The Beckham Rule: Major League Soccer Wage Inequality and Team Performance
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Date
2016-06
Authors
Groff, Hunter
Journal Title
Journal ISSN
Volume Title
Publisher
University of Oregon
Abstract
In the quest for international soccer relevancy, MLS faces strong competition.
Established European soccer leagues and strong domestic competition from the NFL,
NBA, MLB, and NHL create steep barriers for league growth. To boost its
international profile, MLS created the Designated Player (DP) Rule in 2007. This rule
resulted in increased average salary and wage dispersion among the existing teams.
This study examines the effects of these large wage changes on team performance. In
the constructed model, the results of this increased wage dispersion remain
inconclusive. Nonetheless, although the results from the average salary and team
performance examination stand just outside the significance test cutoff, this model
presents similar findings to previous literature in finding a substantial positive
relationship between the two.
Description
47 pages. A thesis presented to the Department of Business and the Clark Honors College of the University of Oregon in partial fulfillment of the requirements for degree of Bachelor of Science, Spring 2016.
Keywords
Major League Soccer, Soccer, David Beckham, Designated Player Rule, Wage inequality, Team performance, Beckham Rule