Modeling the Transfer Value of Players

The popularity of football rises everyday despite the periods of economic crises and political conflicts. The transfer market of football develops, and this fact is the cause of stable rise of players’ transfer prices. Many studies use the least-squares method to estimate transfer prices, but this method gives biased results. The error in the estimating appears when the authors use for determining the part of general selection which do not represent the general selection. This research is aimed at finding the relevant methods that could help to avoid the errors in estimating. The data collected for the research represent the information about players from the 5 highest leagues of Europe. The results of this research are the proof of the biased estimates of ordinary-least squares method and the confirmation of the assumption that the Hekman model gives a rather different (and right) results from the OLS. In the future, it is possible to expand the study by increasing the set of variables or expanding the scope of observations to analyze the whole transfer market.