salary adjusted standings -- methodology

salary-adjusted 2007 mlb baseball standings:
2007 average team salary: $77.56 million

In baseball, as with most things in life, having money is a considerable advantage. Teams with more money tend to win more, as well they should. This site applies a "salary handicap" to level the playing field (so to speak). Every team is evaluated based not on its "real" record, but rather on its expected winning percentage given its salary.

The handicap is applied based on a formula derived from salary and winning percentage data from 1997-2007

Salary-Adjusted Standings

Team	Adjusted Wins	Adjusted Losses	Adjusted Winning Pct	Record Adjustment	Salary in Millions
AL East
Tampa Bay	53	25	0.685	+5 games	$ 35 M
Toronto	49	29	0.624	+1 games	$ 72 M
Baltimore	49	29	0.622	+1 games	$ 73 M
Boston	44	34	0.559	-4 games	$ 120 M
New York Yankees	38	40	0.481	-10 games	$ 195 M
AL Central
Kansas City	52	26	0.664	+4 games	$ 47 M
Cleveland	51	27	0.649	+3 games	$ 56 M
Minnesota	50	28	0.638	+2 games	$ 63 M
Detroit	47	31	0.608	-1 games	$ 83 M
Chicago White Sox	45	33	0.581	-3 games	$ 103 M
AL West
Oakland	50	28	0.639	+2 games	$ 62 M
Texas	49	29	0.630	+1 games	$ 68 M
Seattle	47	31	0.601	-1 games	$ 88 M
Los Angeles Angels	45	33	0.581	-3 games	$ 103 M
NL East
Florida	56	22	0.723	+8 games	$ 15 M
Washington	50	28	0.638	+2 games	$ 63 M
Philadelphia	47	31	0.601	-1 games	$ 88 M
Atlanta	47	31	0.598	-1 games	$ 90 M
New York Mets	45	33	0.583	-3 games	$ 101 M
NL Central
Pittsburgh	52	26	0.664	+4 games	$ 47 M
Milwaukee	50	28	0.645	+2 games	$ 58 M
Cincinnati	50	28	0.641	+2 games	$ 61 M
St. Louis	47	31	0.599	-1 games	$ 89 M
Houston	46	32	0.594	-2 games	$ 93 M
Chicago Cubs	46	32	0.592	-2 games	$ 94 M
NL West
Colorado	53	25	0.674	+5 games	$ 41 M
Arizona	50	28	0.642	+2 games	$ 60 M
San Diego	49	29	0.627	+1 games	$ 70 M
San Francisco	47	31	0.598	-1 games	$ 90 M
Los Angeles Dodgers	46	32	0.587	-2 games	$ 98 M

Actual Standings

Team Wins Losses Winning Pct Expected Winning Pct Salary in Millions
AL East
New York Yankees 48 30 0.615 0.639 $ 195 M
Boston 48 30 0.615 0.550 $ 120 M
Baltimore 48 30 0.615 0.494 $ 73 M
Toronto 48 30 0.615 0.493 $ 72 M
Tampa Bay 48 30 0.615 0.449 $ 35 M
AL Central
Detroit 48 30 0.615 0.506 $ 83 M
Cleveland 48 30 0.615 0.474 $ 56 M
Chicago White Sox 48 30 0.615 0.530 $ 103 M
Minnesota 48 30 0.615 0.483 $ 63 M
Kansas City 48 30 0.615 0.464 $ 47 M
AL West
Seattle 48 30 0.615 0.512 $ 88 M
Oakland 48 30 0.615 0.481 $ 62 M
Texas 48 30 0.615 0.489 $ 68 M
Los Angeles Angels 48 30 0.615 0.530 $ 103 M
NL East
New York Mets 48 30 0.615 0.528 $ 101 M
Florida 48 30 0.615 0.426 $ 15 M
Washington 48 30 0.615 0.483 $ 63 M
Philadelphia 48 30 0.615 0.512 $ 88 M
Atlanta 48 30 0.615 0.515 $ 90 M
NL Central
Milwaukee 48 30 0.615 0.477 $ 58 M
Cincinnati 48 30 0.615 0.480 $ 61 M
Pittsburgh 48 30 0.615 0.464 $ 47 M
Houston 48 30 0.615 0.518 $ 93 M
Chicago Cubs 48 30 0.615 0.519 $ 94 M
St. Louis 48 30 0.615 0.513 $ 89 M
NL West
San Francisco 48 30 0.615 0.515 $ 90 M
Colorado 48 30 0.615 0.457 $ 41 M
Los Angeles Dodgers 48 30 0.615 0.524 $ 98 M
Arizona 48 30 0.615 0.479 $ 60 M
San Diego 48 30 0.615 0.491 $ 70 M