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The effect of clubs’ bargaining power on football player’s transfer value

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  • Orlov, Denis

    (Higher School of Economics, Perm, Russian Federation)

Abstract

The paper employs data for the 2013–15 seasons to estimate the factors influencing the difference between the football players’ transfer and market value. Player transfer proneness to fully paid and zero transfer is modeled and three-stage Heckman procedure is applied to take account of sample selection bias. The main finding of the paper is the fact that the higher number of negotiating clubs leads to a higher gap in the dependent variable. The new proxy variable which reflects popularity of the player among the fans is introduced. It is also found out that buyers are using the risk-averse strategy when buying new players by trying to invest in more stable ones in the long-term.

Suggested Citation

  • Orlov, Denis, 2015. "The effect of clubs’ bargaining power on football player’s transfer value," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 45-64.
    • Handle: RePEc:ris:apltrx:0271
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    free transfer; Heckman procedure; sample selection bias;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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