AKTU College Code: 820
AUTHOR
Kenneth Ko *
KEYWORDS
Financial Management, Football, Compensation, Regression Analysis
ABSTRACT
Businesses need to make wise financial decisions on how to spend their money, including how much to pay their employees.
Sports teams are no different as they need to decided how much to pay their players. In the National Football League,
teams need to pay their quarterbacks appropriately given that quarterback is by far the most important position and
also because of the salary cap. In this paper, we present a superior methodology for evaluating quarterbacks:
Quarterback Win Rating (QWR). With QWR we use quarterback winning percentage as the dependent variable, and other
available quarterback statistics, including Passer Rating (Rate) and Total Quarterback Rating (QBR), as possible
independent variables. The independent variables chosen for a given year are selected through analyzing the previous
five years of quarterback data through the use of stepwise multiple regression. In this way, the best model is picked
every year and is tied to wins, which are clearly the most important thing. The importance of the model is highlighted
through focusing on playoff and Super Bowl quarterbacks. In short, QWR is shown to be a better way than either Rate or
QBR to not only evaluate quarterback performance but also compensate them appropriately.