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NBA Econ 197

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by

Chris Thien

on 6 November 2013

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Transcript of NBA Econ 197

Economics
of the NBA

Attempts to Decrease Advantages of Large Markets
Collective Bargaining Agreement
Salary Cap
Luxury Tax
Repeater Tax
65 Total Championships
Recent Contract Agree Upon by Owners and National Basketball Player's Union
Reformed Contracts
NBA Hopes to Deter Superstars from Leaving Small Markets for Large Markets
NBA Champions
in the last 15 years
Large and Small Markets Exist
in All Sports
Major League
Baseball
National Football League
9 Small Market Teams in the NBA Finals in the Last 15 Years
Same Team 4 Times
Only 30% of Finalists Were from Small Markets (9/30 Teams)
by Christopher Thien
-0.06 Correlation Between Team Defense Rank and Payroll Rank
However
Small Markets Perform Uniquely Badly in the NBA
Only 5 Players on Court at a Time
Therefore, Superstars Make a More Dramatic Impact on Outcome of Games
The Jordan Effect
Case Study: Pacers vs. Heat
#1 Overall Defense
#1 Overall Offense
Series Currently Tied 3-3 in Eastern Conference Finals
So Famous That He Increased Revenue for Entire League
1 Strategy for Small Market Teams:
DEFENSE
Increased Ticket Sales
Increased TV Viewers
Champions
San Antonio Spurs
OUTLIER
4/4 in NBA Finals
1979 Seattle Super Sonics
Greg Popovich
Coach Since 1996
2 Time Coach of the Year ('03, '12)
"The Decision"
LeBron James
Colluded with NBA Superstar Friends Dwayne Wade and Chris Bosh
Summer 2010
Full transcript