Managing excellence in USA Major League Soccer: an analysis of the relationship between player performance and salary

Abstract

The purposes of this study are to investigate the factors that could affect player salaries in Major League Soccer (MLS) and to look at the relationship between player salaries, performances and the quest for success. This study deals with three main research questions: (1) What are factors that affect player salaries? (2) What are factors that influence players’ performance? (3) How are player salaries distributed among players? Using four different regression analysis methods, the number of goals, number of assists and minutes of play variables are confirmed as key determinants of player salaries. Results of income distribution imply that more equal income distribution amongst players is more likely to produce relatively high performance in team success. Some key managerial issues in MLS – such as the star player effect and measuring effectiveness – are also addressed.

Keywords:

• player salary
• performance
• income distribution
• measuring effectiveness