Amongst the extensive coverage of the Olympic Games from Rio, the start of the Football season in Europe has slipped under the radar. Michael Cameron’s blog post on footballer salaries was timely and in particular his discussion around the difference between the superstar and tournament effects.
Superstar effects – this is where a player is rewarded with a higher salary than his/her team mates for generating higher revenues for their club.
Tournament effects – this is the situation where wage differences are based NOT on marginal productivity but instead upon relative differences between the individuals. Ultimately each player only needs to be a little bit better than the second best player in order to ‘win’ the tournament.
Michael Cameron looks at the salaries of Ronaldo and Messi and states that it is unlikely that either of these players would generate more than twice as much value as the others on the graph below…
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Utopia, you are standing in it! 
Aug 23, 2016 @ 09:33:32
Very interesting article. Will be in my Around the Traps with thanks to you of course
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