$ value of a player’s productivity (methodology)

The “$ value of a player’s productivity” measures the productivity of a player in monetary terms within the regular season.

This is calculated by taking the ratio of an individual player’s win-share compared to the team’s win-share, and multiplying it by the total payroll of the player’s team for the season.

This does not take into account the player’s contributions during the playoffs.

There are a number of considerations to take into account when assessing these values:

  1. It does not translate into what the real salary of the player should be, despite measuring productivity. A player’s salary is determined by numerous factors, including their marketability, jersey sales, playoff contributions, community outreach, etc. This is only one factor that should be considered when assessing a player’s salary.
  2. Teams loaded with other all-stars could reduce an individual’s win-share score, and thus their $ value could decrease. Partnering up on a super team usually means statistical sacrifices, and that could mean lower win-share scores for certain players.
  3. This value can only be used to compare teammates, not other teams. Since a player’s $ production is indexed to their own team’s total payroll, other teams who have different records cannot be compared.
  4. This contribution does not take into account the revenues of the team. This calculation only takes into account costs. Productivity based on revenues can be calculated at a later date, but that would require publicly published financial information. While it can be estimated, there could still be inaccuracies without understanding the full value of administrative staff, like marketing, branding, sales, etc.
  5. Luxury taxes are not considered as part of the payroll.
  6. It incorporates the entire season, so players being moved from one team to another may have their win-share proportionately averaged between the two teams. 
  7. Players with negative or “0” win-share scores are omitted unless their contracts are significant. Only minimum and two-way contracts with “0” or negative scores are omitted. Contracts near the MLE can have an impact on the total payroll, and thus need to be considered.

*This article will be subject to regular updates.

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