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