Do IPL Teams Escalate Commitment for Costly Players? When do Player Status and Reputation matter?

Why are IPL teams staying with players like Virat Kohli and MS Dhoni over the years (or seasons)? This study examines the impact of individual-level factors on organizations’ escalation of commitment (EOC) using self-justification theory and institutional perspective. The authors use the Cox proportional hazard model on Indian Premier League (IPL) players’ data from 2008 to 2019 to test the proposed hypotheses. They find that player sunk cost (salary paid), reputation, and high status are positively related to the IPL team’s EOC (player survival in the same team) for the player. Results show that player reputation and high status positively moderate the relationship between player-level sunk cost and the IPL team’s EOC for the particular player. The findings from this study have important implications for sports managers. Various aspects of individual players analyzed in the study have implications for the IPL and other franchise and professional clubs’ team managers and decision-makers. It helps in deciding which type of player-level heterogeneities impact a team’s decision-making regarding the retention of players.

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