By Ari Nathanson '26
Introduction
In 1989, Jimmy Johnson took over as coach of the Dallas Cowboys. He inherited a depleted roster on the heels of a 3-13 campaign, its third consecutive losing season after a still-NFL-record 20 consecutive winning seasons. Johnson had a clear strategy for improvement: amass as much draft capital as possible. However, in order to capitalize on his bounty of picks, he needed to know how to properly value them. At Johnson’s request, vice president Mike McCoy put together the NFL’s first draft pick trade value chart. It assigned the first overall pick an arbitrary value of 3,000 and a decreasing value to each successive pick. Using the chart, the Cowboys completed a whirlwind of trades in an attempt to exploit perceived market inefficiencies, drafting 42 players from 1991 to 1993. McCoy created the chart based on past trade behavior and his own gut instinct—not using advanced analytics. Nevertheless, it led the Cowboys to resounding success. Headlined by homegrown talent including Troy Aikman, Michael Irvin, and Emmitt Smith, Dallas won three Super Bowls in the early 1990s. Soon after, the chart became a fixture of draft rooms around the league. Whereas previously teams had traded picks arbitrarily (as acknowledged by former Cowboys executive Gil Brandt), they now treated pick-trading as a more exact science. Yet Johnson’s chart was not without its critics. In 2005, business professors Cade Massey of the University of Pennsylvania Wharton and Richard Thaler of the University of Chicago Booth published “The Loser’s Curse.” They presented a compelling argument that NFL teams—even after the spread of Johnson’s chart—significantly overestimated the value of picking high in the draft. They also criticized the going discount rate (the cost of exchanging a future pick for a present pick) as exorbitantly high. In the years since, a plethora of alternative charts have been developed, claiming to more accurately reflect picks’ true value. Yet according to Bill Belichick, “everybody probably [still] uses about the same value chart.” How exactly did the proliferation of the Jimmy Johnson trade chart affect the draft pick trade market? Did criticism of the Johnson chart, exemplified by the seminal 2005 Massey-Thaler study, change NFL teams’ thinking? What other events, if any, had an impact? In this paper, I will investigate all of these questions through an in-depth analysis of the draft pick trade market over the past 40 years.
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