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Productivity, Rents, and the Salaries of Group of Five Football Coaches

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  • Michael A. Leeds
  • Ngoc Tram Nguyen Pham

Abstract

Standard labor market theory says that workers are paid their marginal revenue product (MRP). However, firm revenue is sometimes independent of the productivity of individual workers. This often occurs in professional sports, as the bulk of a team’s revenue comes from league-wide TV contracts negotiated years in advance. This is also true for head coaches at “Group of Five†schools, which form the second tier of college football programs. We show that a coach’s performance affects both his MRP and his bargaining power over the division of exogenous rents that accrue to his program.

Suggested Citation

  • Michael A. Leeds & Ngoc Tram Nguyen Pham, 2020. "Productivity, Rents, and the Salaries of Group of Five Football Coaches," Journal of Sports Economics, , vol. 21(1), pages 3-19, January.
    • Handle: RePEc:sae:jospec:v:21:y:2020:i:1:p:3-19
    DOI: 10.1177/1527002519867384
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    References listed on IDEAS

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    1. Erin Lane & Juan Nagel & Janet S. Netz, 2014. "Alternative Approaches to Measuring MRP," Journal of Sports Economics, , vol. 15(3), pages 237-262, June.
    2. repec:ucp:bkecon:9780226253268 is not listed on IDEAS
    3. Michael A. Leeds & Eva Marikova Leeds & Aaron Harris, 2018. "Rent Sharing and the Compensation of Head Coaches in Power Five College Football," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(2), pages 253-267, March.
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    Cited by:

    1. Craig McFarland & Peter A. Groothuis & Dennis Guignet, 2024. "The role of football win percentage on college applications for Power Five and Group of Five schools," Contemporary Economic Policy, Western Economic Association International, vol. 42(3), pages 474-482, July.
    2. Jeremy M. Losak & Benjamin J. Posmanick & Raymond D. Sauer, 2024. "On the Value of a Premium College Football Player: Evaluating the Literature," Journal of Sports Economics, , vol. 25(4), pages 472-506, May.
    3. Stacey L. Brook, 2021. "A Comparison of NCAA FBS Head Coaches Salary Determination From New and Modified Contracts," Journal of Sports Economics, , vol. 22(5), pages 491-513, June.

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