Continuing his series on the top teams in terms of marginal dollars spent per marginal win, Doug Pappas today examines the 1985 to 1989 seasons. Click here to read the introduction to this series and the 1977 to 1979 seasons and here for 1980 to 1984. Stay tuned for Part IV (1990 to 1994), coming soon. For a breakdown of the 1995 to 2003 seasons, pick up a copy of the best-selling Baseball Prospectus 2004
Table 9. Marginal Payroll/Marginal Win, 1985
Team W L Pct Marg 8/31 Marg Marg $/
Wins Payroll Payroll Marg Win
Baltimore 83 78 0.516 34.9 $12,371,429 $10,691,429 $306,208
Boston 81 81 0.500 32.4 $11,080,695 $9,400,695 $290,145
Cleveland 60 102 0.370 11.4 $6,623,133 $4,943,133 $433,608
Detroit 84 77 0.522 35.9 $10,850,643 $9,170,643 $255,295
Milwaukee 71 90 0.441 22.8 $12,216,965 $10,536,965 $461,318
NY Yankees 97 64 0.602 49.0 $15,398,047 $13,718,047 $279,946
Toronto 99 62 0.615 51.0 $11,800,281 $10,120,281 $198,379
California 90 72 0.556 41.4 $11,559,593 $9,879,593 $238,638
Chi WSox 85 77 0.525 36.4 $9,849,689 $8,169,689 $224,442
Kansas City 91 71 0.562 42.4 $11,754,512 $10,074,512 $237,606
Minnesota 77 85 0.475 28.4 $7,238,667 $5,558,667 $195,728
Oakland 77 85 0.475 28.4 $10,008,823 $8,328,823 $293,268
Seattle 74 88 0.457 25.4 $5,549,870 $3,869,870 $152,357
Texas 62 99 0.385 13.8 $8,101,222 $6,421,222 $465,809
Chi Cubs 77 84 0.478 28.9 $13,478,225 $11,798,225 $408,550
Montreal 84 77 0.522 35.9 $10,195,246 $8,515,246 $237,050
NY Mets 98 64 0.605 49.4 $11,013,714 $9,333,714 $188,942
Phldelphia 75 87 0.463 26.4 $11,785,445 $10,105,445 $382,782
Pittsburgh 57 104 0.354 8.8 $10,223,945 $8,543,945 $976,001
St. Louis 101 61 0.623 52.4 $10,441,639 $8,761,639 $167,207
Atlanta 66 96 0.407 17.4 $14,771,382 $13,091,382 $752,378
Cincinnati 89 72 0.553 41.0 $9,258,848 $7,578,848 $185,063
Houston 83 79 0.512 34.4 $10,153,335 $8,473,335 $246,318
LA 95 67 0.586 46.4 $11,970,412 $10,290,412 $221,776
San Diego 83 79 0.512 34.4 $9,801,052 $8,121,052 $236,077
San Fran 62 100 0.383 13.4 $7,777,945 $6,097,945 $455,071
As the owners and players jockeyed toward another mid-season labor showdown, the owner of one of MLB’s least efficient teams sought to set the record straight. Bud Selig announced: “The fact is, there are staggering cash operating losses in major league baseball today. …The enormous cost increase in player salaries is, by far, the biggest reason baseball has dire economic problems. Any charge other than that is clearly and totally unsubstantiated by the economic facts as they exist today.” MLB figures released after the season put the total of those “staggering cash operating losses” at less than 1% of revenue.
In fact, player salaries had doubled since 1981. So had MLB’s revenue, as cable TV became an increasingly important source of income. Owners who reinvested their rights fees in payroll helped create a $300,000 gap between the major league minimum and the average salary. As the Braves and Pirates demonstrated, badly-run franchises could now waste more money than ever before.
At the bargaining table, the owners won a major concession from the players, as the seniority requirement before a player could file for salary arbitration was raised from two years to three. Not content with this victory, the owners spent the next three off-seasons colluding to destroy players’ ability to switch clubs through free agency.
