We study the impact of managers on the success of professional soccer teams using data from the German Bundesliga, where we are exploiting the high turnover rate of managers between teams to disentangle the managers` contributions. Teams employing a manager from the top of the ability distribution gain on average considerably more points than those employing a manager from the bottom. Moreover, estimated abilities have significant predictive power for future performance. Managers also affect teams` playing style. Finally, teams whose manager has been a former professional player perform worse on average compared to managers without a professional player career.
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