The business of sport and the sport of business: A review of the compensation literature in finance and sports

This paper provides a review of literature measuring the value of human capital in the sports markets and the field of corporate finance. We discuss the seminal literature in both fields. We then compare and contrast these two fields of research and show that many studies in both fields have found similar relationships for compensation. However, the link between compensation and performance is strongest in the sports literature. Our goal is to link these two fields of research so as to better understand compensation and performance and thus, further our understanding of the best compensation practices to use in business.