Poster 6

Ahsutoss Das

Texas State University

Performance & Pay in Major League Soccer

Abstract: The study investigates the players’ salary discrepancies along with salary determination factors in Major League Soccer (MLS). The article examines the players performance and pay in the perspective of basic labor market theory of sports economics such as players’ marginal revenue products, demand, supply factors, and reputation effect of the league talented players and the superstars analyzing the data of players performance, pay and other control variables of league seasons 2019 to 2021. The study found a significant relationship between performance and pay of the forward and midfield players but there are still salary discrepancies as many players are highly underrated and many players are highly overrated in terms of their performance during the seasons which contradict the theory of wage determination of marginal revenue product of labor.