08/01/2008

Football: the more you earn, the better you play

Also less paid athletes guarantee high-level performances

According to many people, the salaries of Serie A footballers (but the argument can be extended to all the professional leagues) are not ethical: Ronaldinho, AC Milan's new star, will earn 6.5 million euros per season, just to name the latest apparent madness. However, their distribution would meet at least some equity criteria. As a matter of fact, the pay would be influenced by the players' experience and their past achievements. Besides, the best performances belong to the most paid and the less paid footballers, while medium salaries lead to more disappointing results. This unusual explanation was given by Fabrizio Montanari, a professor at Milano's Bocconi University, and Giacomo Silvestri, a member of the Boston consulting group, who published two studies on the subject.

The two researchers analysed the profile of 326 players during two seasons and realised that individual performances are affected not only by the absolute level of wage, but also - and above all - by the balance created among the several wages of all the players. "The best players are those pushed by the biggest economical motivations," said Montanari. "That is both superstars and those footballers who earn less, because they are eager to climb up the pays' list."

The investigation suggests that a club should adopt a clear retributive policy, by choosing either to motivate its players through marked wages' differences or to do it through very similar salaries. Teams that make an explicit choice usually get better results compared with those that don't take up a definite position. "Players accept the differences when they are justified," added Montanari, "and when superstars assume the responsibilities implied by their wages. The acceptance of Ronaldinho's salary will depend on his behaviour, both on and outside the field."