Potential equity and efficiency effects: Potential equity and efficiency effects

Potential equity and efficiency effects:

• Potential equity and efficiency effects:

• Estimation of the fair economic value of a team

• Influence in the transfer market decisions

• Appraisal of the financial state of the clubs

• Club bias against home grown players

It is useful to give economic valuation of players, independently from having been trasfered or not

• It is useful to give economic valuation of players, independently from having been trasfered or not

• Economic valuation models of players is needed.

2. Valuation models

• 2. Valuation models

• Explaining market value by relevant sport performance variables:

• Transfer fees. Dobson and Gerrard (1999)

• Transfer fees. Castillo (2006)

• Salaries. Rossi (2008)

• Market value. Method (?) Transfermarkt.de

• Delphi method. Nasser (2007)

• Explaing market vale by media value

• We propose to explain footballer market value by media value

• ¿What is media value?

3. Media value: popularity + notoriety

• 3. Media value: popularity + notoriety

• Media value at the core of sport as business

4. Explaining market value by media value. The model

• 4. Explaining market value by media value. The model

• 1. If media value captures sport performance and explains players and teams income …

• 2. Let’s try to explain football player’s market value relying just on media value measures …

• 3. Disregarding any kind of direct measure of sport performance

Explaining a player’s market value by:

• Explaining a player’s market value by:

• Football player’s media value

• Buying team media value

• Selling team media value

• Media value rank of the player in his precedent team

• Age

• Position in the pitch, nationality

5. Explaining market value by media value. Empirical results

• 5. Explaining market value by media value. Empirical results

• A set of 84 deals produced in season 2006/07 in Europe for whom we have information about actual transfer fees paid.

Results

• Results

• Adjusted R2: 0.735.

• An increase of 1% of player’s media value leads to an increase of 0.5% of player’s market value.

• The higher the media value of the buying team, the higher the premium to be paid.

• The higher the media value of the selling team, the lower the fee received.

• Inverted U-shape for the relationship between age and market value.

• A premium according to the MV rank in the previous team

• Position in the pitch does not have extra impact (already discounted in different media value)

Differences between actual and theoretical market value

• Differences between actual and theoretical market value

• Some examples

Differences between actual and theoretical market value

• Differences between actual and theoretical market value

• Some examples

Differences between actual and theoretical market value

• Differences between actual and theoretical market value

• Some examples

Using the coefficients as method to estimate football players’ fair market value

• Using the coefficients as method to estimate football players’ fair market value

• Some examples: reviewing FC Barcelona intangible assets.

Using the coefficients as method to estimate football players’ fair market value

• Using the coefficients as method to estimate football players’ fair market value

• Some examples: reviewing FC Barcelona intangible assets.

Using the coefficients as method to estimate football players’ fair market value

• Using the coefficients as method to estimate football players’ fair market value

• Some examples: evaluation of the transfer season Winter 2007/08 window).

6. Checks of robustness: explaining the differences between actual and theoretical transfer fees

• 6. Checks of robustness: explaining the differences between actual and theoretical transfer fees

• H1: Bargaining effects

• H2: Estimations effects

Revision of 14 FIFA Agents’s estimations when having ESI-rg estimations.

• Revision of 14 FIFA Agents’s estimations when having ESI-rg estimations.

Revision of 14 FIFA Agents’s estimations when having ESI-rg estimations.

• Revision of 14 FIFA Agents’s estimations when having ESI-rg estimations.

Free Transfer Deals: correlations between different approaches

• Free Transfer Deals: correlations between different approaches

Media value explained by sport performance

• Media value explained by sport performance

Media value explained by sport performance

• Media value explained by sport performance

Media value explaining income

• Media value explaining income

Media value explaining income

• Media value explaining income

Media value explaining income

• Media value explaining income