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Did the 2005 Collective Bargaining Agreement Really Improve Team Efficiency in the NHL?

Author

Listed:
  • Arne Büschemann

    () (University of Paderborn, Germany)

  • Christian Deutscher

    () (University of Paderborn, Germany)

Abstract

After the lockout season in 2004, the 2005 collective bargaining agreement (CBA) introduced salary regulations, as well as revenue sharing, to the teams of the National Hockey League (NHL) with the aim to restore financial competitiveness. Given these objectives, the question arises if efficiencies improved under the new CBA. Using team values as the dependent variable, we performed a stochastic frontier analysis. Our paper suggests that efficiencies immediately improved after the agreement, in particular for low performing teams.

Suggested Citation

  • Arne Büschemann & Christian Deutscher, 2011. "Did the 2005 Collective Bargaining Agreement Really Improve Team Efficiency in the NHL?," International Journal of Sport Finance, Fitness Information Technology, vol. 6(4), pages 298-306, November.
  • Handle: RePEc:jsf:intjsf:v:6:y:2011:i:4:p:298-306
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    More about this item

    Keywords

    National Hockey League; stochastic frontier analysis; efficiency; franchise values;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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