Table 10. Marginal Payroll/Marginal Win, 1986
Team W L Pct Marg Open Day Marg Marg $/
Wins Payroll Payroll Marg Win
Baltimore 73 89 0.451 24.4 $12,168,758 $10,488,758 $429,867
Boston 95 66 0.590 47.0 $13,140,239 $11,460,239 $243,886
Cleveland 84 78 0.519 35.4 $6,870,000 $5,190,000 $146,610
Detroit 87 75 0.537 38.4 $12,320,714 $10,640,714 $277,102
Milwaukee 77 84 0.478 28.9 $8,852,975 $7,172,975 $248,387
NY Yankees 90 72 0.556 41.4 $16,044,473 $14,364,473 $346,968
Toronto 86 76 0.531 37.4 $11,935,380 $10,255,380 $274,208
California 92 70 0.568 43.4 $12,732,312 $11,052,312 $254,662
Chi WSox 72 90 0.444 23.4 $10,066,667 $8,386,667 $358,405
Kansas City 76 86 0.469 27.4 $12,626,198 $10,946,198 $399,496
Minnesota 71 91 0.438 22.4 $8,955,667 $7,275,667 $324,807
Oakland 76 86 0.469 27.4 $8,502,352 $6,822,352 $248,991
Seattle 67 95 0.414 18.4 $6,607,809 $4,927,809 $267,816
Texas 87 75 0.537 38.4 $6,402,330 $4,722,330 $122,977
Chi Cubs 70 90 0.438 22.3 $14,256,665 $12,576,665 $564,609
Montreal 78 83 0.484 29.9 $9,207,313 $7,527,313 $251,880
NY Mets 108 54 0.667 59.4 $14,270,714 $12,590,714 $211,965
Phldelphia 86 75 0.534 37.9 $11,682,166 $10,002,166 $263,672
Pittsburgh 64 98 0.395 15.4 $8,652,568 $6,972,568 $452,764
St. Louis 79 82 0.491 30.9 $9,742,235 $8,062,235 $260,992
Atlanta 72 89 0.447 23.8 $14,642,786 $12,962,786 $543,577
Cincinnati 86 76 0.531 37.4 $11,111,388 $9,431,388 $252,176
Houston 96 66 0.593 47.4 $9,413,501 $7,733,501 $163,154
LA 73 89 0.451 24.4 $14,494,943 $12,814,943 $525,203
San Diego 74 88 0.457 25.4 $11,077,186 $9,397,186 $369,968
San Fran 83 79 0.512 34.4 $8,163,959 $6,483,959 $188,487
The cover of the December 9, 1985 Sporting News asked, “Why Won’t Anyone Sign Kirk Gibson?”. Neither Gibson nor any other desirable free agent could obtain a single offer from other clubs, at any price. Owners were more aggressive in their negotiations with other players, too, forcing a record 159 arbitration filings. For good measure, all 26 clubs suddenly adopted 24-man rosters. Welcome to the Era of Collusion.
After the season, George Steinbrenner vowed to “get my payroll in line with my team’s performance.” This statement came weeks after Steinbrenner traded 24-year-old rookie Doug Drabek, who would win 148 more major league games, to Pittsburgh for 33-year-old Rick Rhoden, who would win 30 more. The defending World Champion Royals were even less efficient than the Yankees.
The National League rewarded good management, with both division winners among the league’s three most efficient clubs. The 108-54 Mets won 38 more games than the Cubs, who had opened the season with almost exactly the same payroll, while in the NL West, the Braves and Dodgers competed to see who could do less with more.
Table 11. Marginal Payroll/Marginal Win, 1987
Team W L Pct Marg 8/31 Marg Marg $/
Wins Payroll Payroll Marg Win
Baltimore 67 95 0.414 18.4 $13,434,895 $11,684,895 $635,049
Boston 78 84 0.481 29.4 $13,211,873 $11,461,873 $389,860
Cleveland 61 101 0.377 12.4 $7,955,250 $6,205,250 $500,423
Detroit 98 64 0.605 49.4 $12,557,881 $10,807,881 $218,783
Milwaukee 91 71 0.562 42.4 $7,687,724 $5,937,724 $140,041
NY Yankees 89 73 0.549 40.4 $18,569,714 $16,819,714 $416,330
Toronto 96 66 0.593 47.4 $13,194,734 $11,444,734 $241,450
California 75 87 0.463 26.4 $12,985,489 $11,235,489 $425,587
Chi WSox 77 85 0.475 28.4 $8,987,415 $7,237,415 $254,839
Kansas City 83 79 0.512 34.4 $13,188,384 $11,438,384 $332,511
Minnesota 85 77 0.525 36.4 $13,271,956 $11,521,956 $316,537
Oakland 81 81 0.500 32.4 $12,292,250 $10,542,250 $325,378
Seattle 78 84 0.481 29.4 $5,624,500 $3,874,500 $131,786
Texas 75 87 0.463 26.4 $6,342,718 $4,592,718 $173,967
Chi Cubs 76 85 0.472 27.9 $12,968,026 $11,218,026 $402,483
Montreal 91 71 0.562 42.4 $8,895,552 $7,145,552 $168,527
NY Mets 92 70 0.568 43.4 $14,102,214 $12,352,214 $284,613
Phldelphia 80 82 0.494 31.4 $11,325,597 $9,575,597 $304,955
Pittsburgh 80 82 0.494 31.4 $7,589,500 $5,839,500 $185,971
St. Louis 95 67 0.586 46.4 $11,802,500 $10,052,500 $216,649
Atlanta 69 92 0.429 20.8 $14,385,393 $12,635,393 $606,638
Cincinnati 84 78 0.519 35.4 $8,536,500 $6,786,500 $191,709
Houston 76 86 0.469 27.4 $11,508,371 $9,758,371 $356,145
LA 73 89 0.451 24.4 $14,280,987 $12,530,987 $513,565
San Diego 65 97 0.401 16.4 $10,484,429 $8,734,429 $532,587
San Fran 90 72 0.556 41.4 $10,628,000 $8,878,000 $214,444
By 1987, the owners had figured out how collusion was supposed to work. Even as MLB’s revenue rose by 15%, the average major league salary actually declined for the first time in the free agent era. MLB’s reported profits topped $100 million for the first of four consecutive years.
