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CAN MONEY BUY SUCCESS?

We all know money can't buy love or happiness. In professional sports, can spending more money on players buy a team more success? Let's analyze this question for the NFL, NBA, and MLB.

Does a Larger Payroll Buy Success in the NFL?

In chapter 40 we learned how to calculate offensive and defensive power ratings for NFL teams. For example, an offensive team rating of + 3 means a team (after adjusting for the strength of opposition) scores 3 points more than average and a defensive rating of −5 means that (after adjusting for the strength of opposition) that a team gives up 5 fewer points than average. For the 2001–4 seasons we tabulated the amount of money each NFL team paid their offensive and defensive personnel. ...

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