Brain vs Bron; a study on what athletes learn in college and how it affects their NBA salary

By: Jason Tanz


Section I: Introduction

        July, less than a month after the college year ends many college athletes and prospects prepare for the beginning of the future. The NBA draft is a young athlete, and prospects best chance for achieving their dream of playing in the National basketball association, NBA. while being drafted to an NBA team gives the player a roster spot and a rookie contract, there is no guarantee for success.

Some scouts attempt to determine who will be the next Michael Jordan, Lebron James or Wilt Chamberlain, through advanced analytics, it may be that a prospects education is the best identifier of their ability to lead adapt and perform on the highest level. This is seen by the fact that currently in the 2018-2019 NBA season of the top 10 highest paid players this year, six went to two years of college, three were “One and Done” players, meaning they went to the minimum required number of years college to be eligible for the NBA draft, and only one the reigning NBA champion Stephen curry went to three years of college. Which raises the question, do more years of college for athletes increase their NBA salary.

Many disregard college education as a factor for success, looking more at PER or player efficiency rating, race, and draft position as the factors involving player's second contract earnings. Mary F. Howard-hamilton and Sherry K. Watt, authors of New directions For Student Services looks at what student-athletes might be learning in college and deduce that they are taught to cope with stress, work with other races and differentiating ideas, that allows them to mature emotionally and physically more in college than they would  the NBA, creating team players and leaders that sets them up for more success in their professional career.

While College may be the reason players are successful, many team executives look at a players analytical stats and attempt to associate that with their value to the team. This started in the 1988-89 season with John Hollinger, who created the PER formula and "sums up all a player's positive accomplishments, subtracts the negative accomplishments, and returns a per-minute rating of a player's performance". While PER does create a scale of players compared to the league average of a PER of 15, is not perfect at predicting players value. As the analytic stats based on players per minute efficiency and does not account for fatigue of players, rewarding hard work for one minute a game the same as hard work over an entire 48-minute game. In addition, it was important to account for a Players race as there is a stigma around minorities in the NBA as the league is around 75% black, as well as the negative association with lower drafted players. In the data, we incorporated PER, race and draft position f the 2008-2012 draft class, to control for player performance and demographics, as well as its effects on the increase of an NBA players second contract.

        In section II we will define the variables used in the regression model and how they were created, as well as historical research on such variables by a peer-reviewed author in section III. Then in section IV will be the regression model, results, statistical significance and figures depicting the data. Next section V will look into the causation between NBA salary and education as well as the significance of the control's variables. Then section VI will conclude the paper and discuss further research as well as policy suggestions for the league going forward. Lastly, in section VII will be the appendix with the exact data tables used in research as well as several figures depicting the data and results and finally the sources used in research.

II. Important Variables and Data collection

        

        When it comes to NBA players college education when related to their second contract salary there are several variables to control for and look at. First, when it comes to the post-high school education of NBA players we are gathering data from the college and admissions and draft date of the player to determine how many years of education the player had from zero to four years of education, zero representing players that did not attend college but spent one year removed from high school training for the NBA outside of collegiate universities. We then will be looking at the 2008-2012 draft class and associate each player drafted with their years of college education from the value of zero to four, since there are no postgraduate players who have been drafted to the NBA.

To calculate the salary of each player we will be looking at the second contract of NBA players, as to control for those who have been in the league longer or those playing for multiple teams as those who stay on the same team for 5 years are eligible for a “supermax deal” worth more than those traded or signed in free agency. Looking at the second contract a player receives allows us to control for selection bias as we can then associate players that did not receive a second contract with a salary of zero for each draft class, while just looking at a present salary from ESPN.com does not incorporate players not resigned with a zero salary. Looking at players second salary also accounts for older players who have “past their prime”, such as Carmelo Anthony who used to be a superstar but currently can't break into a teams rotation.

When choosing players to associate in our data set we chose players from the 2008 draft class to the 2012 draft class, giving us 300 individual samples as there are 60 players drafted each year. This allows us to look at players who were drafted after the one and done rule was implemented, not allowing high school players to go straight to the NBA draft as to not skew the results. In addition, the cut off for players was the 2012 draft class as it allows the players to fulfill their two-year rookie contracts and have the chance to then sign a second contract, if we look at more recent draft classes it would skew the results based on the players immaturity in the league and the increasing salary cap. Lastly, when acquiring data we did not want to look too far back as the NBA team salary cap has increased over the last few years, which allow newer players to sign larger and larger contracts. Taking the players drafted in 2008-2012 means that they would sign their second contract in 2010-2014 where the NBA team salary cap remained around at $58 million, allowing second contracts signed to stay relatively constant, as the current NBA Salary cap is $99 million and set to increase for the 2020 season, as seen In Figure 1.

