Everyday there are more and more measures of player performance in every sport; and basketball is not an exception. Players’ actions are continuously observed in the attempt to break down in pieces the huge complexity of the game.
The purpose of the research will be to investigate the relationship between NBA salaries, the dependent variable, and a set of performance measures as independent variables: point scored per game, assists, steals, fouls, rebounds, years as a pro in the NBA, turnovers.
This study will inspect if and how the different independent variables contribute to the salary of the players, allowing us to determine which variables influence the pay most and which influence it less, in both a positive and a negative way.
The work is intended to provide a useful insight to better understand how players’ performances on the court impact on their income.
Literature review
For many years economists have been studying trying to understand the main components in salary determination in different professional sports.
For many years economists have examined and refined the understanding of salary determination in professional sports in various prospective
Our story starts with a review of the lessons the current body of literature teaches us about the economics of professional basketball.
Discrimination
Economists have become increasingly interested in the topic of discrimination in professional sports; and basketball is not an exception. The widely spread perception of the public has been that sports are an oasis of equal economic opportunities for minorities. This belief is strengthened by the fact that minority representation is higher in many major sports teams than in the labor force as a whole....
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...gated the relationship between wages and team success in a variety of sports, including the NBA. Although this relationship has been found to be statistically significant, only 16% of winning percentage was explained by relative payroll. A similar result was reported by Berri, Schmidt and Brooks (2004), after having analyzed payroll in the NBA across fifteen seasons they ended up with the result that relative payroll only explains 10% of the team wins.
Studies regarding individual player’s performance and player’s salary have differed mainly on the choice of which variable to include in the model. Each author proposes his own formula to better capture and explain the variability of
Another vector of studies that has found in the NBA a fertile ground of research has been that exploring the relationship occurring between pay inequality and worker performance.
One Sample Hypothesis Testing Paper Do Major League Baseball teams with higher salaries win more frequently than other teams? Although many people believe that the larger payroll budgets win games, which point does vary, depending on the situation. "performances by individual players vary quite a bit from year to year, preventing owners from guaranteeing success on the field. Team spending is certainly a component in winning, but no team can buy a championship."
By taking the labor market theory and MRP of players and analyzing how they interact with wage determination and competitive balance mechanisms we can make an economic analysis of the labor market inefficiencies. Giving us the ability to make some determinations on why labor market inefficiencies exist in professional sports and how/if there are any ways to correct for
We will run regression analysis on how each independent variable affects the dependent variable individually and in total. The dependent variable is winning percentage, and the stats we measured were selected as the independent variables. The independent variables that we chose were: Field Goals per Game, Free Throws per Game, Assists per Game, Fouls per Game, Turnovers per Game, 3 Pointers per Game, Blocks per Game, Steals per Game & Rebounds per Game.
Although many youngsters fail in the NBA, there are a few high school players who have had, or do have a successful career in the NBA. Some of these are, Moses Malone, Kobe Bryant, Tracey McGrady, and this year’s most valu...
When looking into the history of our culture, there are many subtopics that fall under the word, “history.” Topics such as arts and literature, food, and media fall into place. Among these topics reside sports. Since the beginning of time, sports have persisted as an activity intertwined with the daily life of people. Whether it is a pick-up game of football in the backyard, or catching an evening game at the local stadium, sports have become the national pastime. According to Marcus Jansen of the Sign Post, more specifically, baseball is America’s national pastime, competing with other sports (Jansen 1). Providing the entertainment that Americans pay top dollar for, live the role models, superstars, and celebrities that put on a jersey as their job. As said in an article by Lucas Reilly, Americans spend close to $25.4 billion dollars on professional sports (Reilly 4). The people that many children want to be when they grow up are not the firefighters or astronauts told about in bed time stories. These dream jobs or fantasies have become swinging a bat or tossing a football in front of millions of screaming fans. When asked why so many dream of having such job, the majority will respond with a salary related answer. In today’s day and age, the average athlete is paid more than our own president. The cold hard facts show that in professional sports, the circulation of money is endless. Certain teams in professional baseball and football are worth over millions of dollars. Consequently, the teams who are worth more are able to spend more. The issue that arises with this philosophy is virtually how much more? League managers, team owners and other sports officials have sought out a solution to the surfacing problem. Is it fair to let...
Many NCAA basketball players who make the decision to enter the NBA are not mentally prepared to deal with the responsibilities of life in the NBA. Young players depend on others who influence them or help make bad life decisions. What the young players visualize as the reward for playing in the NBA is the big money and with that big money make many mistakes financially. In th...
Key Events in the History of Sports Salary Caps. (n.d.). Issues and Controversies. Retrieved from Facts on File database.
If there’s one thing we dread in the summer more than the heat, it’s the afflicting sentiment that surrounds oneself when one is inhibited from experiencing the thrills of football for six long and gruesome months. National Collegiate Athletic Association (NCAA) football is a part of many Americans’ Saturdays, but to fewer does it mean their lives. Recently coming under debate, many sporting fans and college athletes believe that players should be paid more than just tuition, room, board, and books. Two articles on this issue that bring up valid points worth discussing are Paul Marx’ “Athlete’s New Day” and Warren Hartenstine’s “College Athletes Should Not Be Paid.” From these articles I have found on the basis of logical,
effect by the NBA to put a limit on beginning salaries, so some measures are
The National Basketball Association is the most popular professional basketball league in North America; it is also the most popular professional basketball league in the world. The National Basketball Association (NBA) is one of the most diverse businesses in the world, which was the deliberate plan of former NBA commissioner David Stern. The NBA was once an all white and male dominated league, now through years of an aggressive effort to diversify the organization the NBA is now one of the shining beacons for diversity, tolerance and acceptance in the workplace. Former NBA commissioner David Stern spearheaded and put into action on the best examples of creating and cultivation opportunities for success based on merit. “When David Stern steps down as NBA Commissioner in 2014, among the legacies he will have created is an era in professional sport when leagues and teams hired the best people possible. He embraced the moral imperative for diversity while helping to show the other leagues that diversity is also a business imperative. The evidence for the NBA’s continued commitment to racial equality is seen in the strong grades in the League Office and in many key areas on the team level.”(Lapchick, R.) To fully understand the transformation of the league we will cover the history of the association, team diversity, league diversity, the NBA diversity initiative, and current diversity issues.
Staurowsky, Ellen J. The Price of Poverty in Big Time College Sport. Norco: National College Players Association, 2011.
Eitzen, D. Stanley. "College Athletes Should Be Paid." Sports and Athletes. Ed. James D. Torr.
The countering argument made to justify the pay disparity in women’s professional sports is the revenue generated by it male counter parts exceeds their total revenue validating why their wages were exceeding higher. This argument is getting outdated. Even though there may be some truth in that proposal the popularity in women’s sports continues to grow every single day. But the wages stay
Do you think professional athletes are overpaid? You might think they earn more than what they are worth for playing half a year, but athletes have many things which contribute to their salary. Some of these things include their earnings from endorsements, ticket sales, performance, merchandise, their social contributions, and TV ratings. Although there are many factors that contribute to their salary, professional athletes may be overpaid because as a society, we contribute to their success. So, in the end, part of the athlete’s salary comes from the people who support the sports in the first place.
While sports for the spectators are merely entertainment, the economics of the industry are what drives businesses to become involved. Sports have become more of a business entity rather than an entertainment industry due to the strong economic perception of the over all industry. There are several instances in which economics may contribute to the effect on the sports industry, such as: the success of a team, the price of a ticket, the amount of money an athlete will make, and the amount of profit a team will make. The success of an...