Assembling a professional basketball team is no easy task. Assembling a team that transcends expectations is nearly impossible. Or is it?
The goal of the National Basketball Association Draft, now set this year for November 18, has always been to build a championship-winning team, but the factors that players are judged on have shifted over time.
Back when the league was just starting out, players were mainly recruited based on their on-court skills. Little thought was given to the impact their presence would have on the team beyond whether they would help it win and draw spectators to the stands.
As basketball developed as a sport, the Draft also grew, but with new rules and minimum age requirements. While present-day team recruiters and managers are looking for players with the most talent, they are also looking well beyond their on-court skillset.
After all, teams have access to the same on-court player stats and performance history, so they need to get creative in how they make Draft-day decisions. Teams looking to get a leg up on the competition have started using alternative data – including social media, online reviews, fan forum posts, search engine trends, as well as historical data.
Turning to alternative data, particularly real-time sources such as these, helps teams make their crucial Draft decisions and build more successful teams, ensuring the investment eventually pays off.
This means that drafting a player in the modern NBA comes down to more than just on-court talent and raw ability. Management must consider the impact on ticket sales and the regional influence, including if the player will help the team stay relevant and at the top of the headlines.
Alternative data, or external data, has many applications in the business world beyond sports. This online data – such as Twitter posts, product review data, or even ocean cargo, and automobile registration processes – is invaluable during the decision-making process.
For NBA teams, using external online sources of data during the player assessment process can provide critical insights into not only how much should be offered to desired players, but how much money the team ownership stands to earn based on the recruitment.
Combining this alternative data with more traditional indicators of on-court success creates teams that not only have talented players, but also achieve off-court recognition and success that increases the bottom line for owners.
After all, so much of the sports world today centers on the star power and celebrity of the athletes, which comes from more than just their contributions on the court. Alternative data is a tool that can help teams predict which players will have the intrinsic qualities that attract fans, and therefore profits, before they’ve even been drafted or taken their first professional on-court shot.
It also gives team recruiters and management a better idea of what drafting a player will bring to the team dynamic, and to the overall business. Using alternative data gives teams a broader look at which players may bring in more interest in their market and get their particular fans the most excited. With regional differences throughout the league, there’s no one-size-fits-all answer regarding which players will be the most popular.
The right answer can ultimately translate into an increase in ticket sales, merchandise, food and beverage, and also in real estate costs. Bringing a key player to a team can not only boost the team’s skillset, but also boost a city’s economy.
Teams are beginning to utilize alternative data during the draft to identify profitable players and construct modern-day dynasties. In fact, the Golden State Warriors and San Antonio Spurs each used alternative data during the Draft and built championship teams. It’s clear to see that the difference between assembling a quality team versus assembling a dynasty can be based on the use of alternative data.
Teams such as these have provided a great example of how alternative data can provide real benefits and have set a gold-standard in data use. As the 2020 NBA Draft approaches, other businesses across the sports industry should take note.
Omri Orgad is the managing director of North America for Luminati Networks, an Israel-based data collection platform.