This study explored how the market value of American athletes may be influenced by the presence of international teammates. Specifically, the study examined: (a) Chinese consumers’ feelings of attachment to American National Basketball Association (NBA) players who have a distinguished Chinese teammate; (b) the relationship between Chinese consumers’ attachment level to the American teammates and their credibility as product endorsers; and (c) whether Chinese consumers’ evaluation of athlete endorsement differs for sports products and non-sports products. Respondents felt more attached to...Read more

Thomas A. Baker III and Natasha T. Brison

Originality is “[t]he sine qua non of copyright” (Feist Publications, Inc. v. Rural Tel. Ser. Co., 1991, p. 345), meaning without originality there is no copyright. Yet, what if original work capable of copyright protection existed on the bodies of celebrity athletes? Should courts use copyright law to protect the copyright owner at the expense of the athletes’ right to control the commercial use of their own bodies? These are the issues presented in Solid Oak Sketches, LLC v. Take- Two Interactive Software, Inc., (2016), a copyright action brought by tattooists against video game...Read more

Plácido Moreno and Sebastián Lozano

The aim of this work is to evaluate the productivity change of the NBA teams during the last seven seasons (from 2006-07 to 2012-13). Within that period of time, a new collective bargaining agreement (CBA) of the National Basketball Association (NBA) was ratified before season 2011-12, ending a 161-day lockout. The Malmquist Productivity Index (MPI) has been used to measure the total factor productivity, while an input-oriented Network DEA approach is used to compute the distance of each observation to the corresponding frontier. The results reveal that there has been technological...Read more

David J. Berri
Michael A. Leeds
and Peter von Allmen

The assumption that workers are paid their marginal product underlies the theory of competitive labor markets and is the basis for comparison with non-competitive markets. Many firms, however, generate revenue in fixed lump-sums that are unrelated to the efforts of current workers. For example, many professional sports receive substantial income from broadcast rights, which are negotiated at wide intervals. We develop a theory of compensation in the presence of “fixed revenue” and test our theory using data from the National Basketball Association. Our results indicate that TV revenue...Read more

Allan Maymin
Philip Maymin
Eugene Shen

We analyze a large and comprehensive play-by-play dataset of professional games in the National Basketball Association using tools from financial economics to explore the optimality of strategically idling resources in the face of uncertain future demand. We find that starters ought to be idled by the coach on a “Q+1” basis, meaning that a starter has one more foul than the current quarter, when the future option value is high or the value of the replacement player is high. We use a novel win-probability approach that can be easily extended to other applications.Read more

David J. Berri

The NBA and its players union reached a new collective bargaining agreement in 2011. As a result of this agreement, the players will now be receiving less money. The NBA argued that a pay cut for the players was necessary to make the league better. More specifically, the NBA argued that if the players accepted less money, more teams could afford to field competitive teams. Therefore, competitive balance would improve, demand for the sport would increase, and ultimately the players would be better off. Although the NBA did get the players to accept less money, the empirical evidence—from...Read more

Andrew W. Nutting

The 2008-09 NBA Most Valuable Player race is modeled as a tournament between LeBron James, Kobe Bryant, and Dwyane Wade. Estimations show that James and Bryant significantly increased their scoring in response to Wade scoring more points in his most recent game, and that James also increased his scoring in response to Bryant scoring more points in his most recent game. All significant increases in scoring in response to an MVP competitor’s play were correlated with more free throws taken, suggesting the competitors responded to another competitor’s improved performance with more aggressive...Read more

Dennis Coates
Babatunde Oguntimein

This paper uses data on players drafted in 1987 through 1989 covering both their collegiate and their professional careers. This time period is chosen because we wanted recent players whose playing days have ended. Our analysis evaluates the role of college productivity on draft position and the relationship between college career productivity, measured by individual performance statistics and as productivity indexes, with professional career productivity measured similarly and with the length of the career. At issue is the effectiveness of NBA executives in identifying college players who...Read more

Artemis Apostolopoulou
Matt Biggers

No other team in sports has had to endure the relocation odyssey that the New Orleans franchise has lived through. The Hornets were born when North Carolina businessman George Shinn was awarded one of four NBA expansion franchises on April 1, 1987, and began play in Charlotte, North Carolina in 1988. As the owner of the team from its inception and the subsequent 14 seasons in Charlotte, Shinn officially filed an application with the NBA on January 17, 2002, to move the Hornets to New Orleans, Louisiana, beginning with the 2002-03 season. Four months later, the NBA’s Board of Governors...Read more

Dallass Branch

In 2002, the NBA’s Charlotte Hornets exited the Queen City for greener pastures in New Orleans, thus closing the book on a tumultuous 14-year relationship with their host city and fans. Their tenure in Charlotte was characterized by an NBA record for sold-out attendance from 1988-1996, a lengthy and nasty “divorce” with ownership starting in 1996, and a near complete falling-out with fans from 1997-2002 (“Losing the buzz,” 2002). In that span, average game attendance dropped from 23,000 in 1996 to 11,000 in 2002, even though the franchise made the NBA playoffs for the second straight year...Read more