The Postseason Value of an Elite Player to a Contending Team

Anthony C. Krautmann and James Ciecka
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Anthony C. Krautmann: DePaul University
James Ciecka: DePaul University

Journal of Sports Economics, 2009, vol. 10, issue 2, 168-179

Abstract: This paper suggests the possibility that a superstar's ability to propel a team into the playoffs may make him particularly valuable—pushing his salary beyond that which would otherwise be expected. Whereas a team in Major League Baseball (MLB) could play as many as 11 additional home games by the time it concludes the World Series, the number of home-field playoff games is a random variable with a mean of about 4 extra home games. Using reasonable assumptions, this implies that the expected increase in a MLB team's revenues associated with making the playoffs is about $11 million. The analysis shows that contending teams pay elite players (on average) an extra $2.8 million—a 40% bonus—to lure superstars to their rosters.

Keywords: value; elite player (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:jospec:v:10:y:2009:i:2:p:168-179

DOI: 10.1177/1527002508321457

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