Economists Analyze The Pats Formuler (sic) For Success - Page 2 - New England Patriots Forums - PatsFans.com Patriots Fan Messageboard
NEWS
|
FORUM
|
PHOTOS
|
VIDEOS
|
FULL STATS DATABASE
|
PODCAST
|
RUMOR MILL
Get Social With PatsFans.com
Early Roster Projection
Ryan's Journey Started Early
POST DRAFT PODCAST

Go Back   New England Patriots Forums - PatsFans.com Patriots Fan Messageboard > PatsFans.com Forums > PatsFans.com - Patriots Fan Forum
Forgot Password? Join PatsFans.com!
Register Blogs FAQ Members List Calendar Arcade Mark Forums Read Chat Room

WELCOME TO OUR FORUM HERE AT PATSFANS.COM!
ARE YOU NEW HERE? NOT LOGGED IN? PLEASE TAKE A MOMENT TO REGISTER FOR AN ACCOUNT AND LOGIN TO REMOVE THIS WINDOW

Welcome to PatsFans.com. Do you have an account? If not - please take a moment to register for our forum and experience a much smoother experience with fewer ads, along with no longer having to see this notification window. Also learn about how you can receive a free Patriots T-Shirt from the Patriots Official ProShop by CLICKING HERE. Please enjoy your stay here, and Go Pats!

Reply
 
Thread Tools Display Modes
Old 11-29-2006, 05:03 PM   #11
It's SIR Moderator to you
 
gomezcat's Avatar
 

Join Date: Sep 2004
Location: London, just off the Eastern Seaboard
Posts: 3,543
My Mood: Blah
Send a message via Skype™ to gomezcat
Default Re: Economists Analyze The Pats Formuler (sic) For Success

Quote:
Originally Posted by PatsWickedPissah View Post
Here's an analysis by economists on why the Pats have sustainability as a winning franchise...

http://american.com/archive/2006/nov...ts-vs-redskins

Football teams have a relatively simple economic problem to solve. They have to fill their rosters with players, and have to pay the entire collection of players an amount fixed by the league. They can add players in two main ways: sign veterans as free agents or hire new players out of college in a league-wide draft. Veteran free agents get a salary set in the free market. Most draftees receive a relatively lower salary set by collective bargaining. What they are paid depends on the round in which they are drafted.Economics has a very clear prediction for optimal team behavior. Firms should load up on draft picks, especially from the inexpensive late rounds. Every team has the same cumulative salary to pay, so, to outperform the other teams, you must receive higher value relative to salary from your players than your opponents receive from theirs. If, for example, you select a Pro Bowl (all-star) receiver in the fifth round of the draft, that player may well receive a salary one-tenth that of a veteran Pro Bowl receiver of roughly equal talent who has had his salary set on the market. So your team gets a huge surplus.
It is nearly impossible to derive surplus from the veteran free-agent market, since you are paying market wages. While injuries and emergencies might require some veteran signing, the draft is the only place to build a winning team.

So economics would predict that teams would uniformly put an enormous effort into perfecting their drafts, and avoid sinking excessive dollars into costly free agents. In fact, this model predicts very well the behavior of one team, the New England Patriots. Their head coach, Bill Belichick, who received his undergraduate degree in economics from Wesleyan University in Connecticut, has been an artist at squeezing value-added out of his draft picks, and has won three of the last five Super Bowls.


We all know the fallibility of BB and Pioli in bust draft picks (e.g. Marquis Hill - Thanks Saban, you devious bastid!) but in the average and over the long run they have done very well, value wise.
Cheers, PWP. That's an excellent article. The thing I have never been able to understand is why teams pay extremely highly for FAs, to the detriment of a decent depth chart in a sport which is, erm, a tad injury-prone.

