Labor Relations Commons^™

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 …

Major League Baseball's Antitrust Exemption And The Impact Of The Curt Flood Act, Gina Scalzo

Senior Honors Theses

For many years, professional baseball has enjoyed a privileged antitrust exemption apart from other professional sports. With the passing of the Curt Flood Act in 1998 this exemption was removed; however, the act may not be as influential as it seems. Court rulings were prominent in initiating and maintaining the antitrust exemption for professional baseball. These include the Supreme Court Trilogy, especially the case of Curt Flood, a baseball player who fought against the reserve clause system which limited his and other players’ employment options. Collective bargaining as well as arbitration became dominant in professional baseball labor relations under the …

Do Mlb Hitters Boost Performance In Their Contract Year?, Heather M. O'Neill

Business and Economics Faculty Publications

This study focuses on 256 MLB free agent hitters playing under the 2006-2011 CBA to determine whether they boost their offensive performance in their contract year. Prior studies’ results are mixed, depending on the econometric technique used and the choice of the offensive performance measure.

Having multiple year observations per player, one can incorporate the unobserved traits of the players (ability, risk aversion, work ethic, etc.) by using Fixed Effects (FE) estimation. Since these unmeasured player traits are likely to be correlated with observed predictors of performance (games played, playoff contention, age, etc.), traditionally used Ordinary Least Squares (OLS) and …

Illegal Defense: The Irrational Economics Of Banning High School Players From The Nba Draft, Michael Mccann

Law Faculty Scholarship

Each year, the National Basketball Association (NBA) conducts its annual entry draft (NBA Draft), which is the exclusive process by which premiere amateur players gain entrance into the NBA. To the dismay of many commentators, a number of drafted players will have just completed their senior year of high school. Routinely, these players are dismissed as immature, unprepared, and ill-advised, even though most will sign guaranteed, multi-million dollar contracts before their college educations would have begun. In stark contrast to popular myth, this Article finds that players drafted straight out of high school are not only likely to do well …