Economics in Fantasy Football

Kevin Greenlee

Dr. Baugus

Econ 120

September 24th, 2021

Economics in Fantasy Football

Fantasy football is growing rapidly in America as football fans are diving into the game and becoming more involved than simply just watching their favorite teams. Fans can now create their own leagues and become the general managers of their teams. There are two types of leagues that are the most popular forms of fantasy football. The simpler form being a basic draft where teams take one player at a time based on the order of the draft. However, the more complex way involves an auction draft where players are auctioned off for each team and then they are placed on a multiple-year contract based on what they sold for. The simpler version definitely has economics involved; however, because the auction draft has to deal with actual prices, it is easier to see the economics behind it all. There is a clear supply and demand that dictates the auction draft, as well as opportunity costs that are evaluated throughout the season.

During the auction draft, there is a clear supply and demand that dictates the value of players and how much of a team’s budget is allocated to different players. The highest-scoring players in fantasy football are without a doubt the quarterbacks, as they control the offense and always have the ball in their hands. However, they are not expensive players at all, as they will generally go for around $10 or less depending on the skill of the quarterback. This is because of the supply of quarterbacks. There are so many quality quarterbacks that can score high points for each team; therefore, they are not expensive. The most expensive players are the running backs which is surprising in a PPR (points per reception) league because they do not get many receptions therefore, they don’t have as great an opportunity to put up big points. The reason they can go for $60-$80 is because of how scarce the quality running backs are. There are only a select few running backs that can put up big points for a team and then there is a steep drop off of average running backs; therefore, if a team does not get a top-tier running back, they could suffer throughout the entire season. The supply is low and the demand is high, therefore, the price is very high. The supply of certain players and positions dictates the demand for each team, which in turn raises the price.

During the season it is inevitable that players will get hurt and teams will have to scramble to trade or pick up other players in free agency. This is where opportunity costs are brought into the picture. A lot of times a really good rookie will get hurt and be out for the entirety of the season, which leaves the team manager having to decide if he should keep him on the team or not. The biggest things that are considered are the age of the player, the contract the player is on, and if the team can afford to keep someone on the roster without them scoring any points. One of the toughest things that many managers consider is sunk costs. They look at how long they’ve had the player and they don’t want to trade him away if there is a potential for them to be great. However, if a player is not doing well it is unwise to consider the past and the fact that the team has kept him for so long, as that can cause teams to lose out on trade opportunities. There is a lot that managers have to consider when a player is injured or underperforming from their projections.

In conclusion, there is a great deal of economics that is involved when it comes to fantasy football. The supply and demand of certain players and positions can drive the cost up for certain positions that may not even be the highest scores on the team. Furthermore, when injuries come a team has to consider the opportunity costs of that player and the potential opportunities they could have trading him away. There is a lot more that goes into fantasy football, but from a basic fundamental standpoint, economics can be clearly seen.