Clemson University TigerPrints All Theses Theses 5-2012 Players' Performance Index for Major League Soccer Joel Correll Clemson University,
[email protected] Follow this and additional works at: https://tigerprints.clemson.edu/all_theses Part of the Economics Commons Recommended Citation Correll, Joel, "Players' Performance Index for Major League Soccer" (2012). All Theses. 1328. https://tigerprints.clemson.edu/all_theses/1328 This Thesis is brought to you for free and open access by the Theses at TigerPrints. It has been accepted for inclusion in All Theses by an authorized administrator of TigerPrints. For more information, please contact
[email protected]. PLAYER PERFORMANCE INDEX FOR MAJOR LEAGUE SOCCER A Thesis Presented to the Graduate School of Clemson University In Partial Fulfillment of the Requirements for the Degree Master of Arts Economics by Joel Correll May 2012 Accepted by: Dr. Raymond Sauer, Committee Chair Dr. Robert Tollison Dr. Michael Maloney i ABSTRACT This paper analyzes the player compensation and team finances within Major League Soccer’s 2007 season by calculating salaries with respect to the player’s marginal revenue product and performance parameters. The player’s performance index is a calculated overall value which takes into account variations of and weighted results of in- game actions. This performance index is tied together with a player’s marginal revenue product to determine their actual economic value with respect to their 2007 rating. The paper concludes that on average, Major League Soccer as a whole compensates players based on the team’s marginal revenue product, and not the individuals. The study also finds clear evidence that Designated Players receive an unequal share of revenue with respect to on-field performance, but in summation with all other players, they still account for the team’s correct marginal revenue.