How to Choose a Market in Sports

A few weeks ago, Arturo and Devin – in two separate posts – wrote about which markets deserve and don’t deserve an NBA franchise.   These posts considered a few objective factors about a market in ascertaining where the NBA should locate its teams.

Today at Freakonomics, I took a very different approach.  Currently in North American sports leagues, the existing owners in each league determine whether or not the league should enter a new market.  In contrast, European sports leagues – like the English Premier League – rely upon market forces to make this decision.

Although individuals – like Arturo, Devin, and the owners – can consider a variety of factors in making this decision, I do not think (echoing the arguments of Friedrich Hayek) that an individual – or a committee – can do this job as well as a market.  For example, I think it is entirely possible that a smaller market could support a team if the people in this market are especially interested in NBA basketball.  In contrast, a team in a larger market might struggle to find success if the people in the market are not generally enthusiastic and/or the ownership of the team does a poor job of selling the team.  The latter appears to be the case in New Orleans, where ticket sales seemed to improve when the NBA assumed ownership of the team.  In other words, one of the problems in New Orleans might have been incompetent owners (a problem we also see historically with the LA Clippers).

Beyond invoking Hayek (not one of my favorite economists of all-time, but someone who certainly understood the problems of central planning), my post also links how teams are allocated to the history of labor disputes in North American sports.  And although I have little hope that what I suggest will ever be adopted, hopefully it does give people something to think about.

Let me close by thanking Matthew Phillips.  Matthew is an editor at Freakonomics, and he is the person who makes my recent posts in that forum look (and read) so good.  Today, unfortunately, is Matthew’s last day at Freakonomics and I would just like to thank him in this forum for all his help.

- DJ

How Carmelo and Amare may con the voters for another year.

The following comes from the very talented James Brocato (@jbrocato23) of Shut Up and Jam. James’ fandon originates with the Seattle Supersonics. As he is waiting for their return to Seattle he gladly decided to hop in and shed some light on the New York Knicks using a combination of advanced basketball stats including the new and improved Wins Produced!

Struggles for Amar’e and Carmelo

Last season, New York made two big name, big money acquisitions. Unfortunately for the Knicks, money won’t buy wins if it’s not well spent. And after last season, Carmelo Anthony and Amare Stoudemire both made the overrated list at the Wages of Wins. Also, Amare was one of the fifteen most overpaid players in the league. In fact, the number of all star game appearances Anthony and Stoudemire have racked up together is higher than the number of wins they combined to produce last season. Despite putting up big numbers in everyone’s favorite category, both of these players struggle with creating and maintaining possessions for their team. Of particular concern is each player’s steal to turnover ratio. Last season, Carmelo’s was 0.33, just over half of the 0.62 league average for small forwards. Amare’s 0.28 was not much more than half of the 0.51 that the average power forward achieved. While turning the ball over as much as Amare and Carmelo do may be partly attributable to the volume with which each is expected to handle the ball, great players who turn the ball over at high rates make up for it in other categories. Amare and Carmelo don’t. Let’s take a look at their stat lines:

Per 48 Minute Stats
Player eFG% ORB DRB AST STL BLK TOV PF S:T Net Poss. WP48
Carmelo Anthony 0.487 2.06 7.76 3.86 1.19 0.80 3.59 3.91 0.33 7.42 0.088
Average SF 0.500 1.54 5.60 3.44 1.48 0.81 2.38 3.60 0.62 6.00 0.100
Per 48 Minute Stats
Player eFG% ORB DRB AST STL BLK TOV PF S:T Net Poss. WP48
Amare Stoudemire 0.505 3.31 7.33 3.38 1.19 2.51 4.18 4.58 0.28 7.64 0.060
Average PF 0.508 2.58 7.47 2.52 1.14 1.22 2.24 4.36 0.51 8.96 0.100

In addition to being turning the ball over at high rates, both Amare and Carmelo are below average with respect to effective field goal percentage. Not exactly what you’d expect from the league’s most versatile scorer, as many like to crown Carmelo. 

