FIFA is working alongside CIES Football Observatory, a Switzerland-based research group, to explore the use of an algorithm that can scientifically calculate player transfer values. In November of 2017, FIFA President Gianni Infantino assembled a task force to investigate possible algorithm-based reforms to the soccer transfer system.
The taskforce found that the current player transfer system caused “various abuses at the expense of young players and the integrity of competitions,” according to a report seen by Reuters. The report further claims that an inflated transfer market led to “unsavoury practices which may lead to the exploitation of players”.
CIES Football Observatory is also working to develop an algorithm-based luxury tax that would aim to put a cap on excessive spending. The report also called for a cap on agent fees, while adding that the powerful influence of player agents has turned the transfer system into “a speculative market.”
According to its website, CIES Football Observatory was created in 2005 by researchers Dr. Raffaele Poli and Dr. Loïc Ravenel. CIES’s algorithm for estimating player transfer fees takes into account data points such as contract duration, year of transfer, and the estimated level of the buying club.
Currently, CIES also has an algorithm that se;lects what teams are best suited to potentially acquire a particular player. The group already offers its services to interested clubs on a consultancy basis.
SportTechie Takeaway
Transfer fees in European soccer have skyrocketed in recent years and show no signs of slowing down. In 2017, former Barcelona star Neymar transferred to Paris Saint-Germain for a record-breaking $259 million. This latest report shows FIFA is considering ways to help regulate this system. If FIFA is able to implement algorithms that can effectively regulate transfer fees, agent fees, and impose a luxury tax, that system could be of interest to other professional leagues around the globe.