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CULTURAL DIVERSITY AND TEAM PERFORMANCE: ASSESSING MAJOR LEAGUE SOCCER’S RELATIONSHIP WITH IMPORTED TALENT

by Huettel, Timothy

Abstract

This paper uses data from Major League Soccer’s regular season between 2012 and 2016 to study the impact of cultural diversity on team performance. I found that there is no proof that more diverse teams outperform less diverse ones or vice versa. However, I did find that more valuable teams, teams that spend a relatively large amount of the league’s total spend on salary, outperform less valuable ones. All else equal, a one percent increase in a team’s value is associated with a 0.94 increase in its end of season goal differential. An Ordinary Least Squares Regression (OLS) reinforces these findings. Because goal difference totals often mirror league standings, teams that spend more money could potentially change their final position in the conference at the end of the season. The results of this study have important implications for debates regarding money’s ability to influence performance not only in more financially equitable soccer leagues, but also in leagues where there is greater financial inequality between teams.

Note

The author has given permission for this work to be deposited in the Digital Archive of Colorado College.

Colorado College Honor Code upheld.

Includes bibliographical references.

Administrative Notes

The author has given permission for this work to be deposited in the Digital Archive of Colorado College.

Colorado College Honor Code upheld.

Copyright
Copyright restrictions apply.
Publisher
Colorado College Tutt Library
PID
coccc:29571
Digital Origin
born digital
Extent
32 pages
Thesis
Senior Thesis -- Colorado College
Thesis Advisor
Christina Rader
Department/Program
Economics and Business
Degree Name
Bachelor of Arts
Degree Type
bachelor
Degree Grantor
Colorado College Tutt Library
Date Issued
2018-05