IDEAS home Printed from https://ideas.repec.org/a/nea/journl/y2018i40p174-183.html
   My bibliography  Save this article

Analysis of Factors Influencing the Pricing of Transfers in European Professional Football

Author

Listed:
  • Eremin, G.

    (Sport Management Centre, Faculty of Economics, Moscow State University, Moscow, Russia)

Abstract

In this study, econometric model of the transfer value of a professional football player is being developed, based on reputational factors. The relevance of the chosen topic for scientific research is illustrated both by a number of economic indicators and previous works on the topic of recent years: there is an increase in the volume of football transfer market both in Europe and around the world, while there is a lack of effective pricing models for the transfer value, including predictions of the potential incomes and outcomes of clubs. The economic principles of the clubs' contractual interactions in this context are built around the skills and personal qualities of professional players as holders of a specific intangible asset. The economic essence of the transfer activity of professional football clubs in Europe is studied: they sign contracts with the players, during the period of which the club has the right to require a compensation for the transferring of its players to other teams. Taking into account the reputational prerequisites reflecting the specifics of decision-making by the parties of potential transfer transactions, a range of factors are determined to test the research hypothesis and to include statistically significant variables in the econometric model of the transfer value.

Suggested Citation

  • Eremin, G., 2018. "Analysis of Factors Influencing the Pricing of Transfers in European Professional Football," Journal of the New Economic Association, New Economic Association, vol. 40(4), pages 174-183.
    • Handle: RePEc:nea:journl:y:2018:i:40:p:174-183
    as

