Economics of Sport-Literature Review, Essay Example

The article highlights the salary disparity between black and white basketball players, using MRP (marginal revenue product). From our research question and analysis of the regression variables, coaches of football teams in the SEC are more likely to earn $1,613,361 more. The bias that exists is that the coaches tend to earn more even though they have less number of televised games, 98 compared to PAC-12 102 televised games. However, the more pay is likely attributed to the fact that Coaches in SEC-2 tend to win more games and have relatively more experience than the one in PAC-12.

The article concluded that race is not a significant determinant of the salary level for basketball players. However, restriction in the players’ mobility to join other teams considerably affected the ability to know their actual market value. In comparison to the research question, there also appears to be no discrimination between coaches in the SEC and coaches PAC-12.

In both cases, the winning percentages significantly determined the salary levels. It would be prudent to leave the labor market conditions to value the player/ coach effectively rather than associate the salary level to race or organization affiliation.