FIFA, the international governing body for football, is seeking to initiate a dialogue on the determination of football player transfer fees through algorithms instead of the historical method of negotiation between clubs to assess the market value of a player.
Gianni Infantino, the President of FIFA, utilized his address at the annual legal conference of the union, which concluded its proceedings on Friday in Tokyo, to reintroduce an idea that has been circulated for several years regarding reforms in the global football player transfer market, currently valued at over $10 billion annually.
Infantino stated to football law specialists, “Now, more than ever, it is essential for us to discuss these issues and more.”
He added, “For example, to discuss the possibility of using algorithms to estimate the fair value of transfer fees to increase transparency in the transfer system and assist stakeholders in football.”
It is unclear how clubs would accept the method endorsed by FIFA to determine player transfer fees, as it would limit their selling options.
Additionally, the compatibility of this approach with competition law in the European Union is uncertain.
FIFA’s interest in the algorithmic method for determining player transfer prices has been evident since the establishment of a task force dedicated to transfers in 2017.
The task force presents its reports to a committee comprising representatives from clubs, leagues, and player associations.
FIFA invests millions of dollars annually to support a master’s program and a research unit in football at the University of Neuchâtel in Switzerland.
The unit claims to have worked on an algorithm for assessing player transfer values since 2010.
The International Centre for Sports Studies currently places a value of no less than €250 million ($272 million) on Real Madrid players Jod Bellingham and Vinicius Junior, in addition to Manchester City striker Erling Haaland.
The center determines the market value of a player based on several factors, including the player’s age, contract duration, international record, club conditions, and the global economy.
The market value for players like Bellingham, Haaland, and Mbappé currently stands at €180 million ($196 million) on the “Transfermarkt” website, an online platform dedicated to the football industry, differing by tens of millions of euros (dollars) when compared to the algorithmic approach.