III. What college does for Athletes

        The NBA is focused on improving the talent in the league, so that they can market it more and increase the leagues value, as the driving force behind American Business such as the NBA in to generate wealth. In Order to accomplish this, the NBA enacted the “One and Done Rule” which changed draft eligibility of players, forcing them to be one year removed from high school, giving them an extra year to develop. This is looking at by H. Stawin his article The NBA Gets a College Education: An Antitrust and the Labor Analysis of the NBA's Minimum Age Limit 56 Case W. Res. L. Rev. 825 (2005-2006). Where he used a simulated business case to show that people responsible for a losing course of action will invest further than those not responsible for prior losses and returning to college giving athletes the chance to solve their problems, work on what caused them to fail and learn from it.  (Barry M. Staw and Ha Hoang). However, while more years college does help prospects with issues on and off the court it does hinder their ability show their worth.

While college athletes are taught skills they need to be successful they are hindered for staying in college as it reduces there draft stock and position in sed draft. This is looked at by Daniel A. Applegate where he determined based on people's commitment to the position, as they will reward players more based on draft order and can use their draft position as a significant predictor of minutes played over the first five years of an NBA layers career, shown in

Based on the data in Table 1. We see that those drafted lower have less opportunity to prove themselves on the court and therefore struggle to show their worth in the NBA and receive a second contract, which may associate why more second round picks are out of the league by the end of their rookie deals compared to first-round picks. However, others such as Mary E. Howard-Hamilton and Sherry K. Watt relate it to player performance and that those with education have the ability to show their value in the limited chance they receive.

In the book Student Services for Athletes by Mary E. Howard-Hamilton and Sherry K. Watt, they look at how colleges are designed to help produce the best individual possible through psychological and cognitive development. They argue that due to the fact that college athletes are exposed to a multiple of diverse situations and interactions with a more diverse group of peers set them up for success as they are more likely to be Intellectually, Mentally and Physically fit, which helps demonstrate leadership qualities and reinforces the idea of their increased value. The theory on why College Students learn more than those in a professional setting is that they have the whole team on coaches and trainers working to develop their star while NBA teams focus more on the monetary value players have and how they can increase their wealth rather than helping the “student of the game”.

IV. Data set

In Order to control for statistically significant variables, in the data set we had to associate a racial dummy variable to different players in the NBA to control for Racial bias, in the NBA for our regression analysis. We associated a 0 to black players, a 1 to white players, 2 to Hispanic players and 3 to Asian players; when running our regression analysis in order to determine the significance race has on an NBA players salary. Since the NBA is around 75% black, 21% white, 3% Hispanic and less than 1% Asian, it would allow us to see if it is race versus college education that increases NBA players salary.

        It is also important to record the draft position of each player and use it as a dummy variable in my regression and run and R squared analysis to determine if it is a significant variable. This would allow users to see if a higher placement in the draft is what drives NBA players salary. In  Barry M. Staw and Ha Hoang’s article, Sunk Costs in the NBA: Why Draft Order Affects Playing Time and Survival in Professional Basketball, they look at the effect draft position has on salary, and how those drafted higher are seen to be more likely to succeed and are given more leeway, for their mistakes as they are seen to still have potential, due to the stigma of being a top pick or even a number one overall pick. While it is known that draft position affects the player's salary we wish to see if this trend continues into the player's second contract, thus attempting to control for such selection bias.  

Lastly, It is important to record a player PER, player efficiency rating. This would allow us to determine if the salary is based on the performance of the player, based on analytics experts. With all of these controls and determining their statistical significance would allow us to tell what factors affect NBA players salaries, such as increased college education for players increases their performance, and knowledge of the game which results in a high second contract.

The data collected for the study was compiled in Table 2. And shown in a scatter plot of College education and wage shown in Figure 2. Such data was gathered from the 2008-2012 NBA draft class where we recorded draft position 1-60, wage of the players first year of their second salary, then generated ln(wage) to account for diminishing returns, PER to account for performance, and a players race of one to four, in the attempt to account for all statistically significant variables that affect a player's second contract.

