The correlation between player valuation and the bargaining position of clubs in the English premier league (EPL)

Abstract

Soccer is perhaps the most loved game in the world, filled with passion both on and off the field. Literature suggests that the English Premier League (EPL) is one of the most sought after championship in soccer. The study investigates the relationship between player valuation and the bargaining positions of clubs in the English Premier League (EPL). A comprehensive literature analysis illustrates that the bargaining positions of clubs should consider factors such as previous seasons financial performance, league performance, managerial change and prestige of playing. A quantitative research approach using causality was used to determine the influence of the bargaining position on players valuation in the EPL. The sample of the study comprises EPL transferred players (n=409) during the period summer 2012 and winter 2015 transfer windows. In determining the results; correlation analysis and analysis of variance (ANOVA) were conducted on the data. The results of the correlation analysis indicate a strong association between the bargaining position of the buying and lower association between the bargaining positions of the selling club in the influence of player valuation. In the analysis of the results of the ANOVA the strength of a relationship had a variance span from non-existent, too weak, to very strong. The ultimate conclusion of this study based on the results is that valuation of EPL players are often influenced by the bargaining positions of buying clubs. The study contributes to the body of knowledge on valuation of EPL players proving that it is demand-driven, therefore the bargaining position of buying clubs is the determinant.