50 years of baseball history: Super-payrolls and mega-inflation
Arjuna Subramanian is an aspiring baseball writer living in...
WASHINGTON, Dec. 28 – Ticket price inflation runs rampant in all professional sports. Major League Baseball boasts not only this massive inflation, but additionally a major disparity between its upper and lower circuits. Ticket price data from 1957 shows that the box seat ticket prices of the New York Yankees, San Francisco Giants, and Boston Red Sox have increased by 344, 204, and 179 percent, respectively, adjusted for inflation.
But the increases at the major league level are not as gargantuan and profit-driven as they seem at first glance. In fact, the profits gained from the inflated prices correlate quite well with the bloated payrolls of the three legacy teams in the data set.
It seems that instead of creating a crazily large profit margin, these two-fold, three-fold ticket price increases actually fund a payroll in a relatively profit neutral manner. In fact, our three studied teams come out of average, just $11 million in the black.
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