Værdiansættelse af fodboldspillere

Kadir Türkyilmaz

Student thesis: Master thesis


This master's thesis concerns the valuation of footballers. The thesis has chosen to concentrate on transfer fees and market values, respectively. The research topic is interesting, because values of the players have an increasing trend. However, although the market values are not tangible, the size has surpassed transfer fees, which is one of the motivations factor for writing this thesis. To find the factors included in the value of the players, it was necessary to make a broad study of the football market. Firstly the size of European football market showed the relevance of the research topic. The revenues and the revenue sources presented how the money has dominated the market with increasing transfer fees. Secondly the regulations in football emphasized the effect on values for the players. Bosman ruling, Home-Grown Player rule and Financial Fair Play Regulations are important rules that clubs cannot avoid. Analyzing the transfer market shows that the transfer economy is an important part of the football market. However, the financial crisis and the upcoming regulation have caused a decrease in the number of transferred players the last few years. Football creates enormous values, where book values of the players are conspicuous, because home-grown players are not valued on the balance sheet, so their book value is 0. To determine the transfer fees, there are few models, but they are not used in practice. Instead, the factors which affect the value have a more focus. Factors like age, performance, further sales potential, contract length, demand and brand image are the most important. The most transferred player types are offensive players, who are in their mid-20s, score goals and from Brazil or another South American origin. There are no theoretical models to calculate the market values. Therefore I make suggestions to alternative methods. The valuation was based on multiples, DCF, cost- and market methods, which are methods from the financial world. The results were different, depending on the method. Valuation of players in other team sports is also an important research topic, because it differs from football. Thus, American sports use a draft system, which allow the clubs to swap players without a fee.

EducationsMSc in Finance and Accounting, (Graduate Programme) Final Thesis
Publication date2013
Number of pages212