Saturday, February 20, 2016

Styles of play and Diversity

The world of professional soccer provides an ideal testing ground that allows us to sidestep many of the problems. First, soccer teams are engaged in the same pursuit to score goals and win games. The benefits of a diverse talent pool will have the same theorized benefit for every team. This differs dramatically from business analyses that must compare widely diverse sectors where talent and creativity are employed very differently in the production cycle. 

The market for professional players provides a clear indication of the relative talent of individual players their transfer price and salary. Wage is related directly to productivity and is not obscured by seniority or other non-market influences. This allows us to statistically separate the effect of talent from diversity.


Styles of play (attacking versus counterattacking), defensive tactics ( man-to-man, pure zone), strategies for set pieces (free kicks/corner kicks), and even the organization of players on the field differ remarkably across countries. The benefits of diversity notwithstanding, there are obviously costs associated with hiring players from multiple countries. For example, a multinational soccer team can lead to increasing communication errors on the pitch. In addition, players’ cultural and political differences may impose considerable integration costs on the team, both on and off the pitch.

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