The remarkably well-balanced AL West saw all seven teams finish within 10 games of one another, even though Seattle and Texas spent less than half as much as those big-market powerhouses in Kansas City and Minnesota. The Milwaukee Brewers finished a surprising 91-71 despite the division’s lowest payroll, while Cleveland’s thriftiness proved less effective.
In the NL, St. Louis continued its tradition of efficient spending. Whitey Herzog led the Cardinals to their third division title in six years, despite being outspent by at least two rivals each season. Atlanta continued its tradition of wasting Ted Turner’s cable revenue. The Pittsburgh Pirates rode a tiny payroll almost to .500, thanks to youngsters named Bonds and Bonilla.
Table 12. Marginal Payroll/Marginal Win, 1988
Team W L Pct Marg Open Day Marg Marg $/
Wins Payroll Payroll Marg Win
Baltimore 54 107 0.335 5.7 $13,532,075 $11,782,075 $2,054,271
Boston 89 73 0.549 40.4 $13,896,092 $12,146,092 $300,646
Cleveland 78 84 0.481 29.4 $7,899,000 $6,149,000 $209,150
Detroit 88 74 0.543 39.4 $12,932,071 $11,182,071 $283,809
Milwaukee 87 75 0.537 38.4 $8,464,500 $6,714,500 $174,857
NY Yankees 85 76 0.528 36.9 $19,441,152 $17,691,152 $479,072
Toronto 87 75 0.537 38.4 $12,141,225 $10,391,225 $270,605
California 75 87 0.463 26.4 $11,947,388 $10,197,388 $386,265
Chi WSox 71 90 0.441 22.8 $6,190,000 $4,440,000 $194,387
Kansas City 84 77 0.522 35.9 $14,090,223 $12,340,223 $343,531
Minnesota 91 71 0.562 42.4 $12,462,666 $10,712,666 $252,657
Oakland 104 58 0.642 55.4 $10,110,000 $8,360,000 $150,903
Seattle 68 93 0.422 19.8 $7,342,450 $5,592,450 $282,128
Texas 70 91 0.435 21.8 $5,412,131 $3,662,131 $167,720
Chi Cubs 77 85 0.475 28.4 $13,119,208 $11,369,208 $400,324
Montreal 81 81 0.500 32.4 $9,665,833 $7,915,833 $244,316
NY Mets 100 60 0.625 52.7 $15,269,314 $13,519,314 $256,777
Phldelphia 65 96 0.404 16.8 $13,838,000 $12,088,000 $719,364
Pittsburgh 85 75 0.531 37.5 $5,998,500 $4,248,500 $113,407
St. Louis 76 86 0.469 27.4 $12,880,000 $11,130,000 $406,204
Atlanta 54 106 0.338 6.1 $11,828,174 $10,078,174 $1,658,959
Cincinnati 87 74 0.540 38.9 $8,888,409 $7,138,409 $183,316
Houston 82 80 0.506 33.4 $12,286,167 $10,536,167 $315,454
LA 94 67 0.584 46.0 $16,850,515 $15,100,515 $328,387
San Diego 83 78 0.516 34.9 $9,261,002 $7,511,002 $215,119
San Fran 83 79 0.512 34.4 $12,380,000 $10,630,000 $309,012
The NL standings looked like something out of a Bud Selig nightmare, with the Mets and Dodgers outspending their competition as the Pirates and Reds tried in vain to overcome the payroll disparity. Oakland upheld the honor of smaller markets, while Boston won a wild five-team race even though the Yankees outspent everyone else by 20%. This year, though, the Yankees finished out of the money in the Overspending Derby.
