Determinants of NBA Player Salaries

Submitted by Dr. Robert Lyons Jr.1*, Dr. E. Newton Jackson Jr.2*, Dr. Aaron Livingston3*

1* Associate Professor, Sport Management, Queens University of Charlotte, Charlotte, NC

2* Professor, Sport Management, University of North Florida, Jacksonville, FL

3* Assistant Professor, Sport Management, Hampton University , Hampton, VA

Abstract

Determining the factors that influence National Basketball Association (NBA) owners to pay players is of great importance in light of financial constraints such as the NBA salary cap. The purpose of this study was to identify the performance variables i.e. scoring, assists, and fouls that significantly contributed to determine a NBA player’s salary. It was hypothesized that scoring performance variables such as points per game; field goal, free throw, and three point percentage would be significant contributors to player salaries. The authors utilized multiple regression to analyze the 2013-2014 salaries of 243 NBA players and their career performance variables. Results indicated that points per game, rebounds, and personal fouls contributed significantly to a player’s salary. Implications of these findings are discussed in this investigation.

Keywords: National Basketball Association, salary cap, player salaries

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