Article Title
The Relationship between Team Payroll and Team Performance in the National Hockey League
Document Type
Article
Abstract
The National Hockey League (NHL) is in serious financial trouble. More than half of the 30 teams lost money during the 2002-03 season. Player salaries have increased dramatically over the last decade and payroll costs account for the majority of total operating costs. This paper analyzes how team payroll affects team performance. Linear Regression analysis is used to determine the effect of payroll on performance. A Granger Causality test is performed using payroll and performance data from the 1998-99 to 2003-04 seasons. No conclusive evidence is found that supports the common belief that payroll can be used to predict a team’s success.
Publication Date
Spring 2004
Journal Title
Major Themes in Economics
Volume
6
Issue
1
First Page
23
Last Page
36
Copyright
©2004 by Major Themes in Economics
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Language
en
File Format
application/pdf
Recommended Citation
Glasnapp, Brandi
(2004)
"The Relationship between Team Payroll and Team Performance in the National Hockey League,"
Major Themes in Economics, 6, 23-36.
Available at:
https://scholarworks.uni.edu/mtie/vol6/iss1/4