IDEAS home Printed from https://ideas.repec.org/a/ris/apltrx/0271.html
   My bibliography  Save this article

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

Author

Listed:
  • 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, Publishing House "SINERGIA PRESS", vol. 39(3), pages 45-64.
    • Handle: RePEc:ris:apltrx:0271
    as

    Download full text from publisher

    File URL: http://pe.cemi.rssi.ru/pe_2015_3_45-64.pdf
    File Function: Full text
    Download Restriction: no

    References listed on IDEAS

    as
    1. Speight, Alan & Thomas, Dennis, 1997. "Arbitrator Decision-Making in the Transfer Market: An Empirical Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 44(2), pages 198-215, May.
    2. Rosen, Sherwin & Sanderson, Allen, 2001. "Labour Markets in Professional Sports," Economic Journal, Royal Economic Society, vol. 111(469), pages 47-68, February.
    3. John Ermisch & Robert Wright, 1994. "Interpretation of negative sample selection effects in wage offer equations," Applied Economics Letters, Taylor & Francis Journals, vol. 1(11), pages 187-189.
    4. Simon Rottenberg, 1956. "The Baseball Players' Labor Market," Journal of Political Economy, University of Chicago Press, vol. 64, pages 242-242.
    5. Pedro Garcia-del-Barrio & Stefan Szymanski, 2006. "Goal! Profit maximization and win maximization in football leagues," Working Papers 0621, International Association of Sports Economists;North American Association of Sports Economists.
    6. Simon Medcalfe, 2008. "English league transfer prices: is there a racial dimension? A re-examination with new data," Applied Economics Letters, Taylor & Francis Journals, vol. 15(11), pages 865-867.
    7. Carmichael, Fiona & Forrest, David & Simmons, Robert, 1999. "The Labour Market in Association Football: Who Gets Transferred and For How Much?," Bulletin of Economic Research, Wiley Blackwell, vol. 51(2), pages 125-150, April.
    8. Polyakov, Konstantin & Zhukova, Ludmila, 2013. "Human capital estimation in professional football," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 29(1), pages 29-44.
    9. Jeroen Ruijg & Hans van Ophem, 2015. "Determinants of football transfers," Applied Economics Letters, Taylor & Francis Journals, vol. 22(1), pages 12-19, January.
    10. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-694, July.
    11. Bernd Frick, 2007. "The Football Players' Labor Market: Empirical Evidence From The Major European Leagues," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(3), pages 422-446, July.
    12. Reilly, Barry & Witt, Robert, 2011. "Disciplinary sanctions in English Premiership Football: Is there a racial dimension?," Labour Economics, Elsevier, vol. 18(3), pages 360-370, June.
    13. Stefan Szymanski & Ron Smith, 1997. "The English Football Industry: profit, performance and industrial structure," International Review of Applied Economics, Taylor & Francis Journals, vol. 11(1), pages 135-153.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    free transfer; Heckman procedure; sample selection bias;

    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

    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:ris:apltrx:0271. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anatoly Peresetsky). General contact details of provider: http://appliedeconometrics.cemi.rssi.ru/ .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.