V. Regression Model

        Based on the data compiled from the five NBA draft classes from 2008-2012, we ran a basic regression model where are dependent variable is a player second NBA contract salary, in the variable ln(wage), with independent variable being years of college education in the formula:

Equation 2. Regression Result

Ln(Wage) = .094(Education) - 1.188(Race) + .571(PER) - .145(Draft Position) + 8.949

Where each coefficient relates to how the correlated variable effects a players wage, positive associating an increase in salary and a negative coefficient reducing their second salary earrings.

VI. Data Analysis

        Based on the results of the regression it becomes apparent that NBA player salaries are based on several key factors. Looking at Table 3. We see that the main statistical factors affecting salary, in terms of ln(wage), related mainly to race. This is evident by the fact that the absolute value of the coefficient is the largest of those in the regression model.

                However, based on the standard error, t value and p-value none of the variables are statistically significant in a 95% confidence interval. Although based on the results, education does increase the average NBA players salary by .094 for each year of college. Although a Players salary is more impacted by their Race, Draft Position and PER. based on the distribution of players wage based on education depicted in Figure 2. We can see that education affects Players move from one year of college versus spending a year out of high school training. In addition, there is a larger distribution of salary when it comes to multiple years of college. While the top salary for players between different years of education remains around the same, there are more players with extremely low salaries the more years of a college education a player has. This could be explained by the fact that Talent effects a players contract since we see a larger impact an increased PER has on salary compared to College education, race seems to be the biggest impact of players salaries.

VII. Causation and Conclusions

        The United States economy and society is mainly capitalistic and therefore is centralized around the generation and creation of wealth. For NBA players success is seen in the same way, that better players receive higher contracts; as well as championships which tend to lead to an increased salary as well. While players based on our regression model are paid more based on Race. while going to at least one year of Colleg drastically increases a players earnings, going to more than one year of college does not increase there salary and slightly reduces it on average. While Mary E. Howard-Hamilton and Sherry K. Watt’s theory that college does help players mature and develop, there seems to be a cap on their ability and that pure talent in the form of PER allows for the best candidates for the job to rise to the top more significantly, and receive a higher wage. While PER is not the perfect way to test a players talents it is the most used analytics in the modern NBA and explains why players with the highest PER in the league have some of the highest salaries. In addition to talent, the race was the largest factor in effecting players salary, as the race dummy variable was set up based on the percent of players of that race in the NBA and being a minority gives you a larger dummy variable, from 1-4, and subsequently increased the negative effect on players salaries. This could be explained through racial bias from history. Teams are continually looking for the next Micheal Jordan, who was African American, and according Larsen, T., Price, J. & Wolfers, J. to in the article Racial Bias in the NBA: Implications in Betting Markets looks at the prejudice and racial bias in sports, how black players are favored to win in betting markets and may prove why race is the main factor affecting our results in the regression model. While it is race and PER are not correlated there is a stigma around minorities, and team executives may want to look into other cultures and races, such as Chinese players like Jeremy Lin who were never given the same opportunity, but shined none the less, to find the best talent for their team to help win championships and increase their wealth.

Appendix:

Table 1: Effects of Draft Position on Minutes Played for the Second through the Fifth Year Played

Source:

Figure 1. NBA Salary Cap per Team from 1984-2021

Source:

        Table 2. NBA Salary, Education and Controls for 2008-2012 Drafts

        

