Theses on Player Transfers and Talent Development
Elias Johnsson and Jonas Engström (2023)
Abstract: Football has shifted from being a sport owned and played by the working class to being the most commercialized sport in the world, with clubs buying players for hundreds of millions of euros. In Sweden, this commercialization is affected by the 51 percent rule, a rule stating that the members of a club have to own a majority of it. While this affects the monetary interests of Swedish football, Swedish elite football clubs are still subject to the institutional logic driven by increasing commercialization, a logic that in this paper is called business logic.
At its core, football clubs are also subject to the institutional logic of wanting to win football games, a logic that in this paper is called sports logic. This raises the question of how these clubs manage sports and business logic in specific decision-making situations. One situation where the interaction between these logics can be very tense is during player transfers, where Swedish clubs interact with heavily commercialized clubs outside Sweden, with investors expecting a return on their investments.
The findings show that clubs manage these tensions through extensive stakeholder management, experienced executives with backgrounds in both sports and business, and strong cultural traditions that guide clubs to act according to certain norms.
Purchasing passion: a case study on the valuation of football players in Swedish clubs (BSc)
Johan Hägerström and Martin Wahlström (2022)
Abstract: Every year, football clubs around the world spend billions of dollars on acquiring new players. To purchase a player from another club, a transfer fee must be paid. Assigning a monetary value to a human requires significant consideration. This case study investigates the valuation process in Swedish football clubs. Similar research on valuation processes has been conducted in the art sector, and a theoretical framework from that context is applied here. The case study is based on semi-structured interviews with people involved in the transfer process at Swedish clubs.
The study finds that the valuation process follows four steps: setting up the valuation, informing the valuation, forming a value opinion, and offering a value opinion. The first step starts with either a need or an opportunity, both of which can be influenced by sporting, business, or fan logic. In the second step, information is gathered and analysed using benchmarking and intuition. Third, considerations are made regarding factors surrounding the player. The final step focuses on how clubs use information when negotiating with other clubs. The analysis shows that player valuation is more based on experience and intuition than on data-driven models. Another key finding is the existence of a third logic, fan logic, where the preferences of supporters are an important consideration for clubs.
Football player acquisitions (BSc)
William Gjerulf and Mike Pettersson (2020)
Abstract: The previous decade saw a large increase in football player transfer fees, more than quadrupling in the top five European leagues. In light of this development, this thesis examines the effect on share prices of the top four publicly listed football clubs following the announcement of a new player purchase during 2009–2019. In line with these clubs’ strong brands and high investor expectations, the authors hypothesize that abnormal returns will be positive when focusing solely on top-ranked clubs.
By conducting an event study of 174 player purchases, the study finds empirical support for positive abnormal returns five days after an announcement. Complemented by a Spearman’s rank correlation test, the results show a positive relationship between transfer fee expenditures and commercial revenues. Overall, the findings indicate different outcomes when examining a more homogeneous group of clubs compared with larger samples used in previous research.
Cultural dynamics with a vision of a talent factory (BSc)
Niklas Samuelsson and Jakob Lyckenvik (2017)
Abstract: The “war for talent” refers to organizations competing to place the right people with the right skills in the right roles to gain a competitive advantage. For this reason, the question of how to manage and develop talent is important for any organization. Within sports, this type of research has increased since the late 20th century, partly because sports attract both commercial interest and attention to athletic performance.
By studying sports, knowledge can be generated that is applicable in other contexts, such as corporate organizations. Research highlights key features that are crucial for talent development and reaching full potential, including the presence of an appropriate organizational culture.
This study investigates cultural dynamics in two well-known Swedish football academies. One is successful and has a strong culture, while the other is less successful and is attempting to change its organizational culture. The aim is to understand how organizational culture is produced and reproduced in these two organizations.
Make or buy? Talent development in Swedish elite football clubs (BSc)
Oskar Alktun and Freddie Jidling (2016)
Abstract: In recent decades, the football industry has undergone increased commercialization and professionalization. Significant growth in club revenues, along with changes in transfer regulations, has made the football labour market more flexible than the wider labour market. Today, player transfers are one of the main business activities of elite football clubs. While all players need to be developed and trained by a club, clubs can also acquire players on the transfer market. This raises the question of why clubs invest in developing players when they can acquire already trained players instead.
This essay analyses the purpose of talent development in Swedish elite football clubs by examining two Swedish clubs. It also explores how commercialization affects this purpose and how clubs respond.
The study draws on three theoretical fields: sports economics, talent management, and institutional theory. By combining these perspectives, the analysis offers a nuanced understanding of the topic and contributes to theory. The essay identifies four institutional logics: sports logic, idealism logic, commercial logic, and media logic. Each logic shapes the purpose of talent development within clubs. The effects of these logics are analysed with a focus on commercialization and the relationship between elite and grassroots football in Sweden. The essay concludes by discussing implications for talent management and sports economics.