I’m still trying to wrap my head around the Net Efficiency portion. I get that you can’t turn these algorithms into calculus, but if you’re only going to use a handful of stats, why in the world would you base the entire formula on FG attempts, FT attempts, and offensive rebounds?
Efficiency is essentially points per possession.
However, "Possessions" isn't an official stat. So any efficiency rating has to define "Possessions" using other stats. Any FG attempt is a possession unless you get your own rebound (+ FGA - Offensive Rebounds). A turnover represents a possession (+ TO). Lastly, getting fouled and going to the line represents a possession. However, because some FT's are part of an and-1, and sometimes you get 3 FT's on a single possession, they determined that 2 FT attempts are the equivalent of .95 FG Attempts (+ (.475*FTA)).
So, the end result is:
Offensive Efficiency = Points / (FGA + TO + (.475 * FTA))
OR
Offensive Efficiency = Points / Possession
Do the opposite for defense, and you have your Defensive Efficiency. Subtract your defensive rating from your offensive rating, and you have you Net Efficiency.
While this may seem needlessly complicated, it is a good way to determine how good a team's offense or defense is while controlling for pace. What's stupid about the NCAA's version is that it doesn't account for opponent.