Chris Jeffords and Todd Potts recently published a paper about the allocation of the NFL salary cap to component positions within teams and across years.
Using a representative agent optimization model, Jeffords and Potts assess the degree to which average team salary cap shares devoted to offense and defense in the National Football League are consistent with the shares predicted by a constrained optimization
model. Results from a balanced fixed-effects panel for all 32 NFL teams over a 13-year period (2002–09 and 2012–16) indicate that the model is effective at matching the salary cap allocation between offense and defense, and closely matches the ratio
of offensive to defensive cap shares that we see in practice. Overall, the model fits well with observed NFL managerial oversight in this respect.
“NFL Salary Cap Allocation: Matching Theory with Observed Behavior” was published in a recent volume of Economics Bulletin which, according
to Cabell’s, has an acceptance rate of 21–30 percent.
Department of Economics