How efficient have Major League Soccer clubs been since the start of the Designated Player era? We visualize how sporting efficiency and league performance has progressed for every side using standardized metrics.
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MLS Front-Office Efficiency: A Club-by-Club History
1. MLS Front-Office Efficiency
A study of standardized win cost and league points per game of Major League
Soccer teams in the Designated Player era
Howard Hamilton
Founder, Soccermetrics Research
2. Key Points
●
Major League Soccer remains a Resource-constrained league in
Designated Player era
●
League points-per-game above historic average almost guarantees
playoff place
●
Few MLS clubs attempt a Resource-rich strategy – fewer are
successful at it
●
Los Angeles Galaxy: only MLS club consistently successful with
large payroll
●
Seattle Sounders FC one to watch as they transition from
Resource-constrained to Resource-rich strategy
●
Toronto FC are perenially dysfunctional
3. What is Front-Office Efficiency?
Front-Office Efficiency is the ratio between a
team's usable payroll and league points won.
It is a performance benchmarking tool used to
identify organizations at the extremes that merit
more sophisticated analysis.
More details at: sccr.mx/1ENWHgv
4. Front-Office Efficiency Terms
Term Description
Team Payroll Annualized base pay pro-rated by player availability (not
transferred, released, loaned, or retired)
Team Utilization Proportion of playing time of team payroll to maximum
possible playing time of team payroll
Team Usable Payroll Team Payroll multiplied by Team Utilization
Inflation Factor Ratio of total available payroll in baseline year to total
available payroll in target year
Standardized efficiency
(standardized win cost)
Ratio of team inflation-adjusted front-office efficiency to
average front-office efficiency in baseline year
Standardized win cost lets us compare front-office
efficiency over multiple seasons
5. Efficiency vs Performance Plot
MLS Cup Winner
Supporters' Shield Winner
MLS Cup Playoff Appearance
No Playoff Appearance
XY-plots of standardized efficiency and points per game for
MLS teams since 2007 season (start of Designated Player era)
Each point is color-coded on highest end-of-season status
Color codes (increasing order of status):
26. Main Points
●
Major League Soccer: still a Resource-constrained league in
Designated Player era
●
Teams with regular season PPG above historic average almost
always guaranteed to make MLS Cup playoffs
●
Few MLS clubs try Resource-rich strategy – even fewer are
successful at it
●
Los Angeles Galaxy: only MLS club consistently successful with
large payroll
●
Seattle Sounders FC: one to watch as they transition from
Resource-constrained to Resource-rich strategy
●
Toronto FC: most dysfunctional in terms of sporting efficiency
Hi everyone, this is Howard Hamilton of Soccermetrics Research. I've been doing work on Front-Office Efficiency metric in Major League Soccer for several years. This slide deck shows results of a more systematic study of MLS Front-Office Efficiency over the entire Designated Player era, from 2007 to 2014.
These are the main points of the study:
Despite the increase in player spending since 2007, Major League Soccer remains a Resource-constrained league. Adjusted for inflation, 75% of the MLS clubs spent less in 2014 than they did in 2007 (or their first seasons in the case of expansion MLS sides).
Since 2007, the average points-per-game for MLS teams is 1.383. Finishing the regular season with a point average above that historical baseline almost always guarantees a playoff appearance. On only four occasions (5.7%) has a MLS team had a PPG above historical average and failed to make the playoffs.
A few teams have attempted to buy expensive talent in order to improve their chances of making the playoffs, but fewer have been successful at it. In particular:
LA Galaxy are the only side to have demonstrated consistent success with a high payroll.
Toronto FC have been consistently bad with a high payroll, even before you consider the 2014 debacle.
Seattle Sounders have had consistent success with a Resource-constrained strategy, and it will be interesting to see if that continues as they spend more on talent.
Front-Office Efficiency is defined as the ratio between a team's usable payroll and points won in league competition. We use the term “usable” to describe the resources available to a team that were actually used to help achieve its objective. So usable payroll will almost always be less than the sum of all published salaries in a team. (We also express points won as a points-per-game value to control for changes in the number of teams over the years.)
We use the Front-Office Efficiency metric is to identify organizations at the extremes so that more sophisticated analysis can be made on their practice and performance.
The derivation of Front-Office Efficiency is inspired by Prof Bill Gerrard's work on performance benchmarking in baseball and football, with the concepts of available payroll and team utilization factor thrown in. For more details visit the Soccermetrics blog post: sccr.mx/1ENWHgv.
We define some of the terms associated with the Front-Office Efficiency metric:
Team payroll is the total annualized base pay of the squad, pro-rated by player availability. By available, we mean that the player has not been transferred, released, loaned, or retired.
Team utilization is the ratio of two values: the sum of the players' pro-rated salaries weighted by the number of minutes played in league matches, and the sum of players' pro-rated salaries weighted by the maximum possible minutes played in league matches.
Usable payroll is the product of team payroll and team utilization.
The inflation factor is the ratio of total available payroll of all teams in the baseline year to the total available payroll of all teams in the year of interest.
Standardized win cost, or standardized efficiency, is the ratio between a team's front-office efficiency, adjusted for inflation, to the average front-office efficiency in the baseline year. We scale the standardized cost in the baseline year so that the average standardized cost is 100.
It is the standardized win cost that we use to compare front-office efficiency over multiple seasons.
We illustrate the changes in standardized efficiency and points-per-game by plotting them for all MLS teams since the 2007 season – the start of the Designated Player era. Each point is color-coded based on the highest end-of-season status of the teams:
Black: No playoff appearance
Blue: MLS Cup playoff appearance
Green: Supporters' Shield winner (best regular season record)
Gold: MLS Cup winner
We display the efficiency and performance as relative changes from historical averages – the baseline average standardized efficiency (100.0), and the average points-per-game since the 2007 season (1.383). This rescaling splits the grid into four quadrants:
Upper left: Low cost, high performance. The Moneyball quadrant.
Upper right: High cost, high performance. The “establishment” quadrant.
Lower left: Low cost, low performance. The “you get what you pay for” quadrant.
Lower right: High cost, low performance. The dysfunctional quadrant.
So once again, here are the main points:
Despite the increase in player spending since 2007, Major League Soccer remains a Resource-constrained league. Adjusted for inflation, 75% of the MLS clubs spent less in 2014 than they did in 2007 (or their first seasons in the case of expansion MLS sides).
Since 2007, the average points-per-game for MLS teams is 1.383. Finishing the regular season with a point average above that historical baseline almost always guarantees a playoff appearance. On only four occasions (5.7%) has a MLS team had a PPG above historical average and failed to make the playoffs.
A few teams have attempted to buy expensive talent in order to improve their chances of making the playoffs, but fewer have been successful at it. In particular:
LA Galaxy are the only side to have demonstrated consistent success with a high payroll.
Toronto FC have been consistently bad with a high payroll, even before you consider the 2014 debacle.
Seattle Sounders have had consistent success with a Resource-constrained strategy, and it will be interesting to see if that continues as they spend more on talent.
To learn more about Soccermetrics' research, products and services go to our website at www.soccermetrics.net and follow us on Twitter at @soccermetrics. If you have a serious proposal for a commissioned research project, contact us at [email_address].