Draft

Name

Draft position

Education

Wage

Race

PER

lnWage

2008

Derrick Rose

1

1

$16,402,500

1

18

16.61294432

Michael Beasley

2

1

$6,262,347

1

15.7

15.65006559

O.J. Mayo

3

1

$8,000,000

1

13.4

15.8949521

Russell Westbrook

4

2

$13,668,750

1

23.7

16.43062276

Kevin Love

5

1

$13,668,750

2

21.9

16.43062276

Danilo Gallinari

6

0

$9,439,000

2

16.6

16.0603606

Eric Gordon

7

1

$13,668,750

1

14.5

16.43062276

Joe Alexander

8

3

$0

2

9.9

0

D.J. Augustin

9

2

$3,236,470

1

14.2

14.98999379

Brook Lopez

10

2

$13,668,750

3

20.1

16.43062276

Jerryd Bayless

11

1

$2,292,600

1

12.3

14.6451971

Jason Thompson

12

4

$5,250,000

1

13.5

15.47373863

Brandon Rush

13

3

$4,000,000

1

9.9

15.20180492

Anthony Randolph

14

1

1,965,720

1

16.5

14.49136915

Robin Lopez

15

2

$4,899,293

3

16.1

15.40460147

Marreese Speights

16

2

$2,721,255

1

16.7

14.81660373

Roy Hibbert

17

4

$13,686,750

1

15.5

16.43193877

JaVale McGee

18

2

$10,000,000

1

19.3

16.11809565

J.J. Hickson

19

1

$4,000,000

1

16.1

15.20180492

Alexis Ajinca

20

0

$981,084

1

14.9

13.79641336

Ryan Anderson

21

2

$8,700,000

2

16.5

15.97883358

Courtney Lee

22

4

$5,000,000

1

12.2

15.42494847

Kosta Koufos

23

1

$3,000,000

2

15.5

14.91412285

Serge Ibaka

24

0

$12,250,000

1

17.1

16.32103649

Nicolas Batum

25

0

$10,850,000

1

15

16.19967564

George Hill

26

4

$8,000,000

1

15

15.8949521

Darrell Arthur

27

2

3,006,210

1

12.2

14.91619071

Donte Greene

28

1

0

1

10

0

D.J. White

29

4

$269,368

1

14.5

12.50383375

J.R. Giddens

30

4

0

1

9.7

0

Nikola Pekovic

31

0

$12,100,000

2

18.6

16.30871601

Walter Sharpe

32

3

0

2

4.8

0

Joey Dorsey

33

4

$881,000

1

12.1

13.6888129

Mario Chalmers

34

3

$4,000,000

1

12.7

15.20180492

DeAndre Jordan

35

1

$10,079,404

1

18.5

16.12600469

Omer Asik

36

0

$8,374,646

2

13.2

15.94071937

Luc Mbah a Moute

37

3

$5,000,000

1

10.7

15.42494847

Kyle Weaver

38

4

0

2

10.3

0

Sonny Weems

39

2

$2,800,000

1

10.1

14.84512998

Chris Douglas-Roberts

40

3

$736,000

1

11.5

13.5089854

Nathan Jawai

41

0

0

1

10.2

0

Sean Singletary

42

4

0

1

6.7

0

Patrick Ewing

43

4

0

1

0.6

0

Ante Tomic

44

0

0

2

0

0

Goran Dragic

45

0

$7,500,000

2

17.2

15.83041358

Trent Plaisted

46

3

0

2

0

0

Bill Walker

47

2

$115,422

1

10.6

11.65635026

Malik Hairston

48

4

0

1

11.7

0

Richard Hendrix

49

3

0

1

0

0

DeVon Hardin

50

4

0

1

0

0

Shan Foster

51

4

0

1

0

0

Darnell Jackson

52

4

$854,389

1

8.7

13.65814187

Tadija Dragicevic

53

0

0

2

0

0

Maarty Leunen

54

4

0

1

0

0

Mike Taylor

55

1

0

2

10.1

0

Sasha Kaun

56

4

0

2

11.5

0

James Gist

57

4

0

1

0

0

Joe Crawford

58

4

0

2

10.8

0

Deron Washington

59

4

0

1

0

0

Semih Erden

60

0

0

2

10.1

0

2009

Blake Griffin

1

2

16,441,500

2

22.3

16.61531918

Hasheem Thabeet

2

3

1,200,000

1

10.3

13.99783211

James Harden

3

2

13,701,250

1

24.2

16.43299763

Tyreke Evans

4

1

10,300,000

1

17.3

16.14765445

Ricky Rubio

5

0

12,365,000

2

15.8

16.33038046

Jonny Flynn

6

2

0

1

11.3

0

Stephen Curry

7

3

9,887,642

1

23.9

16.10679625

Jordan Hill

8

3

3,632,527

1

16.3

15.10543911

DeMar DeRozan

9

1

9,500,000

