Factors affecting the value of football players in the transfer market

Abstract

The transfer of a football player for over 100 million EUR has been nothing extraordinary in recent years. In general football clubs are spending increasing amounts of money on player transfers. This applies to both the leading leagues in Europe and those at a lower level. Only in 2020, was there a slowdown in both club spending and revenues due to the COVID-19 pandemic. Contrary to what people outside the world of football often say, the amounts of money involved in the transfers are not irrational. Based on the literature on the subject, the value of a player is determined, among other things, by his position on the pitch, age, year of transfer, and achievements. This study is based on the top Polish football league – the Ekstraklasa. The study analyzed all transfers in the history of this league of at least one million EUR and so far, 108 such transfers have been made. The study aimed to determine the factors that differentiate the value of football players. The results show that most transfers from the Ekstraklasa are made among players aged 21-24. Moreover, the highest transfer fees were recorded in the group of players aged 21 and younger. It should therefore be said that foreign clubs (most often from Italy, England, and Germany) prefer young players from the Ekstraklasa. Such a tendency may be justified by the fact that a young player may be more easily trained and adapted to the system of a given club. Another important result is that the record amount for player transfers was recorded in 2020 when the global football industry was hit by the COVID-19 pandemic.