THE CORRELATION BETWEEN PLAYER VALUATION AND THEBARGAINING POSITIONOF CLUBS IN THE ENGLISH PREMIERLEAGUE (EPL)

• Main Authors: M.J. Swanepoel, J. Swanepoel
• Format: Article
• Language: English
• Published: Social Sciences Research Society 2016-01-01
• Series: International Journal of Economics and Finance Studies
• Online Access: http://www.sobiad.org/eJOURNALS/journal_IJEF/archieves/IJEFS2016_1/Paper74_Swanepoel_Swanepoel.pdf

Soccer is perhapsthe most lovedgame in the world, filled with passion both onand off the field.Literature suggests that the English Premier League (EPL) is oneof the most sought after championship in soccer.The study investigates therelationship between player valuation and the bargaining positions of clubs in theEnglish Premier League (EPL).A comprehensive literatureanalysis illustratesthat the bargaining positions of clubsshouldconsider factors such as previousseasons’ financialperformance,league performance, managerial change andprestige of playing.A quantitative researchapproach using causality was used todetermine the influence of the bargaining positionon players’ valuation in theEPL.The sample of the study comprisesEPL transferred players(n=409) duringthe periodsummer 2012 and winter 2015 transferwindows. Indetermining theresults;correlationanalysisandanalysis of variance (ANOVA)wereconductedonthe data.Theresults of the correlation analysis indicatea strong associationbetween the bargaining position of the buying and lower association between thebargaining positions of the selling clubin the influenceofplayer valuation. Intheanalysis ofthe results of the ANOVA the strength of a relationship had avariancespan from non-existent, too weak, to very strong. The ultimate conclusion ofthisstudy based on the results is that valuation of EPL players are often influenced bythebargainingpositions of buyingclubs.Thestudy contributesto the body ofknowledgeon valuation of EPL players provingthatit isdemand-driven,therefore the bargaining position of buying clubs is the determinant.