1

17.3

16.06680236

Brandon Jennings

10

0

7,655,503

1

15.7

15.85093529

Terrence Williams

11

4

$296,776

1

11.5

12.60073292

Gerald Henderson

12

3

6,000,000

1

13.4

15.60727003

Tyler Hansbrough

13

0

3,055,259

2

14.8

14.93237493

Earl Clark

14

3

1,240,000

1

10.2

14.03062194

Austin Daye

15

2

2,958,077

1

11.6

14.90004995

James Johnson

16

2

2,812,006

1

14.6

14.84940867

Jrue Holiday

17

1

9,213,484

1

16.8

16.03617862

Ty Lawson

18

3

10,786,517

1

17.2

16.19380749

Jeff Teague

19

2

8,000,000

1

17.1

15.8949521

Eric Maynor

20

4

2,338,721

1

10.6

14.66511476

Darren Collison

21

4

2,319,344

1

16.2

14.65679495

Victor Claver

22

0

0

2

7.5

0

Omri Casspi

23

0

$947,907

2

13

13.76201168

Byron Mullens

24

1

$947,907

2

12.2

13.76201168

Rodrigue Beaubois

25

0

0

1

14.5

0

Taj Gibson

26

3

7,550,000

1

15.3

15.83705812

DeMarre Carroll

27

4

544,331

1

13.3

13.2073128

Wayne Ellington

28

3

$2,083,042

1

11.1

14.54933988

Toney Douglas

29

4

$2,067,880

1

13.2

14.54203449

Christian Eyenga

30

0

0

1

8.6

0

Jeff Pendergraph

31

4

1,500,000

1

12.4

14.22097567

Jermaine Taylor

32

4

$780,871

1

11.3

13.56816524

Dante Cunningham

33

4

$2,000,000

1

11.2

14.50865774

Sergio Llull

34

0

0

3

0

0

DaJuan Summers

35

3

$303,137

1

7.1

12.62194013

Sam Young

36

4

$723,716

1

11.4

13.49215433

DeJuan Blair

37

2

$947,907

1

16.5

13.76201168

Jon Brockman

38

4

1,000,000

1

10.4

13.81551056

Jonas Jerebko

39

0

4,500,000

2

13.2

15.31958795

Derrick Brown

40

3

0

1

13.8

0

Jodie Meeks

41

3

$1,500,000

1

12.8

14.22097567

Patrick Beverley

42

2

6,500,000

1

12.5

15.68731273

Marcus Thornton

43

2

$7,000,000

1

15.5

15.76142071

Chase Budinger

44

3

$5,000,000

2

13.3

15.42494847

Nick Calathes

45

2

0

2

12.3

0

Danny Green

46

4

$94,154

1

13.3

11.45268702

Henk Norel

47

0

0

2

0

0

Taylor Griffin

48

4

0

2

5.2

0

Sergiy Gladyr

49

0

0

2

0

0

Goran Suton

50

4

0

2

0

0

Jack McClinton

51

4

0

1

0

0

A.J. Price

52

3

0

1

12.2

0

Nando De Colo

53

0

0

2

11.8

0

Robert Vaden

54

4

0

1

0

0

Patrick Mills

55

2

$1,085,120

1

14.5

13.89720114

Ahmad Nivins

56

4

0

1

0

0

Emir Preldzic

57

0

0

2

0

0

Lester Hudson

58

2

$193,802

1

13

12.1745923

Chinemelu Elonu

59

3

0

1

0

0

Robert Dozier

60

1

0

1

0

0

2010

John Wall

1

1

$14,746,000

1

19.4

16.50648242

Evan Turner

2

3

3,278,000

1

12

15.00274404

Derrick Favors

3

1

$12,833,333

1

18.7

16.36755648

Wesley Johnson

4

3

$916,099

1

10.1

13.72787972

DeMarcus Cousins

5

1

$13,701,250

1

22.4

16.43299763

Ekpe Udoh

6

3

$981,084

1

11.3

13.79641336

Greg Monroe

7

2

16,400,000

1

17

16.61279189

Al-Farouq Aminu

8

2

$981,084

1

12.4

13.79641336

Gordon Hayward

9

2

$14,746,000

2

17.5

16.50648242

Paul George

10

2

$15,925,680

1

19.2

16.58344346

Cole Aldrich

11

3

$981,084

2

16.6

13.79641336

Xavier Henry

12

1

$1,082,000

1

9.3

13.89432174

Ed Davis

13

2

$981,084

1

16.7

13.79641336

Patrick Patterson

14

3

5,831,326

1

12.7

15.57875498

Larry Sanders

15

3

$3,053,368

1

15.4

14.9317558

Luke Babbitt

16

2

$981,084

2

10.1

13.79641336

Kevin Seraphin

17

0

$2,761,114

1

12.1

14.83114478