The article makes a great point about Branch. Seattle is saddled with a high cap hit for a player who is good but arguably over-valued. We also turned the second we used on him into a likely late round 1st, which isn't bad either.
__________________
The blog of our recent trip to The States (September and October 2012):


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
gomezcat is offline   Reply With Quote
FEATURED ADVERTISEMENT
DONATE TO PATSFANS.COM
RECEIVE A FREE PATS T-SHIRT AND SAVE 15% OFF WHEN YOU BUY FROM THE OFFICIAL PROSHOP!

Free T-Shirt & Save 15% Off!
Like Our Site? Please help support our site and server costs by DONATING TO PATSFANS.COM and receive a FREE PATRIOTS T-SHIRT and SAVE 15% off EVERY purchase you make from PatriotsProShop.com. You'll also receive added benefits to your account
including Removing All Ads During Your Experience Here At Our Forum.

NEEDED YEARLY SITE DONATIONS: 345 | CURRENT # OF SUBSCRIBED SUPPORTERS: 98

Updated 07/08/11

Help Us Reach Our Goal!

Old 11-29-2006, 05:50 PM   #12
----> Iron Mod <----
 
IcyPatriot's Avatar
 

Join Date: Sep 2004
Posts: 31,456
My Mood: Bored
Default Re: Economists Analyze The Pats Formuler (sic) For Success

Quote:
Originally Posted by shmessy View Post
Great stuff and well written.

By the way, has anyone heard from poster "Mikey" ("Kraft is cheap") lately?
What do you expect from a wanker like him ... everywhere he looks he sees evil and stupidity.
IcyPatriot is offline   Reply With Quote
Old 11-29-2006, 07:44 PM   #13
Second Team and Threatening Starter's Job
 

Join Date: Sep 2004
Posts: 1,446
My Mood: Mellow
Default Re: Economists Analyze The Pats Formuler (sic) For Success

The key, certainly, is to maximize on the draft. Finding top-end starters like Koppen, Asante, Brady and Givens in the later rounds is the best way to keep the cap healthy.

Even better is to find players like Gay, Neal and Wright from the lists of the undrafted. Those players contribute for next to nothing, the NFL chips in to compensate them with bonuses for performance, and they turn into real players that we can either roll for Compensatory picks when they leave in FA, or we backfill them with new no-name finds that we turn into players.

Not mentioned, but deserving, is the fact that BB has yet to draft a first round bust. All his first rounders have turned into players: Seymour, Warren, Graham, Wilfork, Warren, Mankins and Moroney. Holy crap. He's on such an incredible streak that I wonder if it's a streak at all. People say drafting players in the first round is a risk proposition, but I dont see it out of Foxboro. Those selections are not a mistake. BB just recognizes talent and value. Not a single Chris Canty in the bunch.

This is key because drafting a first rounder is actually a significant commitment of $ for the team, and a long term commitment at that. A few bad first round picks in a row can really hamstring an organization against the cap.
__________________
"We want to build a big, strong, tough, smart, fast, disciplined football team that will consistently compete for a championship."
-- Scott Pioli, from the Patriots scouting manual
rookBoston is offline   Reply With Quote
Old 11-30-2006, 12:00 PM   #14
Second Team and Threatening Starter's Job
 

Join Date: May 2005
Location: Minuteman country
Posts: 1,094
Send a message via AIM to arrellbee
Default Re: Economists Analyze The Pats Formuler (sic) For Success

Quote:
Originally Posted by rookBoston View Post
The key, certainly, is to maximize on the draft. Finding top-end starters like Koppen, Asante, Brady and Givens in the later rounds is the best way to keep the cap healthy.

Even better is to find players like Gay, Neal and Wright from the lists of the undrafted. Those players contribute for next to nothing, the NFL chips in to compensate them with bonuses for performance, and they turn into real players that we can either roll for Compensatory picks when they leave in FA, or we backfill them with new no-name finds that we turn into players.

Not mentioned, but deserving, is the fact that BB has yet to draft a first round bust. All his first rounders have turned into players: Seymour, Warren, Graham, Wilfork, Warren, Mankins and Moroney. Holy crap. He's on such an incredible streak that I wonder if it's a streak at all. People say drafting players in the first round is a risk proposition, but I dont see it out of Foxboro. Those selections are not a mistake. BB just recognizes talent and value. Not a single Chris Canty in the bunch.

