{"id":6878,"date":"2020-02-28T06:30:00","date_gmt":"2020-02-28T12:30:00","guid":{"rendered":"http:\/\/thesportjournal.org\/?p=6878"},"modified":"2020-02-19T09:49:46","modified_gmt":"2020-02-19T15:49:46","slug":"are-nba-players-paid-to-perform-in-the-clutch","status":"publish","type":"post","link":"https:\/\/thesportjournal.org\/article\/are-nba-players-paid-to-perform-in-the-clutch\/","title":{"rendered":"Are NBA Players Paid to Perform in the Clutch?"},"content":{"rendered":"\n<p><strong>Authors: <\/strong>Kevin Sigler <\/p>\n\n\n\n<p><strong>Corresponding Author:<\/strong><br>Kevin Sigler, PhD<br>601 College Road<br>Department of Economics and Finance<br>Cameron School of Business<br>UNC Wilmington<br>Wilmington, NC 28403<br>siglerk@uncw.edu<br>910-200-2076<\/p>\n\n\n\n<p>Kevin Sigler is Professor of\nFinance in the Cameron School of Business, UNC Wilmington<\/p>\n\n\n\n<h3>Are NBA Players Paid to Perform in the Clutch?<\/h3>\n\n\n\n<p><strong>ABSTRACT<\/strong><\/p>\n\n\n\n<p>The star players in the National\nBasketball Association (NBA) are paid extremely well.&nbsp; In the 2018-19 season there were 60 players\nin the NBA that were paid $17 million or more for their services.&nbsp; Stephen Curry was the highest paid at $37.5 million\n(Table 1).&nbsp; LeBron James, Chris Paul, and\nRussell Westbrook tied for second at salaries of $35.7 million (1).&nbsp; This study examines if the highest 60 paid\nNBA players are compensated for performing in the clutch.&nbsp; The research finds that the pay for the\nsample of highly paid NBA players is related to their field goal percentage and\nto assists to other players during the last four minutes of close games when\nthe score is within five points.&nbsp; Their\npay is tied significantly to field goal attempts in the last minute of close\ngames as well.&nbsp; It appears from the\nresults that NBA organizations reward players who at the end of close games\nmake shots, are able to handle the ball, and set up their teammates to score as\nwell as be willing to take shots in the last minute of tightly contested games.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p><strong>Keywords<\/strong>: National Basketball Association, players, salary,\nclutch<strong><br>\n<\/strong><\/p>\n\n\n\n<p><strong>INTRODUCTION&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong><\/p>\n\n\n\n<p>The star players in the\nNational Basketball Association (NBA) are paid extremely well.&nbsp;&nbsp; In the 2018-19 season there were 60 players\nin the NBA that were paid $17 million or more for their services (Table\n1).&nbsp; This study examines if NBA organizations\npay highly compensated players for performing in the clutch, producing for\ntheir teams when the game is on the line in the last minutes of play.&nbsp; <\/p>\n\n\n\n<p>Stephen Curry was the\nhighest paid NBA player in the 2018-19 season paid at $37.5 million (Table\n1).&nbsp; LeBron James, Chris Paul, and\nRussell Westbrook tied for second at salaries of $35.7 million (1).&nbsp; However, there are limits to the amount a team\ncan pay its players.&nbsp; The most a team can\npay a player is either a max or super-max contract lasting no longer than five\nyears.&nbsp; <\/p>\n\n\n\n<strong>Table 1:<\/strong> Top 60 Paid NBA Players 2018-19\n<table class=\"wp-block-table\">\n    <tbody>\n        <tr>\n            <td><strong>Name<\/strong><\/td>\n            <td><strong>Team<\/strong><\/td>\n            <td><strong>Salary<\/strong><\/td>\n        <\/tr>\n        <tr>\n            <td valign=\"top\">Stephen Curry<br\/>\n                Chris Paul<br\/>\n                LeBron James<br\/>\n                Russell Westbrook\u00a0 <br\/>\n                Blake Griffin<br\/>\n                Gordon Hayward<br\/>\n                Kyle Lowery<br\/>\n                Paul George<br\/>\n                Mike Conley<br\/>\n                James Harden<br\/>\n                Kevin Durant<br\/>\n                Paul Millsap<br\/>\n                Al Horford<br\/>\n                Damian Lillard<br\/>\n                Demar DeRozen<br\/>\n                Otto Porter Jr.