Reply to: Differences in the Success of NFL Coaches by Race: A Different Perspective Janice Fanning Madden Matthew Ruther University of Pennsylvania* *We thank the Wharton Sports Business Initiative (WSBI) for support for this project. 0 Abstract Malone, Couch and Barrett (2008) argue that a broader analysis of fired coaches, including adding in partial season fires, considering a wider range of causes of firing, and analyzing rehiring makes the results reported by Madden (2004) “disappear.” We show that Malone et. al. have analyzed inaccurate data. When the data used by Malone et. al. are corrected and their speculations tested empirically, Madden’s conclusion that analyses of all employment decisions involving head coaches between 1990 and 2002 are consistent with discrimination against African Americans is supported. Madden (2004) analyzed several dimensions of NFL coaching records for the 1990-2002 seasons (prior to the 2003 adoption of the Rooney rule which required teams to interview minority candidates before appointing head coaches) and established that African American coaches performed better than their white counterparts. She interprets this evidence as consistent with the hypothesis that African American coaches were being held to higher standards to get their jobs in the NFL. Malone et. al. (2008) argue that adding partial seasons to the analysis of one dimension of NFL coaching records, performance record when fired, changes the result for the analysis of firing. Malone et. al. also examine the rehiring of fired coaches and propose other explanations for the low representation of African Americans among NFL head coaches. We respond to Malone et. al. below. Analysis of Fires Madden (2004) presents evidence that, between 1990 and 2002, African American full season NFL coaches were significantly more likely to be fired given their season records than their white counterparts. Malone et. al. (2008) argue that the evidence changes if coaches fired mid-season are added to the analysis. They also imply that an analysis with partial season coaches is preferred. Table 1 lists the partial season coaches and their records -- that is, the 11 teams and years (accounting for 22 1 coaches) that had two coaches in one season between 1990 and 2002.1 Malone et. al. base their conclusion that partial seasons change the results on a regression analysis that adds only three “net” coaches to the Madden (2004) analysis. There are 374 coaches with full season records2 and Malone et. al.’s regression analysis includes only 378 observations. These observation counts show that Malone et. al. have not analyzed an accurate data set. Table 2 reports estimates of six race effects (both coefficients and z scores) for two different specifications of the firing logit regression, each estimated using three different samples of coaches. The first result, full season coaches with season record measured by total wins (first row and column) shows the Madden (2004) result that African American coaches are more likely to be fired. The next two rows show the effects on the racial coefficient of including partial season coaches. First, we add the 9 partial season head coaches who start the season and are fired mid-season3 (and not the interim coaches who finish the season) to the coaches included in the first row analysis. Then, we add all partial season coaches, including the interim coaches hired only to finish the season, to the coaches included in the second row analysis. Because interim coaches are hired only to complete the season, they cannot be fired from a regular coaching job. Furthermore, these interim coaches inherit troubled teams that are likely to perform poorly. Including interim coaches as candidates for firing who effectively cannot be fired and who have poor performance records is questionable at best. When head coaches under 1 Malone et. al. (2008) correctly point out that Madden included the 2001 Minnesota Vikings season as a full season with one coach, Dennis Greene, even though he was fired right before the Vikings lost their final season game. The exclusion of Dennis Greene’s firing would reduce the number of African American fired coaches from 5 to 4. No other partial season coach had 15 games. As the final game was a loss, attributing that game to Dennis Greene does not improve his record at fire. Madden included Dennis Greene as a full season coach, then, because African American observations are needed for a statistical analysis of race to have statistical power and the inclusion of Mr. Greene does not introduce any bias toward finding African Americans were performing better than whites at fire. 2 The Madden 2004 analysis had 375 full season coaches because Dave Shula was mistakenly included as a full year coach for the Cincinnati Bengals in 1996; there were also some minor corrections to win-loss records. 3 Of these 11 white coaches, nine depart involuntarily (i.e., are fired). Bruce Coslet and Bobby Ross resigned mid-season. 