The Real Big Two in New York

Luckily for Carmelo and Amare, they have had a lot of great players on their teams in the past, which has helped to mask their mediocrity. And more luckily for them, this trend will likely continue because the Knicks signed Tyson Chandler. Now the Knicks have two WP stars under 30, Chandler and Landry Fields, who each produced more wins last season than Anthony and Stoudemire combined. Let’s take a look at the stat lines of Chandler and Fields:

Per 48 Minute Stats
Player eFG% ORB DRB AST STL BLK TOV PF S:T Net Poss. WP48
Landry Fields 0.568 1.98 7.86 2.93 1.51 0.32 2.02 2.15 0.75 9.33 0.237
Average SG 0.496 1.08 4.44 4.13 1.51 0.42 2.52 3.45 0.60 4.51 0.100
Per 48 Minute Stats
Player eFG% ORB DRB AST STL BLK TOV PF S:T Net Poss. WP48
Tyson Chandler 0.654 4.80 11.33 0.75 0.84 1.86 2.05 5.59 0.41 14.92 0.268
Average C 0.510 4.10 8.68 2.42 1.18 2.03 2.65 5.40 0.44 11.31 0.100

As you can see, both Fields and Chandler excel in two areas where Anthony and Stoudemire struggle: shooting efficiently and taking care of the basketball. Indeed, Fields had the 4th highest effective field goal percentage among all shooting guards and Chandler had the 2nd highest among all centers that played at least 1,000 minutes last season. As a side note, Stoudemire has excelled in shooting efficiency in the past, and was actually above average with respect to WP48 in his early to mid twenties, but his production dropped off substantially at 26, and he has been consistently around or below average since. Carmelo, on the other hand, has been extremely consistent across his career, and has never been above average with respect to WP48.

Will the Addition of Chandler be Enough?

Of course the addition of Chandler means the Knicks now will have a “big three” of their own in Anthony, Stoudemire, and Chandler, in that order. Or at least that what they will say. But will the addition of Chandler give the other two enough of a boost to compete in the East? Let’s take a look:

Estimated Knicks Production in 2011-2012
Player Projected Minutes* WP48 Wins
 Tyson Chandler 2000 0.268 11.2
 Landry Fields 1800 0.237 8.9
 Carmelo Anthony 2400 0.088 4.4
 Toney Douglas 1250 0.116 3.0
 Mike Bibby 1250 0.085 2.2
 Baron Davis 1500 0.068 2.1
 Amare Stoudemire 2100 0.039 1.7
 Jared Jeffries 900 0.068 1.3
 Bill Walker 650 0.073 1.0
 Iman Shumpert 900 0.050 0.9
 Renaldo Balkman 440 0.006 0.1
 Josh Harrellson 650 0.002 0.0
 Total 36.8 

Remember, the season is only 66 games, so 37 wins is the equivalent of about 46 wins in a full length season. And 46 wins is an improvement over last year. In fact, the Knicks have a good shot of making it past the first round of the playoffs with this team. But, why would the addition of Chandler, a great player, only provide the Knicks with a relatively minor improvement? It’s simple, the Knicks no longer have a great point guard, which they were lucky enough to have all of last year with Raymond Felton, then Chauncey Billups. Instead, they will depend on savvy but below-average-because-of-old-age veterans Baron Davis and Mike Bibby to run the point. Accordingly, if the Knicks hadn’t signed Chandler and instead signed someone like David West, or worse, Glen Davis, the positive perception of Carmelo and Amare might have taken a huge hit. Of course, the media probably would have blamed lack of chemistry and coaching and the supporting cast and whatever else they could think of that might protect their belief that points per game is far and away the most important statistic in basketball. The truth is that the draft and the lockout have helped the Knicks luck into some wins. Here’s hoping they realize where their real production is coming from or the Isiah Knick days may repeat themselves.

-James

Why hasn’t anyone signed Kris Humphries?

The numbers in the post are using the new Wins Produced. You can find all of the Wins Produced numbers back to 2000 here!

With forwards like Carl Landry, Glen Davis, David West and Jeff Green getting big contracts a big question is why hasn’t anyone signed Kris Humphries?

2010-2011 Performance Comparison
Player Age New Salary/Yr MP WP48 WP
 Kris Humphries  26  ?? 2061 0.254 10.92
 David West  31 $10 million 2451 0.116 5.92
 Carl Landry  28 $9 million 1996 0.043 1.79
 Jeff Green  25 $9 million 2427 0.019 0.97
 Glen Davis 26 $6.5 million 2298 -0.012 -0.60

If we compare Humphries to some of the other free agents bigs that have been snatched up we see that Humphries wasn’t just more productive than these players. He was more producitve than all of them put together! David West was the only other above average forward in the bunch, and even West was only barely above average. Unlike West, though, Humphries is much younger and more productive. When it comes to Landry, Green and Davis though the only explanation I have is that owners weren’t watching last season. Of course, that might explain the lockout.

Was Humphries just lucky last season?

