May the Best Team Win: Baseball Economics and Public Policy

This book provided a great analysis of the economics and policies of Major League Baseball. The author's points are clear and easy to follow. While the author appers slightly more in favor of the players' perspective than the owners', he makes a point to show both sides of the argument and does not favor particular teams. It was written in 2002 so some of the information is outdated, but it is amazing to look back and see what was important at the time, how little has actually changed since that time, and how the CBA of 2002 has impacted today's game.

Excellent book written by Andrew Zimbalist. Well written w/extremely well-fleshed out arguments. The only thing I didn't like (and this is a style thing) is the use of footnotes after the narrative in an appendix. Flipping back and forth sucks.

In "May the Best Team Win," economics professor Andrew Zimbalist documents problems in Major League Baseball that alienate young people who would otherwise become fans of the sport. The book is essentially a sequel to his earlier book, "Baseball and Billions," which examined how team owners use creative accounting to conceal revenues in order to justify offering lower salaries to players and demanding greater taxpayer subsidies for stadiums. In "May the Best Team Win," Zimbalist presents updated findings for the years following the strike of 1994, focusing on how the transition from broadcast television to cable is widening the revenue disparities between small- and large-market teams and ruining competitive balance within the game. He demonstrates that the baseball's revenue sharing program actually discourages small-market teams from investing shared revenues in player payroll, further exacerbating the problem. The book concludes that divestiture of Major League Baseball into separate and distinct leagues represents the best opportunity to restore competitive balance. Zimbalist offers extensive statistical evidence that the relationship between player payroll and winning percentage became much stronger after 1995, with lower-payroll teams essentially unable to win a playoff series. Revenue gulfs between small-market and large-market teams rose rapidly because income obtained by large-market teams via televising their games on regional sports networks available only on cable and satellite television are not shared among the teams. Although the league increased sharing of other revenue sources following the strike, small-market teams actually receive more of this funding when they lose than when they win. Thus, owners of these teams, who often choose not to invest shared revenues they receive in player payroll, face a financial incentive to lose games. In fact, as soon as they are eliminated from the playoff races, many of these owners trade many of their highest-paid players to large-market teams in order to qualify for more shared revenues. The book explains that owners of large-market teams have the ability to conceal earnings that would otherwise be shared. Many of these owners leverage their teams to funnel revenue into their other business investments, such as their regional sports networks or real estate holdings. Owners of large-market teams can also reduce the amount of revenue they must share by reducing their publicly-disclosed player payrolls through offering their own players non-payroll compensation or promises of future compensation when their playing days end, such as broadcasting jobs or front office positions. The bottom line is that wealthy teams do not have to share with teams located in smaller television markets, that teams in these markets have little incentive to win, and that fans have little incentive to follow these teams. To address these problems, Zimbalist would divest Major League Baseball into separate and disti

This was a great view into the inner workings of baseball's front offices. Not only does it give the reader a foundation for understanding the complexities of baseball labor negotiations, but it also gives insight into foundations of free agency and many of the arcane laws that give the sport its monopoly status.Its a quick read and a great reference for any student of the financial aspects of the game, especially those interested in reform.

Bob Costas's popular "Fair Ball" was an examination of baseball from the fan's perspective. "May the Best Team Win" is a similar work, but is written from the point of view of a professor of economics. Mr. Zimbalist's writing style is often just what you would expect from an economist; the text is very dense and may turn off some readers. Luckily, the book's fault is also its strength. The well-researched analysis provides irrefutable arguments in favor of making changes in the game, and educates the reader far better than other authors' attempts.This deeply probing work uncovers the abuses and inefficiencies in the baseball industry, and concludes that baseball's monopoly is the devil in the details. Team owners use their monopoly power to "derive higher returns, misallocate resources, and take advantage of consumers." Any fan who has paid $5 for a ballpark hot dog will definitely empathize with his findings."May the Best Team Win" addresses the competitive balance (or competitive imbalance), the myth of non-profitability, the collective bargaining agreements, and how teams convince cities to foot the bill for new stadiums.In the end, Mr. Zimbalist outlines some possible solutions to help improve the game. Some of his ideas seem workable, while others seem idealistic and unrealistic. However, all of his suggestions are well worth reading. This is an ambitious effort, and fans with serious concerns about the future of the sport will definitely appreciate this analytical endeavor. Zimbalist has taken on a difficult issue, and shown that he has more than just warning track power.Highly recommended.