Eric Bledsoe

18

1

$12,173,913

1

18

16.31480594

Avery Bradley

19

1

$7,191,011

1

11.1

15.78834233

James Anderson

20

3

$472,427

1

9.9

13.06563852

Craig Brackins

21

3

0

1

3.1

0

Elliot Williams

22

2

$107,676

1

9.5

11.586882

Trevor Booker

23

4

$5,000,000

1

15

15.42494847

Damion James

24

4

$50,258

1

8.5

10.82492502

Dominique Jones

25

3

0

1

11.9

0

Quincy Pondexter

26

4

$3,146,068

1

9.8

14.96166398

Jordan Crawford

27

2

$234,915

1

14.1

12.36697903

Greivis Vasquez

28

4

$6,400,000

3

13.7

15.67180855

Daniel Orton

29

1

$757,712

1

11.9

13.53805865

Lazar Hayward

30

4

$80,413

1

9

11.29493113

Tibor Pleiss

31

0

$500,000

2

3.5

13.12236338

Dexter Pittman

32

4

0

1

9.1

0

Hassan Whiteside

33

1

$22,116,750

1

9.4

16.9118458

Armon Johnson

34

3

0

1

10.4

0

Nemanja Bjelica

35

0

0

2

12.4

0

Terrico White

36

2

0

1

0

0

Darington Hobson

37

1

0

1

-3.3

0

Andy Rautins

38

4

0

2

-1.2

0

Landry Fields

39

4

6,250,000

1

12.1

15.64809202

Lance Stephenson

40

1

$9,000,000

1

12.2

16.01273514

Jarvis Varnado

41

3

$33,431

1

11.5

10.41723889

Da'Sean Butler

42

4

0

1

0

0

Devin Ebanks

43

2

0

1

9.6

0

Jerome Jordan

44

4

$915,243

1

17.1

13.72694488

Paulao Prestes

45

0

0

3

0

0

Gani Lawal

46

3

0

1

-9.1

0

Tiny Gallon

47

1

0

1

0

0

Latavious Williams

48

0

0

1

0

0

Ryan Richards

49

0

0

2

0

0

Solomon Alabi

50

3

0

1

10.3

0

Magnum Rolle

51

4

0

1

0

0

Luke Harangody

52

4

0

2

10.2

0

Pape Sy

53

0

0

1

9.2

0

Willie Warren

54

2

0

1

10.8

0

Jeremy Evans

55

4

$1,794,872

1

17.4

14.40044427

Hamady N'Diaye

56

4

0

1

3.9

0

Ryan Reid

57

4

0

1

17.6

0

Derrick Caracter

58

3

0

1

10

0

Stanley Robinson

59

4

0

1

0

0

Dwayne Collins

60

0

0

1

0

0

2011

Kyrie Irving

1

1

$14,746,000

1

22.1

16.50648242

Derrick Williams

2

2

$6,331,404

1

13.4

15.66103257

Enes Kanter

3

0

$16,400,000

2

20.5

16.61279189

Tristan Thompson

4

1

$14,260,870

1

15.4

16.47302998

Jonas Valanciunas

5

0

$14,382,022

2

19.8

16.48148951

Jan Vesely

6

0

0

2

10.8

0

Bismack Biyombo

7

0

$3,000,000

1

12.8

14.91412285

Brandon Knight

8

1

$12,000,000

1

14.1

16.30041721

Kemba Walker

9

3

$12,000,000

1

19.2

16.30041721

Jimmer Fredette

10

4

$948,163

2

12.6

13.76228171

Klay Thompson

11

3

$15,500,000

1

16.4

16.55635058

Alec Burks

12

2

$9,213,484

1

13.6

16.03617862

Markieff Morris

13

3

$8,000,000

1

14.1

15.8949521

Marcus Morris

14

3

$5,000,000

1

13.3

15.42494847

Kawhi Leonard

15

2

$16,500,000

1

22.5

16.61887094

Nikola Vucevic

16

3

$11,250,000

2

20.2

16.23587869

Iman Shumpert

17

3

$9,000,000

1

9.9

16.01273514

Chris Singleton

18

3

0

1

8.2

0

Tobias Harris

19

1

$16,000,000

1

16.8

16.58809928

Donatas Motiejunas

20

0

$576,724

2

12.4

13.26511909

Nolan Smith

21

4

0

1

7.5

0

Kenneth Faried

22

4

$11,235,955

1

19.7

16.23462946

Nikola Mirotic

23

0

$12,500,000

2

16.9

16.3412392

Reggie Jackson

24

3

$14,000,000

1

16.1

16.45456789

MarShon Brooks

25

4

$332,477

1

13.9

12.71432596

Jordan Hamilton

26

2

$150,591

1

13.4

11.92232283

JaJuan Johnson

27

4

$1,120,440

1

11.4

13.92923202

Norris Cole

28

4

$2,038,206

1

9.2

