The Nexus of Payroll, Performance, Ticket Prices, and Attendance in MLB

Abstract

This study uses secondary data from the past ten seasons to explore key issues germane to Major League Baseball. Focusing on attendance, payroll, performance, and the cost of attending, several key relationships were identified. Huge disparities in spending are documented. Perhaps most importantly, there is a meaningful relationship between performance and attendance. Equally important is the relationship between performance and the team’s payroll. Other relationships were documented and suggestions are articulated. These suggestions include future research and managerial issues such as the implementation of a hard salary cap.