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Mlb Return on Investment

In: Miscellaneous

Submitted By KatyKeene
Words 2564
Pages 11
MLB’s Return on Investment
University of Phoenix
RES341: Research and Evaluation I
May 10, 2010

MLB’s Return of Investment In 1842, organized baseball, now known as Major League Baseball (MLB), was created (Haupert, 2007). Since then, the industry has grown tremendously as a business enterprise and as many Americans’ favorite pastime. With its popularity, several controversial issues have arisen over the last few decades in regards to players’ salaries and imbalance of competition. From 1975 to 2002, the average MLB players’ salaries increased 5200% (Haupert, 2007) and competition concerns have been addressed by developing the luxury tax and revenue sharing throughout the industry (DeMause, 2006). To investigate these issues further, Team D is studying the relationship between MLB players’ salary, team wins, attendance and market. At the end of the research process, Team D anticipates reaching a valid conclusion to determine whether higher salaries (investment) are justified by increased attendance (return), and if there is a large inequality between large and small markets.
Research Objectives

The objective of this study is to determine the return of investment (attendance) on the salary structures present in MLB teams and if there is a disparity between “large” and “small” market teams in providing a successful product. The investigation will focus on the relationship between salaries, wins, attendance, and market sizes of MLB teams. Throughout the research, Team D will seek to answer the following questions: Are players’ salaries justified by an increased return on investment in the form of higher attendance rates? Do teams that spend more money on salaries have higher winning percentages, and is increased attendance driven by team wins? Is there a real disparity between “large” and “small” market teams in providing a successful…...

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