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Numbers Beyond the Pitch: A Conceptual Review Concerning the Impact of Data Analysis on Football Club Valuation

Author

Listed:
  • Tudor Oprisor
  • George-Silviu Cordos

Abstract

This article investigates how data analytics is revolutionizing how football clubs are valued. Previously, valuations were based on biased opinions and past financial results, which often resulted in errors and missed chances. Data analytics offers a more impartial method that considers elements including player worth, brand power, fan involvement, and online presence. The article delves into specific methodologies employed in data-driven valuations, highlighting their advantages over traditional methods. The article - structured as a literature review - showcases how various stakeholders benefit from this approach. Club owners gain a more reliable way to assess assets, while players and agents leverage data for contract negotiations. The article uses existing studies to delineate elements of data analysis which are prone to be included in valuation models. The article highlights the drawbacks of data-driven valuations, such as data reliability and the difficulty in quantifying intangible elements. It advocates for a hybrid strategy that balances data analysis with the judgment of human experts. Additionally, the article outlines the potential of data analytics for valuing intangible assets and making analytics more common in football, paving the way for a sports industry that is more competitive and driven by data.

Suggested Citation

  • Tudor Oprisor & George-Silviu Cordos, 2024. "Numbers Beyond the Pitch: A Conceptual Review Concerning the Impact of Data Analysis on Football Club Valuation," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2024(2), pages 1-19.
    • Handle: RePEc:prg:jnlefa:v:2024:y:2024:i:2:id:286:p:1-19
    DOI: 10.18267/j.efaj.286
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    References listed on IDEAS

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    1. Rachel Scarfe & Carl Singleton & Paul Telemo, 2021. "Extreme Wages, Performance, and Superstars in a Market for Footballers," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 60(1), pages 84-118, January.
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    3. Tommy Quansah & Bernd Frick & Markus Lang & Kieran Maguire, 2021. "The Importance of Club Revenues for Player Salaries and Transfer Expenses—How Does the Coronavirus Outbreak (COVID-19) Impact the English Premier League?," Sustainability, MDPI, vol. 13(9), pages 1-22, May.
    4. McHale, Ian G. & Holmes, Benjamin, 2023. "Estimating transfer fees of professional footballers using advanced performance metrics and machine learning," European Journal of Operational Research, Elsevier, vol. 306(1), pages 389-399.
    5. Müller, Oliver & Simons, Alexander & Weinmann, Markus, 2017. "Beyond crowd judgments: Data-driven estimation of market value in association football," European Journal of Operational Research, Elsevier, vol. 263(2), pages 611-624.
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    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • Z23 - Other Special Topics - - Sports Economics - - - Finance

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