Managerial background, resource allocation, and team performance in the National Football League

A manager's prior experience may affect an organization's resource allocation decisions and its performance. I examine this issue in the context of National Football League (NFL) franchises. I find that teams with coaches from an offensive background spend 5.5% points more of their salary cap space on offensive personnel, while a defensive background does not significantly affect the share of resources allocated to defensive personnel. While additional salary resources committed to offensive and defensive personnel do improve team performance in those respective areas, marginal improvements in offensive and defensive performance associated with greater spending are generally unaffected by the coach's background, a finding suggesting that a coach's background does not confer an informational advantage on certain types of personnel. I further find no evidence of significant differences in the effects that spending on offence and defence respectively have on team performance, suggesting efficiency within this labour market.