Evaluation of Team win Percentage, Number of Star Players, Whether a Team Makes the Playoffs in Basketball

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Between the years of 2009-2012, the NBA had undergone drastic changes. After the CBA (Collective Bargaining Agreement) of 2005 had expired following the 2010-2011 NBA season, the NBA had to renegotiate a new CBA for the following years before a NBA season could be initiated. This caused a lock-out, in which the NBA season was put on hold so league officials could renegotiate with the NBA players' union to agree on a new set of regulations for the upcoming seasons. Important regulations to be restructured were mainly revenue sharing, player salary compensation, and player contract restructuring. The CBA of 2005 stated that players were entitled to 57 percent of the league’s total ticket revenue, but the new CBA which would be enacted for the 2011-2012 season and beyond would limit player compensation to 50% of the NBA total ticket revenue. To put this change into perspective, for the 2011-2012 NBA season, total ticket revenue for the NBA was around 853 million dollars. Under the CBA of 2005, players would have received 57 percent of the 853 million dollars as compensation, around 486 million dollars. However, the new CBA of 2011 would limit players to receive only 50 percent of the 853 million dollars as compensation, around 426.5 million dollars. The new revenue split would cause lower compensation for players by a difference of around 60 million dollars. Another addition to the new CBA is a rule stating that teams can only designate one player to sign a maximum contract of 20 million for 5 years and all other players on a team can only be eligible to sign contracts with the maximum annual salary of 20 million for 4 years, while in the old CBA (2005) the team can sign as many players to maximum contracts (20 million in annual sal...

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... Knicks should have more than 33.89 million in total ticket revenue than the Utah Jazz, holding the effects of the other regressors constant. The R-square for this set of regressors is 0.56, with an adjusted R-square of 0.54. The R- square shows that 56 percent of the variation in total ticket revenue for each NBA team is determined by win percentage, number of star players, playoffs, and population.
2ndRegression Results

Larry, Coon. Breaking Down Change in New CBA. 28 Nov 2011. 21 Feb 2014.
Mazzeo, Mike. "Mikhail Prokhorov Restates Big Plans." 2012.
Mike, Mazzeo. NBA Ticket Prices Rise. 1 FEb 2012. 21 Feb 2014.
NBA Player Salaries 2009-2012. Sept 2009. 22 Feb 2014.
"Nets Owner Prokhorov Discusees Brooklyn Move, Management Style." 21 Nov 2012. Sports Business Daily. 17 Feb 2014.
"The Financial Impact Of The NBA Lockout." 03 Nov 2011.

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