Top Menu

Are Mid-season Acquisitions Good Business for Sports Teams?

It’s been quite a hectic few days in the latest transfer window of the English Premier League (EPL). As I write this post, it is still transfer deadline day in England and rumors of players switching clubs in the remaining last few hours are dominating the sports headlines.

The transfer commanding the most headlines has been the move of Spaniard and World Cup winning striker Fernando Torres from Liverpool FC to the London club Chelsea for£50m. This represents a British record transfer fee and occurs even after champions Chelsea reported a £70.9m loss for the year to June 2010. Andy Carroll has also signed for Liverpool from Newcastle United for £35m, making him the most expensive English player in the history of the game.

The Merseyside club now owned by John Henry of the New England Sports Ventures and Boston Red Sox, has been extremely active in the transfer window and has also confirmed the signature of Uruguayan star Luis Suarez from Dutch club Ajax for £22.7m.

These moves and the cash sums involved raise the question: are these mid-season transfers good business for the clubs – or merely a knee-jerk reaction and a panic stricken measure by owners, coaches and managers to resurrect their seasons and careers?

Sports economist Stefan Szymanski and sports writer Simon Kuper write, in their book Why England lose and Other Curious Football Phenomena, that there is a lack of economic rationality and emotional intelligence in soccer. The book is soccer’s equivalent to Michael Lewis’ MoneyBall, which looks at the inefficiencies in the market for baseball players. Szymanski and Kuper argue that the transfer market is full of obvious irrationalities and claim that clubs pay too much for teenagers and too much for recent stars of international tournaments (the transfer of Suarez may prove them right here – time will tell). They also state that certain nationalities become fashionable without any rational basis.

With a recent EPL game played on January 23rd between Blackburn Rovers and West Bromich Albion featuring 22 different nationalities in the 27 players used, it is anyone’s guess as to which nationality is currently in vogue.

Above all, soccer clubs, unlike multinational companies in other industries, do not due their due diligence before opening their checkbooks to strengthen their work force. They do not adequately assess a player’s likely development or their fit for a certain culture. This oversight, in many cases, leads to the transfer being an inevitable failure for both player and club.

So, if many transfers are not rational are they still good for business? In another book, Pay As You Play: The True Price of Success in the Premier League Era, Paul Tomkins, Graeme Riley and Gary Fulcher analyze soccer transfers in detail and look at whether success can be bought in the EPL. They conclude that, in most cases, it can.

Converting all transfer fees since 1992 into modern prices (which they call Current Transfer Purchase Price – CTPP), the authors are able to evaluate manager and team performance by calculating “cost per point”, or “£XI”. The £XI term represents the average cost of the XI (11 player team) over the course of the season with prices at CTPP. From there, how many pounds had to be spent to win a Premier League point can be determined.

While I won’t go into any more detail on the analytics, the results are interesting.  In the 18 seasons to date, the team with the highest  £XI has won the league ten times and of the other eight, four went to the second-most expensive team.  Success, it seems, can be bought.

The book also reveals the top 10 worst value for money players. The names speak for themselves – well they don’t, in fact, as you probably won’t remember them! Heading the list is Per Kroldrup, the Danish defender who signed for Everton FC in 2005 for a transfer fee of £5m.  Before making his first start, Kroldrup suffered a groin injury, and ended up making just one solitary performance for the Toffees.  According to the analytics in the book, his CTPP per game was a staggering £9,123,766.

At that price, Torres looks a definite bargain.

###

Image by ryusha

Image by rodfather

, , , , , , , , , , ,

1,980 Responses to Are Mid-season Acquisitions Good Business for Sports Teams?

  1. chat magazine July 31, 2015 at 2:33 am #

    Because the admin of this site is working, no question very quickly it will be well-known, due to its feature contents.

  2. zeanstep August 23, 2015 at 7:15 am #

    I have read several just right stuff here. Certainly
    value bookmarking for revisiting. I surprise how much
    effort you set to make this sort of excellent informative site.

  3. I’m not sure exactly why but ths blog is loading very slow for me.
    Is anyone else having this issue or is it a issue on my
    end? I’ll check back later on and see if the problem still exists.

  4. affiliate network October 10, 2015 at 11:11 pm #

    Fantastic blog! Do you have any suggestions for aspiring writers?
    I’m hoping to start my own blog soon but
    I’m a little lost on everything. Would you suggest starting with a free
    platform like WordPress or go for a paid option? There are so many
    choices out there that I’m totally overwhelmed ..
    Any tips? Kudos!

  5. buying a home married October 14, 2015 at 6:11 pm #

    Nice respond in return of this difficulty with genuine
    arguments and telling the whole thing on the topic of that.

  6. Somatrodol October 19, 2015 at 2:51 pm #

    O melhor suplemento do momento é o somatodrol. Compre e confirme!

  7. ประตูม้วน October 23, 2015 at 2:57 am #

    I am regular visitor, how are you everybody?
    This paragraph posted at this web page is really pleasant.

  8. เบอร์สวย October 26, 2015 at 5:36 am #

    Hi colleagues, how is everything, and what you want to say on the topic
    of this article, in my view its actually remarkable designed
    for me.

