An exponentially increasing trend of players’ registration prices has taken place since 2012, and we test the hypothesis that this may be a speculative bubble, using a structural break test (Chow test) on a data set of international soccer players’ registration prices, that ranges from 2007 to 2019. The test confirms the presence of an abrupt change in the trend of these prices since the year 2012, both for the whole data set and for subgroups based on the types of competition considered (Champions League, Europa League, and residual) and on the age of the players. We surmise that a possible root at the base of this trend is the need for soccer teams to cope with the Fair Play regulation, which has taken place exactly in the same years, and caused an excess of players’ trading as a means to comply with the obligation for teams to balance their books over time.

Soccer Bubble: Is There a Speculative Bubble in the Price of International Soccer Players? / Pancotto, Francesca; Addessi, Giorgio; Auteri, Nicola. - In: JOURNAL OF SPORTS ECONOMICS. - ISSN 1527-0025. - 25:5(2024), pp. 535-556. [10.1177/15270025241239631]

Soccer Bubble: Is There a Speculative Bubble in the Price of International Soccer Players?

Pancotto, Francesca
Membro del Collaboration Group
;
Addessi, Giorgio
Conceptualization
;
2024

Abstract

An exponentially increasing trend of players’ registration prices has taken place since 2012, and we test the hypothesis that this may be a speculative bubble, using a structural break test (Chow test) on a data set of international soccer players’ registration prices, that ranges from 2007 to 2019. The test confirms the presence of an abrupt change in the trend of these prices since the year 2012, both for the whole data set and for subgroups based on the types of competition considered (Champions League, Europa League, and residual) and on the age of the players. We surmise that a possible root at the base of this trend is the need for soccer teams to cope with the Fair Play regulation, which has taken place exactly in the same years, and caused an excess of players’ trading as a means to comply with the obligation for teams to balance their books over time.
2024
1-apr-2024
25
5
535
556
Soccer Bubble: Is There a Speculative Bubble in the Price of International Soccer Players? / Pancotto, Francesca; Addessi, Giorgio; Auteri, Nicola. - In: JOURNAL OF SPORTS ECONOMICS. - ISSN 1527-0025. - 25:5(2024), pp. 535-556. [10.1177/15270025241239631]
Pancotto, Francesca; Addessi, Giorgio; Auteri, Nicola
File in questo prodotto:
Non ci sono file associati a questo prodotto.
Pubblicazioni consigliate

Licenza Creative Commons
I metadati presenti in IRIS UNIMORE sono rilasciati con licenza Creative Commons CC0 1.0 Universal, mentre i file delle pubblicazioni sono rilasciati con licenza Attribuzione 4.0 Internazionale (CC BY 4.0), salvo diversa indicazione.
In caso di violazione di copyright, contattare Supporto Iris

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11380/1335868
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 0
  • ???jsp.display-item.citation.isi??? 0
social impact