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Open Access
Article
Publication date: 28 February 2023

Dominic Detzen and Lukas Löhlein

This paper studies the interactive valuation discourses of an online user community (transfermarkt.de) that seeks to determine market values for soccer players. Despite their…

Abstract

Purpose

This paper studies the interactive valuation discourses of an online user community (transfermarkt.de) that seeks to determine market values for soccer players. Despite their seemingly casual nature, these values have featured in newspapers, transfer negotiations, academic research, and capital market communication – and have thus become reified.

Design/methodology/approach

The paper employs netnographic research methodology to collect and thematically analyze a wide range of user entries on the platform. These entries are studied using theoretical insights from the sociology of quantification and valuation.

Findings

The analysis reveals how values are constructed in constant interaction between value-proposing users and value-justifying “experts.” This dynamic form of relational valuation positions players relative to one another as well as to actual transactions on the transfer market. In the absence of authoritative guidelines, it is this possibility and affordance for interaction that enacts a coherent valuation regime. The paper further reveals the platform's response to a disruptive event, which risked bringing the user-expert dynamics to a halt, requiring intervention from the platform to repair its valuation frame.

Originality/value

The paper responds to increased scholarly interests in the valuation of professional athletes. It contributes to the extant literature on valuation, first, by analyzing the dynamic valuation work that feeds into the social construction of values and, second, by studying platform participation and user interaction in a socially engineered online space.

Details

Accounting, Auditing & Accountability Journal, vol. 37 no. 2
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 1 June 2021

Gracia Rubio Martín, Conrado Miguel Manuel García, Ángel Rodríguez-López and Francisco José Gonzalez Sanchez

This research proposes analytical valuation models throughout football players' life cycles based on crowd valuations from social media to produce dynamic sporting human capital…

Abstract

Purpose

This research proposes analytical valuation models throughout football players' life cycles based on crowd valuations from social media to produce dynamic sporting human capital disclosures, and therefore, supplying further useful information to capture the intellectual capital (IC) of football clubs.

Design/methodology/approach

This work is carried out using an econometric model that includes 658 observations of crowd judgments versus their transfer fees, for the best footballers of the three major European Leagues between 2006 and 2018. To make the model more parsimonious, the set of independent variables that really add value has been found across the stepwise methodology.

Findings

The significant differences between both models are analyzed, integrating previous academic literature based on the existence of negotiation elements in prices, and in the capacity of crowdsourcing to explain assessments of football players, from a dynamic perspective, alongside a new variable: injuries, which has not been explained before.

Originality/value

The broader assessments from crowdsourcing should be integrated in intellectual capital disclosures (ICD), from a critical, novel and dynamic perspective, creating a virtuous cycle between managers and fans, to increase transparency of financial information for stakeholders and society.

Details

Journal of Intellectual Capital, vol. 23 no. 5
Type: Research Article
ISSN: 1469-1930

Keywords

Open Access
Article
Publication date: 25 March 2024

Florian Follert and Werner Gleißner

From the buying club’s perspective, the transfer of a player can be interpreted as an investment from which the club expects uncertain future benefits. This paper aims to develop…

Abstract

Purpose

From the buying club’s perspective, the transfer of a player can be interpreted as an investment from which the club expects uncertain future benefits. This paper aims to develop a decision-oriented approach for the valuation of football players that could theoretically help clubs determine the subjective value of investing in a player to assess its potential economic advantage.

Design/methodology/approach

We build on a semi-investment-theoretical risk-value model and elaborate an approach that can be applied in imperfect markets under uncertainty. Furthermore, we illustrate the valuation process with a numerical example based on fictitious data. Due to this explicitly intended decision support, our approach differs fundamentally from a large part of the literature, which is empirically based and attempts to explain observable figures through various influencing factors.

