The decision to dismiss a coach is challenging because poor performance tends to coincide with both bad luck and low coaching ability. We differentiate between dismissals following actual poor performance on the pitch (wise dismissals) and dismissals following seemingly poor performance due to bad luck (unwise dismissals). To categorize dismissals, we use "expected goals," which are less vulnerable to random variation in match outcomes. Using data from European football, we find that wise dismissals increase subsequent performance compared to a control group of nondismissals with similarly poor performance on the pitch. However, unwise dismissals do not improve subsequent performance compared to a control group with similar strings of bad luck. (JEL D81, J44, L83) I. INTRODUCTION Understanding how managerial change affects the performance of organizations is of critical importance. One main area of previous research is the sports industry, where the focus is on the impact of head coach changes on team performance (Giambatista, Rowe, and Riaz 2005). Coaches are ultimately responsible for team performance and thus hold official authority (Grusky 1963). Based on the considerable influence of coaches on teams through strategic, operational, and motivational channels, research suggests that coaches play crucial roles in determining team performance (Kattuman, Loch, and Kurchian 2019; Muehlheusser et al. 2018; Rowe et al. 2005). However, most empirical studies across different sports conclude that there is no positive effect of involuntary coach changes on team performance (Audas, Goddard, and Rowe 2006; Gamson and Scotch 1964). Most prominently, studies using data from European football show that while performance improves after a within-season coach dismissal, performance also improves for a control group of counterfactual dismissals that did not occur (Paola and Scoppa,