Valuations of Soccer Players from Statistical Performance Data
Based upon contingent claims methodology and standard techniques in statistical modeling and stochastic calculus, we develop a framework for determining the financial value of professional soccer players to their existing and potential new clubs. The model recognizes that a player's value is a product of a variety of factors, some of them more obvious (i.e. on-field performance, injuries, disciplinary record), and some of them less obvious (i.e. image rights or personal background). We provide numerical examples based upon historical statistical performance indicators that suggest the value of a soccer player is not the same for all potential clubs present in a market. In other words this is a special case where the law of one price for one asset does not function. Our modeling employs the vast database of soccer players' performance maintained by OPTA Sportsdata; the same database has been used by major clubs in the English Premiership such as Arsenal and Chelsea. From a statistical point of view, our model can be applied to identify the relative value of players with similar characteristics but different market valuations, to explore patterns of performance for individual star players and teams over a run of games, and to explore correlations or interactions between pairs of players or small groups of players on the team. Moreover, it offers a tool to value players from a financial point of view using their past performance; hence this model can be also used to inform contractual negotiations.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 6 (2010)
Issue (Month): 2 (April)
|Contact details of provider:|| Web page: https://www.degruyter.com|
|Order Information:||Web: https://www.degruyter.com/view/j/jqas|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul D. Childs & Steven H. Ott & Timothy J. Riddiough, 2004. "Effects of Noise on Optimal Exercise Decisions: The Case of Risky Debt Secured by Renewable Lease Income," The Journal of Real Estate Finance and Economics, Springer, vol. 28(2_3), pages 109-121, 03.
- Sloane, Peter J, 1971. "The Economics of Professional Football: The Football Club as a Utility Maximiser," Scottish Journal of Political Economy, Scottish Economic Society, vol. 18(2), pages 121-146, June.
- Peter Dawson & Stephen Dobson & Bill Gerrard, 2000. "Stochastic Frontiers and the Temporal Structure of Managerial Efficiency in English Soccer," Journal of Sports Economics, , vol. 1(4), pages 341-362, November.
- Eli Amir & Gilad Livne, 2005. "Accounting, Valuation and Duration of Football Player Contracts," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(3-4), pages 549-586.
- Oberstone Joel, 2009. "Differentiating the Top English Premier League Football Clubs from the Rest of the Pack: Identifying the Keys to Success," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 5(3), pages 1-29, July.
- John Goddard & Peter J. Sloane, 2005. "Economics of sport," Chapters, in: Economics Uncut, chapter 12 Edward Elgar Publishing.
When requesting a correction, please mention this item's handle: RePEc:bpj:jqsprt:v:6:y:2010:i:2:n:10. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.