Sports Betting Guide and Terms - Power Ratings

Definition

The term power rating is simply the differential strength of one team as compared to its competition. This number is not specific and is relative to other handicappers. It is a number that is devised using the available sports statistics available to the general public.

Usage

The power rating can also be used to assess and utilized in the sports betting hobby. For example, if one has a power rating of 8 points between the matchup of team A and team B, and the spread is –6, then the astute handicapper will bet the appropriate side. There is a distinct difference between the power rating and the spread; mainly, the power rating is the ‘true’ differential between two opposing teams. The spread is the oddsmakers’ interpretation of the matchup and does not necessarily imply the ‘true’ differential. The spread is also used to divide the money between the two sides of a sporting event.

Specific ratings

One rating system that has a well-defined power rating is the Sagarin rating system. In this model, teams are judged and ranked according to several criteria. The model and current list for the season can be found at http://www.usatoday.com/sports/sagarin.htm. One word of caution: do not follow the ratings blindly. Do not assume that just because one team has a great edge in ratings that that team will beat the spread. Remember that oddsmakers also have access to this information, and thus, the lines will reflect this. One must use situational factors to overcome the already convoluted process of sports handicapping.

Against the spread

Power ratings are one way that oddsmakers make the line. In the major sports of football and basketball, oddsmaker often use a combination of the power rating and other factors in determining the spread for a specific game. In games where there is not much public interest, such as smaller collegiate conferences in football and basketball, there is a plethora of money to be made. In such small conferences, one may be able to find ‘soft’ lines that are simply the power ratings between opposing teams. On any given Fall Saturday, there are a boatload of college football and basketball games—some of these have ‘soft’ spreads and thus provide the smart gambler an opportunity to make money. It behooves the gambler, then, to study such small conferences.

Summary

In closing, the power rating is the differential strength and weakness as expressed in number between two opposing teams in a sporting event.