Findings

We propose a semi-investment-theoretical valuation approach that is based on a two-step model, namely, a first valuation at the club level and a final calculation to determine the decision value for an individual player. In contrast to the previous literature, we do not rely on an econometric framework that attempts to explain observable past variables but rather present a general, forward-looking decision model that can support managers in their investment decisions.

Originality/value

This approach is the first to show managers how to make an economically rational investment decision by determining the maximum payable price. Nevertheless, there is no normative requirement for the decision-maker. The club will obviously have to supplement the calculus with nonfinancial objectives. Overall, our paper can constitute a first step toward decision-oriented player valuation and for theoretical comparison with practical investment decisions in football clubs, which obviously take into account other specific sports team decisions.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 26 February 2024

Nadjim Mkedder, Mahmut Bakır, Yaser Aldhabyani and Fatma Zeynep Ozata

Virtual goods consumption has risen dramatically in recent years. Recognizing the benefits of virtual goods in generating revenue for online game companies, marketers strive to…

Abstract

Purpose

Virtual goods consumption has risen dramatically in recent years. Recognizing the benefits of virtual goods in generating revenue for online game companies, marketers strive to understand the motives behind virtual goods purchases. We investigated the direct and indirect effects of functional, emotional, and social values through player satisfaction on purchase intention toward virtual goods among online players.

Design/methodology/approach

In total, we surveyed 332 online game players utilizing a structured questionnaire. We employed a multi-analytic approach combining partial least squares structural equation modeling (PLS-SEM) and necessary condition analysis (NCA) to examine the proposed relationships.

Findings

The findings show that all dimensions of value and player satisfaction significantly affect the intention to acquire virtual goods. However, social value does not exert a significant effect on player satisfaction. Moreover, we confirmed that player satisfaction mediates the relationships between functional value, emotional value, and purchase intention. Furthermore, NCA results indicated that all predictors in the model are necessary conditions of purchase intention for virtual goods.

Originality/value

These findings contribute to an enhanced understanding of purchase intentions among online game players from a symmetric (PLS-SEM) and asymmetric (NCA) perspective by proposing a multi-analytic approach.

Details

Central European Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2658-0845

Keywords

Article
Publication date: 27 December 2022

Gracia Rubio Martín, Conrado M. Miguel García, Francisco José González Sánchez and Álvaro Féliz Navarrete

The aim of this work is to explain the final negotiated prices for some of the most famous transfers of football players over the last twelve years (2007–2018).

Abstract

Purpose

The aim of this work is to explain the final negotiated prices for some of the most famous transfers of football players over the last twelve years (2007–2018).

Design/methodology/approach

The article analyses different values for forwards taken from the sports website Transfermarkt, developing a statistical model based on personal, performance, risk, environmental and popularity variables. From those values, the article finds an explanation for the final prices paid for 20 superstar players based on a combination of real option valuations, incorporating the players' life cycles and game theory.

Findings

The authors find that in a large percentage (70%) of the analysed cases, the price paid was higher than the intrinsic market value resulting from Transfermarkt, implying the existence of monopolistic rents, paid as “growth options” on prices from different negotiating conditions. On occasions, the final prices also exceed the value of the growth option, calculated under neutral bargaining conditions, highlighting the lack of economic viability of important transfers, leading to financial difficulties for the clubs involved.

Originality/value

The algorithm provides more flexibility and realism than previous proposals, based on the life cycle of football players, introducing the uncertainty and volatility of projections through Monte Carlo simulation, the capacity of clubs to bargain a price at any point of the contract and finally, the buyer's ability to transfer the player if his subsequent performance is not as expected.

Details

Managerial Finance, vol. 49 no. 6
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 23 October 2023

Enrico Supino and Maurizio Marano

This article explores the value creation process from player sales in football to understand if the related capital gains correspond to significant increases in the stock value of…

Abstract

Purpose

This article explores the value creation process from player sales in football to understand if the related capital gains correspond to significant increases in the stock value of selling companies. In addition, it aims to detect any potential drivers for higher (or slower) abnormal stock returns.

