Buying Wins: An analysis of Salary and Performance in the National Basketball Association

This study examines the relationships between player salaries and performance in the\ud National Basketball Association, by analyzing team salaries and statistics for the five seasons between 2008 and 2013. We find that the teams are able to achieve more wins by\ud outspending their competitors, even if that means incurring a tax bill for salary paid in excess of the luxury tax level. We also find that statistics which lead to a greater number of\ud possessions or opportunities for the team have the highest correlation with team wins.\ud Furthermore, we analyze the statistics that are most important at each of the five player\ud positions. Finally, we determine that focusing on 1, 3, or 5 highly paid players relates\ud positively to wins