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


  • Arne Büschemann

    () (University of Paderborn, Germany)

  • Christian Deutscher

    () (University of Paderborn, Germany)


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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    References listed on IDEAS

    1. Boscá, José E. & Liern, Vicente & Martínez, Aurelio & Sala, Ramøn, 2009. "Increasing offensive or defensive efficiency? An analysis of Italian and Spanish football," Omega, Elsevier, vol. 37(1), pages 63-78, February.
    2. Stefan Szymanski, 2003. "The Assessment: The Economics of Sport," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 467-477, Winter.
    3. Van Calster Ben & Smits Tim & Van Huffel Sabine, 2008. "The Curse of Scoreless Draws in Soccer: The Relationship with a Team's Offensive, Defensive, and Overall Performance," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 4(1), pages 1-24, January.
    4. Peter Macmillan & Ian Smith, 2007. "Explaining International Soccer Rankings," Journal of Sports Economics, , vol. 8(2), pages 202-213, May.
    5. Robert Houston & Dennis Wilson, 2002. "Income, leisure and proficiency: an economic study of football performance," Applied Economics Letters, Taylor & Francis Journals, vol. 9(14), pages 939-943.
    6. Lawrence M. Kahn, 2000. "The Sports Business as a Labor Market Laboratory," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 75-94, Summer.
    7. Robert Hoffmann & Lee Chew Ging & Bala Ramasamy, 2002. "The Socio-Economic Determinants of International Soccer Performance," Journal of Applied Economics, Universidad del CEMA, vol. 5, pages 253-272, November.
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    More about this item


    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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