Design/methodology/approach

The authors analyze all the capital gains of the Italian and Portuguese listed football companies (the only ones for which, based on their annual reports, it was possible to trace the net book value for each player sold and, consequently, if any, the related capital gain) from 2012 to 2020 and use event study analysis to calculate the abnormal returns of the football companies' stocks. Moreover, the authors use a multiple linear regression model to identify the factors affecting investors' reactions and value creation process intensity.

Findings

The results show that, on average, the capital gains from player transfers in football are positive income components and produce statistically significant higher abnormal returns. In addition, the authors identified some relevant drivers related to their intensity which could guide the choices of corporate executives regarding future disposals of the multi-year performance rights of players in the roster.

Research limitations/implications

This study considers only Italian and Portuguese football listed companies. It would be helpful to consider some of the companies from other countries which are also outstanding from the sports perspective, but, in practice, it was not possible due to the impossibility to trace the net book value of the single footballers sold in those clubs' public financial disclosure.

Practical implications

The value relevance of the capital gains from player trading activities should increase their importance, creating cascade effects on several activities generating value for football clubs (youth sector management, player scouting, technical improvement of the players). In addition, financial data show that the capital gains from player transfers are a basic income of European football clubs nowadays. Their executives consider these operations recurrent and continually search for more valuable transfers. Hence, it is reasonable to think that they (will) choose the players to sell considering both sports and financial aspects.

Originality/value

To the best of the authors' knowledge, this is the first study exploring the effects of capital gains from player trading activities on professional football clubs' stock value. The results obtained are even more relevant if one considers the importance these income components have in the profit formula of professional football clubs nowadays, also because of the negative repercussions caused by the recent COVID-19 pandemic.

Details

Sport, Business and Management: An International Journal, vol. 14 no. 1
Type: Research Article
ISSN: 2042-678X

Keywords

Article
Publication date: 5 October 2015

Chwen-Yea Lin, Wei-Hsi Hung, Kwoting Fang and Chien-Chung Tu

Achievement is considered to be an important value for students. The purpose of this paper is to explore what achievement values were derived from playing massively multiplayer…

1156

Abstract

Purpose

Achievement is considered to be an important value for students. The purpose of this paper is to explore what achievement values were derived from playing massively multiplayer online role-playing games (MMORPGs), especially for high-engaged MMORPGs players.

Design/methodology/approach

The research employed two approaches to collect data: focus group and a web survey of online game players were conducted. Moreover, an addiction-engagement scale was used to ensure all participants were genuinely highly engaged MMORPGs players in data collection process. There are 12 highly engaged players were recruited as focus group members in Phase 1. The online survey yielded 315 responses, of which 267 were considered valid, and 177 of those were considered to be genuine highly engaged players in Phase 2. In the study, exploratory factor analysis was performed to reveal underlying structure of achievement values.

Findings

The result focussing on popular MMORPGs reveal that highly engaged players derived six achievement values from playing MMORPGs, including fantasy satisfaction, adventure, victory, socialization ability, self-actualization, and advancement of wealth and status.

Originality/value

In view of the prevalence of MMORPGs, it is imperative to draw attention to understand students’ achievement values derived from playing MMORPGs. By doing that, educators know how to bridge students’ achievement values to their academic performance.

Details

Internet Research, vol. 25 no. 5
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 30 June 2022

Maribel Serna Rodríguez, Ana María Ortega Alvarez and Leonel Arango-Vasquez

This study aims to identify the current state, the emergent research clusters, the key research topics and the configuration of collaboration in scientific production related to…

485

Abstract

Purpose

This study aims to identify the current state, the emergent research clusters, the key research topics and the configuration of collaboration in scientific production related to the market value of soccer players.

Design/methodology/approach

This article analyzes 52 articles published between 1985 and 2021 and from the Scopus and WoS databases.

