Why is Jerry Reinsdorf Wrong?

In an interview with Chicago White Sox's GM Jerry Reinsdorf, he is quoted as saying, "[w]e felt if we were going to get better, we were going to have to spend more money." In Sports Economics, I go through the case for MLB, NBA, NFL and NHL in terms of payroll and performance and while we find a statistically significant relationship, it is rather small as compared to other factors explaining sports team performance.