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How much is a player worth ?



John Dorian

Glass Case of EMOTION
Just looking at a few of the transfers this morning, and on football manager, if you sell a player, and they've only played 50 odd games for you, it will say that they cost a lot of money for the player PER PERFORMANCE.

Forward to Gabriel Heinze requesting a transfer from Manchester United. He cost them £6.9 Million in 2003, and has since played 83 games for Manchester United. This equates to 83.13K per game that Manchester United forked out for his services.

With the current prices of players increasing, and the clubs this summer spending an awful lot of money and the transfer window being one of the most active in a few years, at what stage do you feel that the club are getting "Value for money" for their player. 40 grand a match ? or do you think a transfer fee should be divided by the amount of goals scored by a striker for example...Thierry Henry cost Arsenal 10.5 million pounds and scored 226 goals, meaning that Arsenal paid 46K a goal that he scored...is that value for money ?

Your thoughts...
 




Beach Hut

Brighton Bhuna Boy
Jul 5, 2003
72,324
Living In a Box
Can't see why Heinze wants to leave MUFC - quality player as well.

BTW in you figures there is nothing taken into account for wages paid as well as the transfer fee.
 


hans kraay fan club

The voice of reason.
Helpful Moderator
Mar 16, 2005
62,763
Chandlers Ford
Your calculations are knacked. Even if you chose to only measure Henry's worth to Arsenal by his goals, then the calculation still ought to be;

[Purchase cost + wages + medical and legal fees] minus [selling price + profit from merchandising + percentage of ticket sales] divided by goals.
 








If Henry cost 10.5 mil, but was sold for 18 mil, doesn't that profit get deducted from his cost per goal as well?

hans kray fan club mentions this, but surely that should have been one of the first things taken into account.

If Heinze wants away from ManU, then I doubt it'll be on a free.
 


Euston

New member
Aug 31, 2006
6
Using standard increemental investmant appraisal technique of discounted cash flows the value should be....

- Purchase cost (including all costs of the transaction eg legal fees)
+ all increment revenue earned as a direct result of owning player
- all incremental costs incurred as a result of owning player
+ net selling revenue (eg sales price, plus estimation of deferred revenue eg sell on clause, less cost of selling the player eg legal fees)

All cash flows to be discounted, to take into account the time value of money.

If the result of the above is positive then it was a good investment!

Simple eh?
 








Frutos

.
Helpful Moderator
NSC Patron
May 3, 2006
36,310
Northumberland
A player is worth as much or as little as someone is willing to pay for him.
 


Icy Gull

Back on the rollercoaster
Jul 5, 2003
72,015
How can you calculate the worth? Zamora was sold for 1 million plus, cost us 100k and we had to shell out 1/3 of the Spurs fee to Bristol Rovers. He earned good money whilst he was here as well I reckon so if we cleared 300k on him it sounds shit BUT without him we wouldn't have won two Championships and lured plenty of the current younger fans to the club who'll possibly be fans for life.

Short answer is you can't calculate a players worth by transfer fees
 


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