IDEAS home Printed from https://ideas.repec.org/p/wis/wpaper/1502.html
   My bibliography  Save this paper

Does it pay to win the Stanley Cup?

Author

Listed:
  • Derek Lanoue

    (Department of Economics, University of Windsor)

Abstract

Yes, it does indeed pay to win the Stanley Cup (SC). Professional sports offer a unique opportunity to examine the relationship between a player’s salary and their performance. Salary statistics have become widely available and enable individual performance scrutiny in relation to remuneration level. There is an extensive literature explaining which factors in‡uence the players’ salary in the National Hockey League (NHL), using data sets from different seasons and including various performance indicators. Although much is known about salary and performance in professional hockey, there is a lack of understanding and empirical evidence of the pecuniary value of winning the Stanley Cup (SC) - the trophy awarded annually to the NHL playoff champion and the ultimate prize in professional hockey. Our empirical analysis suggests that winning the Stanley cup the season prior to signing a new contract earns players a 19% wage premium on their next contract.

Suggested Citation

  • Derek Lanoue, 2015. "Does it pay to win the Stanley Cup?," Working Papers 1502, University of Windsor, Department of Economics.
  • Handle: RePEc:wis:wpaper:1502
    as

    Download full text from publisher

    File URL: http://web2.uwindsor.ca/economics/RePEc/wis/pdf/1502.pdf
    File Function: First version, 2015
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stacey Brook, 2010. "The Payoff to Leadership in Teams," Journal of Sports Economics, , vol. 11(3), pages 358-360, June.
    2. Leo Kahane, 2001. "Team and player effects on NHL player salaries: a hierarchical linear model approach," Applied Economics Letters, Taylor & Francis Journals, vol. 8(9), pages 629-632.
    3. R. Antonietti, 2006. "Human Capital, Sport Performance, and Salary Determination of Professional Athletes," Working Papers 561, Dipartimento Scienze Economiche, Universita' di Bologna.
    4. Bryson, Alex & Buraimo, Babatunde & Simmons, Rob, 2011. "Do salaries improve worker performance?," Labour Economics, Elsevier, vol. 18(4), pages 424-433, August.
    5. J. Colin & H. Jones & Serge Nadeau & William Walsh, 1999. "Ethnicity, productivity and salary: player compensation and discrimination in the National Hockey League," Applied Economics, Taylor & Francis Journals, vol. 31(5), pages 593-608.
    6. Timothy C. Y. Chan & Justin A. Cho & David C. Novati, 2012. "Quantifying the Contribution of NHL Player Types to Team Performance," Interfaces, INFORMS, vol. 42(2), pages 131-145, April.
    7. Andrew Larsen & Aju J. Fenn & Erin Leanne Spenner, 2006. "The Impact of Free Agency and the Salary Cap on Competitive Balance in the National Football League," Journal of Sports Economics, , vol. 7(4), pages 374-390, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Terry, Ryan P. & McGee, Jeffrey E. & Kass, Malcolm J., 2018. "The not-so-free agent: Non-performance factors that contribute to free agent compensation premiums," Sport Management Review, Elsevier, vol. 21(2), pages 189-201.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Claude Vincent & Byron Eastman, 2009. "Determinants of Pay in the NHL," Journal of Sports Economics, , vol. 10(3), pages 256-277, June.
    2. Fort, Rodney & Maxcy, Joel & Diehl, Mark, 2016. "Uncertainty by regulation: Rottenberg׳s invariance principle," Research in Economics, Elsevier, vol. 70(3), pages 454-467.
    3. Nikos Chatzistamoulou & Kounetas Kostas & Antonakis Theodor, 2022. "Salary Cap, Organizational Gap, and Catch-up in the Performance of NBA Teams: A Two-Stage DEA Model Under Heterogeneity," Journal of Sports Economics, , vol. 23(2), pages 123-155, February.
    4. Neil Longley, 2000. "The Underrepresentation of French Canadians on English Canadian NHL Teams," Journal of Sports Economics, , vol. 1(3), pages 236-256, August.
