market value definition
Jul 6, 2021 - 11:16 AM hours
The Transfermarkt market values are calculated taking into account various pricing models. A major factor is the Transfermarkt community, whose members discuss and evaluate player market values in detail. In general, the Transfermarkt market values are not to be equated with transfer fees. The goal is not to predict a price but an expected value of a player in a free market. Both individual transfer modalities and situational conditions are relevant in determining market values. Examples of this are listed below. Transfermarkt does not use an algorithm but instead relies on the wisdom of the community.
Numerous factors - the most important are listed below - calculate market demand for a player. Demand is defined using a paid transfer fee and salary in the context of the individual and situational parameters outlined below. It should be noted that in bigger leagues there is a heavier focus on transfer fees, while in smaller leagues where there is a greater emphasis on free transfers, the focus is primarily on salaries to determine market values. Our goal is to reflect the demand for the player and adjust for special factors/framework parameters in the medium term. At the same time, market values are viewed both individually and in comparison, to other players/clubs/leagues. A player with an expiring contract has a transfer value of zero, the market value, however, is calculated independently from his actual transfer value. In this respect, even a short contract length can only be taken into account to a limited extent. The individual transfer modalities are also relevant in the case of a possible difference between market values and transfer fees.
In principle, every league in the Transfermarkt database will undergo a market value update twice a season. Usually, after the end of the season, as well as during a season when enough games are played to allow for market adjustments. Further intermediary updates are conducted in many leagues to allow for player adjustments throughout the season, for example for young players with strong performances or for players newly signed to the league. Young players, in particular, are targeted in intermediary updates as it allows Transfermarkt to react to increased playing time or players that previously did not have a market value.
MOST IMPORTANT FACTORS
• Future prospects
• Age
• Performance at the club and national team
• Level and status of the league, both in sporting and financial terms
• Reputation/prestige
• Development potential
• League-specific features
• Marketing value
• Number & reputation of interested clubs
• Performance potential
• Experience level
• Injury susceptibility
• Different financial conditions of clubs and leagues
• General demand and "trends" on the market
• General development of transfer fees
• External factors such as the coronavirus pandemic and its consequences
INDIVIDUAL TRANSFER MODALITIES
• Transfers via an option to buy/obligation to buy
• Loan fee
• Only part of transfer rights acquired
• Exit clause
• Buyback option
• Player swap deal
• Contract length
• Resale participation
• Bonus payments
• Improvement of financial balance
SITUATIONAL CONDITIONS
• Pressure situations such as competitive, success or financial pressure, etc.
• Will/desire/interests of the player
• Club does not sell to highest bidder
• Player goes on strike or similar
• High salary
• Club wants to sell player
Numerous factors - the most important are listed below - calculate market demand for a player. Demand is defined using a paid transfer fee and salary in the context of the individual and situational parameters outlined below. It should be noted that in bigger leagues there is a heavier focus on transfer fees, while in smaller leagues where there is a greater emphasis on free transfers, the focus is primarily on salaries to determine market values. Our goal is to reflect the demand for the player and adjust for special factors/framework parameters in the medium term. At the same time, market values are viewed both individually and in comparison, to other players/clubs/leagues. A player with an expiring contract has a transfer value of zero, the market value, however, is calculated independently from his actual transfer value. In this respect, even a short contract length can only be taken into account to a limited extent. The individual transfer modalities are also relevant in the case of a possible difference between market values and transfer fees.
In principle, every league in the Transfermarkt database will undergo a market value update twice a season. Usually, after the end of the season, as well as during a season when enough games are played to allow for market adjustments. Further intermediary updates are conducted in many leagues to allow for player adjustments throughout the season, for example for young players with strong performances or for players newly signed to the league. Young players, in particular, are targeted in intermediary updates as it allows Transfermarkt to react to increased playing time or players that previously did not have a market value.
MOST IMPORTANT FACTORS
• Future prospects
• Age
• Performance at the club and national team
• Level and status of the league, both in sporting and financial terms
• Reputation/prestige
• Development potential
• League-specific features
• Marketing value
• Number & reputation of interested clubs
• Performance potential
• Experience level
• Injury susceptibility
• Different financial conditions of clubs and leagues
• General demand and "trends" on the market
• General development of transfer fees
• External factors such as the coronavirus pandemic and its consequences
INDIVIDUAL TRANSFER MODALITIES
• Transfers via an option to buy/obligation to buy
• Loan fee
• Only part of transfer rights acquired
• Exit clause
• Buyback option
• Player swap deal
• Contract length
• Resale participation
• Bonus payments
• Improvement of financial balance
SITUATIONAL CONDITIONS
• Pressure situations such as competitive, success or financial pressure, etc.
• Will/desire/interests of the player
• Club does not sell to highest bidder
• Player goes on strike or similar
• High salary
• Club wants to sell player
This contribution was last edited by xerxes on Jul 6, 2021 at 11:16 AM hours 
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