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Abstract
This paper examines the theoretical framework of the TP-CP model that establishes the
relationship between a soccer player’s performance and his market value. An OLS
estimation is used to investigate the characteristics that determine the transfer fee of a
soccer player, and buying and selling behavior of soccer clubs during the transfer
negotiation. The characteristics are divided into three categories: The characteristics of
players, buying club, and selling club. Using cross-sectional data of 447 transfers in the
English Premier League (EPL), including summer and winter transfer periods from July
2013 to May 2016, the results indicate that the characteristics tests explain a large part of
the transfer fee of a player. In addition, the characteristics of players such as the average
goals scored per game played increase the transfer fee of a player significantly. In fact,
for every goal scored by a player, the transfer fee increases by approximately €9,112,000.
This paper also deduces that the behavior of buying and selling clubs is largely
methodical.