Open Access. Powered by Scholars. Published by Universities.®
- File Type
Articles 1 - 2 of 2
Full-Text Articles in Business
Boom & Bust: The Perils Of Guaranteed Long Term Contracts. Evidence From Ops100 Performance Over The Contract Cycle, Heather M. O'Neill
Boom & Bust: The Perils Of Guaranteed Long Term Contracts. Evidence From Ops100 Performance Over The Contract Cycle, Heather M. O'Neill
Business and Economics Faculty Publications
This study focuses on panel data of 256 MLB free agent hitters under the 2006-2011 Collective Bargaining Agreement (CBA) to demonstrate that hitters, on average, increase their offensive production, measured by OPS100, during the last year of their contract and subsequently underperform the first year of the newly signed long term contract. The contract year phenomenon arises from the incentive to land a lucrative guaranteed contract for players not intending to retire. Signing a long term guaranteed contract creates an incentive to shirk (underperform) the first year of the new contract because performance and pay become unlinked and the need …
Do Hitters Boost Their Performance During Their Contract Years?, Heather M. O'Neill
Do Hitters Boost Their Performance During Their Contract Years?, Heather M. O'Neill
Business and Economics Faculty Publications
Each season, baseball fans and journalists alike identify which players are in the final years of their contracts because a lot rides on how the players produce in their “contract year.” Will a player boost his effort and performance in an effort to improve his value and bargaining power? Or will he crumble under the pressure? Or are players’ performances uncorrelated with where they stand in their contract cycles?