<br\/>\n                Jrue Holiday<br\/>\n                CJ McCollum<br\/>\n                Joel Embiid<br\/>\n                Andrew Wiggins<br\/>\n                Bradley Beal<br\/>\n                Anthony Davis<br\/>\n                Andre Drummond<br\/>\n                Hassan Whiteside<br\/>\n                Nikola Jokic<br\/>\n                Steven Adams<br\/>\n                Giannis Antetokounmp<br\/>\n                Marc Gasol<br\/>\n                Kevin Love<br\/>\n                Harrison Barnes<br\/>\n                Chandler Parsons<br\/>\n                Nicolas Batum<br\/>\n                Rudy Gobert<br\/>\n                Kawhi Leonard<br\/>\n                DeAndre Jordan<br\/>\n                LaMarcus Aldridge<br\/>\n                Serge Ibaka<br\/>\n                Aaron Gordon<br\/>\n                Danilo Gillinari<br\/>\n                Victor Oladipo<br\/>\n                Jimmy Butler<br\/>\n                Ryan Anderson<br\/>\n                Kyrie Irving<br\/>\n                Jabari Psrker<br\/>\n                Zach LaVine\u00a0<br\/>\n                Tyler Johnson<br\/>\n                Tim Hardaway<br\/>\n                John Wall<br\/>\n                Jeff Teague<br\/>\n                George Hill\u00a0<br\/>\n                Klay Thompson<br\/>\n                Allen Crabbe<br\/>\n                Goran Dragic<br\/>\n                Kent Bazemore<br\/>\n                Evan Turner<br\/>\n                Draymond Green<br\/>\n                Tristan Thompson<br\/>\n                Evan Fournier<br\/>\n                Reggie Jackson<br\/>\n                Bismack Biyombo <\/td>\n            <td valign=\"top\">Golden State Warriors<br>\n                    Houston Rockets<br>\n                    Los Angeles Lakers<br>\n                    Oklahoma City Thunder <br\/>\n                    Detroit Pistons<br\/>\n                    Boston Celtics<br\/>\n                    Toronto Raptors<br\/>\n                    Oklahoma City Thunder<br\/>\n                    Memphis Grizzlies<br\/>\n                    Houston Rockets\u00a0<br\/>\n                    Golden State Warriors<br\/>\n                    Denver Nuggets<br\/>\n                    Boston Celtics<br\/>\n                    Portland Trailblazers\u00a0<br\/>\n                    San Antonio Spurs<br\/>\n                    Washington Wizards\u00a0<br\/>\n                    New Orleans Pelicans<br\/>\n                    Portland Trailblazers<br\/>\n                    Philadelphia 76ers<br\/>\n                    Minnesota Timberwolves<br\/>\n                    Washington Wizards<br\/>\n                    New Orleans Pelicans<br\/>\n                    Detroit Pistons<br\/>\n                    Miami Heat<br\/>\n                    Denver Nuggets<br\/>\n                    Oklahoma City Thunder<br\/>\n                    Milwaukee Bucks<br\/>\n                    Toronto Raptors<br\/>\n                    Cleveland Cavaliers<br\/>\n                    Sacramento Kings<br\/>\n                    Memphis Grizzlies<br\/>\n                    Charlotte Hornets<br\/>\n                    Utah Jazz<br\/>\n                    Toronto Raptors<br\/>\n                    New York Knicks<br\/>\n                    San Antonio Spurs<br\/>\n                    Toronto Raptors<br\/>\n                    Orlando Magic<br\/>\n                    New York Knicks<br\/>\n                    Indiana Pacers<br\/>\n                    Philadelphia 76ers<br\/>\n                    Phoenix Suns<br\/>\n                    Boston Celtics<br\/>\n                    Washington Wizards<br\/>\n                    Chicago Bulls<br\/>\n                    Phoenix Suns<br\/>\n                    New York Knicks<br\/>\n                    Washington Wizards<br\/>\n                    Minnesota Timberwolves<br\/>\n                    Milwaukee Bucks<br\/>\n                    Golden State Warriors<br\/>\n                    Brooklyn Nets<br\/>\n                    Miami Heat<br\/>\n                    Atlanta Hawks<br\/>\n                    Portland Trailblazers<br\/>\n                    Golden State Warriors<br\/>\n                    Cleveland Cavaliers<br\/>\n                    Orlando Magic<br\/>\n                    Detroit Pistons<br\/>\n                    Charlotte Hornets <\/td>\n            <td valign=\"top\">$37,457,154<br>\n                    $35,654,150<br>\n                    $35,654,150<br>\n                    $35,654,150\u00a0 <br\/>\n                    $32,088,932<br\/>\n                    $31,214,295<br\/>\n                    $31,200,000<br\/>\n                    $30,560,700<br\/>\n                    $30,521,115<br\/>\n                    $30,421,854<br\/>\n                    $30,000,000<br\/>\n                    $29,230,769<br\/>\n                    $28,928,709<br\/>\n                    $27,977,689<br\/>\n                    $27,739,975<br\/>\n                    $26,011,913<br\/>\n                    $25,976,111<br\/>\n                    $25,759,766<br\/>\n                    $25,467,250<br\/>\n                    $25,467,250<br\/>\n                    $25,434,263<br\/>\n                    $25,434,263<br\/>\n                    $25,434,263<br\/>\n                    $25,434,262<br\/>\n                    $24,605,181<br\/>\n                    $24,157,303<br\/>\n                    $24,157,303<br\/>\n                    $24,119,025<br\/>\n                    $24,119.025<br\/>\n                    $24,107,258<br\/>\n                    $24,107,258<br\/>\n                    $24,000,000<br\/>\n                    $23,241,573<br\/>\n                    $23,114,067<br\/>\n                    $22,897,200<br\/>\n                    $22,347,015<br\/>\n                    $21,666,667<br\/>\n                    $21,590,909<br\/>\n                    $21,587,579<br\/>\n                    $21,000,000<br\/>\n                    $20,445,779<br\/>\n                    $20,421,546<br\/>\n                    $20,099,189<br\/>\n                    $20,000,000<br\/>\n                    $19,500,000<br\/>\n                    $19,356,932<br\/>\n                    $19,200,127<br\/>\n                    $19,169,800<br\/>\n                    $19,000,000<br\/>\n                    $19,000,000<br\/>\n                    $18,988,725<br\/>\n                    $18,500,000<br\/>\n                    $18,109,175<br\/>\n                    $18,089,887<br\/>\n                    $17,868,853<br\/>\n                    $17,469,565<br\/>\n                    $17,469,565<br\/>\n                    $17,150,000<br\/>\n                    $17,043,478<br\/>\n                    $17,000,000<\/td>\n        <\/tr>\n        <tr>\n            <td valign=\"top\">&nbsp;<\/td>\n            <td align=\"right\" valign=\"top\"><strong>Mean<\/strong><\/td>\n            <td valign=\"top\">$24,157,049<\/td>\n        <\/tr>\n        <tr>\n            <td valign=\"top\">&nbsp;<\/td>\n            <td align=\"right\" valign=\"top\"><strong>Median<\/strong><\/td>\n            <td valign=\"top\">$24,107,258<\/td>\n        <\/tr>\n    <\/tbody>\n<\/table>\n\n\n\n<p><strong>MAX\nAND SUPER-MAX CONTRACTS<\/strong><\/p>\n\n\n\n<p>A player is eligible to\nsign for a maximum salary for the 2018-19 season of $25,467,250 or 25 percent\nof the cap if he has six or less years of experience (2).&nbsp;&nbsp;&nbsp; A player with 7-9 years in the league can\nget 30 percent of the cap or $30,560,700 and with 10 years or more can receive\nup to 35 percent of the cap or $35,654,150 (Table 2).&nbsp; <\/p>\n\n\n\n<strong>Table 2:<\/strong> Max Salaries and Projected Max Salaries\n<table  class=\"wp-block-table\">\n    <tbody>\n        <tr>\n            <td colspan=\"4\" valign=\"top\"><strong>A player re-signing with his own team (8% annual raises, up to  five years)<\/strong><\/td>\n        <\/tr>\n        <tr>\n            <td valign=\"top\"><strong>Year<\/strong><\/td>\n            <td valign=\"top\"><strong>6 years or less<\/strong><\/td>\n            <td valign=\"top\"><strong>7-9 years<\/strong><\/td>\n            <td valign=\"top\"><strong>10+ years<\/strong><\/td>\n        <\/tr>\n        <tr>\n            <td valign=\"top\">2018-19<br>\n                2019-20<br>\n                2020-21<br>\n                2021-22<\/td>\n            <td valign=\"top\">$25,467,250<br>\n                $27,504,630<br>\n                $29,542,010<br>\n                $31,579,390<\/td>\n            <td valign=\"top\"> $30,560,700<br>\n                $33,005,556<br>\n                $35,450,412<br>\n                $37,895,268<\/td>\n            <td valign=\"top\">$35,654,150<br>\n                $38,506,482<br>\n                $41,358,814<br>\n                $44,211,146<\/td>\n        <\/tr>\n        <tr>\n            <td colspan=\"4\" valign=\"top\">&nbsp;<\/td>\n        <\/tr>\n        <tr>\n            <td colspan=\"4\" valign=\"top\"><strong>A player signing with his a new team (5% annual raises, up to 4  years)<\/strong><\/td>\n        <\/tr>\n        <tr>\n            <td valign=\"top\"><strong>Year<\/strong><\/td>\n            <td valign=\"top\"><strong>6 years or less<\/strong><\/td>\n            <td valign=\"top\"><strong>7-9 years<\/strong><\/td>\n            <td valign=\"top\"><strong>10+ years<\/strong><\/td>\n        <\/tr>\n        <tr>\n            <td valign=\"top\">2018-19<br>\n                2019-20<br>\n                2020-21<br>\n                2021-22<\/td>\n            <td valign=\"top\">$25,467,250<br>\n                $26,740,613<br>\n                $28,013,975<br>\n                $29,287,338<\/td>\n            <td valign=\"top\">$30,560,700<br>\n                $32,088,735<br>\n                $33,616,770<br>\n                $35,144,805<\/td>\n            <td valign=\"top\">$35,654,150<br>\n                $37,436,858<br>\n                $39,219,565<br>\n                $41,002,273<\/td>\n        <\/tr>\n    <\/tbody>\n<\/table>\n\n\n\n<p>The&nbsp;super-max contract, officially known\nas the Designated Veteran Player Extension, allows teams to re-sign players to\nmaximum five-year&nbsp;contracts\nthat are worth up to 35 percent of the salary cap with raises of eight percent\nin each following season. &nbsp;&nbsp;A player who has seven or eight years of\nNBA service with one or two years left on his contract and qualifies for the designated\nveteran extension&nbsp;is eligible for a starting salary worth up to 35 percent\nof the cap (3)&nbsp;&nbsp; Other qualifiers for the Designated Veteran\nExtension are the following: <\/p>\n\n\n\n<ul><li>The player was named\nto an All-NBA team in the season just completed, or in two of the last three\nseasons.<\/li><li>The player was named\nthe NBA MVP in any of the three most recent seasons.<\/li><li>The player was named\nthe NBA Defensive Player of the Year for in the season just completed, or in\ntwo of the last three seasons.<\/li><\/ul>\n\n\n\n<p>There are only four players so far who have signed\nsuper-max contracts: James Harden, Stephen Curry, Russell Westbrook, and John\nWall. <\/p>\n\n\n\n<p><strong>SALARY\nCAP <\/strong><\/p>\n\n\n\n<p>The\ntotal amount a team can pay in salary to its players is subject to a salary cap\n($101.9 million in 2018-19).&nbsp; However, it\nis a soft cap in that a team can exceed it to pay its stars.&nbsp; Teams can exceed the cap to pay its top\nplayers if their players meet the Larry Bird Exception.&nbsp; The Bird Exception (named after the Celtic star who was first to be\nsigned this way) allows teams to exceed the salary cap to re-sign their own\nfree agents at an amount up to the maximum salary.&nbsp; To qualify as a&nbsp;Bird&nbsp;free agent, a player must have played three seasons\nwithout being waived or changing teams as a free agent.&nbsp; &nbsp;Players can earn Early Bird rights after just&nbsp;<em>two<\/em>such seasons. Virtually all of the\nsame rules that apply to Bird rights apply to Early Bird rights, with the\nrequirements condensed to two years rather than three (4).&nbsp;&nbsp; A player traded with Bird Rights is still eligible for a max\ndeal if he meets the other criteria.&nbsp; <\/p>\n\n\n\n<p>Other\nexceptions allow teams to go above the 2018-19 cap as well.&nbsp; Any team, whether above the salary cap or luxury tax level, can offer\na&nbsp;veteran&#8217;s minimum contract&nbsp;to\nany player (5).&nbsp; Teams exceeding the cap\ncan also use the mid-level exception to sign a player.&nbsp;&nbsp; If teams are&nbsp;above&nbsp;the cap\nbut&nbsp;below&nbsp;the luxury tax level ($123.7 million in 2018-19) in total\nsalary, they can use the&nbsp;full\nmid-level exception ($8.641 million in 2018-29) to sign a player.&nbsp;\nTeams that were&nbsp;above&nbsp;the tax level&nbsp;the previous season&nbsp;but are below it by the time free\nagency starts have access to a&nbsp;mini\nmid-level exception ($5.337 million in 2018-19).&nbsp; Teams cannot use either of these exceptions\nif it takes them over the tax threshold. <\/p>\n\n\n\n<p>If the total team salary exceeds $123.7\nin 2018-19 season when using the exceptions, any salary above the amount is\nsubject to a luxury tax.&nbsp; It is a progressive tax.&nbsp; The\nrate is: 150 percent for amounts up to $5 million over the threshold, 175\npercent from $5-10 million, 250 percent from $10-15 million, 350 percent from\n$15-20 million, 375 percent from $20-25 million and increases 50 percent for\nevery increment of $5 million past $25 million&nbsp;\nThe rate is even higher for repeat offenders.&nbsp; For a team that pays out total salaries of\n$140.7 million in 2018-19, they would be subject to a luxury tax on $17 million\n($140.7 &#8211; $123.7).&nbsp; That results in a\nluxury tax of $35.75 million for the season (6). <\/p>\n\n\n\n<p>Rookies\nwhether super stars or not, have set pay schedules depending upon their draft\nposition and are not eligible for massive payouts like their veteran teammates.\nEach rookie drafted in\nthe first round has his salary set by the league.&nbsp; For instance, Zion Williamson was the first player\ndrafted in the 2019 NBA draft so he was eligible to received $6.8 million for\nhis rookie season and $7.9 million in his second season.