Why payroll matters … but only in the AL
October 25th, 2007By now, I’ve heard just about every possible reason for why the Red Sox will destroy the Rockies in the World Series (last night’s game not exactly helping the purple cause), but one of the more irksome is that, somehow, the American League is just a better league. This is based on the head-to-head interleague records and the streak of AL wins in the All-Star Game. (Such commentators usually excuse teams like the Rockies, who had a positive record against AL teams during the regular season, by saying they play “AL” ball with a beefy lineup.) Now, personally I like to call the National League “baseball” and the American League “Disney on Ice” because of the DH, which destroys the integrity of the game’s strategy. But more than hampering the in-game strategy, I think what we’ve seen since the last expansion rounds — which added 3 teams to the NL and only 1 to the AL — is the more sinister effect of the DH, the one that occurs in the off-season.
The media has been bemoaning the lack of parity in the league since the last expansion, that in baseball your wallet size trumps everything else. What they’re missing, because of the incessant focus on the New York/Boston rivalry, is that this is only true in the American League.
First of all, you need to accept that pitchers are risky free agent signings. Not just marginally more risky than position players. Massively more risky. The Hardball Times does nice analysis combining Win Shares and salary figures to determine just how much more dollars at risk on the mound than at the plate, and here are this year’s figures. Even if stats aren’t your cup of tea, the notion makes observational sense: hitters have a fairly smooth performance trajectory, and rarely become teh suxor all of a sudden. Exceptions are usually linked fairly clearly to an injury or represent a fluke bad/good year. Pitchers, on the other hand, have a shelf life of three years of greatness before it’s all a great unknown. A pitcher who remains consistently good through the years is a Hall of Fame pitcher. Everyone else is a flavor of the month. For every Smoltz and Clemens, there are dozens of Zitos and Dontrelles. The problem is even more pronounced with relievers: Mariano Rivera and Trevor Hoffman aside, has there been any dominant reliever who’s strung together more than two seasons of greatness since 1993?
So, when it comes to free agency time, this puts the NL behind the ball. I’m talking of starters here, not bench or role players, because that’s obviously where most of the dollars are allocated. In the AL, the general manager has 9 positions to fill, while his NL counterpart only has 8. At first, you might think this would benefit the NL, as the GM could spend more dollars on one given position, but that’s not how it realistically works, because — and this is the key point — that 9th position doesn’t have to play defense. This allows the AL general manager to set aside a higher budget for older, more expensive, accomplished bats, because that 9th slot is free. This doesn’t just effect the signing of DH-only type players like Barry Bonds. When you think top-tier hitters, the AL will always be able to say, “Let’s throw $20 million at that 3B, and we can shift our current veteran 3B to the DH slot.” The expensive hitters being pulled off the table by AL clubs, that leaves the NL with … pitchers.
Now, I’m not saying this is how every transaction occurs. Obviously, there are plenty of huge free agent pitcher signings in the AL, and NL teams regularly wrap up big name hitters on the open market as well. But this is the general trend, and over the course of a few decades, it has definitely shaped the characteristics of each league. Most significantly, it has led to a general decrease in risk for rich AL ballclubs, while NL clubs, even if they choose to spend freely, still have to navigate risk to succeed. You know what you get with A-Rod. You don’t know what you get with Jason Schmidt.
We’ve all seen tables of the payroll versus wins. Those tables never break down by league. Let’s try it now.
American League
2001
Payroll: 1. New York 2. Boston 3. Cleveland 4. Texas 5. Toronto
Wins: 1. Seattle 2. Oakland 3. New York 4. Cleveland 5. Minnesota
2002
Payroll: 1. New York 2. Boston 3. Texas 4. Seattle 5. Cleveland
Wins: 1. New York 2. Oakland 3. Anaheim 4. Minnesota 5. Seattle/Boston
2003
Payroll: 1. New York 2. Texas 3. Boston 4. Seattle 5. Anaheim
Wins: 1. New York 2. Oakland 3. Boston 4. Seattle 5. Minnesota
2004
Payroll: 1. New York 2. Boston 3. Anaheim 4. Seattle 5. Chicago
Wins: 1. New York 2. Boston 3. Anaheim 4. Minnesota 5. Oakland
2005
Payroll: 1. New York 2. Boston 3. Anaheim 4. Seattle 5. Chicago
Wins: 1. Chicago 2. New York 3. Boston 4. Anaheim 5. Cleveland
2006
Payroll: 1. New York 2. Boston 3. Anaheim 4. Chicago 5. Seattle
Wins: 1. New York 2. Minnesota 3. Detroit 4. Oakland 5. Chicago
2007
Payroll: 1. New York 2. Boston 3. Anaheim 4. Chicago 5. Seattle
Wins: 1. Boston 2. Cleveland 3. New York 4. Anaheim 5. Seattle/Detroit
So, this decade, being in the top 5 of payroll gave you a 60% chance of being in the top 5 of wins. The exceptions were ‘01 (and Seattle was 6th in payroll) and ‘06 (when Detroit was 6th in payroll), although those exceptions are mitigated by ‘05 and this year, when the two lists matched up at an 80% clip. That leaves room for 2 “contenders” among the other 11 AL teams. (And this is a good a time as any to once again heap praise on the GMs for Oakland and Minnesota. They grabbed those slots much more often than not, and when they were beat, it was usually by the 6th-highest payroll.)
