European Football Player Valuation: Integrating Financial Models and Network Theory

Fuente: arXiv
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Main Authors: Cohen, Albert, Risk, Jimmy
Format: Preprint
Published: 2023
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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