&nbsp;&nbsp; The NBA also has a requirement that teams\nmust spend a minimum of 90\npercent of the salary cap so the minimum team salary for 2018-19 was $91.682\nmillion.<\/p>\n\n\n\n<p><strong>DATA AND\nMETHODOLOGY<\/strong><\/p>\n\n\n\n<p>This\nstudy investigates if performing in the clutch is significant in determining\nthe salary for the top paid players in the NBA for the 2018-19 season.&nbsp;&nbsp; In a previous study, Lyons et al. (2015) discovered\nin the 2013-14 season that points per game, rebounds, personal fouls, and field\ngoal percentage are statistically significant in determining NBA players\u2019 salary\n(7). Simmons and Berri (2011) found that pay for NBA players is related to\npoints scored, rebounds, blocks, and assists (8). Xu Li (2011) discovered that\npoints and the experience of the player are significant in explaining player\npay using a sample from 2003-2010 (9).<\/p>\n\n\n\n<p>This\nstudy uses data from NBA Miner Clutch Time Statistics.&nbsp; This data is comprised of statistics during\nthe last four minutes of NBA games that have scores within five points.&nbsp; The study includes the clutch performance\nvariables available in NBA Miner Data that correspond to variables in other\nstudies (for the entire game) that were statistically significant.&nbsp; The dependent variable in the study is NBA\nsalaries for the top 60 paid players for 2018-19 season. The salary data comes from\nthe ESPN NBA website shown in Table 1 (1). &nbsp;Variables include the following:&nbsp; <\/p>\n\n\n\n<ul><li>Salary \u2013 Salaries of the 60 highest paid NBA players for 2018-19 season<\/li><li>Points \u2013 Total points in the last 4 minutes of games within 5 points (clutch time) scored by highest paid players<\/li><li>Field goal percentage \u2013 The percent of shots made during clutch time by highest paid players<\/li><li>Assisted field goal percentage \u2013 The percent of team total assists the highest paid players made during clutch time <\/li><li>Block field goal percentage \u2013 The percentage of the team\u2019s total blocked shots attributed to the highest paid players during clutch time<\/li><li>Last minute field goal attempts \u2013 Shots taken by highest paid players in last minute of close game<\/li><li>Last minute field goal percentage \u2013 The percentage of last minute shots made by the highest paid players in a close game.<\/li><\/ul>\n\n\n\n<p><strong>DISCUSSION AND RESULTS <\/strong><\/p>\n\n\n\n<p>Table\n3 shows the results of the regression equation.&nbsp;\nThe F statistic of 103 indicates the independent variables are\nsignificant in explaining the size of the dependent variable, and the adjusted R-squared\nfor the model of .89 demonstrates a very good fit in accounting for the size of\nthe compensation for the top 60 paid players in the NBA.&nbsp; According to the model, two clutch variables\nare significant at a one percent level in explaining NBA player salaries: field\ngoal percentage and assisted field goal percentage in the last four minutes of\ntightly contested games.&nbsp; In addition, the\nindependent variable, last minute field goal attempts, is significant at a five\npercent level.&nbsp; The variables, block field\ngoal percentage and last minute field goal percentage, are statistically insignificant\nand have VIF (variance inflation factors) over 10, indicating multi-collinearity\nstatistical problems (10). &nbsp;<\/p>\n\n\n\n<strong>Table 3:<\/strong> Multiple Regression Results<br>\nDependent Variable \u2013 NBA Player Pay for Top 60 paid  Players for 2018-19 (in $000)\n<table class=\"wp-block-table\">\n    <tbody>\n        <tr>\n            <td><strong>Independent Variables<\/strong><\/td>\n            <td><strong>Coefficients<\/strong><\/td>\n            <td><strong>p-values<\/strong><\/td>\n            <td><strong>VIF<\/strong><\/td>\n        <\/tr>\n        <tr>\n            <td>Points<\/td>\n            <td>2.1<\/td>\n            <td>.967<\/td>\n            <td>4.26<\/td>\n        <\/tr>\n        <tr>\n            <td>Field Goal %<\/td>\n            <td>2505 .4<\/td>\n            <td>.0006 ***<\/td>\n            <td>0.59<\/td>\n        <\/tr>\n        <tr>\n            <td>Assist Field Goal %<\/td>\n            <td>11021.4<\/td>\n            <td>.0085\u00a0***<\/td>\n            <td>0.27<\/td>\n        <\/tr>\n        <tr>\n            <td>Block  FG %<\/td>\n            <td>-1969.5<\/td>\n            <td>.7254<\/td>\n            <td>57.82<\/td>\n        <\/tr>\n        <tr>\n            <td>Last  Minute FGA<\/td>\n            <td>470.9<\/td>\n            <td>.0236\u00a0**<\/td>\n            <td>4.26<\/td>\n        <\/tr>\n        <tr>\n            <td>Last  Minute FG%<\/td>\n            <td>2717.9<\/td>\n            <td>.5006<\/td>\n            <td>58.11<\/td>\n        <\/tr>\n    <\/tbody>\n<\/table>\nR-Squared .91, Adjusted R-Squared .89, F 103.0,  N=60<br>\n*** Significant at .01, ** Significant at .05, * Significant at .10<br>\nDependent Variable:  Salary \u2013 Salary paid to highest paid players for 2018-19 season<br>\nIndependent Variables:<br>\nPoints \u2013 total points scored in the last 4 minutes of games within 5 points (clutch time) by highest paid players<br>\nField Goal % \u2013 the percent of shots made during clutch time by highest paid players<br>\nAssist Field Goal %  \u2013 the percent of team total assists the highest paid players made during clutch time<br>\nBlock FG% \u2013 the percent of team blocked shots made by the highest paid players during clutch time<br>\nLast minute FGA  \u2013 shots taken by highest paid players in last minute of close games<br>\nLast minute FG% \u2013 the percent of last minute shots made by highest paid players in a close games<br>\n<br>\n\n\n\n<p>The\nmodel is re-specified eliminating the two independent variables with multi-collinearity\nproblems, and the results are presented in Table 4.&nbsp; The same three independent variables are\nstatistically significant: field goal percentage and assisted field goal\npercentage at a one percent level and last minute field goal attempts at a 10\npercent level.&nbsp; The variable, points\nscored in the last four minutes of games with five points was again\ninsignificant in the model.&nbsp; The fit of\nthis equation is very high with the same adjusted R-squared of .89 as Table\n3.&nbsp; The F statistic of 139.6, indicating\nthe model is significant in explaining player pay, is higher than the F\nstatistic from the previous model.&nbsp; The results\nfrom Table 4 presents evidence that players receiving the highest compensation\nin the NBA are performing when the game is on the line.&nbsp; Making their shots, and distributing the ball\nto allow teammates to score late in tight games as well taking shots in the last\nminute of close games are significant in explaining the large salaries for the\ntop 60 paid players in the NBA.<\/p>\n\n\n\n<strong>Table 4:<\/strong> Multiple Regression Results<br>\nDependent Variable \u2013 NBA Player Pay for Top 60 paid  Players for 2018-19 (in $000)\n<table class=\"wp-block-table\">\n    <tbody>\n        <tr>\n            <td><strong>Independent Variables<\/strong><\/td>\n            <td><strong>Coefficients<\/strong><\/td>\n            <td><strong>p-values<\/strong><\/td>\n            <td><strong>VIF<\/strong><\/td>\n        <\/tr>\n        <tr>\n            <td>Points<\/td>\n            <td>25.4<\/td>\n            <td>.6252<\/td>\n            <td>4.23<\/td>\n        <\/tr>\n        <tr>\n            <td>Field Goal %<\/td>\n            <td>24893.2<\/td>\n            <td>.0004 ***<\/td>\n            <td>0.59<\/td>\n        <\/tr>\n        <tr>\n            <td>Assist Field Goal %<\/td>\n            <td>11839.9<\/td>\n            <td>.0068\u00a0***<\/td>\n            <td>0.27<\/td>\n        <\/tr>\n        <tr>\n            <td>Last  Minute FGA<\/td>\n            <td>395.6<\/td>\n            <td>.0632\u00a0*<\/td>\n            <td>4.05<\/td>\n        <\/tr>\n    <\/tbody>\n<\/table>\nR-Squared .91, Adjusted R-Squared .89, F 139.6,  N=60<br>\n*** Significant at .01, ** Significant at .05, * Significant at .10<br>\n<br>\n\n\n\n<p>Surprisingly,\nthe independent variable, points scored in the last four minutes of close games,\nis statistically insignificant for the models in Tables 3 and 4.&nbsp; It appears from these results that NBA\norganizations pay for their highly compensated players to facilitate scoring\nfor the entire team by assisting other players for points and shooting a high\npercent when they take shots during the last few minutes of close games instead\nof attempting to score the majority of points themselves. &nbsp;It is evident from the model, however, that highly\npaid players take the shots for their teams in the last minute of tight\ncontests. <\/p>\n\n\n\n<p><strong>CONCLUSIONS<\/strong><\/p>\n\n\n\n<p>This study examined if the\nhighest paid NBA players are paid for performing in the clutch.&nbsp; The research finds that the pay for highly compensated\nNBA players in the sample is related to their field goal percentage and to their\nassists to other players during the last four minutes of close games when the\nscore is within five points.&nbsp; Highly paid\nplayers\u2019 salaries are also linked to field goal attempts in the last minute of\nclose games, according to the analysis.