How the Increase in Three-Point Shooting Offenses in the NBA Has Impacted Wage Determinants for Point Guards
Open Access
Author:
Boinske, Charles
Area of Honors:
Economics
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
Jadrian James Wooten, Thesis Supervisor Russell Paul Chuderewicz, Thesis Honors Advisor
Keywords:
Basketball Sports Economics NBA Multivariable regression
Abstract:
As NBA offenses have changed over time, the desired skill set or roles of position players has changed. There is no better example of this phenomenon than the rise of three-point shooting offenses in the NBA, and more recently the increased frequency of three point attempts amongst point guards. Prior studies however, have determined that three-point shooting accuracy and frequency are both insignificant determinants of player salary. This paper attempts to determine if three-point shooting remains an insignificant salary determinant in the years after 2012 and isolates the point guard position specifically instead of including all NBA players. Using multivariable regression analysis, it was discovered that three-point frequency was a statistically significant and positive determinant of player salary in the years 2008 to 2013. This trend did not extend beyond 2013 and three point shooting variables were insignificant indicators of salary up until 2018. These findings could be important for both NBA managers and players, because it shows that a valued skillset for point guards is not translating into higher compensation. It may also alarm the NBA business model, that the skill that is so heavily emphasized in advertisements and the media is not being compensated for.
