Disparity in NBA Player Salary Often Leads to Winning, Says Case Study

With the National Basketball Association (NBA) group of owners locking out their players this basketball season more sports fans are taking interest in terms like “revenue share,” and “luxury tax.” Terminology and topics usually reserved for the business section is now making its way to the front page of the sports section. In the wake of yesterday’s epic fail of player-owner labor negotiations, a new study examines how the pay hierarchy on an NBA team can actually lead to victory on the court.

Unlike Major League Baseball, salary disparity in the NBA can make a positive difference on the court, according to new research from the Kellogg School of Management at Northwestern and the Stanford Graduate School of Business.

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