Kris Humphries’ career
Season Team(s) Age MP WP48 WP
 2010-2011 New Jersey 25 2061 0.254 10.92
 2009-2010 Dallas-New Jersey 24 1221 0.097 2.46
 2008-2009 Toronto 23 265 0.118 0.65
 2007-2008 Toronto 22 925 0.102 1.97
 2006-2007 Toronto 21 670 0.114 1.59
 2005-2006 Utah 20 621 -0.016 -0.21
 2005-2006 Utah 19 873 -0.047 -0.85

The story is that a young Kris Humphries was not  a good player in Utah and was shipped off to Toronto. Here he was actually a productive (average) power forward that was played limited minutes behind more questionable choices. He was also average in Dallas and New Jersey in 2010. Finally last season he was given real minutes and he had a breakout season.

While it is true that last season was an outlier compared to the rest of his career, there are things to keep in mind when it comes to Humphries

  • Humphries will be 26 this season. This is the year players are in their prime.
  • Humphries has been a productive big for the last 5 seasons.
  • The lack of demand for Humphries implies he will be at a discounted rate.

Even if last season was an anomaly, Kris Humphries has traditionally put up numbers on par with the “top” of the power forward market (i.e. David West). Unlike West, Humphries is young and clearly has a huge upside (in contrast, the teams that are signing players like Davis and Landry are not likely to see much benefit from these moves).  And the team that ultimately signs Humphries is likely to see more than a few wins and only have to spend relatively few dollars.

-Dre

Are the Blazers done?

Hey all if you want more a more in depth look at the numbers beyond this article I suggest you check out our Wins Produced numbers. If you want to know how they work check out our tutorial. If you need even more data fun I suggest you check out Patrick’s Player Comparison Engine or Basketball-Reference’s Player Comparison Finder.

Last season a last minute save from Michael Jordan kept the Blazers from fading out of significance in the Western conference. This season there are a few reasons why I think the Blazers will likely take a step back.

The Blazers lose Brandon Roy and Rudy Fernandez

Last season Brandon Roy was not up to snuff.  But a mere two seasons ago in the 2008-2009 season he was a top ten player in the league producing 13.6 wins. In short, Brandon Roy was a superstar cut short by injury. Such players are hard to replace and it is unlikely Portland will any time soon.

The Nuggets good fortune in acquiring Rudy Fernandez came at the expense of the Blazers. With no Brandon Roy the Blazers really could use another player to fill the void. Fernandez was not the same superstar player Roy was, but he was solid and not having him to take over will hurt the Blazers.

That brings me to my next point.

The Blazers sign Jamal Crawford

The Blazers have signed Jamal Crawford to a two year deal. There are several problems with this. The first is that Crawford just isn’t very good. Here are his numbers over the last three seasons.

Jamal Crawford’s numbers from 2009-2011
Player Season MP WP48 WP
Jamal Crawford 2011 2297 0.054 2.59
 Jamal Crawford 2010 2460 0.104 5.34
 Jamal Crawford 2009 2479 0.034 1.77

Crawford’s best season in 2010 had him just about average. In general though he is a terrible player that does not contribute much. A worse problem is he is 31 this year. Let’s repeat ourselves – in the NBA players age like milk! They do not bring winning attitudes, or veteran leadership to the locker room! They bring declining play. That’s even worse if the player wasn’t that good to begin with.

Marcus Camby is getting older

Marcus Camby is one of my favorite players of all time. His time in Denver was special and he didn’t deserve the exit he got. That said he is getting older. Last season he was the Blazers best player with a WP48 of 0.237 (over twice as good as the average center) and produced 7.6 wins. While this production is very good, it is a far cry from the numbers he put up in his prime. At 37 the question is when — not if — his game will disappear. I can hope for him to drink some of the same Gatorade as Jason Kidd and Steve Nash, but given Camby’s injuries and decreased play time I wouldn’t hang my hat on him keeping Portland relevant.

Still some hope?

I actually like Portland. I believe Justin Kubatko (the creator of Basketball-Reference) was/is a consultant for them. That might be enough for some hope right there. There are three reasons I can see to still give Portland some hope.

  • Raymond Felton is pretty good. The last two seasons he’s produced over 6 wins each year.
  • Gerald Wallace is a star. Two seasons ago he was top five in the league. Last season with some injury problems he was still top 25.
  • Greg Oden might get healthy.

Okay, the Oden point indicates I am just trying to keep a straight face and give Portland some optimism!

-Dre

Do the Nuggets know what they’re doing?

Hey statheads you may want to adjust your dials slightly. The numbers in this article are using the new and improved Wins Produced formula. If they’re a little off from your numbers you can find out why by reading the full tutorial here! I use numbers from the 2011, 2010 and 2009 seasons in this post.

This off-season has given me hope as a Nuggets fan. Somehow the Nuggets have managed to make good moves via trade, the draft, and now free agency. It’s very possible the Nuggets may know what they’re doing. Today I’ll quickly review the state of the Nuggets and reasons to be optimistic (and to be complete, maybe pessimistic).