14.52758057

Cory Joseph

29

1

$7,000,000

1

12.6

15.76142071

Jimmy Butler

30

3

$15,260,000

1

20

16.54074558

Bojan Bogdanovic

31

0

$10,500,000

2

13

16.16688582

Justin Harper

32

4

$99,418

1

3.6

11.50708846

Kyle Singler

33

4

$5,000,000

2

9.5

15.42494847

Shelvin Mack

34

3

$884,293

1

12.4

13.69254373

Tyler Honeycutt

35

2

$809,875

1

8.1

13.60463519

Jordan Williams

36

2

$762,195

1

14.5

13.54395771

Trey Thompkins

37

3

0

1

12

0

Chandler Parsons

38

4

$14,700,000

2

14.8

16.50335805

Jeremy Tyler

39

0

$762,195

1

11.1

13.54395771

Jon Leuer

40

4

$762,195

2

14.5

13.54395771

Darius Morris

41

2

$962,195

1

7.7

13.77697241

Davis Bertans

42

0

$1,312,611

2

13.7

14.08752884

Malcolm Lee

43

3

$884,293

1

9.5

13.69254373

Charles Jenkins

44

4

$762,195

1

10.7

13.54395771

Josh Harrellson

45

3

$354,197

2

13.4

12.77760853

Andrew Goudelock

46

4

$200,600

1

8.6

12.20906815

Travis Leslie

47

3

$250,000

1

14.6

12.4292162

Keith Benson

48

4

0

1

6

0

Josh Selby

49

1

$762,195

1

2.7

13.54395771

Lavoy Allen

50

4

$3,000,000

1

12.5

14.91412285

Jon Diebler

51

4

0

2

0

0

Vernon Macklin

52

4

0

1

18.2

0

DeAndre Liggins

53

3

$762,195

1

7.3

13.54395771

Milan Macvan

54

0

0

2

0

0

E'Twaun Moore

55

4

$762,195

1

11.4

13.54395771

Chukwudiebere Maduabum

56

0

0

1

0

0

Targuy Ngombo

57

0

0

1

0

0

Ater Majok

58

1

0

1

0

0

Adam Hanga

59

0

0

2

0

0

Isaiah Thomas

60

3

$7,238,606

1

20.5

15.7949392

2012

Anthony Davis

1

1

$22,116,750

1

27.4

16.9118458

Michael Kidd-Gilchrist

2

1

$13,000,000

1

13.7

16.38045992

Bradley Beal

3

1

$22,116,750

1

16.9

16.9118458

Dion Waiters

4

2

$2,898,000

1

12.8

14.8795314

Thomas Robinson

5

3

$981,300

1

14

13.7966335

Damian Lillard

6

4

$24,328,425

1

21.4

17.00715598

Harrison Barnes

7

2

22,116,750

1

13.3

16.9118458

Terrence Ross

8

2

10,000,000

1

12.4

16.11809565

Andre Drummond

9

1

$22,116,750

1

21.9

16.9118458

Austin Rivers

10

1

$11,000,000

2

10.3

16.21340583

Meyers Leonard

11

2

$9,213,484

2

12.3

16.03617862

Jeremy Lamb

12

2

$6,511,628

1

15.9

15.68910006

Kendall Marshall

13

2

$915,243

1

10.7

13.72694488

John Henson

14

3

12,517,606

1

17.1

16.34264669

Maurice Harkless

15

1

$8,988,764

1

12.3

16.01148591

Royce White

16

1

0

1

-8.3

0

Tyler Zeller

17

4

$8,000,000

2

14.9

15.8949521

Terrence Jones

18

2

$1,050,961

1

17.1

13.86521554

Andrew Nicholson

19

4

$6,088,993

1

12.2

15.62199327

Evan Fournier

20

0

$17,000,000

3

13.3

16.6487239

Jared Sullinger

21

2

$5,628,000

1

16.2

15.5432647

Fab Melo

22

2

$788,872

3

4.9

13.57835936

John Jenkins

23

3

$981,000

1

12

13.79632774

Jared Cunningham

24

3

$981,348

1

6.8

13.79668242

Tony Wroten

25

1

$1,210,080

1

12.6

14.00619703

Miles Plumlee

26

4

$12,500,000

2

13.6

16.3412392

Arnett Moultrie

27

3

0

1

14.1

0

Perry Jones

28

2

0

1

8.5

0

Marquis Teague

29

1

$157,945

1

4.9

11.97000215

Festus Ezeli

30

4

$7,400,000

1

13.4

15.81699056

Jeff Taylor

31

4

0

1

0

0

Tomas Satoransky

32

0

$2,870,813

2

13.6

14.87010582

Bernard James

33

2

0

1

13.8

0

Jae Crowder

34

2

$6,000,000

1

13

15.60727003

Draymond Green

35

4

