Search results

This paper aims to investigate, through the lens of the principal–agent problem, the relationship between payment of National Hockey League (NHL) salaries and player performance during the period of 2005-2011 and explore the inherent issues within the NHL player compensation and incentive structure.

The research adopts a pragmatic philosophy with deductive reasoning. This paper focuses on the NHL season 2005-2011 and undertake analysis of historical player contracts and performance data of 670 players across 29 clubs to undertake liner regression analysis.

This paper quantifies potential inefficiencies of NHL league contracts and defines the parameters of the principal–agent problem. It is identifies that player performance generally increases with salary, is higher in the first year of a contract and despite decreasing over the life of the contract, will usually peak again in the final year of the contract.

The research is based around figures from 2005-2011 and secondary statistical data. The study captures quantitative data but does not allow for an exploration of the qualitative perspective to the problem.

Entry-level or first contracts are good for all teams and players because they provide incentive to perform and a reduction of risk to the team should a player not perform to expectations. The same can be said for players at the other end of the spectrum. Although not typically used much, performance bonuses for players over the age of 35 allow clubs to “take a chance” on a player and the player can benefit by reaching attainable bonuses. These findings therefore provide contributions to the practicing managers and coaches of NHL teams who can consider the results to help shape their approach to management of players and the planning of teams and succession planning for talent.

The paper presents a comprehensive and current perspective of the principal–agent problem in NHL and extends the work of Purcell (2009) and Gannon (2009) in understanding player performance enhancement.

Although most labor and microeconomic textbooks contain a theoretical discussion of the backward‐bending labor supply curve, scant empirical evidence of this phenomenon exists. In this paper we investigate the behavior of PGA golf professionals as they make labor‐leisure choices for performing on the PGA Tour. Using tournament theory to model this labor market and data from tournament performances over three seperate years, we find significant evidence that higher paid PGA Tour players do indeed operate in the backward‐bending region of their labor supply curves.

This paper aims to, considering the potential to generate additional revenue from cross-gamers, identify variables predicting predominant slot-players’ propensity to play table games, as well as predominant table-game players’ propensity to play slots (cross-game play). Casino marketers often promote cross-game play through game lessons and coupons for game trial.

Logistic regression analysis was performed on the player data provided by a destination hotel casino on the Las Vegas Strip. Furthermore, the authors described how to estimate propensity scores, the probability of cross-game play, at the individual level, using a logistic regression equation.

Comparisons of cross-gamers versus non cross-gamers indicated that the amount of play and gaming values of cross-gamers were much higher than those of slot-only players. The results of a logistic regression analysis show that a player’s cross-gaming propensity can be predicted using gaming-related behavioral data. More specifically, cross-gaming propensities were associated with the frequency and recency of casino trips, the amount of money won or lost in gaming, player values to the casino, the duration of play and the length of a customer–casino relationship.

It is recommended that future research apply the model tested herein to other samples and investigate other predictor variables to develop a better predictive model for cross-game play.

The findings and the model introduced herein could help casino marketers identify players with cross-gaming propensity and develop more targeted strategies for customer-relationship management and database marketing.

This study is the first attempt to estimate the cross-gaming propensity at the individual level and offers detailed guidance on how to use the propensity scores for targeting specific customers.

This paper considers whether the prospective services provided by a football player on behalf of the club holding his registration can be recognised as an accounting asset. The first section of the paper considers the appropriateness of treating these prospective services as intangible assets within the terms of the UK Accounting Standards Board criteria for definition and recognition of assets. In the second section, four valuation methodologies are evaluated using case study data made available by a major Scottish club. Each of the methods evaluated is either currently used in accounting practice by some clubs, or is used in some form in the existing market place for players. The historical cost model involves capitalising players acquired by the club via the transfer market on the balance sheet at their cost of registration. The earnings multiplier model applies a multiplier to a player's earnings to produce a current valuation of that player. The third model involves capitalising players at directors' valuation, while the independent multiple player evaluation model involves obtaining valuations for players from various informed sources, knowledgeable on those particular players. The paper concludes that there are convincing arguments for the conceptualisation of the services provided by football players as accounting assets, and recommends an system of valuation in which players are valued at their realisable value by independent experts.

From the buying club’s perspective, the transfer of a player can be interpreted as an investment from which the club expects uncertain future benefits. This paper aims to develop a decision-oriented approach for the valuation of football players that could theoretically help clubs determine the subjective value of investing in a player to assess its potential economic advantage.

We build on a semi-investment-theoretical risk-value model and elaborate an approach that can be applied in imperfect markets under uncertainty. Furthermore, we illustrate the valuation process with a numerical example based on fictitious data. Due to this explicitly intended decision support, our approach differs fundamentally from a large part of the literature, which is empirically based and attempts to explain observable figures through various influencing factors.

We propose a semi-investment-theoretical valuation approach that is based on a two-step model, namely, a first valuation at the club level and a final calculation to determine the decision value for an individual player. In contrast to the previous literature, we do not rely on an econometric framework that attempts to explain observable past variables but rather present a general, forward-looking decision model that can support managers in their investment decisions.

This approach is the first to show managers how to make an economically rational investment decision by determining the maximum payable price. Nevertheless, there is no normative requirement for the decision-maker. The club will obviously have to supplement the calculus with nonfinancial objectives. Overall, our paper can constitute a first step toward decision-oriented player valuation and for theoretical comparison with practical investment decisions in football clubs, which obviously take into account other specific sports team decisions.

