Graduation Year

2016

Date of Submission

12-2015

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Eric Helland

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© 2015 MacKenzie Menthen

Abstract

The introduction of free agency in the 1970’s granted veteran players bargaining power, which lead to more lucrative contracts. Such contracts are hypothesized to influence the actions of players during years of free agency. Statistics suggest player performance increases during the contract year, yet experiences a quick decline in the years following the signing. The intent of this paper is to perform multiple studies upon the contract year within Major League Baseball, provide speculation regarding performance deviation during this timeframe, and determine whether contracting long-term is necessary for a team to compete.

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