Indian Premier League's Auction To Determine Contracts Proves Revealing

The Indian Premier League is "unique in the sporting world, in that players' contracts are determined at an open auction," according to Burn-Murdoch & Jackson of the FINANCIAL TIMES. That "lays bare how highly the bidding teams rate each athlete." As a result, it is possible to test how good an indicator a player's "price" is of his ability -- "or how accurately the teams' managerial staff can judge a player's worth." Looking at the highest price bid for each batsman (including all-rounders) to have been "sold" in an IPL auction, "there is very little correlation between players' T20 batting average and their price." This suggests those doing the bidding "often misjudge a player's future performance." But that can "partly be explained by the other attributes teams are bidding for: fielding ability on the pitch and marketability off it, both of which are harder to quantify" (FT, 2/22).

Source: FINANCIAL TIMES