Extreme Wages, Performance and Superstars in a Market for Footballers

Abstract

We study the determinants of superstar wage effects, asking whether productivity or popularity-based explanations are more appropriate. We use longitudinal wage and performance data for workers (players) and firms (teams) from a particular market for sports talent: Major League Soccer (MLS) in the United States. We find evidence that the top earners, whose annual salaries are mostly not accounted for by their past MLS performances, when compared alongside other footballers, are paid more because they attract significantly higher stadium attendances and thus revenues. There is no evidence that higher residual salary spending by the teams affects their relative performance in football terms, or that the amounts the teams spend on actual talent affect attendances. Taken together, these results suggest that a popularity-based explanation of superstar wage effects is appropriate among the top earners in this labour market.

Putting a price on popularity: Evidence from superstars in the National Basketball Association

“…Several other studies have examined brand alliances between companies and superstars, determining the extent to which these partnerships drive value (Chung et al, 2013;Yang et al, 2009). In professional soccer, there have been several empirical studies that attempt to identify demand for superstar talent through television viewership, attendance, and ticket sales (Brandes et al, 2008;Buraimo & Simmons, 2015;Lawson et al, 2008), and quantify the characteristics that affect superstar wages, including both on-field performance and popularity (Bryson et al, 2013(Bryson et al, , 2014Scarfe et al, 2021). In German professional soccer, Lehmann and Schulze (2008) regresses salary proxies of 359 players on indicators of talent and performance, finding neither explains salaries for the upper 95th percentile of players.…”

Aplicando a Análise Relacional Grey a Clubes De Futebol Brasileiros: Uma Medição Do Desempenho Financeiro E Esportivo

“…De maneira geral focar estudos que lidem com métricas de desempenho podem ser úteis para clubes de futebol, bem como para órgãos reguladores e entidades desportivas, tal como a Confederação Brasileira de Futebol. Entender o momento financeiro e de desempenho técnico tal como proposto por Scarfe et al(2020), pode ir além do que projetado neste estudo, mas significar um novo marco de gestão para as competições no Brasil. Estaríamos a auxiliar no redesenho das práticas de gestão, estabelecendo regras que ajudem a evitar distanciamento técnico baseado no poder econômico de um número reduzido de clubes.…”