How often does the best team win? A unified approach to understanding randomness in North American sport
Open accessAbstract
Statistical applications in sports have long centered on how to best separate signal (e.g., team talent) from random noise. However, most of this work has concentrated on a single sport, and the development of meaningful cross-sport comparisons has been impeded by the difficulty of translating luck from one sport to another. In this manuscript we develop Bayesian state-space models using betting market data that can be uniformly applied across sporting organizations to better understand the role of randomness in game outcomes. These models can be used to extract estimates of team strength, the between-season, within-season and game-to-game variability of team strengths, as well each team’s home advantage. We implement our approach across a decade of play in each of the National Football League (NFL), National Hockey League (NHL), National Basketball Association (NBA) and Major League Baseball (MLB), finding that the NBA demonstrates both the largest dispersion in talent and the largest home advantage, while the NHL and MLB stand out for their relative randomness in game outcomes. We conclude by proposing new metrics for judging competitiveness across sports leagues, both within the regular season and using traditional postseason tournament formats. Although we focus on sports, we discuss a number of other situations in which our generalizable models might be usefully applied.
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Normalized implied probabilities are accurate, unbiased, and efficient estimates of the true unknowable probabilities.
“Many different researchers have shown that these normalized implied probabilities are accurate, unbiased, and efficient estimates of the true unknowable probabilities (see Lopez et al., 2018 for discussion and an extensive list of references).”
From Big ideas in sports analytics and statistical tools for their investigation (2023) · cites this paper as Lopez et al., 2018
Betting market data is probably the best source for estimating the true probability of a team winning a game.
“First, betting market data is probably the best source for estimating the true probability of a team winning a game.”
From Big ideas in sports analytics and statistical tools for their investigation (2023) · cites this paper as Lopez et al., 2018
Lopez et al. (2018) extend Glickman and Stern (1998)'s state-space model to understand randomness in the four major American sports leagues.
“More recently, Lopez et al. (2018) extend Glickman and Stern (1998)'s state-space model to understand randomness in the four major American sports leagues.”
From Big ideas in sports analytics and statistical tools for their investigation (2023) · cites this paper as Lopez et al. (2018)
Both Glickman and Stern (1998) and Lopez et al. (2018) motivate the usefulness of model-based measures of team strength by demonstrating their superiority to low-resolution win-loss records.
“Both papers motivate the usefulness of model-based measures of team strength by demonstrating their superiority to low-resolution win-loss records.”
From Big ideas in sports analytics and statistical tools for their investigation (2023) · cites this paper as Lopez et al. (2018)
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- Authors
- Lopez, M. J., Matthews, G. J., & Baumer, B. S.
- Affiliations
- Loyola University Chicago (US)
- Venue
- The Annals of Applied Statistics
- Publisher
- Institute of Mathematical Statistics
- Published
- 2018-12-01
- Volume
- 12
- Issue
- 4
- Pages
- 2483-2516
- ISSN
- 1932-6157 (ISSN-L)
- 1941-7330
- OpenAlex
- W2579988816
- Cited by
- 52
- References
- 60
- Citations by year
- 2026: 3 · 2025: 5 · 2024: 12 · 2023: 6 · 2022: 5 · 2021: 7 · 2020: 7 · 2019: 5 · 2018: 2
- FWCI
- 8.00
- Type
- journal article
- Language
- en
- Open access
- bronze
- doi.org
- Locations
- The Annals of Applied Statistics (publishedVersion)
- arXiv (Cornell University) (submittedVersion)
- Creative Matter (Skidmore College) (submittedVersion)
- Loyola eCommons (Loyola University of Chicago) (submittedVersion, cc-by-nc-nd)
- Smith ScholarWorks (Smith College) (submittedVersion, cc-by)
- Project Euclid (Cornell University) (submittedVersion)
- arXiv (Cornell University)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Sports Analytics and Performance
- Health Sciences › Medicine › Orthopedics and Sports Medicine › Sports Performance and Training
- Physical Sciences › Mathematics › Statistics and Probability › Statistical Methods and Bayesian Inference
- Keywords
- home advantage, Bayesian state-space model, NFL, NHL, NBA, Major League Baseball
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
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