2 contract who depart mid-season are included in the analysis (second row of the first column), there is very little change in the result: African American coaches are still more likely to be fired and the difference is significant at a 0.95 probability standard. When interim coaches are added, the race coefficient drops, but is still positive and the z score drops from 2.02 to 1.46. Because there are only thirty total African American coach-year observations -- five of whom are fired -- in these analyses, it is surprising that race is statistically significant with any specification. A move of 0.56 standard deviations with these small numbers of African Americans is hardly surprising. There are several reasons why an analysis that includes mid-season fires is not preferred over an analysis of coaches fired at the end-of-season. The current season records for coaches fired midseason include anywhere from 5 to 13 games and for interim coaches the number of games range from 3 to 13. Madden (2004) and Malone et. al. (2008) measure current season performance using the number of wins and whether the team made the playoffs. Coaches fired mid-season cannot have made the playoffs and their win counts are not comparable indicators of performance relative to full season coaches. A better way to measure current season performance when partial seasons are included is to use win percentage, rather than the number of wins. The second column of Table 2 repeats the analyses of the first column but replaces the number of wins with the percentage of current season games won. The third row, where 22 partial season coaches are added to the analysis, has a noticeable change from the first column results. The coefficient and z statistic for race of 0.761 and 1.84 are much more similar to the results when fewer or no partial season coaches are included in the analyses. Other issues remain, however, when partial season coaches are included in the analysis of fires. If mid-season fires occur under different circumstances than end-of-season fires, then their determinants may be systematically different. For example, end-of-season fires may be less likely than mid-season fires to reflect an individual game outcome. Other issues arise when interim coaches are added to the mix. These coaches have even fewer games, and fewer wins, but cannot be fired. 3 Furthermore, between 1990 and 2002, only nine (out of 68) fires of NFL coaches occurred in mid-season and all were white. Introducing partial season coaches, especially interim coaches, clearly obfuscates the analysis of the role of race in firing Malone et. al. identify a variety of circumstances that may lead a team to fire the head coach, including the cumulative record or a “plateauing-out”effect.4 The last columns of Table 2 repeat the fire analyses but add controls for cumulative records and a plateauing-out effect. We add cumulative win percentage up to current season for each coach, cumulative proportion of seasons in the playoffs, and controls for the differences between the cumulative team records and the current season record. In each case, the racial coefficients increase, although the z statistics decline due to the decreasing degrees of freedom. Of course, Malone et. al. are correct that the decisions of NFL teams (as well as the economic decisions of other firms, consumers, employers, etc.) involve a variety of concerns and tradeoffs. Such complexities have not stopped economists from estimating wage equations, hedonic equations for houses or art, etc. The constraints on analysis implied by the Malone et. al. discussion in the case of NFL coaches, however, are reminiscent of those critics of empirical social science who assert that since each outcome is unique (or has unique components), there can be no quantitative analysis of outcomes. Surely the fact that performance records and experience predict which coaches are fired undercuts the suggestion that fires cannot be analyzed statistically. Analysis of Rehires Malone et. al. assert that all of the African American head coaches were rehired after being fired. They then raise two issues about the rehiring of NFL coaches who were fired, in the context of 4 We note, however, that Fee et. al. (2006) report in their study of NFL head coach firings between 1970 and 2001 that the team’s win-loss record is the most frequently mentioned reason. They report two cases where playoff success is the deciding factor. They note that lack of respect from players in frequently cited. They do not report any evidence for the other reasons cited by Malone et. al. 4 Madden’s study of racial disparities in coaching performance. First, Malone et. al. argue that the rehiring of African American coaches shows that the low representation of African Americans among head coaches is due to “inertia” and not to racial discrimination. Second, rehiring itself is an employment decision that was not analyzed in Madden (2004). The statement that all African American coaches who were fired were rehired is not quite correct. Of the five African Americans who were fired, Art Shell was not rehired as a head coach again for 12 years after he was fired from Oakland in 1994 and Ray Rhodes has not been rehired after being fired from Green Bay in 1999. Malone et. al. also assert that the rehiring of African American head coaches shows that it was lack of experience rather than race that accounts for the underrepresentation of African Americans among head coaches. Yet, Malone et. al. perform no analyses to show that prior experience differentials by race among coach candidates account for the stronger performance of African American coaches, which Madden has interpreted as being consistent with African Americans being held to higher standards to be hired as coaches. In fact, the performance advantages of African American coaches demonstrated in Madden (2004) also occur if the comparisons are restricted to coaches in their first coaching jobs (that is, eliminating all rehires, whatever the reason for leaving the prior coaching job). Table 3 shows the difference in performance by race in the first NFL coaching job. African American coaches perform better than white coaches, as measured by wins and proportion of seasons in playoffs, among coaches with no prior NFL head coach experience. Regression analyses which add controls for years with team and player salaries also show significantly better regular season win and playoff records for African American NFL