Are NBA Players Paid to Perform in the Clutch?
Authors: Kevin Sigler
Corresponding Author:
Kevin Sigler, PhD
601 College Road
Department of Economics and Finance
Cameron School of Business
UNC Wilmington
Wilmington, NC 28403
siglerk@uncw.edu
910-200-2076
Kevin Sigler is Professor of Finance in the Cameron School of Business, UNC Wilmington
Are NBA Players Paid to Perform in the Clutch?
ABSTRACT
The star players in the National Basketball Association (NBA) are paid extremely well. In the 2018-19 season there were 60 players in the NBA that were paid $17 million or more for their services. Stephen Curry was the highest paid at $37.5 million (Table 1). LeBron James, Chris Paul, and Russell Westbrook tied for second at salaries of $35.7 million (1). This study examines if the highest 60 paid NBA players are compensated for performing in the clutch. The research finds that the pay for the sample of highly paid NBA players is related to their field goal percentage and to assists to other players during the last four minutes of close games when the score is within five points. Their pay is tied significantly to field goal attempts in the last minute of close games as well. It appears from the results that NBA organizations reward players who at the end of close games make shots, are able to handle the ball, and set up their teammates to score as well as be willing to take shots in the last minute of tightly contested games.
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