Great: The Nuggets take care of business and re-sign their best player

Last season the Nuggets were in a tizzy over the possibility of losing Carmelo Anthony. It turns out that they really needed to worry about losing Nene. I’ll be using Patrick’s fantastic comparison engine to demonstrate.

Nene per 48 minute stats compared to an average center

WP48 PTS REB AST TO BLK STL PF
Hilario 0.208 22.8 11.9 3.1 2.8 1.5 1.8 5.0
Average C 0.100 17.4 12.3 2.2 2.4 1.9 1.0 5.3

Nene Shooting comparison to an average center

FG% 2FG% 3FG% FT% eFG% TS% FTA
Hilario 61.5% 61.8% 20.0% 71.1% 61.5% 65.7% 8.4
Average C 51.5% 53.7% 35.5% 66.2% 51.8% 55.2% 5.1

Nene is a little worse than average when it comes to rebounding, blocking and stealing. That’s no surprise as Nene is not often thought of as a defensive powerhouse. However while he is slightly below average when it comes to D, he is amazing when it comes to offense. Nene was a huge reason the Nuggets had such a top offense. Re-signing him was key to the Nuggets 2011-12 season.

Great: The Nuggets actually do well in the draft

The Nuggets had a history of giving their draft picks away for overrated players. In fact Kenyon Martin and Allen Iverson were responsible for five first round picks going to other teams. When the Nuggets finally had a first round pick of their own, they used it well to pick up Kenneth Faried. He’s the perfect compliment to Nene and earned the Nuggets an A+ draft rating by our esteemed analyst Devin Dignam. I’ll even use the dreaded eye test to further show my optimism.

Good: The Nuggets pick up Rudy Fernandez

Rudy Fernandez was an under utilized piece in Portland. When Dallas picked him up I thought it was an amazing move by Dallas. That is until they sent him to the Nuggets for next to nothing. Here’s a brief rundown of Rudy’s recent performance

Rudy Fernandez’s performance 2009-2011
Player Season MP POS WP48 WP
Rudy Fernandez 2011 1821 1.9 0.117 4.43
Rudy Fernandez 2010 1441 2.0 0.151 4.54
Rudy Fernandez 2009 1993 2.0 0.178 7.38

His numbers last season were a bit down, but on the whole he has been a very productive player. The only problem is that he hasn’t gotten the minutes he needs. I hope that changes in Denver. He is a perfect replacement for J.R. Smith and comes with much less baggage.

Good: The Nuggets lose some “key” components to China

A byproduct of the lockout was the loss of J.R. Smith, Kenyon Martin and Wilson Chandler to China.

Denver Nuggets lost to China
Player MP POS WP48 WP
J.R. Smith 1968 2.5 0.140 5.75
Wilson Chandler 2401 3.0 0.081 4.04
Kenyon Martin 1233 4.0 0.114 2.93

Some viewed the loss of these players as a major blow to the Nuggets but  I view it a little differently. J.R. Smith’s contract was up and his constant battles with George Karl meant he was unlikely to return. Wilson Chandler was a decent player but was definitely overrated. By staying in China he prevented the Nuggets from making a bad decision to overpay him. Kenyon Martin put up decent numbers last season but lost significant time to injury. As he’s older — and has been injury prone his whole career — I don’t have a problem missing out on K-Mart. In short the Nuggets lost about 7 wins to China, but had the Nuggets re-signed Chandler and Martin they likely would have been overpriced and costly wins.

Bad: The Nuggets still have George Karl in control

One of my first posts was about how George Karl doesn’t allocated minutes properly.   This severely hurt the Nuggets in the playoffs last season. Karl will have some dangerous choices in terms of which players to give minutes to and choosing poorly could be bad.

Bad: The Nuggets have Corey Brewer and Al Harrington on the roster

Hopefully if you’re reading this a few months from now, Al Harrington will have been amnestied and Brewer will be traded to another team. Until that happens it is still possible that the gaps in the roster will be filled with these two players instead of the better options (hopefully if you’re reading this in the future we’ve also re-signed Arron Afflalo)

The terribleness that is Corey Brewer and Al Harrington
Player MP POS WP48 WP
Corey Brewer 1510 2.1 0.037 1.15
Al Harrington 1665 4.0 -0.040 -1.40

Summing up

After such a long post my advice to the Nuggets is remarkably simple: Play your good players a lot and keep Harrington and Brewer from every setting foot on the floor. With this basic advice I expect great things from the Nuggets. Of course as a Nuggets fan my hopes have been high before only to be dashed. So I’ll stay cautiously optimistic but still expect a winning season.

-Dre