Friday, February 15, 2019

How the NFL decides who to pay


                                                               Source: SBNation


Economic Principle: Because of scarcity, people choose. All choices have an opportunity cost.

 Overall Question: How should NFL teams allocate scarce resources like payroll & draft picks to maximize their profitability & chances of winning?

 Sub questions:
  •  How does a team like New England, arguably the most successful team in the NFL allocate its resources to build a dynasty? 
  •  When signing a franchise player to the team, meaning signing a big hefty contract, what are the opportunity costs of this signing? What is the team losing out on? 
  •  In the NFL is it more important to owners to be profitable or to win games? 
  •  What is the most important asset to have in the NFL and how much is it worth? 


 Sources: 
SB Nation Cincy Jungle
Forbes
The Football Educator

Future Research Question:

  • What makes more money for a football team, Tv contracts or ticket sales and fan items?


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