&nbsp;\nIt appears from the results that NBA organizations reward large salaries\nto players who at the end of close games: make shots, are able to handle the\nball and set up their teammates to score as well as be willing to take shots in\nthe last minute of close games.<\/p>\n\n\n\n<p><strong>APPLICATIONS\nIN SPORTS<\/strong><\/p>\n\n\n\n<p>The highest paid players\nin the NBA appear to receive large salaries from their NBA teams because they\ncome through in the last minutes of games when the score is close (in the\nclutch). Their pay is related to the percentage of shots they make and the\nassists they provide their teammates when the game is on the line.&nbsp; They are also paid on to take shots in the\nlast minute of close games.&nbsp; This\ninformation may be relevant for those seeking positions as salary analysts and\nmanagers with NBA franchises when considering pay treatments for players.&nbsp; <\/p>\n\n\n\n<p><strong>ACKNOWLEDGEMENTS<\/strong><\/p>\n\n\n\n<p>None<\/p>\n\n\n\n<p><strong>REFERENCES <\/strong><\/p>\n\n\n\n<ol><li>NBA Statistics, 2017-18 Season,\u00a0 Retrieved from <a href=\"http:\/\/www.espn.com\/nba\/statistics\">http:\/\/www.espn.com\/nba\/statistics<\/a><\/li><li>Urbina, F. (2018). What is an NBA Max Salary, Retrieved from \u00a0https:\/\/hoopshype.com\/2018\/10\/21\/nba-maximum-salary\/<\/li><li>Diven, K. (2019). Explained:What is an NBA Supermax Contract and how does it work? Retrieved from https:\/\/www.nbcsports.com\/washington\/wizards\/explained-what-nba-supermax-contract-and-how-does-it-work<\/li><li>LeRoux, D. (2015). CBA Encyclopedia. Retrieved from <a href=\"https:\/\/basketball.realgm.com\/article\/239564\/CBA-Encyclopedia-Bird-Rights\">https:\/\/basketball.realgm.com\/article\/239564\/CBA-Encyclopedia-Bird-Rights<\/a>.<\/li><li>Coon, L. (2019). NBA Salary Cap Facts Retrieved from <a href=\"http:\/\/www.cbafaq.com\/salarycap.htm\">http:\/\/www.cbafaq.com\/salarycap.htm<\/a><\/li><li>Urbina, F. (2018). How does NBA Luxury Tax work? Retrieved from <a href=\"https:\/\/hoopshype.com\/2018\/10\/11\/nba-luxury-tax\/\">https:\/\/hoopshype.com\/2018\/10\/11\/nba-luxury-tax\/<\/a><\/li><li>Lyons, R., Jackson, E., &amp; Livingston, A. (2015). Determinants of NBA player salaries, the Sport Journal. Retrieved from <a href=\"https:\/\/thesportjournal.org\/article\/determinants-of-nba-player-salaries\/\">https:\/\/thesportjournal.org\/article\/determinants-of-nba-player-salaries\/<\/a><\/li><li>Simmons, R., and Berri, D. (2011). Mixing the prince and the paupers: Pay and performance in the National Basketball Association, <em>Labour Economics <\/em>(3)<em>, <\/em>381-388.<\/li><li>Xu Li, Is NBA basketball player performance indicative of their salary? Retrieved from Prezi.com, 2011.<\/li><li>Mertler, C. R. &amp; Vannetta, R. A. (2004). \u00a0Advanced and multivariate statistical methods:\u00a0\u00a0 practical application and interpretation, 3rd Edition, Glendale, CA: Pyrczak Publishing.<\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Authors: Kevin Sigler Corresponding Author:Kevin Sigler, PhD601 College RoadDepartment of [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_options":[]},"categories":[300],"tags":[1564,597,1563,1374],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p4btio-1MW","jetpack-related-posts":[{"id":5862,"url":"https:\/\/thesportjournal.org\/article\/nba-players-pay-and-performance-what-counts\/","url_meta":{"origin":6878,"position":0},"title":"NBA Players&#8217; Pay and Performance: What Counts?","date":"August 2, 2018","format":false,"excerpt":"Authors: Kevin Sigler and William Compton Corresponding Author: Kevin Sigler, PhD 601 College Road Department of Economics and Finance Cameron School of Business UNC Wilmington Wilmingtomn, NC 28403 siglerk@uncw.edu 910-200-2076 Kevin Sigler is Professor of Finance in the Cameron School of Business, UNC Wilmington William Compton is Professor of Finance\u2026","rel":"","context":"In &quot;Commentary&quot;","img":{"alt_text":"Table 1","src":"https:\/\/i0.wp.com\/thesportjournal.org\/wp-content\/uploads\/2018\/08\/Table-1.png?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":6280,"url":"https:\/\/thesportjournal.org\/article\/nba-referee-missed-calls-reasons-and-solutions\/","url_meta":{"origin":6878,"position":1},"title":"NBA Referee Missed Calls: Reasons and Solutions","date":"January 24, 2019","format":false,"excerpt":"Authors: Kevin Sigler Corresponding Author:Kevin Sigler, PhD601 College RoadDepartment of Economics and FinanceCameron School of BusinessUNC WilmingtonWilmington, NC 28403siglerk@uncw.edu910-200-2076 Kevin Sigler is Professor of Finance in the Cameron School of Business, UNC Wilmington NBA Referee Missed Calls: Reasons and Solutions ABSTRACT This paper examines officiating in the NBA to determine\u2026","rel":"","context":"In &quot;Commentary&quot;","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/thesportjournal.org\/wp-content\/uploads\/2019\/01\/Table-1.