The National Basketball Association (NBA) generated well over $4 billion in revenues during the 2014-15 season. I analyze the value of a win to a team in terms of revenue and examine the potential underpayment or overpayment of players and superstars throughout the league relative to their marginal revenue product (MRP). My findings suggest that players are overpaid, especially superstars. However, it is important to consider the fixed-revenue streams a team receives before assuming a player is simply overpaid compared to his MRP. In congruence with previous literature, I find that veterans are overpaid at the expense of younger players’ lower salaries. I also look at the drivers of a player’s salary and find that general managers tend to overpay for points relative to other statistics.
| Identifer | oai:union.ndltd.org:CLAREMONT/oai:scholarship.claremont.edu:cmc_theses-2302 |
| Date | 01 January 2016 |
| Creators | Stanek, Tyler |
| Publisher | Scholarship @ Claremont |
| Source Sets | Claremont Colleges |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | CMC Senior Theses |
| Rights | © 2015 Tyler M Stanek, default |
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