Does Country of Origin Affect MLB Players’ Base Salaries?
Faculty Mentor(s) Name(s)
Dr. Brooke Conaway
Abstract
Does Country of Origin Affect MLB Players’ Base Salaries? TJ Murphy ECON 4990, Senior Seminar MW 12:30 - 1:45 Professor Conaway January 10, 2024 Abstract: According to Major League Baseball sponsorship revenue from 2010 to 2023, the MLB generated roughly 1.5 billion dollars in revenue in 2023, which is a 23 percent increase from the previous year (Gough 2023). The share of MLB players recruited from outside of the US was over 28% at the beginning of the 2022 season (MLB 2022). Given the sometimes-vast differences in standards of living between the US and other countries, MLB teams may offer lower salaries to players from other countries. To test this theory, I utilize league-wide, cross-sectional data from Spotrac.com for every active offensive Major League Baseball player, including base salary data from the 2023 Major League Baseball season, each player’s birthplace, the team they played for at the end of the 2023 season, their Wins Above Replacement statistic for the 2023 season, and their years of experience at the Major League Level, I estimate the effect that players’ countries of origin have on their base salaries. I concluded that players’ countries of origin have no statistically significant effects on their 2023 base salaries at the 95% confidence level; however, the team they play for, their Wins Above Replacement statistics, and their experience at the Major League level do have statistically significant effects on their base salaries. Works Cited Gough, Christina. 2023. “MLB Sponsorship Revenue 2023.” Statista, MLB sponsorship revenue 2023 | Statista Randhawa, Manny. 2022. “Opening Day Rosters Feature 269 Players Born Internationally.” MLB.Com, MLB, www.mlb.com/news/international-players-on-2023- opening-day-rosters.
Start Date
27-3-2024 11:40 AM
End Date
27-3-2024 11:48 AM
Location
Atkinson 107
Does Country of Origin Affect MLB Players’ Base Salaries?
Atkinson 107
Does Country of Origin Affect MLB Players’ Base Salaries? TJ Murphy ECON 4990, Senior Seminar MW 12:30 - 1:45 Professor Conaway January 10, 2024 Abstract: According to Major League Baseball sponsorship revenue from 2010 to 2023, the MLB generated roughly 1.5 billion dollars in revenue in 2023, which is a 23 percent increase from the previous year (Gough 2023). The share of MLB players recruited from outside of the US was over 28% at the beginning of the 2022 season (MLB 2022). Given the sometimes-vast differences in standards of living between the US and other countries, MLB teams may offer lower salaries to players from other countries. To test this theory, I utilize league-wide, cross-sectional data from Spotrac.com for every active offensive Major League Baseball player, including base salary data from the 2023 Major League Baseball season, each player’s birthplace, the team they played for at the end of the 2023 season, their Wins Above Replacement statistic for the 2023 season, and their years of experience at the Major League Level, I estimate the effect that players’ countries of origin have on their base salaries. I concluded that players’ countries of origin have no statistically significant effects on their 2023 base salaries at the 95% confidence level; however, the team they play for, their Wins Above Replacement statistics, and their experience at the Major League level do have statistically significant effects on their base salaries. Works Cited Gough, Christina. 2023. “MLB Sponsorship Revenue 2023.” Statista, MLB sponsorship revenue 2023 | Statista Randhawa, Manny. 2022. “Opening Day Rosters Feature 269 Players Born Internationally.” MLB.Com, MLB, www.mlb.com/news/international-players-on-2023- opening-day-rosters.