In Basketball on Paper, Dean Oliver devoted an entire chapter to comparing the individual rating systems of several NBA analysts. He argued something that I, and most people who do informed analysis, subscribe to: Any system of statistical analysis cannot only be internally consistent, but must also pass the “laugh test.” A statistical model can be built elegantly and beautifully and pass many confidence intervals within its own logical parameters, but if it’s results are absurd, then there’s obviously a need to return to the proverbial drawing board. Oliver thought of the “laugh test” as a litmus. It’s a very broad, absolutely basic determinant of whether a statistic is logical or not. If your rating system projects the best players with the best numbers, then it’s probably onto something. On the other hand, if your rating system argues that Jerome James is a better center than vintage Shaquille O’Neal, then you better recheck your assumptions.
While no single computation can perfectly encompass the entire contribution of a basketball player, John Hollinger developed a system to sum up a player’s boxscore contribution and express them in one number. Player Efficiency Rating (PER) is a sophisticated equation that goes so far as to adjust for the yearly value of possession and the pace a team plays. In Hollinger’s analogy, PER serves as a way of considering players from different positions, allowing an “apples to oranges” comparison. But while PER is a handy little number, what it doesn’t do is convert statistical efficiency into actual wins. That’s where Dave Berri’s Wages of Win (WoW) steps in. WoW takes the same boxscore statistics that PER uses and converts it to a formula that measures how many wins a player produces. This metric can evaluate a player’s total contribution over the course of a season and break it down per minute. Like PER, WoW serves as a way to summarize a player’s contribution in one number.
Now, let’s ask PER who were the most productive basketball players on the planet this past season. PER picks these as its starting five:
1. Dwyane Wade SG 29.2
2. Dirk Nowitzki PF 27.9
3. Yao Ming C 26.7
4. Tim Duncan C 26.4
5. Kobe Bryant SG 26.3
Nothing to laugh at here. In fact, it’s a pretty amazing team. Wade is the best player, slightly ahead of Dirk, who is just a bit ahead of Ming, Duncan, and Bryant, who are in a dead heat for third best. If you were starting a basketball team and were given first pick at any player in the NBA you couldn’t go wrong by picking any of these five players. They’re the best of the best. Granted, PER isn’t intended to be the final word on basketball performance, but it is a good starting point for figuring out relative worth. Would you trade your 15 PER performer for a 29 PER man? Almost certainly. Of course you’d take into account team composition, need, age, defense, contract terms, but all else being equal, you’d be doing your team a service by having the greater PER over the lesser. And if the PER was almost twice greater, like say Dwyane Wade over Jamal Crawford, well, then there’s really no thinking involved. Of course you’d rather have Wade. It’s a no-brainer. In fact, by this measure, you’d rather have Wade than any single player on the Knicks current roster.
Now, WoW gets to pick its own top five. Note that in order to compare WoW to PER we’re using Wins Produced per 48 Minutes (WP/48), since these are both rate stats:
1. David Lee PF .403
2. Jason Kidd PG .403
3. Marcus Camby C .371
4. Shawn Marion F .370
5. Carlos Boozer PF .351
Look at that again. David Lee led the NBA in wins produced rate. Um…really. So according to this sophisticated, statistical model, the most productive professional basketball player on the planet is David Lee. The best. On. The. Planet. Let me say that being a die-hard Knicks fan, I will be the first to argue that Lee is an All-Star caliber forward. He’s cool, he’s great. He’s an out-of-the-box rebounding, ambidextrous-finishing, no-look passing, efficiency machine. He’s awesome! It’s just that, you know, he really doesn’t create much offense. He’s more of a great glue guy than a centerpiece. And that’s why he’s not exactly a superstar.
Now, I really love the guy. Don’t get me wrong. I wouldn’t trade our man for the world. Oh, wait. Yes. Yes, I would. I’d trade David Lee in a heartbeat. For Tim Duncan. Or Yao Ming. Or Dwyane Wade. Or Kobe Bryant. Or Dirk Nowitzki. Or Lebron James. Or Amare Stoudemire. Or…OK, you get the point. I’d trade him for at least a dozen players who aren’t just All-Stars, they’re legitimate championship-level franchise cornerstones. Yet, right there in plain black and white, Wages of Win’s assumptions fail Oliver’s “laugh test.” WoW argues that Lee is the best player in the entire league, and that’s ridiculous.
WoW makes a very big deal about bucking conventional wisdom. And sure enough, statistical analysts are the ones who’re supposed to be bucking said conventional wisdom. At the Wages of Wins Journal, Berri argues that “perceptions of performance in basketball do not match the player’s actual impact on wins” because “less than 15% of wins in the NBA are explained by payroll.” However payroll isn’t a good measuring stick of perception due to the complexities of a closed system like NBA free agency. There are a host of factors on why a player may be overpaid from the talent available to the desperation of the team involved. In other words conventional wisdom thinks Rashard Lewis is overpaid at $126M, too.
So although conventional wisdom has a tendency to be wrong in some areas, figuring out sport superstars is not one of its weaknesses. There usually is a consensus on the league’s best players from both statistical analysis and conventional wisdom. The cream of the crop in the NFL are Peyton Manning, LaDanian Tomlinson, and Larry Johnson whether you go by the numbers or eyes. In MLB it would be Albert Pujols, Ryan Howard, Manny Ramirez, David Ortiz, Alex Rodriguez, and Johan Santana. At the top of the ladder of player evaluation, conventional wisdom is pretty much dead on.
According to WoW, David Lee (.403) is a far more productive player than Kobe Bryant (.242). Since teams with more productive players win more games than other teams, then Lee is better for your basketball team than Bryant. But why stop there? The Knicks could trade Renaldo Balkman (.272) straight up for Dwyane Wade (.255) and lose productivity. That’s right. WoW is arguing that if a Lee for Kobe, and a Balkman for Wade trade went through, then the Knicks would be a worse team for it. They’re arguing that Bryant and Wade, at the cost of our two young, talented forwards will hurt the Knicks’ productivity. You’ve got to be kidding me.
As the Knicks GM, would I pull the trigger on a Lee for Bryant deal? Is there even a debate? Who wouldn’t? Oh, right, WoW wouldn’t. WoW doesn’t even think it’s close. We can all disagree on which player is the very best (or the most productive), but WoW’s results are “laughable.” Dave Berri has criticized PER in the past, but before people can begin to take WoW as seriously as a tool for evaluating player performance as PER, it’s obviously going to have to address what caused this terrible absurdity in its rating process.