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Christopher Daggett
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@Comments addressing off-field value of players, e.g. ticket & merchandise sales. In the paper, Thaler-Massey state: "A more subtle argument is that the utility to the team of signing a high draft pick is derived from something beyond on-field performance. A very exciting player, Michael Vick comes to mind, might help sell tickets and team paraphernalia in a way his performance statitistics do not reflect. We are skeptical of such arguments generally. Revenue from paraphernalia sales are shared equally across all teams (18). Moreover, few football players (Vick may be the only one) are able to bring in fans without successful team performance. But in any case, if high draft-picks had more fan appeal this should show up in their 6th-year contracts, and we find no evidence for it. (18) All licensing revenues from club names and team colors are split evenly among the clubs as part of NFL Properties; individual player jersey licensing revenues are part of Players Inc group licensing and each player who has signed a Group Licensing Agreement--approximately 98% of them--gets an equal share of all Inc revenues (after expenses) and the individual player gets compensated based on how many of his jerseys have been sold.” (Duberstein, 2005)
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Nov 19, 2009