    Download full text from publisher

    File URL: http://www.econorus.org/repec/journl/2018-40-174-183r.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Panagiotis Dimitropoulos, 2014. "Capital structure and corporate governance of soccer clubs," Management Research Review, Emerald Group Publishing Limited, vol. 37(7), pages 658-678, June.
    2. Paulo Reis Mourao, 2016. "Soccer transfers, team efficiency and the sports cycle in the most valued European soccer leagues – have European soccer teams been efficient in trading players?," Applied Economics, Taylor & Francis Journals, vol. 48(56), pages 5513-5524, December.
    3. Marc Rohde & Christoph Breuer, 2018. "Competing by investments or efficiency? Exploring financial and sporting efficiency of club ownership structures in European football," Sport Management Review, Taylor & Francis Journals, vol. 21(5), pages 563-581, December.
    4. Xiao Fan Liu & Yu-Liang Liu & Xin-Hang Lu & Qi-Xuan Wang & Tong-Xing Wang, 2016. "The Anatomy of the Global Football Player Transfer Network: Club Functionalities versus Network Properties," PLOS ONE, Public Library of Science, vol. 11(6), pages 1-14, June.
    5. Peter J. Sloane, 2015. "The Economics of Professional Football Revisited," Scottish Journal of Political Economy, Scottish Economic Society, vol. 62(1), pages 1-7, February.
    6. Trautmann, Stefan T. & Traxler, Christian, 2010. "Reserve prices as reference points - Evidence from auctions for football players at Hattrick.org," Journal of Economic Psychology, Elsevier, vol. 31(2), pages 230-240, April.
    7. Daniel Weimar & Pamela Wicker, 2017. "Moneyball Revisited," Journal of Sports Economics, , vol. 18(2), pages 140-161, February.
    8. Benjamin R. Auer & Tobias Hiller, 2015. "On the evaluation of soccer players: a comparison of a new game-theoretical approach to classic performance measures," Applied Economics Letters, Taylor & Francis Journals, vol. 22(14), pages 1100-1107, September.
    9. Pedro Garcia-del-Barrio & Stefan Szymanski, 2009. "Goal! Profit Maximization Versus Win Maximization in Soccer," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(1), pages 45-68, February.
    10. Carlos Pestana Barros & Nicolas Peypoch & Scott Tainsky, 2014. "Cost efficiency of French soccer league teams," Applied Economics, Taylor & Francis Journals, vol. 46(8), pages 781-789, March.
    11. Babatunde Buraimo & David Forrest & Robert Simmons, 2007. "Freedom of Entry, Market Size, and Competitive Outcome: Evidence from English Soccer," Southern Economic Journal, John Wiley & Sons, vol. 74(1), pages 204-213, July.
    12. Bernd Frick & Young Lee, 2011. "Temporal variations in technical efficiency: evidence from German soccer," Journal of Productivity Analysis, Springer, vol. 35(1), pages 15-24, February.
    13. Steven Salaga & Alan Ostfield & Jason Winfree, 2014. "Revenue Sharing with Heterogeneous Investments in Sports Leagues: Share Media, Not Stadiums," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 45(1), pages 1-19, August.
    14. Teodor DIMA, 2015. "The Economics Of “Big Five” European Football Leagues," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 7(2a), pages 434-442, September.
    15. Jeroen Ruijg & Hans van Ophem, 2015. "Determinants of football transfers," Applied Economics Letters, Taylor & Francis Journals, vol. 22(1), pages 12-19, January.
    16. Gennaro Bernile & Evgeny Lyandres, 2011. "Understanding Investor Sentiment: The Case of Soccer," Financial Management, Financial Management Association International, vol. 40(2), pages 357-380, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bida, M. & Mirzoyan, A., 2023. "Factors influencing transfer policy of football clubs," Journal of the New Economic Association, New Economic Association, vol. 58(1), pages 66-88.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richau, Lukas & Follert, Florian & Frenger, Monika & Emrich, Eike, 2021. "The Rainmaker?! The impact of investors on transfer fees in the English Premier League," Working Paper 187/2021, Helmut Schmidt University, Hamburg.
    2. Pedro Garcia‐del‐Barrio & Pablo Agnese, 2023. "To comply or not to comply? How a UEFA wage‐to‐revenue requirement might affect the sport and managerial performance of soccer clubs," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 767-786, March.
    3. Marc Rohde & Christoph Breuer, 2018. "Competing by investments or efficiency? Exploring financial and sporting efficiency of club ownership structures in European football," Sport Management Review, Taylor & Francis Journals, vol. 21(5), pages 563-581, December.
    4. David Boto‐García & Carlos Varela‐Quintana & Alvaro Muñiz, 2023. "Foreign players, team production, and technical efficiency: Evidence from European soccer," Bulletin of Economic Research, Wiley Blackwell, vol. 75(4), pages 1209-1241, October.
    5. Lukas Richau & Florian Follert & Monika Frenger & Eike Emrich, 2021. "The sky is the limit?! Evaluating the existence of a speculative bubble in European football," Journal of Business Economics, Springer, vol. 91(6), pages 765-796, August.
    6. Daniel Plumley & Rob Wilson & Robbie Millar & Simon Shibli, 2019. "Howzat? The Financial Health of English Cricket: Not Out, Yet," IJFS, MDPI, vol. 7(1), pages 1-17, February.
    7. Luca Ferri & Riccardo Macchioni & Marco Maffei & Annamaria Zampella, 2017. "Financial Versus Sports Performance: The Missing Link," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(3), pages 1-36, February.
    8. Fabíola Zambom-Ferraresi & Belén Iráizoz & Fernando Lera-López, 2019. "Are football managers as efficient as coaches? Performance analysis with and inputs in the Premier league," Applied Economics, Taylor & Francis Journals, vol. 51(3), pages 303-314, January.
    9. Stefan Szymanski, 2014. "Insolvency in English football," Chapters, in: John Goddard & Peter Sloane (ed.), Handbook on the Economics of Professional Football, chapter 7, pages 100-116, Edward Elgar Publishing.
    10. Kin-Man Wan & Ka-U Ng & Thung-Hong Lin, 2020. "The Political Economy of Football: Democracy, Income Inequality, and Men’s National Football Performance," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(3), pages 981-1013, October.
    11. Miquel Carreras-Simó & Jaume García, 2022. "Offensive/Defensive Talent and Sporting Success in Football: Evidence From the Big Five European Leagues," Journal of Sports Economics, , vol. 23(3), pages 251-276, April.
    12. Madden, Paul, 2012. "Fan welfare maximization as a club objective in a professional sports league," European Economic Review, Elsevier, vol. 56(3), pages 560-578.
    13. Pamela Wicker & John C. Whitehead & Bruce K. Johnson & Daniel S. Mason, 2016. "Willingness-To-Pay For Sporting Success Of Football Bundesliga Teams," Contemporary Economic Policy, Western Economic Association International, vol. 34(3), pages 446-462, July.
    14. Jason A. Winfree, 2021. "If You Don'T Like The Outcome, Change The Contest," Economic Inquiry, Western Economic Association International, vol. 59(1), pages 329-343, January.
    15. Ivanova-Stenzel, Radosveta & Seres, Gyula, 2021. "Are strategies anchored?," European Economic Review, Elsevier, vol. 135(C).
    16. Arbel, Yuval & Ben-Shahar, Danny & Gabriel, Stuart, 2014. "Anchoring and housing choice: Results of a natural policy experiment," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 68-83.
    17. Jonas Hammerschmidt & Fabian Eggers & Sascha Kraus & Paul Jones & Matthias Filser, 2020. "Entrepreneurial orientation in sports entrepreneurship - a mixed methods analysis of professional soccer clubs in the German-speaking countries," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 839-857, September.
    18. Antonio Samagaio & Eduardo Couto & Jorge Caiado, 2009. "Sporting, financial and stock market performance in English football: an empirical analysis of structural relationships," CEMAPRE Working Papers 0906, Centre for Applied Mathematics and Economics (CEMAPRE), School of Economics and Management (ISEG), Technical University of Lisbon.
    19. Florian Englmaier & Arno Schmöller, 2008. "Reserve Price Formation in Online Auctions," CESifo Working Paper Series 2374, CESifo.
    20. Kjetil Haugen, 2023. "The doping dilemma is not the only dilemma in sport," Economics and Business Letters, Oviedo University Press, vol. 12(1), pages 40-48.

    More about this item

    Keywords

    professional football; sport industry; transfer pricing model; sports finance; sports economics;
    All these keywords.

    JEL classification:

    • Z21 - Other Special Topics - - Sports Economics - - - Industry Studies
    • Z23 - Other Special Topics - - Sports Economics - - - Finance
    • Z29 - Other Special Topics - - Sports Economics - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nea:journl:y:2018:i:40:p:174-183. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alexey Tcharykov (email available below). General contact details of provider: https://edirc.repec.org/data/nearuea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.