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, Russian Presidential Academy of National Economy and Public Administration (RANEPA), 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. Alan Speight & Dennis Thomas, 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. Simon Rottenberg, 1956. "The Baseball Players' Labor Market," Journal of Political Economy, University of Chicago Press, vol. 64(3), pages 242-242.
    4. 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.
    5. Polyakov, Konstantin & Zhukova, Ludmila, 2013. "Human capital estimation in professional football," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 29(1), pages 29-44.
    6. 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.
    7. 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.
    8. Stefan Szymanski & Ron Smith, 2010. "The English Football Industry: Profit, Performance and Industrial Structure," Palgrave Macmillan Books, in: Football Economics and Policy, chapter 1, pages 1-26, Palgrave Macmillan.
    9. 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.
    10. 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.
    11. 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.
    12. Jeroen Ruijg & Hans van Ophem, 2015. "Determinants of football transfers," Applied Economics Letters, Taylor & Francis Journals, vol. 22(1), pages 12-19, January.
    13. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-694, July.
    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. Nikitina, N. & Bolgova, V. & Vinopal, M. & Nikiforova, T., 2022. "The influence of external attractiveness on the transfer value of football players," Journal of the New Economic Association, New Economic Association, vol. 54(2), pages 176-187.

    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. Craig A. Depken & Tomislav Globan, 2021. "Football transfer fee premiums and Europe's big five," Southern Economic Journal, John Wiley & Sons, vol. 87(3), pages 889-908, January.
    2. Maxence Franceschi & Jean‐François Brocard & Florian Follert & Jean‐Jacques Gouguet, 2024. "Determinants of football players’ valuation: A systematic review," Journal of Economic Surveys, Wiley Blackwell, vol. 38(3), pages 577-600, July.
    3. Barry Reilly, 2014. "Labour market discrimination," Chapters, in: John Goddard & Peter Sloane (ed.), Handbook on the Economics of Professional Football, chapter 15, pages 238-258, Edward Elgar Publishing.
    4. Carlo Bellavite Pellegrini & Raul Caruso & Marco Di Domizio, 2021. "Relative wages, payroll structure and performance in soccer. Evidence from Italian Serie A (2007-2019)," DISCE - Working Papers del Dipartimento di Politica Economica dipe0015, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    5. Marco Di Domizio & Carlo Bellavite Pellegrini & Raul Caruso, 2022. "Payroll dispersion and performance in soccer: A seasonal perspective analysis for Italian Serie A (2007–2021)," Contemporary Economic Policy, Western Economic Association International, vol. 40(3), pages 513-525, July.
    6. Helmut Dietl & Egon Franck & Markus Lang & Alexander Rathke, 2010. "Organizational Differences between U.S. Major Leagues and European Leagues: Implications for Salary Caps," Working Papers 0122, University of Zurich, Institute for Strategy and Business Economics (ISU).
    7. 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.
    8. McHale, Ian G. & Holmes, Benjamin, 2023. "Estimating transfer fees of professional footballers using advanced performance metrics and machine learning," European Journal of Operational Research, Elsevier, vol. 306(1), pages 389-399.
    9. Coates, Dennis & Parshakov, Petr, 2022. "The wisdom of crowds and transfer market values," European Journal of Operational Research, Elsevier, vol. 301(2), pages 523-534.
    10. David Matesanz & Florian Holzmayer & Benno Torgler & Sascha L Schmidt & Guillermo J Ortega, 2018. "Transfer market activities and sportive performance in European first football leagues: A dynamic network approach," PLOS ONE, Public Library of Science, vol. 13(12), pages 1-16, December.
    11. 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.
    12. Guido Ascari & Philippe Gagnepain, 2007. "Evaluating Rent Dissipation in the Spanish Football Industry," Journal of Sports Economics, , vol. 8(5), pages 468-490, October.
    13. Marco Di Domizio & Raul Caruso & Bernd Frick, 2020. "Intelligenza Collettiva E Valore Di Mercato Dei Calciatori: Il Caso Transfermarkt," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 16(2), pages 155-172, novembre.
    14. Hans van Ophem & Jeroen Ruijg, 2014. "Determinants of football transfers," UvA-Econometrics Working Papers 14-01, Universiteit van Amsterdam, Dept. of Econometrics.
    15. Wladimir Andreff, 2009. "Équilibre compétitif et contrainte budgétaire dans une ligue de sport professionnel," Revue économique, Presses de Sciences-Po, vol. 60(3), pages 591-633.
    16. António Sérgio Ribeiro & Francisco Lima & Sascha Kraus & Ferran Calabuig, 2022. "Tournaments within football teams: players’ performance and wages," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 4884-4901, December.
    17. Matthieu Llorca & Thierry Teste, 2016. "Dépenses salariales et performance dans l’industrie du football," Revue française d'économie, Presses de Sciences-Po, vol. 0(2), pages 125-145.
    18. Stephen Dobson & Bill Gerrard & Simon Howe, 2000. "The determination of transfer fees in English nonleague football," Applied Economics, Taylor & Francis Journals, vol. 32(9), pages 1145-1152.
    19. Müller, Oliver & Simons, Alexander & Weinmann, Markus, 2017. "Beyond crowd judgments: Data-driven estimation of market value in association football," European Journal of Operational Research, Elsevier, vol. 263(2), pages 611-624.
    20. Lenten, Liam J.A. & Geerling, Wayne & Kónya, László, 2012. "A hedonic model of player wage determination from the Indian Premier League auction: Further evidence," Sport Management Review, Elsevier, vol. 15(1), pages 60-71.

    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

    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.

    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: Anatoly Peresetsky (email available below). General contact details of provider: http://appliedeconometrics.cemi.rssi.ru/ .

    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.