$14,300,000

1

15.4

16.4757701

Orlando Johnson

36

4

$55,722

1

8.4

10.92813032

Quincy Acy

37

4

$915,243

1

11.2

13.72694488

Quincy Miller

38

1

$150,000

1

8.2

11.91839057

Khris Middleton

39

3

$15,000,000

1

15.5

16.52356076

Will Barton

40

2

$915,243

1

14.8

13.72694488

Tyshawn Taylor

41

4

0

1

5.8

0

Doron Lamb

42

2

0

1

6.3

0

Mike Scott

43

4

$3,333,333

1

13.6

15.01948326

Kim English

44

4

0

1

7.9

0

Justin Hamilton

45

3

$3,000,000

2

13.9

14.91412285

Darius Miller

46

4

$788,872

1

8.4

14.91412285

Kevin Murphy

47

4

0

1

-4.5

0

Kostas Papanikolaou

48

0

$350,000

2

7.3

12.76568843

Kyle O'Quinn

49

4

$3,750,000

1

17.8

15.1372664

Izzet Turkyilmaz

50

0

0

2

0

0

Kris Joseph

51

4

0

1

0.6

0

Ognjen Kuzmic

52

0

0

2

7.6

0

Furkan Aldemir

53

0

0

2

12

0

Tornike Shengelia

54

0

0

2

5.7

0

Darius Johnson-Odom

55

3

0

1

-18.4

0

Tomislav Zubcic

56

0

0

2

0

0

Ilkan Karaman

57

0

0

2

0

0

Robbie Hummel

58

4

$150,000

2

9.6

11.91839057

Marcus Denmon

59

4

0

1

0

0

Robert Sacre

60

4

$788,872

1

10.8

13.57835936

Figure 2. NBA Wage based on Years of College Education for 2008-2012 Draft Class

Figure 3.  NBA Salary based on player PER

Table 3. Summary Statistics of Data

Table 4. Regression Results

Citations:

https://www.jstor.org/stable/pdf/2393794.pdf?refreqid=excelsior%3A423ec781390c4339204f6dcc0ac0d6e8

https://scholarlycommons.law.case.edu/cgi/viewcontent.cgi?referer=https://www.google.com/&httpsredir=1&article=1661&context=caselrev

https://www.google.com/search?q=NBA+salary+cap+table&rlz=1C1CHBF_enUS811US811&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiZ0ffe3ZjgAhW4JzQIHWTVBkgQ_AUIECgD&biw=1536&bih=723&dpr=1.25#imgrc=AKb-aiX2pNh-4M

http://insider.espn.com/nba/hollinger/statistics

http://www.espn.com/nba/salaries

https://www.basketball-reference.com/about/per.html

F. Howard-Hamilton, Mary & A. Sina, Julie. (2002). How College Affects Student Athletes. New Directions for Student Services. 2001. 35 - 45

Draft History. (n.d.). Retrieved from https://stats.nba.com/draft/history/?Season=2008-2012

NBA Player Salaries. (n.d.). Retrieved from http://www.espn.com/nba/salaries/_/year/2011-2015

NBA Players. (n.d.). Retrieved from http://www.nba.com/players

NBA Salary Cap History. (n.d.). Retrieved January 29, 2019, from https://www.basketball-reference.com/contracts/salary-cap-history.html

Staw, B. M., & Hoang, H. (1995). Sunk Costs in the NBA: Why Draft Order Affects Playing Time and Survival in Professional Basketball. Administrative Science Quarterly,40(3), 474. doi:10.2307/2393794

The NBA Gets a College Education: An Antitrust and the Labor Analysis of the NBA's Minimum Age Limit. (n.d.). Retrieved from https://heinonline.org/HOL/LandingPage?handle=hein.journals/cwrlrv56÷=41&id=&page= 56 Case W. Res. L. Rev. 825 (2005-2006)

Larsen, T., Price, J. & Wolfers, J. (2008). Racial Bias in the NBA: Implications in Betting Markets. Journal of Quantitative Analysis in Sports, 4(2), pp. -. Retrieved 13 Feb. 2019, from doi:10.2202/1559-0410.1112 https://scholarsarchive.byu.edu/cgi/viewcontent.cgi?referer=https://www.google.com/&httpsredir=1&article=1191&context=facpub

Hollinger, J. (2011, August 8). What is PER? Retrieved from http://www.espn.com/nba/columns/story?columnist=hollinger_john&id=2850240