Deferring draft picks: Empirical analysis of the AFL draft.

ABSTRACT: Trading picks is a common transaction observed in sporting leagues that employ player drafts. However, many current and revised draft formats employed by professional leagues allow for the trading of picks in the current year for those in the future. This in turn raises a question of an appropriate rate of discount which can be used to account for the delay in relinquishing current picks for those in the future. This study proposes a discount rate function in the Australian Football League based on the difference between a player's contribution to his team in his first season to that of his career. The findings reveal a varying discount rate that decreases with the progression of the draft ranging between 42% and 51%, given the increasing deviation of post draft outcomes in the same range.

SUBMITTER: Chandrakumaran J 

PROVIDER: S-EPMC11433144 | biostudies-literature | 2024

REPOSITORIES: biostudies-literature