Call Center: 724-252-3114    Contact us today | Support@turnkeytaxes.com

PAY ONLINE

 
 

HOME   |   ABOUT US   |   FAQ   |   IN THE NEWS   |   CONTACT US   |   BLOG   |   DEBT CLOCK   |   TAX GLOSSARY   |   USEFUL LINKS

 

Blog . . .

COLA vs MLB

COLA is an acronym for Cost Of Living Adjustment and one web site that does a great year to year comparison is provided by the American Institute of Economic Research (AIER). Click here to compare any two years from 1913 to 2013.

I wanted to see how major league baseball (MLB) salaries stacked up from my youth to today. I knew they had increased faster than the cost of living, but I was interested to find out by how much. For my base year, I chose the bicentennial and according to COLA, $100 then is worth $407.62 today – a little over a 400% increase.

The baseball almanac for the 1976 Pittsburgh Pirates lists the 22 primary players here. The total is $962,500 and adding Willie Stargell’s 189,000 (which required additional digging) takes us to $1,151,500. Add some more money to cover the bit players and we can guess that the total payroll for that year would be near $1,250,000. Incorporating the COLA factor, the Pirates team salary should be a little over $5 million. But it’s nearly $80 million – 16x more than the COLA factor would indicate.

As a comparative, I took the largest payroll in MLB today – the Dodgers are currently at $220 million. Their $1.6 million x COLA equates to a 34x increase during the same period.

Data doesn’t lie. Inflated salaries are not a function of the ‘desire to win’. Everyone wants to win. The source of inflated salaries has shifted from competitive owners (who built their own stadiums) to the taxpayer-subsidized stadiums ‘needed’ to support baseball. This may sound confusing until you take a step back and follow the money.

Mark Schuster, Partner

August 11, 2013

BACK

 

 

GET SOCIAL

   

 

CONTACT INFO

Corporate Headquarters
1936 Fifth Avenue
Pittsburgh, PA 15219
Operations Center
100 Global View Drive
Suite 100
Warrendale, PA 15086
724-252-3114

Support@turnkeytaxes.com