The first pick in the draft they write
The first pick in the draft, they write, has historically been valued as much as “the 10th and 11th picks combined, and as much as the sum of the last four picks in the first round.” Then Thaler and Massey calculate the true value of draft picks, using what they call “surplus value.” The key here is that all NFL teams operate under a strict salary cap. So a player’s real worth to a team is the extent to which his performance exceeds the average performance of someone making his salary. And what do they find? That market value and surplus value are radically out of sync: that teams irrationally over weight the importance of high first round picks.
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