OPINION

Baseball's Payroll Problem

Written by Gary D. Benz
Published April 02, 2008
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Though that is always going to be an issue with a certain segment of the fan base in Cleveland and predates the Dolans, the one issue that really was grinding at many Cleveland fans was the Dolans’ acknowledgement that more money ultimately would be needed to get the Indians over the hump and that they would spend what it took to make that happen when the time was right. To many fans, the time never seems right.

As evidence, there was the surprising 2005 season where a final week collapse kept the Indians out of the playoffs. The Indians seemed on the verge but instead dumped payroll in 2006, angering both players and fans who thought the time certainly seemed right. But if you’re going to ding the Dolans for that, which is fair, you also need to acknowledge they slowly started to turn it around by signing a variety of its players to long term deals. Not all of these investments have yet paid off, but building from within is a legitimate business plan.

In furtherance of that plan from last season to this, the Dolans increased the payroll from $61.6 million to nearly $79 million, an increase of almost 30%. The problem is that the Tigers increased their payroll by over 40%. The Indians already were struggling to keep pace with their rivals and the gap just got bigger.

While you’re at it, you might as well throw in the other big spender in the AL Central, the Chicago White Sox. For 2008, the White Sox increased payroll “only” around 20%. Sure, that means that the Indians closed the payroll gap on the White Sox a bit, but it’s a rather ridiculous point of reference. In 2007, the White Sox payroll was over $108 million and this season it’s well over $121 million, meaning that the Indians trail still the White Sox in payroll by the equivalent of two Derek Jeters. They trail the Tigers by about three Manny Ramirezes.

The question that remains unanswered by either of these situations or, more generally, the massive payrolls disparities that exist in baseball, is how this ultimately will play itself out on the field. In other words, how meaningful is the payroll gap?

On pure talent, the Tigers and the Indians seem pretty evenly matched and both ahead of the White Sox. And the impending departure of C.C. Sabathia notwithstanding, the Indians seem well positioned to compete favorably with both teams on talent for the next few years as well. In that context, the payroll disparity between these teams seems rather irrelevant. In fact, a case can be made that if the Tigers chase of the Indians can’t be overcome purely by spending, then Ilitch is either a fool or closer to implementing a dramatic payroll cut than most Tigers fans might realize. Given the recent commitment he made to Miguel Cabrera, the former seems more the case than the latter.

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Gary is writer based in Akron, OH. His take on the long-suffering fans of Cleveland sports can be found at Wait 'Til Next Year, Again (nextyearagain.blogspot.com) or The Cleveland Fan (www.TheClevelandFan.com). Please feel free to send your questions, comments, concerns or criticisms to GDBenz@roadrunner.com.
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Baseball's Payroll Problem
Published: April 02, 2008
Type: Opinion
Section: Sports
Filed Under: Sports: Baseball
Writer: Gary D. Benz
Gary D. Benz's BC Writer page
Gary D. Benz's personal site
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