This is key because drafting a first rounder is actually a significant commitment of $ for the team, and a long term commitment at that. A few bad first round picks in a row can really hamstring an organization against the cap.
You make what I consider to be a very significant point about Belichick/Pioli success rate on 1st rounders. As I have also commented on in numerous posts, it really strongly appears that one of the big weighting factors for BB/SP in picking first rounders is to pick 'sure things' (ie low risk) rather than take highly touted players who might have a significant risk element. Obviously, from the fact that only about one-third of the first round picks really work out solidly for teams, other teams just take some risks - even though they may not be clever enough to realize that this is what they are doing. But the results tell the story.
arrellbee is offline   Reply With Quote
Old 12-01-2006, 12:48 AM   #15
All Pro Poster
 
PatsFanInVa's Avatar
 

Join Date: Mar 2006
Posts: 17,627
My Mood: Angelic
Default Re: Economists Analyze The Pats Formuler (sic) For Success

Quote:
Originally Posted by RayClay View Post
Pretty good analysis execpt for this.

Since there are relatively few marquee free agents and lots of street free agents and draft picks on their first contracts who are also part of the "market", Marquee free agents actually command above market wages.

Same as employees in unions, from Ivy League colleges or in the best companies.

Will the market for David Givens ever be as high? I doubt it. He took advantage of optimum market conditions, not average market price.
Ray, I may be splitting hairs to an extent, but the existence of a high end of a market does not mean the marquis free agent is getting "above market" wages. Same goes for an ivy educated employee, actually... you're just looking at people commanding the market rate for their services. They are still part of the market mechanism, just a happier part of it.

But your Givens comment points up on subtle Belioli advantage and disadvantage: through their successes, they have artificially inflated the value of many "ex-Pats," both in their own eyes, and in the eyes of their new teams. This is especially true in terms of the wideouts. Givens and Patten come first to mind for me. Branch seems to be earning his keep, by contrast... but you get the idea. People come to Foxboro, get a ring, believe their own press, and negotiate with other people who believe their press. Their market value goes up.

But the Belioli model dictates that a value be set for that player for the Patriots. That number is less responsive to the fact that the player is on a Super-Bowl winning team, since many Pats have been on such a team... hence, player's self-evaluation and other teams' evaluation of player, exceed Patriots evaluated worth of player.

Over half of the Pats are drafted Patriots... ...which one poster says means "almost half of them were acquired through trade or free agency."

Well, okay... this count is meaningful if that is more than most teams carry from trade or FA. In other words, the figures are only significant in relationship to the league at large. If the Pats carry 1/2 homegrown and 1/2 FA/trade, and the league average is 1/4 from the draft, then the Pats DO use the draft exceedingly well, by the standards of the article. But if the average NFL team is carrying 75% draftees, then the Pats just aren't (by comparison) a draft-heavy team.

I don't have these numbers, but unless someone else does, it seems pointless to characterize the Pats as particularly draft-heavy or not.

PFnV
PatsFanInVa is offline   Reply With Quote
Reply

Bookmarks

Sponsored Links



Thread Tools
Display Modes


Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off




All times are GMT -5. The time now is 04:53 PM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2013, vBulletin Solutions, Inc.
Search Engine Optimization by vBSEO 3.6.0 PL2

© Copyright 2000-2012. PatsFans.com Is a Partner of USA TODAY Sports Digital Properties.
The opinions posted in this forum do not necessarily reflect the opinions of our staff at PatsFans.com or USA Today.
We are not affiliated with the New England Patriots™ or the NFL™. The Photo Used In the header was taken by Ian Logue.

This site is owned and operated by I&K Internet Design Enterprises, LLC


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 531 532 533 534 535 536 537 538 539 540 541 542 543 544 545 546 547 548 549 550 551 552 553 554 555 556 557 558 559 560 561 562 563