project

MGMT 350-04 Final Project Part I Group 4

Major League Baseball (MLB) is a multi-billion-dollar industry. In a regular scheduled

season only 10 teams will make the playoffs. There is a direct correlation between the total

amount of home runs a team hits and making the postseason. Of the 10 teams qualifying for the

postseason in 2021 seven (7) of them finished the regular season in the top 10 in total team home

runs. The remaining three (3) teams rounding out the top 10 made it to the last week of the

regular season before being eliminated from postseason contention.

In order to qualify for the postseason a team must know how many home runs they must

hit in the regular season. To solve the problem of not making the postseason due to a lackluster

team home run totals we must: 1) project the total number of homeruns we must hit next season

to qualify for the postseason (forecast moving average method), 2) identify the underachieving

homerun producers per position, 3) identify how many home runs total ………………This will

be achieved by establishing the trend pattern with the average regular season home run totals of

the teams qualifying for the postseason since 2015. The trend data will be utilized to establish

forecast accuracy (method to be determined).

The overall impact of this project is to establish trends, forecast outcomes, and make

decisions. To work perfectly the analytic tool we have created would accurately forecast the

amount of home runs necessary for a MLB team to qualify for the playoffs.

*We will exclude the 2020 season totals as MLB played a reduced schedule due to their Covid-19 response.

MGMT 350-04 Final Project Part I Group 4

The average team revenue for 2021 was $15.6 billion. Teams qualifying for the postseason earn

more money based upon the highest round they win. Ultimately, the World Series winner is

awarded the greatest percentage of total revenue based upon overall ticket sales.

MLB Rule 45 gives the Commissioner’s Office 15% of the paid attendance receipts for

all postseason games. The remaining 85% is divided as follows: World Series Winner: 36%,

World Series Loser: 24%, Two Championship Series Losers: 24%, Four Division Series Losers:

13%, and the Wild Card Losers: 3%. Therefore, making the postseason and winning equates to a

significant amount of money for the organizations, players, and administrators.

How does an organization increase not only its chance of making the postseason, but

having an opportunity to grab the greatest piece of the pie by winning the World Series? Simple,

hit home runs. This is no fluke, since 2011 at least 70% of Major League Baseball’s regular

season home run leading teams have qualified for the postseason.

There is a direct correlation between hitting home runs and making the postseason. The

problem is that if your team does not hit home runs your team is not likely to make the

postseason. Therefore, your organization will not capitalize on the added revenue generated

from postseason play. This is not only an athletic competitive disadvantage but gives the teams

making the postseason a business competitive advantage. Teams making the postseason are

better equipped to re-sign their best players, as well as sign free-agents, home run hitters.

*We will exclude the 2020 season totals as MLB played a reduced schedule due to their Covid-19 response.