Deciphering the drivers and trends of an NBA player’s salary in the past 20 years

Abstract

The study tests the relative importance of different player metrics in determining an NBA player’s salary. Points Scored per game and Age seem to be most dominant factors in the polynomial regression model with an adjusted R2 of 0.72. The game has become more offensive and higher scoring, especially in the last 10 years, due to sharp rise in 3-Point shots leading to greater value in the team for forward players than in the past. A player’s golden age for earnings is between the age of 30-34 when he earns the maximum value per point scored. Average salary growth has also beaten inflation by a wide margin in the study period.

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