This is a familiar story. Now what about the NL?
2001
Payroll: 1. LA 2. New York 3. Atlanta 4. Arizona 5. St. Louis
Wins: 1. Houston 2. St. Louis 3. Arizona 4. San Francisco 5. Atlanta/Chicago
2002
Payroll: 1. Arizona 2. LA 3. New York 4. Atlanta 5. San Francisco
Wins: 1. Atlanta 2. Arizona 3. St. Louis 4. San Francisco 5. LA
2003
Payroll: 1. New York 2. Atlanta 3. LA 4. St. Louis 5. San Francisco
Wins: 1. Atlanta 2. San Francisco 3. Florida 4. Chicago 5. Houston
2004
Payroll: 1. New York 2. Philadelphia 3. Chicago 4. LA 5. Atlanta
Wins: 1. St. Louis 2. Atlanta 3. LA 4. Houston 5. San Francisco
2005
Payroll: 1. New York 2. Philadelphia 3. St. Louis 4. San Francisco 5. Chicago
Wins: 1. St. Louis 2. Atlanta 3. Houston 4. Philadelphia 5. Florida/New York
2006
Payroll: 1. New York 2. LA 3. Houston 4. Atlanta 5. San Francisco
Wins: 1. New York 2. San Diego 3. LA 4. Philadelphia 5. St. Louis
2007
Payroll: 1. New York 2. LA 3. Chicago 4. St. Louis 5. San Francisco
Wins: 1. Arizona 2. Colorado 3. San Diego 4. Philadelphia 5. New York
Wow. The pattern is very similar for the first two years, and then something odd happens: it appears that a team’s success in one year is a better predictor of where it will land in the payroll standings the following year — the cause-effect is backwards! (I’m not arguing actual causality here, but it does make some sense, as the NL teams generally build cheaper talent within and reward them with stick-around contracts after successful seasons.) This year was particularly wacky, and I’m not going to argue that it will always be that topsy-turvy, but, in general, since 2003 a top 5 NL payroll team only has a 40% chance of making the top 5 win list. The only exception is when the Mets snuck into the 2005 list with 83 wins to tie the 5th place Marlins. Furthermore, while the big spenders in the AL (New York, Boston, and Anaheim) have virtually locked themselves up a playoff spot, it’s a different pair of fat cats eating up that 40% of “purchased” contention real estate. Atlanta is the closest thing the NL has had to a dominant rich team, and they haven’t exactly outspent the rest of the league year-in and year-out the way Boston and New York do.
Another facet of this that points to the NL spending on riskier free agents than the AL due to having one less everyday batter is the number of “flop” seasons, where a team spent in the top 5 and didn’t sniff the playoffs. The poster child for this in the AL is Texas, which everybody associates with the monster A-Rod contract, though I seem to remember a retarded check being written to Chan Ho Park, too. Anyway, the AL has its poster child. How about the NL? The New York Mets couldn’t buy a .500 record, much less a playoff spot, despite attempting to accomplish Yankee dominance of the NL with their wallets. The Dodgers, unlike their Angelic counterparts, have had mixed results from their spending. Chicago only seems to get in when they’re NOT spending like crazy (with this exception of this year, when it didn’t take a top 5 finish to win the NL Central).
It’s not that payroll doesn’t matter in the NL at all. You don’t see Pittsburgh or Montreal/Washington making any of these lists. It’s just that free agent spending is a much smaller component of winning in the National League than in the American League. Far from being a coincidence, I propose it’s because having one less roster spot to spend on sure-fire, expensive batters, the NL must allocate its big contracts to pitching. Sometimes that works, sometimes it doesn’t. Arizona and Florida (’97 flavor) became poster children for “buying” a playoff spot early in their franchise histories, but it must be said that Arizona got lucky that Johnson and Schilling turned out to be a pair of “real deals” and that Florida was buying hitting, for the most part, and lucked out with Kevin Brown. Pitching wins championships, but hitting can get you to the playoffs, and it’s much easier to buy reliable hitting than pitching. That’s why parity has fallen apart in the AL, while it’s still a somewhat active force in the NL.
So, not only can we blame the DH for sapping the roster management strategy out of the AL game, not only can we sneer at it for destroying the traditions of the game by eliminating the two-way ability that made Babe Ruth such a star, not only can we gag everytime an aging hitter with bad knees gets to limp through a home run trot because he’ll be riding pine in the other half inning … now we can assess that the DH is at least partially responsible for the way low-payroll teams have been shut out of contention in that league.
Sure, the Red Sox might come across as the better team in this World Series, and might even win it handily, but I’m more impressed by the NL-Champ Rockies for winning a “baseball” season than I am by Boston’s “Disney on Ice” win.