Abstract After the lockout season in 2004, the 2005 collective bargaining agreement (CBA) introduced salary regulations, as well as revenue sharing, to the teams of the National Hockey League (NHL) with the aim to restore financial competitiveness. Given these objectives, the question arises if efficiencies improved under the new CBA. Using team values as the dependent variable, we performed a stochastic frontier analysis. Our paper suggests that efficiencies immediately improved after the agreement, in particular for low performing teams.
AlexanderD., & KernW. (2004). The economic determinants of professional sports franchise values.Journal of Sports Economics, 5, 51–66.
2.
BarrosC., Del CorralJ., & Garcia-del-BarrioP. (2008). Identification of segments of soccer clubs in the Spanish league first division with a latent class model.Journal of Sports Economics, 9, 451–469.
3.
BarrosC., Garcia-del-BarrioP., & LeachS. (2009). Analysing the technical efficiency of the Spanish football league first division with a random frontier model.Applied Economics, 41, 3239–3247.
4.
BatteseG., & CoelliT. (1995). A model for technical inefficiency effects in a stochastic frontier production function for panel data.Empirical Economics, 20, 325–332.
5.
DawsonP., DobsonS., & GerrardB. (2000). Estimating coaching efficiency in professional team sports: Evidence from English Association Football.Scottish Journal of Political Economy, 4, 399–421.
6.
FortR., LeeY., & BerriD. (2008). Race and coaching efficiency in the NBA.International Journal of Sport Finance, 3, 84–96.
7.
FrickB., & SimmonsR. (2008). The impact of managerial quality on organizational performance: Evidence from German soccer.Managerial and Decision Economics, 29, 593–600.
8.
HoflerR., & PayneJ. (1997). Measuring efficiency in the National Basketball Association.Economics Letters, 55, 293–299.
9.
HoflerR., & PayneJ. (2006). Efficiency in the National Basketball Association: A stochastic frontier analysis with panel data.Managerial and Decision Economics, 27, 279–285.
10.
HumphreysB., & MondelloM. (2008). Determinants of franchise values in North American professional sports leagues: Evidence from a hedonic price model.International Journal of Sport Finance, 3, 98–105.
11.
KahaneL. (2005). Production efficiency and discriminatory hiring practices in the National Hockey League: A stochastic frontier approach.Review of Industrial Organization, 27, 47–71.
12.
LeadleyJ., & ZygmontX. (2005). When is the honeymoon over? Attendance trends in the National Basketball Association, 1970-2003.Journal of Sports Economics, 6, 203–221.
13.
LeadleyJ., & ZygmontX. (2006). When is the honeymoon over? National Hockey League Attendance, 1970-2003.Canadian Public Policy, 32, 213–232.
14.
MillerP. (2007). Private financing and sports franchise values: The case of major league baseball.Journal of Sports Economics, 8, 449–467.
15.
ScullyG. (1989). The business of Major League Baseball. Chicago: University of Chicago Press.
16.
ZakT., HuangC., & SiegfriedJ. (1979). Production efficiency: The case of professional basket-ball.American Economist, 25, 19–33.
