Modelling options on football players using individual rankings and club market value: evidence from Italy

Marco Cucculelli, Paritosh Navinchandra Jha, Francesca Mariani and Simone Orazi

International Journal of Financial Markets and Derivatives, 2024, vol. 10, issue 1, 47-69

Abstract: The paper develops a theoretical model for the valuation of options on players using individual player performance and club market value as value drivers. The paper also provides a test of the model by using data on individual rankings (from Squawka) to determine the value of players. For the team, the market value of listed clubs net of fixed assets is used. To account for the influence of player age on the ranking, the value is modelled using a mean reversion process. The model provides estimates that are consistent with the actual values on the transfer market in the case of three Italian football players. The empirical analysis is complemented by a predictive approach to check the robustness, generalisation and consistency of the proposed model.

Keywords: option pricing; football player; club; rankings; data analysis; sport; Italy. (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=140655 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijfmkd:v:10:y:2024:i:1:p:47-69

Access Statistics for this article

More articles in International Journal of Financial Markets and Derivatives from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().