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":2803,"url":"https:\/\/thesportjournal.org\/article\/determinants-of-nba-player-salaries\/","url_meta":{"origin":6878,"position":2},"title":"Determinants of NBA Player Salaries","date":"May 29, 2015","format":false,"excerpt":"Submitted by Dr. Robert Lyons Jr.1*, Dr. E. Newton Jackson Jr.2*, Dr. Aaron Livingston3* 1*\u00a0Associate Professor,\u00a0Sport Management,\u00a0Queens University of Charlotte,\u00a0Charlotte, NC 2*\u00a0Professor,\u00a0Sport Management,\u00a0University of North Florida,\u00a0Jacksonville, FL 3*\u00a0Assistant Professor,\u00a0Sport Management,\u00a0Hampton University ,\u00a0Hampton, VA Abstract Determining the factors that influence National Basketball Association (NBA) owners to pay players is of great\u2026","rel":"","context":"In &quot;Contemporary Sports Issues&quot;","img":{"alt_text":"table1","src":"https:\/\/i0.wp.com\/thesportjournal.org\/wp-content\/uploads\/2015\/05\/table1.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":187,"url":"https:\/\/thesportjournal.org\/article\/consumer-discrimination-in-the-nba-trading-card-market\/","url_meta":{"origin":6878,"position":3},"title":"Consumer Discrimination in the NBA Trading-Card Market","date":"January 7, 2005","format":false,"excerpt":"Submitted by: Philip Broyles & Bradley Keen Abstract This research examines consumer discrimination in the NBA trading-card market. Using a sample of 298 NBA trading cards for the 1991-92 season, we find that race does not affect whether a trading cards sell above the common-player price. This is consistent with\u2026","rel":"","context":"In &quot;Contemporary Sports Issues&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":301,"url":"https:\/\/thesportjournal.org\/article\/relationship-of-selected-pre-nba-career-variables-to-nba-players-career-longevity\/","url_meta":{"origin":6878,"position":4},"title":"Relationship of Selected Pre\u2013NBA Career Variables to NBA Players\u2019 Career Longevity","date":"April 2, 2008","format":false,"excerpt":"Submitted by: William Abrams, East Lansing, Michigan, John C. Barnes, University of New Mexico, Annie Clement, Ph. D., J.D., Saint Leo University Abstract Given the change in the business nature of the National Basketball Association (NBA), the player evaluation process has become increasingly important. The methods discussed in this article\u2026","rel":"","context":"In &quot;Contemporary Sports Issues&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":450,"url":"https:\/\/thesportjournal.org\/article\/nba-gambling-inefficiencies-a-second-look\/","url_meta":{"origin":6878,"position":5},"title":"NBA Gambling Inefficiencies: A Second Look","date":"January 4, 2012","format":false,"excerpt":"William Compton, Kevin Sigler ### Abstract Our study used the log likelihood ratio methodology proposed by Even and Noble (2) to test the market efficiency of both point spread betting and totals betting for consecutive National Basketball Association (NBA) seasons from 2000\u201301 to 2007\u201308. It was motivated by recent contradictory\u2026","rel":"","context":"In &quot;Contemporary Sports Issues&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thesportjournal.org\/wp-json\/wp\/v2\/posts\/6878"}],"collection":[{"href":"https:\/\/thesportjournal.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thesportjournal.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thesportjournal.org\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/thesportjournal.org\/wp-json\/wp\/v2\/comments?post=6878"}],"version-history":[{"count":11,"href":"https:\/\/thesportjournal.org\/wp-json\/wp\/v2\/posts\/6878\/revisions"}],"predecessor-version":[{"id":6890,"href":"https:\/\/thesportjournal.org\/wp-json\/wp\/v2\/posts\/6878\/revisions\/6890"}],"wp:attachment":[{"href":"https:\/\/thesportjournal.org\/wp-json\/wp\/v2\/media?parent=6878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thesportjournal.org\/wp-json\/wp\/v2\/categories?post=6878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thesportjournal.org\/wp-json\/wp\/v2\/tags?post=6878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}