Applied economics helps sports teams lift their game

The Sydney Roosters' success in the 2013 NRL final was partly as a result of basic economics principles being applied to the selection of their winning team.

Queensland University of Technology (QUT) behavioural economics expert Professor Uwe Dulleck, from the QUT School of Economics and Finance, helped Roosters Chief Executive Brian Canavan apply economics principles to player selection.

Professor Dulleck explains "it's a matter of looking at the right statistics and applying productivity analysis.

"Some players may score fewer points but overall they could be better 'value for money' than the highest scoring players.

"This is because the players who score in close matches, when the game could go either way, are the ones to watch because they come up with the goods at crucial moments.

"A player who plays well when the game is already decided can clock up top match statistics without delivering value when it counts.

"The players who perform well under pressure are, therefore, likely to be the ones that are key to achieving success."

Professor Dulleck said economic analysis that looks at what economists call the "marginal impact" - the difference a player makes to the team - is important.

He adds "for example, a player might not be the highest scorer but might be instrumental in setting up goals for teammates.

"This means that focussing just on score averages will not reveal the true value of a player but if you ask the question of when and with whom the players played you can obtain valuable information."

Professor Dulleck said applied productivity analysis combined with information on player salaries could help explain why some players were overpaid.

He continued "entry wages play a big role here because they have been shown to determine player wages over their whole career.

"Players who enter on a high wage are always on a higher trajectory than those who enter at a lower salary even though they are not contributing as much to the team's success."

Brian Canavan believes that it was worthwhile undertaking a productivity analysis of a specific rugby league player, concluding "it enabled us to develop a far deeper analysis of player contract values.

"In order to meet NRL salary cap limitations, there is a great emphasis on striking the right balance in the team, this is intrinsically linked to team performance.

Professor Dulleck helped us to get a much more advanced understanding of these issues."

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