Why are the adjusted team ratings important?
Because they normalize a team’s performance (for any sport) from league environmental factors that can either inflate or deflate its numbers.
That’s done with a model that uses advanced metrics and other factors on both sides of the ball to calculate how many points per 100 possessions (for basketball) or how many runs per nine innings (for baseball) or how many points per 10 drives (for football) better or worse teams are compared to the league-average club during that season, including the playoffs.
From this model, we’re able to create an adjusted offensive rating (AOR), adjusted defensive rating (ADR) and an overall adjusted team rating (ATR). Note that lower is better for defensive ratings in each sport.
As an example, the 1995-96 Chicago Bulls, who set a league record at the time by going 72-10 before winning it all behind Michael Jordan, Scottie Pippen and Dennis Rodman, have the top ATR we’ve recorded in the NBA since the 1986-87 season at 14.14.
Keep in mind that the model is backward-facing, so it’s based on how well a team has played and not necessarily how well a team will play.
Data modeling by Matt Scott.