Where to start your negotiation
If you consider how much you should pay for a house, you will be influenced by the asking price. In his best-selling book Thinking, Fast and Slow, Daniel Kahneman tells us that the same house will appear more valuable if it’s listed price is high than if it is low.
This phenomenon is known as an anchoring effect – when people consider a particular value for an unknown quantity before estimating that quantity. Even if you’re determined to resist the influence of this number when making an offer for the house, research says that you’re likely to stay close to the listed price – hence the image of an anchor.
The list of anchoring effect examples is endless (apparently if we’re asked whether Gandhi was more than 114 years old when he died, then we’re more likely to estimate a higher number than we would if the anchoring question referred to death at 35), and so it follows that, in football, anchoring can be a powerful force in transfer negotiations.
We often convince ourselves that a player’s value is based on what the market is prepared to pay, with that figure being contingent on contextual factors such as buyer and seller power. This may be true, but we also know that the market is inefficient and so understanding anchoring effects can give us an edge during negotiations.
Through Acquisition you can now access 21st Club’s player valuation model, which is based on years of data and research (i.e. what a club like yours would typically pay for similar players) and adjusted for world football’s changing financial landscape. If nothing else, it can give you an objective estimate to avoid anchoring bias.
Armed with knowledge of how market dynamics can impact the price of a footballer, Acquisition is the best place to begin the negotiation process.