Spending $$ gives you a good chance to make the playoffs most years (see Yankees and Red Sox) if you spend the money every year. Once the playoffs start it's the team with the hot hand that wins. In addition, the teams that consistently make the playoffs (Yankees, Red Sox and now Phillies) way outspend everyone else.
The only thing being number 5 in spending every couple of years means is that there is a good chance you're wasting your money those years.