Macro-Analysis of Transfer Fees and Investments in Sports

IÖB Discussion Paper No. 2/05

11 Pages Posted: 27 Dec 2005

Date Written: December 2005

Abstract

Systems of transfer fees can be designed in different ways. Their effects have been analysed in detail, particularly in connection with the Bosman-ruling. However, the analyses were only conducted on a microeconomic level and therefore limited to one player and two clubs, one club taking the player in and the other releasing the player. In a macro-analysis covering all players and clubs, new aspects arise. First of all, it is evident that the sum of all paid transfer fees is equal to the sum of all received transfer fees. Hence, there is no redistribution from the players to the clubs, at least no large redistribution anywhere as high as the sum of the transfer fees. The sum of salaries is determined essentially by the revenues of the clubs, not by the design of the transfer system. Admittedly, there are effects on the training investments, the distribution between players and the risk allocation. The transfer system after the Bosman-ruling seems to be best regarding these aspects.

Keywords: Bosman-ruling, football, professional sports, soccer, training investments, transfer fees

JEL Classification: L83, M52, J33, M53

Suggested Citation

Dilger, Alexander, Macro-Analysis of Transfer Fees and Investments in Sports (December 2005). IÖB Discussion Paper No. 2/05. Available at SSRN: https://ssrn.com/abstract=871437 or http://dx.doi.org/10.2139/ssrn.871437

Alexander Dilger (Contact Author)

University of Münster ( email )

Institute for Organisational Economics
Scharnhorststr. 100
Münster, D-48151
Germany
+49-251-83-25330 (Phone)
+49-251-83-28429 (Fax)

HOME PAGE: http://www.wiwi.uni-muenster.de/io/en/organisation/Dilger.html

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