Transfer Prices

Looking at what is being paid this summer there seems to be an illogical pattern.

A transfer price seems to be made up of some basic elements:

Origin:
UK players are the most expensive, EU passports often hikes the price, and if the player is from a big league a premium will be paid.

Destination:
The larger and the richer the club, plus the EPL premium, means higher transfer fees. Bosingwa, Alves, Keane etc are all examples of big clubs paying a premium

Current wages:
The higher the current wages the more money will be asked. Logical, since the current wages should reflect the selling club's evaluation of a player

Wage demands:
Some players price themselves out of a move, because any sane club will evaluate a player as a package meaning transfer fee, commissions, tax, gross wage and length of contract. Eto'o demanding 10m a year after tax is a clear example of a player blocking his own transfer. The 150-200m quoted for CR is also a function of this contract.

Length of contract:
If a player has little time left he will, usually, be cheaper. See Deco, VdV etc

Fame/Shirts:
The more famous, the more expensive. A mixture of a revenue analysis and prestige premium

Timing:
Desperate times call for desperate measure. The closer to 31st August, the stranger the fees paid.

Quality Premium:
This is the great unknown. Somehow when a player reaches a certain level of fame/quality the price just escalates. Dos Santos is only a third of the price of Bentley but is this logical??


Any factor missing?

I can understand all of them, except for the quality premium. Would a pay twice the money for a product that is 20% better?? Hell no..

Degree of risk is a big thing. And this overlaps with several you mention, e.g. origin - English clubs pay more for players who are experienced in the Premier League, because they know what level that player is capable of performing at in that league.

Take Dos Santos vs Bentley...Dos Santos is a far bigger risk, as he's never played in the PL, hence they would not be willing to pay the same price. Being talented alone is no guarantee you will play well in a new league, plenty have tried and failed.

Also, personality/character of the player - a player who's had issues at their current club will be considered riskier, hence cheaper. e.g. if someone was to go for Adriano now, he would be far cheaper than he would've been a few yrs ago.

Whether it's under the radar or not ?


When one top club gets wind of another one trying to buy a hot prospect, they might get involved, either to hijack the deal or to simply push up the price....