"Production Changes within NBA Player Contract Cycles and the Impact on" by Charles R. Holt

Abstract

This study investigates the contract cycle production effects of National Basketball Association players and how these effects impact franchise success. Using a robust data set of NBA players over a four year span, I find that that player production, measured by two separate advanced metrics, is impacted significantly by the final year of a player’s contract and the first year after signing a new contract, albeit less robustly. When running a second test with team win percentage as the dependent variable, the final year of a contract and the first year of a new contract for a single player do not seem to be statistically robust impactors of a franchise’s win percentage. These findings illuminate the impact multi-year contracts can have on player production, measured by the most advanced efficiency metrics. I argue that NBA franchises should, at the very least, be aware of these effects and include an array of contractual and operational mechanisms to combat the shirking that exists around a contract cycle.

Advisor

Histen, Joe

Department

Business Economics

Disciplines

Sports Management

Publication Date

2019

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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© Copyright 2019 Charles R. Holt