2014 NFL Payroll and Performance

With the NFL regular season in the books, let me turn my attention to the relationship between team payrolls and team performance.  As we discuss in our book The Wages of Wins, while there tends to be a positive and statistically significant relationship between relative payroll and team performance, the relationship is not really very large enough to conclude that spending by teams is related to on-field performance.  While the book was published in 2006 (and updated in 2007), I like to try to keep up to date on these topics and thus the reason for this blog post.

So, I downloaded the NFL regular season team standings data and NFL team payroll data to run this analysis for just the 2014 season.  Before I present the results, I want to discuss the payroll data.  Using the link above you can see that I am using "cash" and not there salary cap option.  The reason is that I want to focus on actual spending by the team on the players as opposed to how money is attributed to payroll regulations.  For those interested in doing this on there own, here is a step-by-step guide to payroll and performance analysis in Microsoft Excel.

So for the 2014 NFL regular season team payroll and performance is positive and statistically significant, but the amount that payroll explains team performance is about 25%.  Meaning that there is 75% unexplained.  If I wanted to know why teams wins, using only payroll seems to be a limited resource.

NFL Competitive Balance 2014

Now that the NFL regular season is wrapped up, it is time to take a look at how competitively balanced the NFL was last season.  In order to do this, I am going to look at the NFL season statistically as a sample and as a population - mainly for comparison purposes.  Additionally, I will take a look at the conferences separately in terms of competitive balance.  The data comes from profootball-reference.com.

There are a lot of ways to measure competitive balance, and I have chosen to use a simple measure called the Noll-Scully Competitive balance measure.  By competitive balance we are looking at how well a league's standings are in relation to a league where wins and losses are determined randomly.  Here is a step-by-step guide if you want to calculate this on your own.  As a reference, here is the Noll-Scully using a sample or a population for the NFL from 1981 to 2012.

For the NFL in 2014 the Noll-Scully was 1.562 (population) and 1.587 (sample).  If you click on the link in the last sentence above, you will notice that the NFL's competitive balance for this past season is very similar to recent seasons. 

Since the 2000 NFL season, competitive balance in the NFL has been fairly stable as shown below:

 

 

2014 NCAA FBS Top 25 for Week 16

With only one game this past weekend, it may not matter much whether this game is included in the overall dataset, but I thought that I would be through as I have been in the past so I have included the latest rankings after the Army-Navy game.  So using the data from cfbstats.com here is the last regular season ranking for 2014.  As you can see the ranking is similar to the previous week's ranking, with Oregon still the most productive team in all of college football.  So here is the final regular season top 25 using the Complex Invasion College Football Production Model.

Rank	Team
1	Oregon
2	Marshall
3	TCU
4	Baylor
5	Ohio State
6	Michigan State
7	Alabama
8	Georgia
9	Louisiana Tech
10	Boise State
11	Mississippi State
12	Georgia Southern
13	Georgia Tech
14	Northern Illinois
15	Wisconsin
16	East Carolina
17	Mississippi
18	Memphis
19	Florida State
20	BYU
21	Arizona
22	Cincinnati
23	Oklahoma
24	USC
25	Western Kentucky

Previous 2014 NCAA FBS Top 25 Rankings
2014 NCAA FBS Top 25 for Week 15
2014 NCAA FBS Top 25 for Week 14
2014 NCAA FBS Top 25 for Week 13
2014 NCAA FBS Top 25 for Week 12
2014 NCAA FBS Top 25 for Week 11
2014 NCAA FBS Top 25 for Week 10
2014 NCAA FBS Top 25 for Week 9
2014 NCAA FBS Top 25 for Week 8
2014 NCAA FBS Top 25 for Week 7
2014 NCAA FBS Top 25 for Week 6
2014 NCAA FBS Top 25 for Week 5
2014 NCAA FBS Top 25 for Week 4
2014 NCAA FBS Top 25 for Week 3
2014 NCAA FBS Top 25 for Week 2 

2014 NCAA FBS Top 25 for Week 15

The college football regular season has now finished week 15.  As you can see the Oregon Ducks are the most productive team in all of college football using the Complex Invasion College Football Production Model using data from cfbstats.com.

Of the top 4, the model only has one of those chosen by the College Football Playoff committee - Oregon.  Ohio State is #5, Alabama is #7 and Florida State is #19 in terms of overall productivity.

Here is the Top 25.

Rank	Team
1	Oregon
2	Marshall
3	TCU
4	Baylor
5	Ohio State
6	Michigan State
7	Alabama
8	Georgia
9	Louisiana Tech
10	Boise State
11	Mississippi State
12	Georgia Southern
13	Georgia Tech
14	Northern Illinois
15	Mississippi
16	Wisconsin
17	East Carolina
18	Memphis
19	Florida State
20	BYU
21	Arizona
22	Cincinnati
23	Oklahoma
24	USC
25	Western Kentucky

Previous 2014 NCAA FBS Top 25 Rankings
2014 NCAA FBS Top 25 for Week 14
2014 NCAA FBS Top 25 for Week 13
2014 NCAA FBS Top 25 for Week 12
2014 NCAA FBS Top 25 for Week 11
2014 NCAA FBS Top 25 for Week 10
2014 NCAA FBS Top 25 for Week 9
2014 NCAA FBS Top 25 for Week 8
2014 NCAA FBS Top 25 for Week 7
2014 NCAA FBS Top 25 for Week 6
2014 NCAA FBS Top 25 for Week 5
2014 NCAA FBS Top 25 for Week 4
2014 NCAA FBS Top 25 for Week 3
2014 NCAA FBS Top 25 for Week 2 

2014 NCAA Football Top 25 for Week 14

The college football regular season has now finished week 14.  As you can see we have a new #1 team in all of college football using the Complex Invasion College Football Production Model using data from cfbstats.com - the Oregon Ducks.

Here is the Top 25.

Rank	Team
1	Oregon
2	Marshall
3	Michigan State
4	Baylor
5	TCU
6	Georgia
7	Alabama
8	Wisconsin
9	Ohio State
10	Mississippi State
11	Georgia Southern
12	Louisiana Tech
13	Mississippi
14	Memphis
15	Georgia Tech
16	Arizona
17	BYU
18	East Carolina
19	Boise State
20	Western Kentucky
21	Louisville
22	USC
23	Florida State
24	Auburn
25	Missouri

Previous 2014 NCAA FBS Top 25 Rankings
2014 NCAA FBS Top 25 for Week 13
2014 NCAA FBS Top 25 for Week 12
2014 NCAA FBS Top 25 for Week 11
2014 NCAA FBS Top 25 for Week 10
2014 NCAA FBS Top 25 for Week 9
2014 NCAA FBS Top 25 for Week 8
2014 NCAA FBS Top 25 for Week 7
2014 NCAA FBS Top 25 for Week 6
2014 NCAA FBS Top 25 for Week 5
2014 NCAA FBS Top 25 for Week 4
2014 NCAA FBS Top 25 for Week 3
2014 NCAA FBS Top 25 for Week 2