Thursday, September 2nd, 2010

New Stadium Does Not Guarantee Success

2

Posted by Jeff Lubbers on Friday, February 12, 2010 at 5:31 am

Move over Seattle, the Minnesota Twins are the new darlings of the 2009-2010 Hot Stove Season.  In addition to what appears to be an increasing likelihood of signing Joe Mauer to a long term deal, the Twins have made what have been largely regarded as shrewd offseason moves with the acquisitions of Jim Thome, Orlando Hudson, and J.J. Hardy.  These moves, coupled with the Twins’ placement in what should again be a relatively weak A.L. Central, have the team already looking forward to the 2010 postseason.

In short it is a good time to be a Twins’ fan.  And of course everyone in the organization is looking forward to the team’s move to Target Field for the 2010 season.  While playing outdoor baseball in Minnesota in April and September/October may be a concern for some others feel that the issue is overblown.  By and large the early reviews have the Twins playing in a beautiful stadium that will be enjoyed for years by players and fans alike.

Target Field will be the 19th new ballpark since Oriole Park at Camden Yards ushered in the Stadium Era in 1992.  The ramifications of so many new ballparks are many, including aiding the explosion of power numbers with a number of smaller parks, the issue of whether public funds (which were used in almost all of the new stadiums and often in eye-popping amounts) for private venues are a good use of taxpayers’ money, and an increase in players’ salaries, among many others.

Teams that have opened new stadiums have seen their team payrolls skyrocket.  According to the USA Today Salaries Database, since 1991, the year before Camden Yards opened, the average team payroll has increased by 7.49% a year.  However, for each of the 18 previous teams that have opened new stadiums they have seen their payroll jump by a whopping 15.3% from their last season in their old stadium to their first season in their new stadium.  The table below shows how each team’s payroll fared as they moved to their new digs:

Team Year Payroll % Change Winning % % Change
Baltimore Orioles 1991 $14,627,334   .414  
Baltimore Orioles 1992 $20,997,667 43.6% .549 32.8%
Cleveland Indians 1993 $15,717,667   .469  
Cleveland Indians 1994 $28,490,167 81.3% .584 24.5%
Texas Rangers 1993 $35,641,959   .531  
Texas Rangers 1994 $32,423,097 -9.0% .456 -14.1%
Colorado Rockies 1994 $22,979,000   .453  
Colorado Rockies 1995 $31,146,135 35.5% .535 18.0%
Atlanta Braves 1995 $45,199,000   .625  
Atlanta Braves 1996 $47,930,000 6.0% .593 -5.2%
Seattle Mariners 1998 $52,032,291   .472  
Seattle Mariners 1999 $44,371,336 -14.7% .488 3.3%
Detroit Tigers 1999 $34,959,666   .429  
Detroit Tigers 2000 $61,740,167 76.6% .488 13.8%
Houston Astros 1999 $55,289,000   .599  
Houston Astros 2000 $52,081,667 -5.8% .444 -25.8%
San Francisco Giants 1999 $46,059,557   .531  
San Francisco Giants 2000 $53,541,000 16.2% .599 12.8%
Milwaukee Brewers 2000 $35,782,833   .451  
Milwaukee Brewers 2001 $45,099,333 26.0% .420 -6.8%
Pittsburgh Pirates 2000 $26,561,667   .426  
Pittsburgh Pirates 2001 $57,760,833 117.5% .383 -10.1%
Cincinnati Reds 2002 $45,050,390   .481  
Cincinnati Reds 2003 $59,355,667 31.8% .426 -11.5%
Philadelphia Phillies 2003 $70,780,000   .531  
Philadelphia Phillies 2004 $93,219,167 31.7% .531 0.0%
San Diego Padres 2003 $45,210,000   .395  
San Diego Padres 2004 $55,384,833 22.5% .537 35.9%
St. Louis Cardinals 2005 $92,106,833   .617  
St. Louis Cardinals 2006 $88,891,371 -3.5% .516 -16.5%
Washington Nationals 2007 $37,347,500   .451  
Washington Nationals 2008 $54,961,000 47.2% .366 -18.7%
New York Mets 2008 $137,793,376   .549  
New York Mets 2009 $149,373,987 8.4% .432 -21.3%
New York Yankees 2008 $209,081,577   .549  
New York Yankees 2009 $201,449,189 -3.7% .636 15.7%
Minnesota Twins 2009 $65,299,266   .534  
Minnesota Twins 2010 $93,991,667 42.7% - -

 

There are a few items to point out among these numbers.  First, the Twins’ 2010 payroll figure of roughly $93 million is an estimate from Cot’s Baseball Contracts and is a figure that will likely change a bit before the actual start of the 2010 season.  Even if that figure stays put the Twins would have the fifth largest percentage increase as they enter a new stadium going back to 1992.  Furthermore those four teams ahead of them did not find a corresponding increase in team winning percentage, as two of the teams (2008 Nationals and 2001 Pirates) won fewer games the next year and a third (2000 Tigers) still finished below .500.

While these teams’ salaries have skyrocketed as they move to their new homes, their winning percentages have remained virtually the same.  Excluding the 2009 Twins of all the teams in the above table their collective record in the last season of their old homes was 1,421-1,430 for a winning percentage of .498.  Their collective record in the first season of their new homes was 1,394-1,405 for a winning percentage of….498.

Overall it is not surprising that team payrolls have jumped so much as teams have access to new revenue streams, as they can build on the excitement and novelty of a new place to call home.  But it is rather surprising that they have not been able to translate this financial success (gift) into at least some success between the lines.

The Twins still have a number of reasons to be optimistic for 2010 both on the field and on the bottom line.  But if history is any guide the fact that they will have a new address for 2010 is not in and of itself a guarantee of any success on the field.

  • Share/Bookmark

Comments

2 Responses to “New Stadium Does Not Guarantee Success”
  1. David Wade says:

    I have half-heartedly researched payroll effect on attendance and when doing so found the new park to be a variable that stopped me from pursuing it any further. It’s interesting that the extra money didn’t translate into wins in what you found. I think there was a chapter in BP’s ‘between the #s” that also talked about the new ballpark effect. Can’t remember if that was on performance or on revenue (I have to believe revenue is boosted)

  2. Jeff Lubbers says:

    @David Wade – I’d have to check but I think the effect was on performance and it was very slight. I know this has been looked at generally before – I was most interested in seeing what other teams specifically had such a large percentage increase in payroll. There are obviously many factors in play here.

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

You must be logged in to post a comment.