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2380Re: [APBR_analysis] SABR/Sports Econ update

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  • igor eduardo küpfer
    Aug 8, 2003
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      ----- Original Message -----
      Sent: Thursday, August 07, 2003 12:13 PM
      Subject: Re: [APBR_analysis] SABR/Sports Econ update

      Jim Armstrong wrote:
      >
      > On Mon, Aug 04, 2003 at 04:00:38PM -0500, Gary Collard wrote:
      > > I'm not sure why that was so controversial.  The concept of market size in
      > > the NFL is pretty much meaningless, since most league revenue is shared
      > > equally.  The reason that a Yankees in baseball have such an advantage is
      > > that they have local TV revenues that are an order of magnitude or more
      > > greater than most (all?) of the other teams and is significant compared to
      > > national revenue, thus they can afford to have a payroll that is 60%
      > > greater than any other team even before they pay the luxury tax as they do
      > > in 2003.  In the NFL, there is no local TV at all, and (over a period of
      > > years, letting spikes in bonus payments wash out) little payroll deviation,
      >
      > Actually, if you look at the distribution of team player payrolls, the NFL
      > and the NBA are quite comparable (see standard deviation in data below).

      That is why I specifically said "over a period of years, letting spikes in
      bonus payments wash out" in the case of the NFL.  The one year payroll
      numbers you listed are meaningless to my point, do you have the data to run
      them for the last 5 years or more?  That will tell you who has the "harder"
      cap.

      --
      Gary Collard
      Maybe the coefficient of variation (SD / Mean * 100) is a more apt measure for comparing the variation of payrolls for different sports across seasons.
       
      Year     NHL     NFL     NBA     MLB
      1994    28.3     8.7    15.2    26.6
      1995    26.6    12.7    24.1    27.7
      1996    43.3    11.9    21.9    31.4
      1997    #N/A    15.3    28.9    33.0
      1998    #N/A    12.1    27.0    37.4
      1999    33.4    12.0    23.0    43.1
      2000    37.4    13.8    23.6    38.3
      2001    31.1    13.5    24.6    38.3
      2002    33.0    18.1    20.6    36.6
      2003    35.9    #N/A    24.0    38.9
       
      On this measure, NBA teams show less variation in payroll than baseball and hockey teams, but the NFL teams are more level than any of them.

      Data from Rodney Fort's excellent resource: http://users.pullman.com/rodfort/SportsBusiness/BizFrame.htm
       
      ed
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