Exploring the Impacts of Salary Allocation on Team Performance

Study of salary has been an increasingly important area in professional sports literature. In particular, salary allocation can be a significant factor of team performance in NBA, given credit to the wisdom of team managers. This paper seeks to extend the scope of existing research on basketball by investigating on how salary allocation affected team performance and exploring other factors that lead to team success. Our findings indicate a moderate correlation between salary allocation and team performance, while average Player Efficiency Rating is a more crucial factor of team performance in comparison.