Date of Publication

Fall 2013

Document Type

Undergraduate Project

Professor's Name

Katharine Burakowski

Abstract

The National Hockey League (NHL) consists of 30 teams which are located in all diverse types of markets around North America. With these teams being in different size markets, it is becoming more difficult to survive in the rigid economic times. With sports being a billion dollar industry, the NHL is an organization who is really struggling because of the lack of support from fans and sponsorships. With money being an issue, owners of these 30 NHL teams, have to make a decision whether they want to be a winning organization or a profitable organization. With this being said owners need to think about how much money their players are making. My research question is: What is the return on investment of NHL players? How does the return on investment compare to the value of a player? This research being performed will benefit the academic community because it will open up the job markets for the NHL. With moving the idea of using statistical data to determine a players worth, we are able to validate the idea of saber metrics in the NHL. This can add a whole new field of study in the academic community. It will also benefit the sport community, because it will give owners of sport organizations the knowledge needed to spend their money wisely when deciding to sign a player. Finance is a very important aspect in sports, and doing this research we can predict future values to find ways for NHL owners to make a profitable organization. With this being said, the players also want to make sure they are making what they are giving back to the organization.

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