This study examines the wage determination of professional soccer players in the U.S. Major League Soccer (MLS). In particular, the authors focus on the superstar effects of the league’s top athletes. Given the structure of the league, the MLS-designated player rule and all-star game participation provide unique measures of superstar status unattainable in existing studies. We find evidence of a superstar premium both on average and among the league’s top earners.
Garcia-Del-Barrio, P., & Pujol, F. ( 2005). Pay and performance in the Spanish soccer league: Who gets the expected monopsony rents? (Working Paper No. 05/04). Faculty of Economics, University of Navara.
2.
Fees, E., Frick, B., & Muehleusser, G. (2004). Legal restrictions on outside trade clauses: Theory and evidence from German soccer. Discussion paper No. 1140, Institut Zukunft der Arbeit, Bonn.
3.
Frick, B. ( 2006). Salary determination and the pay-performance relationship in professional soccer: Evidence from Germany. In P. Rodriguez, S. Kesenne, & J. Garcia (Eds.), Sports economics after fifty years: Essays in honour of Simon Rottenberg (pp. 125-146). Ediciones de la Universidad de Oviedo.
4.
Halvorsen, R., & Palmquist, R. ( 1980). The Interpretation of Dummy Variables in Semilogramithic Equations. American Economic Review, 70, 474-475.
5.
Koenker, R., & Gilbert, B., Jr. (1978). Regression quantiles. Econometrica, 46, 35-50.
6.
Lehmann, E.E., & Schulze, G.G. ( 2007). What does it take to be a star? The role of performance and the media for German soccer players. University of Freiburg Department of International Economic Policy, Discussion Paper Number 1.
7.
Lucifora, C., & Simmons, R. ( 2003). Superstar effects in sport: Evidence from Italian soccer . Journal of Sports Economics, 4, 35-55.
8.
Major League Soccer Players Union (2008). Player Salary Information. Retrieved July 1, 2008, from http://www.mlsplayers.org/salary_info.html
9.
Rosen, S. ( 1981). The economics of superstars. The American Economic Review, 71, 845-858.