Abstract
This study conducts Pearson correlation coefficient analysis and Data Envelopment Analysis (DEA) to investigate the association between American professional ball teams' input costs and their performance. Specifically, we examine the relation between the players' salaries and other expenditures and the teams' value, revenue, and winning percentage. Our sample includes Major League Baseball (MLB), National Basketball Association (NBA), and National Football League (NFL). The findings of Pearson correlation coefficient analysis show that the players' salaries and other expenditures statistically and positively associated with the teams' value, revenue, and winning percentage. When further performing DEA to analyze the efficiency of input and output, we find that in spite of efficient input and output for most teams, some teams' efficiency leaves something to be desired.
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