  9. premium products October 29, 2015 at 3:47 am #

    There is certainly a great deal to know about this topic. I really like all
    the points you have made.

  10. I really assume im in love with him.

  11. wet eye disease in cats November 9, 2015 at 7:48 am #

    Her right entrance leg was broken and has healed back mistaken,
    so she cant straiten it or walk on it. in the last 2 weeks her right eye began getting dark spots in it, like
    paint splatter, than it began getting foggy over the pupil and
    turning pink out round the place it is speculated to be yellow.

  12. home look November 11, 2015 at 12:45 am #

    hi!,I like your writing very a lot! share we keep up a
    correspondence more approximately your article on AOL?
    I require an expert on this house to solve my
    problem. Maybe that is you! Having a look ahead to see you.

  13. Fred's Kitchen November 11, 2015 at 7:38 am #

    It’s really a nice and useful piece of info. I am happy that you shared this helpful
    information with us. Please stay us up to date like this.
    Thanks for sharing.

  14. https://www.facebook.com/getsonicboomcheats November 14, 2015 at 2:06 am #

    Challenging you to fire angry birds at structures to destroy
    the pigs, is the basic idea, but thanks to some satisfying physics based reactions, every game is different.
    Developed specifically for the platform by Epic Games’ Ch –
    AIR Entertainment studio and running on the Unreal Engine for i – Phone,
    the game is essentially combat action all the way, with a few RPG elements thrown in. It can easily eat an hour
    or two of your time in a single sitting.

  15. Patrick November 16, 2015 at 2:20 am #

    If you are going for most excellent contents like I do, simply visit this site everyday since
    it provides feature contents, thanks

  16. rolex watch price malaysia November 17, 2015 at 2:44 am #

    Wah Hing, Zurich are the Rolex AD, each of them has a
    number of retailers under the same identify.

  17. HL8 Indonesia November 18, 2015 at 2:53 am #

    Mostostal Warszawa had already delayed the construction of the stadium
    for 4 months. “We are very excited for Darel committing to the University of Tennessee,” new Powell coach
    Tobi Kilgore said. Somehow several dozen flares were able to
    find their way into the stadium, and came to be in the hands of a select cadre of
    easily identifiable, inebriated celebrants.

  18. Bed November 27, 2015 at 6:46 pm #

    This piece of writing offers clear idea for the new viewers of blogging, that genuinely how to do running a blog.

  19. thinkaboutsearch.com November 29, 2015 at 6:54 am #

    Just like anything else in life, building your
    internet presence by using SEO services is an ongoing effort.
    How well your content is organized makes it easier or harder
    for the search engines to find and recommend you as the most relevant to a given keyword phrase.
    A familiarity with the workings of each type is essential to the successful building of an SEO-efficient client
    web site, and the preferred types of search engines differ from client to client.

  20. violin cover songs mp3 December 21, 2015 at 6:44 am #

    Another approach to find songs for lyrical dance is by searching for covers.

  21. used auto parts marietta ga December 24, 2015 at 12:19 am #

    There are specific auto parts which have a really brief life ; the others have comparatively lengthy life.

  22. web design jobs seattle December 25, 2015 at 7:58 am #

    Most freelance net designers through the summertime do not
    even work over the weekends.

  23. dui class December 27, 2015 at 12:31 pm #

    Every weekend i used to go to see this site, as i want enjoyment, as this this site conations genuinely pleasant funny stuff too.

  24. androx collier funeral home January 16, 2016 at 6:52 am #

    I believe this is among the such a lot vital information foor me.
    And i am glad studying your article. Butt wanna observagion on few normal things, The website taste
    is great, the articles is iin point of fact great :
    D. Just rght job, cheers

  25. medienproduktion February 3, 2016 at 3:17 pm #

    Excellent article! We are linking to this particularly great post on our site.

    Keep up the good writing.

  26. LTA084C190 February 22, 2016 at 9:18 am #

    When blowing fans inside the computer, take special care as
    excessive pressure can cause over spinning and may damage bearings or crack a blade.
    They can satisfy their need for nicotine while avoiding the multiple contaminants found in tobacco cigarettes.
    This ensures that the product has passed certain tests for safety,
    even if it does not guarantee it as 100% safe.

  27. Wonderful beat ! I wish to apprentice whilst you amend your site, how can i
    subscribe for a weblog website? The account helped
    me a acceptable deal. I were tiny bit acquainted of this your broadcast provided vivid transparent concept

  28. Somatodrol April 8, 2016 at 11:38 am #

    I do not think that transfers midseason adquisisiones are good for the teams.

    The team must be formed, raised and organized from the start, so this would simply lose organization.

    As in bodybuilding, plans are important to be continued. If you add things in the way adulterous many other things.

  29. hcg drops June 4, 2016 at 5:52 pm #

    I’m excited to find this web site. I need to to thank you for
    your time for this fantastic read!! I definitely really liked every part of it and I have you book marked to look at new information in your site.

Trackbacks/Pingbacks

  1. steroids - June 2, 2016

    …Links

    […]The overall look of your website is excellent, let neatly as the content material![…]

Leave a Reply

Website Managed by T3 CONNECT