I don't know. The formula seems rather arbitrary.

1. The Jays get punished for having a large stadium. If you don't sell out, does it really matter whether 10000 or 20000 seats are empty.
2. And for some reason per capita income in Toronto is higher than in NY and LA.I find that hard to believe.
3. And why only the home record and not the overall record. Again works against the Jays.

Redo using:
Overall record and a better cost measure. And use sell-out and near sell-out. I doubt the Jays would still be last.

To add onto what Moe said, they're using a single season snapshot of data (and only home dates for some reason) and suggesting that attendance is a direct relationship. I think the state of attendance has a whole lot less to do with the actual number of losses last season and a whole lot more to do with the history of failure fans have witnessed for 17 seasons. As well, any analysis that uses attendance as a measurement of fan interest is fairly dependent on the honesty of front offices and their accounting methods employed.

They also didn't account for the new stadiums in New York which would have had a novelty appeal last year whose attendances will likely decrease regardless of how the teams perform.