On the event of a 2011 match between Portugal and Argentina, Cristiano Ronaldo (left) and Lionel Messi (proper) showcase a pair of high-end watches. The riches have solely continued to stream in. Fanny Schertzer/Wikipedia, CC BY
Football (often called soccer within the United States) is the most well-liked sport worldwide with 4 billion followers, who contemplate it a ardour and typically even a faith. In phrases of high quality and custom of the sport, Europe is taken into account by many as probably the most engaging location for abilities, sponsors, traders, and followers. Such success is mirrored within the whole income generated by the top-five European soccer Leagues (England, France, Germany, Italy, and Spain) that reached, in 2020-21, 18.1 billion euros.
All that glitters shouldn’t be gold, nonetheless. This upward pattern has produced an inflationary impact on salaries {of professional} gamers who, opposite to their counterparts in some US skilled sports activities, profit from the absence of a wage cap. One consultant instance that just lately brought on a mixture of admiration and outrage was the latest four-year contract of the soccer star Lionel Messi, who signed in 2017 an settlement for the massive sum of 555 million euros. The prices that skilled soccer golf equipment should address are subsequently strongly difficult the sustainability enterprise mannequin.
Given the astronomic salaries of some stars, a query that many observers and followers is ask repeatedly: do skilled soccer gamers actually deserve what they’re paid?
Popularity and efficiency
In a March 2021 research, carried with the co-authors Alessandro Piazza (Rice University, United States), Fabrizio Castellucci (Bocconi University, Italy) and Cyrus Mohadjer (IESEG School of Management, France), we sought to shed new mild on this matter by exploring the existence of potential mismatches between gamers’ efficiency and their salaries which might be generated by their degree of celeb and standing.
Based on a dataset of 471 gamers from the top-five Football European Leagues throughout two consecutive years (2015–16 and 2016–2017), our research reveals that celeb (measured through counting and logging what number of “likes” every participant obtained by followers on their official public Facebook web page) and standing (measured through the variety of appearances of their nationwide staff) have an effect on the connection between gamers’ salaries and efficiency (measured by the rating obtainable on the web site Whoscored). More particularly, the outcomes present that for common performers, being standard (determine 1) and having a excessive standing (determine 2) results in greater salaries for a similar ranges of efficiency.
Figure 1. Interaction impact between participant celeb and efficiency.
Giangreco et al., 2021, Author supplied
Figure 2. Interaction impact between participant standing and efficiency.
Giangreco et al., 2021, Author supplied
This means that, to maximise their wage, gamers could attempt to enhance the curiosity of their profile and recognition by way of, for instance, social media and the press. Indeed, reputation doesn’t rely essentially on gamers’ efficiency, however is likely to be decided by their “public” way of life, which will increase their visibility. These findings on celeb are significantly related not for the very best “performers”, who can nonetheless get hold of excessive ranges of compensation and visibility, however for extra “common” gamers who, by way of the skilled administration of their social media profiles (Facebook, Instagram, TikTok, and so on.) may get hold of greater compensation. Furthermore, greater visibility for these gamers would possibly translate in greater revenues for the membership (for instance by way of merchandising, promoting and broadcasting rights) and golf equipment consider not solely gamers’ efficiency, but additionally their capability, as a star, to generate financial revenues in figuring out wage ranges.
Furthermore, our outcomes present that having a better standing would possibly “protect” sure footballers from variations in efficiency. For instance:
High-status gamers (taking part in commonly for his or her nationwide staff) look like much less uncovered to scrutiny (by followers and journalists for instance).
Once standing is acquired, it tends to stay secure, even within the face of declining high quality or efficiency.
Our research reveals, subsequently, {that a} participant’s compensation is much less decided by efficiency when he performs commonly for the nationwide facet, as in indicator of standing.
This result’s significantly related for gamers who, on the twilight of their profession, would possibly anticipate a decline of their efficiency, or expertise diminished motivation, and subsequently, can profit from a better wage based mostly on the standard of previous efficiency. Players similar to Messi and Cristiano Ronaldo provide a degree of efficiency that ensures their degree of wage, in order that they’re celeb and have excessive standing as a result of they’re prime performers, though we could anticipate that within the final a part of their profession, their performances will likely be much less scrutinised.
The outcomes of our research counsel that this doesn’t essentially occur for common performers, who by turning into extra well-known (by way of social media and by having performed for his or her nationwide staff), then would possibly change into richer.
Resources and rationality
Our outcomes present insights for the controversy a couple of extra rational use of the lowering assets obtainable within the soccer trade, a difficulty that grew to become of world curiosity in relation to the current failed try of 12 prime golf equipment to create an alternate European Super League. The lack of assets has been just lately acknowledged by UEFA that has suspended the applying of the “monetary honest play” for the present season, given the impact of the pandemic on the revenues {of professional} golf equipment. Observers, nonetheless, argued that the money owed of {many professional} soccer golf equipment, similar to Manchester United, Atlético Madrid, Galatasaray or Juventus, have been at a worrying degree even earlier than the pandemic.
Our conclusions may be related for different totally different contexts and sectors which might be uncovered to excessive ranges of public consideration, similar to CEOs in several enterprise settings, inventive administrators in industries similar to movie and style, or cooks. Since the general public profile shouldn’t be at all times linked to actors’ “job-related efficiency”, organisations ought to be conscious that actors thought-about for his or her celeb is likely to be employed for the eye and publicity that they may deliver to the organisation. This, in flip, would possibly lead to greater revenues for organisations which can be keen to pay greater salaries to actors who don’t essentially straight have an effect on organisational outcomes by way of their particular person efficiency.
A notable instance is what occurred when Chiara Ferragni, an entrepreneur and style influencer, joined the board of Tods, an Italian Fashion firm. Tod’s share value, which was earlier capped, noticed a rise of 12%, reaching the worth of €32.24, the best since March 2020.
Thus, even within the higher reaches of the sports activities world, the centuries-old query stays: do garments make the (wo)man?
The authors don’t work for, seek the advice of, personal shares in or obtain funding from any firm or group that will profit from this text, and have disclosed no related affiliations past their tutorial appointment.
