Edited by Neil Longley
Chapter 4: Determining the drivers of player valuation and compensation in professional sport: traditional economic approaches and emerging advances
An overview of the literature studying player performance and salaries is provided. The chapter argues that the ‘traditional’ approaches tended to view the drivers of players’ salaries as falling into one of four broad categories – experience, performance, talent, and popularity. It notes that using just these traditional drivers is deficient in that, collectively, they usually fail to explain 30 to 40 percent of the variation in salaries. It then discusses new advances in the literature that attempt to better incorporate into salary models factors like non-cognitive skills and work habits, and explains how researchers are now examining such player-characteristics as leadership skills, performance under pressure, and performance volatility to determine which, if any, of these factors may impact salary.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.