Will he stay or will he go? how monetary and non-monetary variables affect the NBA free agents decision making
DOI:
https://doi.org/10.5585/podium.v11i3.19807Keywords:
Labor migration, NBA, Free agents, Basketball.Abstract
Objective: Different factors influence the National Basketball Association (NBA) players to sign a contract during the free agency. Top players have more power of choice during this period and are expected to have more options to choose from it. The purpose of this paper is to analyze the relationship between monetary and non-monetary variables on the decision made by NBA free agents, according to their salary.
Methodology: Our sample comprises 595 players who signed a contract with 30 NBA franchises between the start of the 2015/16 season and the beginning of the 2019/20 season. We employed descriptive statistics dividing the players according to salary quartiles and correspondence analysis.
Originality/Relevance: We analyze the relationship between on and off-court variables to the NBA free agents’ transfers, which we identify as a caveat in the literature.
Main Results: Results indicated no predominant variable that dictates where a player will sign. The results also indicated a tendency for top players to take off-court variables more into consideration than on-court variables. However, there is not an advantage of monetary or non-monetary variables in the players’ decisions.
Theoretical/methodological contributions: Our results suggest that players with higher salaries have more power to decide which team he will play next season and that this decreases as the salary decrease. Also, players with higher salaries have a higher chance of staying in their teams than players with lower salaries.
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