The transfer market is a crucial part in the worlds professional soccer system, where clubs trade for players they want with money, or in other words, transfer fees. This study examines the key factors influencing player transfer fees by analyzing data from the English Premier League (PL), with a focus on players market value and the divergence between market value and actual transfer fees. The authors identify age and position as primary determinants of market value: players aged 2227 command higher valuations, while forwards and midfielders significantly outperform defenders and goalkeepers in market value. Performance ratings based on Sofascore show weak correlation with value fluctuations, suggesting age-driven trends dominate. A critical finding reveals that contract expiry timing distinguishes transfer fees from market values. The study also highlights strategic clauses (e.g., sell-on clauses, buyout clauses) clubs use to optimize revenue under Financial Fair Play constraints. Limitations include small sample sizes for expiring contracts and reliance on PL-focused data. Future research could expand to Europes "Big 5" leagues and incorporate social media or bidding competition variables. This work contributes to sports economics by clarifying valuation mechanisms and offering actionable insights for transfer market stakeholders.
Zhou et al. (Wed,) studied this question.