We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Uncertain Prospects: Rates of Return in the Baseball Draft.
- Authors
Burger, John D.; Walters, Stephen J. K.
- Abstract
This study uses a unique data set and valuation method to quantify returns to teams in baseball's high-stakes, high-risk amateur draft. Thanks to teams' monopsony power over draftees and low-seniority players, payoffs on successful picks far outweigh losses on unsuccessful ones: the expected annual yield on the median first-round draftee is 44%. However, the pattern of returns is inconsistent with market efficiency. Expected yields are lower for high school draftees than collegians (36% vs. 57%), lower for pitchers than position players (34% vs. 52%), and decline for later-round long shots.
- Subjects
BASEBALL draft; BASEBALL player recruiting; PITCHERS (Baseball); ATHLETIC drafts &; trades; SCOUTING (Athletics)
- Publication
Journal of Sports Economics, 2009, Vol 10, Issue 5, p485
- ISSN
1527-0025
- Publication type
Article
- DOI
10.1177/1527002509332350