This week a new paper of ours was published in Frontiers in Behavioral Economics as part of a Sports Economics special issue co-edited by Raphael Flepp, Romain Gauriot and Carl Singleton.
With colleagues Alex Farnell and Rob Simmons, we ask if elite football clubs use advanced performance metrics to pay players? Given the data revolution that has occurred in football over the past years, one is left wondering if, or to what extent, metrics such as expected goals or expected assists etc. are used to determine contract awards.
Using data from Capology and Fbref, our take-away message is that clubs are using very few of these advanced statistics in salary negotiations. Based on the results, it seems plausible that executives use individual inputs to team output as a key determining factor in pay - individual aspects of performance may treated as a black box so to speak and adding to team points may be the guiding metric.
The full paper can be abstract here and the abstract is below
Abstract
"Labor economists aspire to understand how workers' productivity impacts pay. While professional football is a well-established domain to explore this relationship, so far, research has relied on basic productivity measures. Football is now awash with advanced and granular performance metrics that can allow a deeper understanding of the pay-performance relationship. We specify a salary model considering the newly available data and use sophisticated performance measures to explain contracted salaries in the English Premier League and Italian Serie A. We make a methodological breakthrough by identifying a sample of players who are in the first year of a new contract only. This results in a much tighter relationship between pay and performance. We estimate different salary equations using both basic and advanced performance statistics. Our main findings are, first, that few of our advanced performance metrics help to explain player salary and, second, that there is misalignment between individual performance determinants of team points and player salaries."