Saturday, August 31, 2013

Is Wenger Really an Economist?

According to some sources, Arsenal manager has a Master's Degree in Economics. If that is indeed the case (according to his Wikipedia entry, his academic history is ambiguous) the school that awarded him the degree might want to revoke it after reading this quote:
Look, I don’t think the price is linked with the quality of the players at all, especially this summer. The prices today are just linked with the financial power and the desire of the buyer.
The observation is, of course, correct. The implication that price should be based on the quality of the player (however that might be determined), rather than supply and demand, suggests a fundamental misunderstanding of markets.

On the other hand, no manager in football has made such great profits for his club from the transfer market as Arsene Wenger. By selling his best players and buying cast-offs from other clubs (or, better yet, signing them on free transfers), Wenger certainly has helped Arsenal maximize revenues over costs. Whether he can continue to do so if Arsenal fail to qualify for next year's Champion's League remains to be seen.

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