What actually drives success in Major League Baseball — big spending or smart spending? A new study led by Mark Williams, Master Lecturer of Finance, challenges one of Major League Baseball’s biggest assumptions: that spending more automatically leads to more wins.
Analyzing all 30 MLB teams and more than 4,000 players from 2021–2025, the research found that payroll efficiency, not payroll size, is one of the strongest indicators of postseason success. Teams that strategically allocate resources, regardless of market size, consistently outperform less efficient big spenders.
The study highlights the Milwaukee Brewers as the league’s most efficient spend-to-win franchise in 2025, earning more regular-season victories than the Los Angeles Dodgers despite operating with a payroll four times smaller.
The project also launched MLB Toolbox, an interactive app that allows users to track live team efficiency rankings and build custom rosters under varying budget constraints. The tool is designed to translate research findings into actionable insights for both front offices and fans in real time.
The research was supported by BU MBA students Ethan Davis MSMFT ’27, Dan Shin MSMFT ’27, and BU MBA alum Brandon Cohen MBA ’20, who served as a consultant.
View the full study here.