head coaches with no prior head coaching experience. These results are comparable to those shown for all coaches in Madden (2004). Rehire is, however, an aspect of head coaching that is relevant to an analysis of racial disparities. African American coaches who were fired were more likely to be rehired (60% versus 22.2%) within three years of being fired. African American coaches may have been more likely to be rehired because 5 they had stronger records when they were fired. The three African American rehires had won 54.4% of their total games with their previous team and went to the playoffs 65.6% of the seasons; the 14 white rehires had won insignificantly fewer games (51.9%, 0.57 standard deviations), but participated significantly less in the playoffs (34.6%, 2.35 standard deviations). A logit regression of rehire on race, win percentage, and years as NFL head coach for all coaches fired between 1990 and 2002 showed a positive insignificant, or favorable (1.18 standard deviations), effect of being African American. Malone et. al. state that the rehire of African American coaches who are fired “belies” racial discrimination. We don’t understand their logic and they give no further explanation. We believe the facts to be consistent with implicit racial discrimination in hiring.5 NFL teams are not consciously rejecting African American coaches, but are unconsciously or implicitly discounting them in the presence of uncertainty and ambiguity as to who will be a successful coach for the initial hire as an NFL head coach. When the evidence of quality of performance is clearer (that is, less ambiguous or more explicit), African Americans are rehired as head coaches; when the evidence is ambiguous, as in the case of initial hire, rather large racial disparities appear. Conclusions African American head coaches are more likely to be fired, given their current season records. Analyses controlling for cumulative records show similar results. African American coaches who are fired are more likely to be rehired, although there is evidence that the rehired African American coaches have equivalent season win and stronger prior playoff records than rehired white coaches. The evidence on fire and rehire, when combined with the other evidence of greater successes for African 5 There is a vast literature in psychology, sociology, law, and more recently in economics on unconscious bias or implicit discrimination. See Bertrand et. al. (2005) for an overview and Price and Wolfers (2007) for a recent application to the analysis of racial disparities in call by referees within the National Basketball Association. 6 American coaches presented in Madden (2004), is consistent with implicit racial discrimination in the NFL during the 1990-2002 period. References Bertrand, M., Chugh D., & Mullainathan, S. (2005) “Implicit Discrimination,” American Economic Review Vol. 95, No. 2, pp. 94-98. Fee, C.E., Hadlock, C.J., & Pierce, J.R. (2006) “Promotions in the Internal and External Labor Market: Evidence from Professional Football Coaching Careers,” Journal of Business, Vol. 79, No. 2, PP. 821-850. Madden, J. F. (2004) “Differences in the Success of NFL Coaches by Race, 1990-2002,” Journal of Sports Economics, Vol. 5, No. 1, pp. 6-19. Malone, K.D., Couch, J.F., & Barrett, J.D. (2008) “Differences in the Success of NFL Coaches by Race: A Different Perspective,” Journal of Sports Economics, Vol. 9, No. 6, pp. 663-670. Price, J. & Wolfers, J. (2007) “Racial Discrimination among NBA Referees,” (Cambridge, MA: National Bureau of Economic Research Working Paper 13206. 7 Table 1 List of Partial Season Coaches, 1990-2002 (First coach listed for each team was fired (or resigned); subsequent coach was interim) Year 1990 Team Cleveland Browns 1990 Tampa Bay Buccaneers 1991 Indianapolis Colts 1994 Tennessee Titans 1996 New Orleans Saints 1996 Cincinnati Bengals 1998 San Diego Chargers 2000 Arizona Cardinals 2000 Cincinnati Bengals 2000 Detroit Lions 2000 Washington Redskins Coach Bud Carson Jim Shofner Ray Perkins Richard Williamson Ron Meyer Rick Venturi Jack Pardee Jeff Fisher Jim Mora Rick Venturi Dave Shula Bruce Coslet Kevin Gilbride June Jones Vince Tobin Dave McGinnis Bruce Coslet* Dick LeBeau Bobby Ross* Gary Moeller Norv Turner Terry Robiskie *Resigned, was not fired 8 Wins 2 1 5 1 0 1 1 1 2 1 1 7 2 3 2 1 0 4 5 4 7 1 Losses 7 6 8 2 5 10 9 5 6 7 6 2 4 7 5 8 3 9 4 3 6 2 % Wins 0.22 0.14 0.38 0.33 0.00 0.09 0.10 0.17 0.25 0.13 0.14 0.78 0.33 0.30 0.29 0.11 0.00 0.31 0.56 0.57 0.54 0.33 Table 2 Determinants of Being Fired, NFL Coaches, 1990-2002 Controlling* for Record with Season Total Wins Season Percentage Wins Cumulative Win Percentage and Change in Current Season Number of Coefficient Coefficient Coefficient Seasons coachfor Coach for Coach for Coach Included in season is African z is African z is African z Analysis observations American statistic American statistic American statistic Full season coaches only 374 0.897 2.17 0.910 2.15 1.114 1.87 All, except interim coaches 383 0.869 2.02 0.838 1.95 1.049 1.77 All coaches 396 0.654 1.46 0.761 1.84 1.69 0.937 *All regressions also include the following independent variables: whether in playoffs, total years with team, and the square of total years with team. z statistics are computed with robust standard efforts, clustering on individual coaches. 9 Table 3 Average Season Wins and Likelihood of Playoffs for Full Season NFL Coaches in Their First NFL Head Coaching Jobs by Race, 1990-2002 Average wins per year African-American Coaches (26 full season observations) 9.3 White Coaches (170 full season observations) 7.8 t statistic for difference by race 2.63 Proportion in playoffs 73% 35% 3.69 10
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