UNLV-Econ-WPS-2025-003
Does a Star Player’s Jewelry Matter? An Analysis of NBA Real Team Value
Working paper notice: This paper is a preliminary research output. It has undergone editorial screening but has not undergone external peer review. It may be revised.
Paper record
- Issue
- Spring 2025
- Repository issue
- Volume 2, Issue 1
- Series number
- UNLV-Econ-WPS-2025-003
- Citable publication date
- OAsis online date
- Current version
- Current version ·
- Research field
- Industrial Organization
- Pages
- 1-17
Abstract
This study dives into the financial and sport factors that impact team market value and revenue. This study's results confirm that star players significantly enhance team value, with NBA Superstars adding nearly $500 million annually. This study discovered the prominence of a Principal-Agent Problem between star players and NBA front offices over the issue of championship pursuit. The analysis also identifies an optimal style of play for revenue generation, but that could oppose longer-term team value. These findings have critical implications for NBA front offices, owners, and coaching staffs.
Keywords
NBA, Team Value, Star Players, Sports Economics, Principal-Agent Problem
Version history
- Current version Current