Earnings equations are estimated for major league baseball hitters and pitchers using salary data for the 1989 season. The results indicate that final-offer salary arbitration and long-term contracts have a large positive impact on salaries. The impact of free-agency eligibility is also positive, but smaller man arbitration eligibility. This implies that some players have used the arbitration process to extract above-market salaries. Therefore it is concluded that it would be in the interest of the owners to replace arbitration with earlier eligibility for free agency.
Lawrence Hadley and Elizabeth Gustafson
This paper derives equivalent gross salary for Major League Baseball free agents weighing offers from teams based in states with different income tax rates. After discussing tax law applicable to professional sports teams’ players, including “jock taxes” and the interrelationship of state and federal taxes, this paper builds several models to determine equivalent salary. A base-case derivation, oversimplified by ignoring nonsalary income and Medicare tax, demonstrates that salary adjustment from a more tax expensive state’s team requires solely a state (but not federal) tax gross-up. Subsequent derivations, introducing nonsalary income and Medicare tax, demonstrate full Medicare but small federal tax gross-ups are also required. This paper applies the model to equalize salary offers from two teams in different states in a highly stylized example approximating the 2010 free agency of pitcher Cliff Lee. Aspects of the models may also be used to inform other sports’ players of their after-tax income if salary caps limit the ability to receive adequately grossed-up salaries.
Morris B. Holbrook and Clifford J. Shultz II
The spectacular salaries paid to various baseball stars—and the ongoing player-management acrimony over those salaries—leads one to question the relationship between performance and compensation during what may someday be referred to as the “golden era” of free agency. After reading the available work on the determinants of ballplayer compensation, one may still wonder what effect today's hit, strikeout, assist, or error exerts on tomorrow's salary—or, more colloquially, “How much is a home run worth?” The present study addresses these questions from the vantage point of a salary-updating model. This model assumes no salary cap and posits that, according to an updating or ratcheting process, future salary depends on current salary and current performance.
.g., Ryan & Deci, 2000 ). Previous research into extrinsic motivators have examined salary on performance (e.g., Koschmann, 2017 ; Torgler & Schmidt, 2007 ), an upcoming contract on performance (e.g., Frick, 2011 ; White & Sheldon, 2014 ), and recently signed contract on performance (e.g., Berri
Janet B. Parks
This study investigated the employment status of the alumni of a large undergraduate sport management program. Information was collected and analyzed relative to demographics, graduate school status, placement strategies, current positions, and salaries. Data treatment included descriptive statistics and chi-square. Statistically significant differences were found (a) between women and men relative to placement strategies, (b) between women and men relative to salaries, (c) between salaries of the major employment classifications, and (d) between salaries in positions related to sport management and those unrelated to sport management. Recommendations included encouragement of further investigation of the significant differences found in this study, utilization of the findings in career education, additional research focusing on career development rather than on employment status, and the use of more sophisticated research designs and more powerful statistical analyses in future studies of sport management career paths.
Erica L. Carleton, Julian Barling, Amy M. Christie, Melissa Trivisonno, Kelsey Tulloch and Mark R. Beauchamp
Based on the contention that leadership has sustained effects on followers even after the leader–follower relationship has ended, we investigated the career-long effects of abusive coach leadership on athlete aggression and task performance. Abusive leadership scores were derived from ratings by two independent raters’ evaluations of coaches’ biographies, and athlete aggression and task performance data were derived from objective sources. Data were obtained from players (N = 693) and coaches (N = 57) involved in the National Basketball Association (NBA) between the 2000–2001 and 2005–2006 seasons. Controlling for tenure, salary, team winning percentage, and absence due to injuries, multilevel modeling showed that exposure to abusive leadership influenced both the trajectory of psychological aggression and task performance over players’ careers. These findings suggest that the effects of abusive leadership extend far longer than currently acknowledged, thus furthering our understanding of the nature and effects of abusive leadership.
Ian J. Connole, Jack C. Watson II, Vanessa R. Shannon, Craig Wrisberg, Edward Etzel and Christine Schimmel
This study used a consumer marketing approach to investigate the market for sport psychology positions in National Collegiate Athletic Association (NCAA) institutions. Athletic administrators’ (AA) preferences for various sport psychology positions were compared based on time commitment, affiliation, payment, services, and clients. Results indicated that AAs were most attracted to positions that included (a) part-time commitment, (b) athletic department employment, (c) payment via annual salary, (d) both performance and mental health related services, and (d) work with athletes, teams, and athletics staff members. Over two thirds of the 478 AAs sampled were interested in hiring a sport psychology professional to fill that position. It was concluded that the field of sport psychology collaborate across disciplines and emphasize multiple options for meeting the perceived needs of NCAA athletic departments.
Sharon R. Guthrie, T. Michelle Magyar, Stephanie Eggert and Craig Kain
Researchers have extensively documented gender differences in negotiation perceptions and performance which, in turn, may contribute to the persistence of salary and workplace inequity between women and men. The purpose of this study was to determine if these differences existed among a sample of 228 athletes (women n = 151 and men n = 77) who had competed in sport at high school, competitive club, college, or through professional levels for 15 years. More specifically, gender differences in the propensity to initiate negotiation were investigated in order to determine whether the three factors associated with the Babcock, Gelfand, Small, and Stayn (2006) Propensity to Initiate Negotiation Model (i.e., recognition of opportunity, sense of entitlement, and apprehension) explained and mediated such differences. Propensity to initiate negotiation (PIN) was operationally defined as self-reported responses to a series of hypothetical negotiation scenarios, as well as recent and anticipated future negotiation experiences. Females reported significantly more negotiation apprehension than males; they did not differ, however, in their recognition of opportunities and sense of entitlement associated with negotiation. The implications of these findings are discussed.
This article uses a simple approach to address the issue of how revenue sharing in professional sports leagues can affect the allocation of free agent players to teams. To affect the allocation of free agents, the imposition of revenue sharing must alter the ranking of bidding teams in terms of maximum salary offers. Two types of revenue sharing systems are considered: traditional gate revenue sharing and pooled revenue sharing. The article suggests that team rankings for ability to pay are not affected by pooled revenue sharing, however the distribution of player salaries will be affected asymmetrically. Traditional gate revenue sharing can alter the ability to pay rankings for teams, depending upon playing schedules and the closeness of revenues between closely ranked teams. Revenue data for two professional sports leagues provide evidence in favor of the model predictions.
Janet B. Parks and Michael E. Bartley
Scholarship expectations of many universities in the United States are becoming more stringent. The purpose of this study was to examine variables associated with the scholarship of the sport management professoriate. The participants were 266 of the 422 academics in the NASPE-NASSM Sport Management Program List (1991). Chi-square tests of independence (alpha < .004) revealed slight tendencies for (a) younger faculty to have doctorates in areas such as sport management, psychology/sociology of sport, and legal aspects of sport rather than in physical education; (b) younger faculty to have more publications than older faculty; (c) women to be concentrated in the lower ranks and salary ranges; and (d) movement toward gender parity in rank and salary. This study should be replicated in 5 years to discover if these tendencies were precursors of trends.