The Department of Finance and Economics is pleased to recognize two economics majors who shared the results of their research completed as part of the econometrics course sequence in economics at the 2024 Pennsylvania Sports Business Conference, “Creating the Gold Standard.” This conference was held at the Hadley Union Building on the IUP main campus on Friday, April 12. The conference featured presentations from various individuals involved across the sports industry.
John Sieber (BA, Economics) and Myca Torreance (BS, Finance with an Economics double major) were announced as the co-recipients of 2024 Research Award at the Pennsylvania Sports Business Conference. According to its web page, the Pennsylvania Sports Business Conference Research Award recognizes students for “their contributions to furthering the industry through research” based on the quality of the research and the relevance of the topic.
Their research paper, "Shooting for Success: An Econometric Analysis of NBA Salaries," investigates the multifaceted landscape of National Basketball Association player salaries by examining an array of factors that shape compensation. At the heart of the analysis lie individual player performance metrics, which serve as the bedrock upon which salary negotiations are built. However, beyond the more statistical measures, experience and tenure emerge as pivotal factors shaping salary dynamics within the NBA. Drawing upon a cross-sectional sample of 381 players during the 2022–23 season and building on existing literature, this investigation employs the Ordinary Least Squares Regression method to understand the relationship between player performance, experience, and remuneration. Metrics such as points scored, rebounds (both offensive and defensive), assists, defensive statistics (including blocks), and three-point shooting accuracy are well known for their direct impact on player value.
According to Sieber, "We chose this topic because we both have an interest in basketball, specifically the NBA, and there are not too many studies done on salaries for the NBA. The experience Myca and I had at the PSBC was incredible. We got to listen to representatives for the Penguins, Pirates, Seven Springs, and more! It was an awesome chance to connect with these special individuals and pick their brain a little bit. For our presentation, it was great to have a larger crowd than I was used to, and helped me become a better public speaker and presenter in the future for my professional career."