European Football Player Valuation: Integrating Financial Models and Network Theory
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arXiv
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| Main Authors: | , |
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| Format: | Preprint |
| Published: |
2023
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| Subjects: | |
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| _version_ | 1866910642877759488 |
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| author | Cohen, Albert Risk, Jimmy |
| author_facet | Cohen, Albert Risk, Jimmy |
| contents | This paper presents a new framework for player valuation in European football, by fusing principles from financial mathematics and network theory. The valuation model leverages a "passing matrix" to encapsulate player interactions on the field, utilizing centrality measures to quantify individual influence. Unlike traditional approaches, such as regressing on past performance-salary data, this model focuses on in-game performance as a player's contributions evolve over time. Consequently, our model provides a dynamic and individualized framework for ascertaining a player's fair market value. The methodology is empirically validated through a case study in European football, employing real-world match and financial data. This cross-disciplinary mechanism for player valuation adapts the effect of connecting pay with performance, first seen in Scully (1974), to include in-game contributions as well as expected present valuation of stochastic variables. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2312_16179 |
| institution | arXiv |
| publishDate | 2023 |
| record_format | arxiv |
| spellingShingle | European Football Player Valuation: Integrating Financial Models and Network Theory Cohen, Albert Risk, Jimmy Physics and Society Computational Finance Pricing of Securities Applications This paper presents a new framework for player valuation in European football, by fusing principles from financial mathematics and network theory. The valuation model leverages a "passing matrix" to encapsulate player interactions on the field, utilizing centrality measures to quantify individual influence. Unlike traditional approaches, such as regressing on past performance-salary data, this model focuses on in-game performance as a player's contributions evolve over time. Consequently, our model provides a dynamic and individualized framework for ascertaining a player's fair market value. The methodology is empirically validated through a case study in European football, employing real-world match and financial data. This cross-disciplinary mechanism for player valuation adapts the effect of connecting pay with performance, first seen in Scully (1974), to include in-game contributions as well as expected present valuation of stochastic variables. |
| title | European Football Player Valuation: Integrating Financial Models and Network Theory |
| topic | Physics and Society Computational Finance Pricing of Securities Applications |
| url | https://arxiv.org/abs/2312.16179 |