Findings

The subject is of growing interest both in academic and practical areas. A variable that frequently appears as a determinant of market value is crowd wisdom. The largest cluster related to the co-citation level shows that the main issues about soccer player market value are player performance, team performance, and the determinants of the superstar formation. Spain and Germany stand out as essential countries both in literary production and citation rate. The network of collaborations is still low.

Research limitations/implications

This study is supported by databases being constantly updated, resulting in continuous variation in the number of indexed journals. Consequently, a bibliometric analysis regarding an emergent topic can, in fewer years, be subject to essential variations. Another limitation is that it has analyzed a particular topic using the most influential databases, and the global perspective could be improved with the incorporation of other different databases. Data regarding collaborations could be helpful for investigations or policies that propose to approach the topic supported by specialized groups. This study offers the possibility for future researchers to extend the databases used, the level of analysis, or focus on specific topics or variables affecting the soccer player market value.

Originality/value

This study contributes to knowing the current state of the soccer player market value research. Studies on such topics are relatively limited concerning the literature review.

Details

Team Performance Management: An International Journal, vol. 28 no. 5/6
Type: Research Article
ISSN: 1352-7592

Keywords

Article
Publication date: 20 September 2021

Matteo Balliauw, Jasper Bosmans and David Pauwels

Football clubs invest in the implementation of scientific insights that improve the quality of youth academies. In the long run, clubs expect their youth academy investments to…

Abstract

Purpose

Football clubs invest in the implementation of scientific insights that improve the quality of youth academies. In the long run, clubs expect their youth academy investments to result in better trained players. The purpose of this paper is to quantify the impact of the attended youth academies' quality on the future market value of a player.

Design/methodology/approach

A dataset containing 94 players trained in 13 different academies has been constructed. The dataset contains characteristics of the players and information on the quality of their attended academies. The impact of the quality of the attended academies on players' future market values was estimated empirically through multiple regression analysis.

Findings

The quality of a youth academy has a significant positive impact on a player's market value, which in turn is correlated with higher future wages for players and transfer fees for clubs.

Research limitations/implications

Clubs are advised to pay sufficient attention to investments in their youth academy. This will eventually lead to better trained players and higher revenues. Players in turn should strive to be part of the best academies that provide good training and the opportunity to become a top-earning player. For policymakers, such as football federations, the results imply that stimulating club investments in academies can lead to better national team performances.

Originality/value

The impact of the quality of a youth academy on an individual professional football player's career has never been quantified in the literature before. To this end, a new variable has been constructed using scientific assessments of youth academies.

Details

Sport, Business and Management: An International Journal, vol. 12 no. 3
Type: Research Article
ISSN: 2042-678X

Keywords

Article
Publication date: 1 January 1996

STEPHEN MORROW

This paper considers whether the prospective services provided by a football player on behalf of the club holding his registration can be recognised as an accounting asset. The…

2829

Abstract

This paper considers whether the prospective services provided by a football player on behalf of the club holding his registration can be recognised as an accounting asset. The first section of the paper considers the appropriateness of treating these prospective services as intangible assets within the terms of the UK Accounting Standards Board criteria for definition and recognition of assets. In the second section, four valuation methodologies are evaluated using case study data made available by a major Scottish club. Each of the methods evaluated is either currently used in accounting practice by some clubs, or is used in some form in the existing market place for players. The historical cost model involves capitalising players acquired by the club via the transfer market on the balance sheet at their cost of registration. The earnings multiplier model applies a multiplier to a player's earnings to produce a current valuation of that player. The third model involves capitalising players at directors' valuation, while the independent multiple player evaluation model involves obtaining valuations for players from various informed sources, knowledgeable on those particular players. The paper concludes that there are convincing arguments for the conceptualisation of the services provided by football players as accounting assets, and recommends an system of valuation in which players are valued at their realisable value by independent experts.

Details

Journal of Human Resource Costing & Accounting, vol. 1 no. 1
Type: Research Article
ISSN: 1401-338X

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