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Essay On Nba Players Overpaid

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What’s more intriguing is the fact that some question whether NBA players are overpaid. Nathan (22) indicated that overpayment in the NBA is problematic. Statistically some players are overpaid based on poor or sub-par performance. These players are highly sought after because they are proficient in one aspect of their game such as three point shooting or they may be a defensive force. However, these same specialized players may be a major liability in other areas i.e., the three point shooter may be a poor defender and the defensive force may be a poor free throw shooter. Whatever the issue, overpayment in the NBA is a concern. The reason for payment is to fairly compensate a player for his play. However, in the NBA it seems as if compensation is a reward for past performance and anticipated or expected future performance. However, past performance and expected performance may not be good indicators of fair compensation. NBA owners and general managers often over spend for a player that they feel will meet and immediate …show more content…

There is a dearth of empirical literature regarding the topic of NBA player salary determinants. Whereas there have been some articles written on NBA player salary discrimination, the lack of empirical evidence as it relates to player performance and its impact on player salary have been virtually non-existent. This investigation serves to contribute to the paucity of empirical literature regarding NBA player salaries. Wage fund theory was chosen to guide this study. According to this theory, wages are determined by the amount of capital available to pay workers. As capital increases so do worker raises. This theory has a direct correlation to the NBA salary cap. The salary cap is comprised of Basketball Related Income (BRI) which consists of revenue generated from ticket sales, national and local broadcast deals, in

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