baseball certainly doesn't need a salary cap. Sabermetrics (Society For American Baseball Research) has changed the landscape of baseball. It is truly the search for objective knowledge about baseball. It separates the objective from the subjective. For example, "Who has created the most runs scored for the Los Angeles Angels?" is an objective question. How we used to think about baseball was "Who is your favorite player?" or "Who do you like at second base?". By creating these objective questions, GM's can now predict the future of player results within a fairly reasonable standard deviation. Back to the question, is there Parity in Baseball? Lets dig even deeper and look at the top 5 salaries in baseball and compare them to the bottom 5 salaries in baseball. The top 5 salaries in baseball average out to $141 million worth of salaries (Yankees, Red Sox, Mets, Cubs and Tigers). Those 5 teams have an average winning % of .547. The bottom 5 teams (Marlins, Nationals, Rays, Padres and Pirates) have an average salary of $50 million and an average winning % of .450 and that includes the Washington Nationals. If we take out the Nationals (who are so bad its not even funny) and substitute them with a competent team, such as the Twins,(who are next on the list) that boosts the winning % to .490. That is a 5.7% difference in wins and a $90 million difference in salaries. There are 19 teams in baseball that have less salaries then $90 million dollars. Out of those 19 teams, 8 of them are over .500 and 2 of them are leading a division. Lets now break down each tier of salaries below. There are 6 tiers total (30 teams/5). We have already analyzed the top tier and the bottom tier. Lets look at the middle 4 tiers winning %'s:
1st Tier - .547 ($141 million)
2nd Tier - .545 ($105 million)
3rd Tier - .487 ($89 million)
4th Tier - .498 ($76 million)
5th Tier - .464 ($68 million)
6th Tier - .490 ($51 million) - Switched Twins with Nationals
What those figures tell us is the bottom tier can compete with the upper tiers. And they can do so with a much, much less salary. This is another reason that baseball needs a salary cap is a pure myth. OK, so what we are looking for next is the lowest efficiency number ((Salary/winning %)/162). What that number explains is, how much money does a team need to spend per win.
1st Tier - 1.59
2nd Tier - 1.19
3rd Tier - 1.13
4th Tier - .94
5th Tier - .90
6th Tier - .64
What this tells us is exactly what I have been saying, teams are running so much more efficiently than before and ever. You don't need to have a $100 million dollar payroll to win a world series. But just look at how efficiently the lowered salaried teams in baseball are running at. They are paying anywhere from $640k-$940k per win, compared to $1.13-$1.59 million per win of the upper tiers. Because of sabermetrics, this allows every team to compete on an equal playing field, unlike we have ever seen before. So no, we do not need a salary cap in baseball. And yes, you do need to have money to compete and win. But certainly not as much money as you think and this year especially, there is about as much parity in baseball, as ever imagined.
So after watching the entire NBA draft, I have many reactions to it (HUGE understatement). My first reaction was "wow, this is a really bad draft". I do like a lot of players in this draft, but after that, it really gets ugly. My second reaction is "wow, NBA GM's are really dumb". How did so many teams pass up the likes of Dejuan Blair, Sam Young and Chase Budinger? Loo




Lakers, Lakers, Lakers! That's what I heard all day on Wednesday at the championship parade and I loved every minute of it. These types of parades don't happen very often (just ask Cleveland) and when they do happen you have to treasure it. You need to treasure it, because you really don't know when the next one is going to be. That's the beauty of sports; its extremely unpredictable. Who knows what could happen next year? So when these things do happen and you're finally old enough to attend, you have to go! You just have to. So myself and 3 of my good friends took a road trip out to Los Angeles to attend the 2009 championship parade. We split a hotel room in the middle of downtown Los Angeles, where Staples Center is. We went to what is called LA Live the night before of the parade. LA Live is a really cool place right across the street from Staples Center that features very cool bars and restaurants.