Until 1988, no club had ever spent more than $1 million per marginal win. The Atlanta Braves cleared that threshold with ease, spending more to win 54 games than Oakland spent to win 104. But the Braves were pikers compared to the Baltimore Orioles, whose 0-21 start set the tone for the worst season by a non-Detroit team since 1979. Baltimore cleared the $2 million/win mark with room to spare.
The owners were on a losing streak of their own. For the third off-season in a row, they colluded to restrict players’ free agency, even though they had already been found liable for collusion in 1985-86. Collusion, which eventually cost the owners $280 million to settle, was subsequently described by a federal appeals court as “in many ways as damaging to baseball as the Black Sox scandal of 1919.” It poisoned labor relations for years to come.
Table 13. Marginal Payroll/Marginal Win, 1989
Team W L Pct Marg 8/31 Marg Marg $/
Wins Payroll Payroll Marg Win
Baltimore 87 75 0.537 38.4 $10,944,499 $9,040,499 $235,430
Boston 83 79 0.512 34.4 $19,064,885 $17,160,885 $498,863
Cleveland 73 89 0.451 24.4 $10,349,500 $8,445,500 $346,127
Detroit 59 103 0.364 10.4 $14,147,763 $12,243,763 $1,177,285
Milwaukee 81 81 0.500 32.4 $11,901,500 $9,997,500 $308,565
NY Yankees 74 87 0.460 25.9 $18,482,251 $16,578,251 $641,086
Toronto 89 73 0.549 40.4 $16,016,666 $14,112,666 $349,323
California 91 71 0.562 42.4 $15,362,333 $13,458,333 $317,414
Chi WSox 69 92 0.429 20.8 $8,981,094 $7,077,094 $339,778
Kansas City 92 70 0.568 43.4 $17,101,047 $15,197,047 $350,162
Minnesota 80 82 0.494 31.4 $14,303,000 $12,399,000 $394,873
Oakland 99 63 0.611 50.4 $17,722,999 $15,818,999 $313,869
Seattle 73 89 0.451 24.4 $8,702,500 $6,798,500 $278,627
Texas 83 79 0.512 34.4 $10,831,781 $8,927,781 $259,529
Chi Cubs 93 69 0.574 44.4 $12,167,000 $10,263,000 $231,149
Montreal 81 81 0.500 32.4 $15,141,222 $13,237,222 $408,556
NY Mets 87 75 0.537 38.4 $21,300,878 $19,396,878 $505,127
Phldelphia 67 95 0.414 18.4 $8,633,000 $6,729,000 $365,707
Pittsburgh 74 88 0.457 25.4 $12,463,000 $10,559,000 $415,709
St. Louis 86 76 0.531 37.4 $16,077,333 $14,173,333 $378,966
Atlanta 63 97 0.394 15.2 $9,065,334 $7,161,334 $471,528
Cincinnati 75 87 0.463 26.4 $12,257,000 $10,353,000 $392,159
Houston 86 76 0.531 37.4 $16,761,625 $14,857,625 $397,263
LA 77 83 0.481 29.4 $21,147,506 $19,243,506 $655,377
San Diego 89 73 0.549 40.4 $14,004,000 $12,100,000 $299,505
San Fran 92 70 0.568 43.4 $17,255,083 $15,351,083 $353,712
MLB continued to benefit from the aftereffects of the collusion era, posting a record profit of $214 million on revenue of $1.2 billion. From 1984 to 1989, MLB’s gross revenue rose 99%, while player salaries increased by just 51%. Over the next three years, salaries would more than double, setting the stage for the labor showdown of 1994-95.
Four of 1989’s five highest payrolls belonged to the 1988 division winners. The Red Sox, Mets and Dodgers paid for the previous year’s success, while the Yankees continued treading very expensive water. In the NL, the surprising Cubs combined the league’s best record with its third-lowest payroll.
The Tigers, who collapsed after contending for seven years in a row, spent more for less than any other club. Atlanta’s Ted Turner wasn’t investing his superstation money in his team, though the Braves’ dynasty lay just two years ahead. Meanwhile the Orioles, MLB’s laughingstocks of 1988, improved by 33 games despite slashing their payroll by 20%.
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