Mobility and Human Capital Valuation in the European Football Labour Market

Abstract

The football transfer market constitutes one of the most financially intensive and internationally mobile segments of the labour economy, characterised by the direct purchase of employees – professional football players – between clubs. This study analyses transfer flows within Europe’s five major football leagues (Premier League, La Liga, Serie A, Bundesliga, and Ligue 1). The findings reveal a strong preference for domestic transfers, which account for 44.39% of all paid incoming transfers and 33.71% of total transfer expenditures. This pattern suggests that clubs prioritise players with prior domestic league experience, likely to reduce adaptation risks and enhance short-term performance stability. However, international transfers are associated with significantly higher market values, indicating a willingness among clubs to pay a premium for external talent, potentially driven by perceived quality, international reputation, and competitive market pressures. The study contributes to the literature on sports labour markets by identifying the coexistence of domestic preference mechanisms and a financial premium for foreign talent within an otherwise highly globalised employment system.