Pro Sports Smart Spenders: Rays and Heat big winners
On April 24th Bloomberg Business Week published a very interesting and very detailed story on The Smartest Spenders in Sports in 2014. The in depth story was written by Ira Boudway, Evan Applegate, and Ritchie S. King three business writers who like sports, but are really outstanding data minors that apply mathematical equations and formulas to get results, no fan emotion involved purely facts.
Taking a look at the list of the entire 122 teams that make up the MLB, NBA, NFL, and the NHL it was fun to see that both the Tampa Bay Rays and the Miami Heat making it to the Top 10 list.
The report had the Rays as the second best spenders in MLB behind only the St. Louis Cardinals and the fifth best spenders in all sports. Meanwhile, down on South Beach, the Miami Heat were at the top of the NBA list and overall in sixth place in all of professional sports.
The Miami Marlins were 8th in baseball and overall they placed 45.
The Orlando Magic were not too bad they ranked ninth in the NBA and overall in the 31st position. The NFL teams in Florida were in the lower third of the league. The Miami Dolphins 24th (88th overall), Tampa Bay Bucs were 26th (97th overall), Jacksonville Jags were 28th in the NFL.
The Tampa Bay Lightning is 17th in the NHL and 69th overall and the Florida Panthers 70th overall in sports.
The feature takes into consideration five years of data from the 122 teams that comprise the MLB, NBA, NFL and the NHL. They were able to obtain players' contracts allowing the three writers to develop a mathematical formula that they applied to reach their conclusions.
Here is the formula used by Bloomberg Business Week team in their words:
Our ranking of all 122 franchises in the NFL, NBA, NHL, and MLB rates teams based on how much they spent in player payroll for every win during the last five seasons. Each team is compared against the average price per win in its league to produce a score we call the efficiency index. The less a team spends compared with its peers, the lower its score. Playoff victories and championships get extra weight. Payroll data come from the best available published sources.*
Playoff wins count for 10 percent of a season (e.g., 16.2 wins in baseball); Wild Card wins get half credit.
Championships count for 50 percent of a season (81 wins in baseball).