The decision by the European Court of Justice in Luxembourg in the case involving the Belgian footballer Jean‐Marc Bosnian presents the most serious challenge yet to the influence football clubs hold over their players. The court decided that it is a breach of European law for clubs to demand a transfer fee in respect of a player at the end of his contract, as this is a restriction of the free movement of labour as set out in Article 48 of the Treaty of Rome. This paper considers the implications of this decision for professional football clubs in the UK, several of whom record the services provided by their players as assets on their balance sheet. The paper considers various possible accounting treatments and concludes that in the short term at least, given the uncertainties surrounding the industry post Bosman, recording the cost of players' registrations at their historical cost is the most appropriate policy for clubs to adopt. The paper also considers the implications of the case for clubs' fund‐raising capabilities, through interviews with clubs' bankers, finding that banks are more concerned about the quality of income stream rather than the existence of security in the form of transferring players' registrations. ‘If someone regards players as a merchandise with a monetary value, whose value may in some cases even be included in the balance sheet, he does so at his own risk.’

Predictive analytics and artificial intelligence are perceived as significant drivers to improve organizational performance and managerial decision-making. Hiring employees and contract renewals are instances of managerial decision-making problems that can incur high financial costs and long-term impacts on organizational performance. The primary goal of this study is to identify the Major League Baseball (MLB) free agents who are likely to receive a contract.

This study used the design science research paradigm and the cognitive analytics management (CAM) theory to develop the research framework. A dataset on MLB's free agents between 2013 and 2017 was collected. A decision support tool was built using artificial neural networks.

There are clear links between a player's statistical performance and the decision of the player to sign a new offered contract. “Age,” “Wins above Replacement” and “the team on which a player last played” are the most significant factors in determining if a player signs a new contract.

This paper applied analytical modeling to personnel decision-making using the design science paradigm and guided by CAM as the kernel theory. The study employed machine learning techniques, producing a model that predicts the probability of free agents signing a new contract. Also, a web-based tool was developed to help decision-makers in baseball front offices so they can determine which available free agents to offer contracts.

Although the PGA Tour provides a wide array of statistics, no single measure has successfully been able to predict a player's success during the season, either in terms of earnings per tournament or weighted average scores. The purpose of this paper is to present a metric that attempts to predict annual player rankings based on these two criteria.

The metric is computed from available statistics and attempts to encapsulate a player's unique strengths and weaknesses in a single number.

Deviations in rankings based on the metric are compared to those based on earnings per event and adjusted scoring averages. The results suggest that in addition to the average annual performance on the greens, the mix of tournaments played and the incidence of heroics or consistency have an important impact on the chances of success on the Tour.

The metric's predictions can be negatively affected if a golfer makes a large proportion of double eagles or double bogies.

The KCS (Key Criterion of Success) metric provides a quick route to succinctly summarizing a golfer's unique strengths and weaknesses in a single number.

Previous literature has mentioned the gap between statistics and success in golf. For the first time, possible reasons behind this divergence are identified in this paper.

Growing evidence suggests regional economic factors impact on individual outcomes, such as life expectancy and well-being. The purpose of this paper is to investigate the impact that player-specific and regional differences have on the number of senior international appearances football players accumulate over the course of their careers, for six UEFA member countries, from 1993 to 2014.

The research employs a Poisson regression model to analyse the impact of individual and regional factors on the number of senior international caps a footballer receives over the course of their career.

The results indicate that both individual and regional variables can explain the number of caps a player receives over the course of their career. The authors find that an individual’s career length positively influences the number of international caps accrued. Players born in wealthier and more populous regions accumulate a greater number of international appearances. Distance from the capital has no effect, however, the number of youth academies in the player’s region of birth has a significant positive effect.

The analysis is limited to regional variations within economically developed states. It would be interesting to test whether the correlation between relative regional development and international success exists in less developed countries. The authors only address mens international football in this study and cannot comment on the generality of the findings across genders or sports.

The results can provide insights for local football authorities and policy makers concerned with regional characteristics and those interested in the development of elite talent.

This is the first study to analyse a pan-European data set, using an increasingly adopted econometric method to understanding regional economic development – Poisson modelling.

Much evidence exists that rational investors factor rational information into their valuation of shares. This paper aims to examine whether sentimental investors do the same.

To investigate this issue, the author measures sentimental investors’ reaction to the surprise player transactions of the Boston Celtics, which traded on the New York Stock Exchange for 18 years. The team’s shares were bought mainly as souvenirs by sports fans, whose largely unwavering support makes them perhaps the least likely investors to be influenced by rational information. Thus, if the team’s share price changes because of the arrival of rational information, evidence that sentimental traders price rational information into their valuation of a stock will exist.

An acquired player’s salary, education and firm-specific experience with the Boston Celtics cause higher returns. This result provides evidence that sentimental traders factor rational information into their valuations of shares. On a broader scale, the findings underscore the importance of rational information to the valuation process, as even sentimental investors price rational information into a stock that is held for sentimental reasons. Moreover, the results are consistent with the nudge theory, in that the arrival of rational information encourages (i.e. nudges) sentimental investors to price the rational information as a rational investor world.

This study is the first to show that sentimental traders also factor rational information into the valuation process – an idea that was likely assumed prior to this study, but was never substantiated.