    5. Lenten, Liam J.A., 2011. "The extent to which unbalanced schedules cause distortions in sports league tables," Economic Modelling, Elsevier, vol. 28(1), pages 451-458.
    6. Dennis Coates, 2017. "Returns to Handedness in Professional Hockey," Sports Economics, Management, and Policy, in: Bernd Frick (ed.), Breaking the Ice, pages 41-56, Springer.
    7. Besters, Lucas, 2018. "Economics of professional football," Other publications TiSEM d9e6b9b7-a17b-4665-9cca-1, Tilburg University, School of Economics and Management.
    8. Vincent Claude B & Eastman Byron, 2009. "Defining the Style of Play in the NHL: An Application of Cluster Analysis," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 5(1), pages 1-23, January.
    9. Daniel Nicolae MAITA & Alexandra-Irina PADUREAN (BADEA) & Claudiu CRETU & Vasile APOSTOL, 2021. "Salary Cap Model €“ Influence Of Sports Leagues Competitiveness €“ National Basketball Association Vs National Hockey League In North America," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(1), pages 185-194, November.
    10. Timothy C. Y. Chan & Justin A. Cho & David C. Novati, 2012. "Quantifying the Contribution of NHL Player Types to Team Performance," Interfaces, INFORMS, vol. 42(2), pages 131-145, April.
    11. Jeffrey Chu & Saralees Nadarajah & Emmanuel Afuecheta & Stephen Chan & Ying Xu, 2014. "A statistical study of racism in English football," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(5), pages 2915-2937, September.
    12. Bulent Uyar & David Surdam, 2013. "Searching for On-Field Parity," Journal of Sports Economics, , vol. 14(5), pages 479-497, October.
    13. Conlin, Michael & Orsini, Joe & Tang, Meng-Chi, 2013. "The effect of an agent’s expertise on National Football League contract structure," Economics Letters, Elsevier, vol. 121(2), pages 275-281.
    14. Thomas H. Bruggink & Daniel Williams, 2009. "Discrimination against Europeans in the National Hockey League: Are Players Getting Their Fair Pay?," The American Economist, Sage Publications, vol. 54(2), pages 82-90, October.
    15. W. David Allen & Donald J. Schepker & Clint Chadwick, 2022. "Firms' responses to changes in frictions in related human capital factor markets," Strategic Management Journal, Wiley Blackwell, vol. 43(7), pages 1347-1373, July.
    16. Dennis Coates & Sungil Hong & Michael Mondello, 2011. "An Examination of the Effects of the Recent Economic Crisis on Major League Baseball (MLB) Attendance Demand," UMBC Economics Department Working Papers 11-136, UMBC Department of Economics.
    17. Tony Caporale & Trevor Collier, 2015. "Are We Getting Better or Are They Getting Worse? Draft Position, Strength of Schedule, and Competitive Balance in the National Football League," Journal of Labor Research, Springer, vol. 36(3), pages 291-300, September.
    18. Lee, Travis, 2020. "Competitive Balance in the National Hockey League after Unrestricted Free Agency and the Salary Cap," MPRA Paper 108400, University Library of Munich, Germany.
    19. Peter Dawson & Patrick Massey & Paul Downward, 2020. "Television match officials, referees, and home advantage: Evidence from the European Rugby Cup," Sport Management Review, Taylor & Francis Journals, vol. 23(3), pages 443-454, July.
    20. Benno Torgler & Sascha Schmidt, 2007. "What shapes player performance in soccer? Empirical findings from a panel analysis," Applied Economics, Taylor & Francis Journals, vol. 39(18), pages 2355-2369.

    More about this item

    Keywords

    National Hockey League; NHL; Salary; Stanley Cup; Hockey Analytics;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wis:wpaper:1502. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/dwindca.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Trudeau (email available below). General contact details of provider: https://edirc.repec.org/data/dwindca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.