Financial player valuation from the perspective of the club: the case of football

Leifheit, Nicolas; Follert, Florian

doi:10.1080/23750472.2021.1944821

Cited by 10 publications

(16 citation statements)

References 46 publications

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“…In this negotiation, both parties will know their use value. The gap between the willingness to pay (use value of the buyer, V B ) and the willingness to accept (use value of the seller, V S ), with V B > V S , is the economic rent that the transaction generates (Leifheit & Follert, 2021). Thus, the farther the final price is from one's own limit, the greater the advantage of one party.…”

Section: Proposal For a New Approachmentioning

confidence: 99%

Football players in light of economic value theory: Critical review and conceptualisation

Franceschi,

Brocard,

Follert

et al. 2023

Manage Decis Econ

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Football players represent the key assets of football clubs, and their value determination is therefore at the heart of clubs' investment and decision‐making processes. Unsurprisingly, the topic of player value has attracted the attention of scholars from various disciplines for decades. Despite this, there is a corpus of academic literature, which, although it works empirically with the relevant data, does not discuss any of the concepts related to the terms ‘value’ and ‘price’ in depth. Conversely, there are studies that do so but do not present a unified and coherent concept of the terminologies used. Consequently, no comprehensive definition of the value of football players seems to emerge from the literature. The central aim of this paper is to fill this gap. Based on a critical review of existing literature, we propose a unified framework embedded in subjective value theory, particularly as formulated by the Austrian school of economics. As a result, this work presents a theoretical basis for defining the use value and market value of football players, the comparison of which can improve clubs' decision‐making. In this context, we also discuss the conceptual validity of Transfermarkt values, a widely used crowd‐sourced valuation tool. Overall, we seek to strengthen the link between economic theory and practical management problems in the football industry. Furthermore, our results are not solely limited to football but are also applicable to athlete valuation in other sports.

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Section: Proposal For a New Approachmentioning

confidence: 99%

Football players in light of economic value theory: Critical review and conceptualisation

Franceschi,

Brocard,

Follert

et al. 2023

Manage Decis Econ

Self Cite

View full text Add to dashboard Cite

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“…Human capital value is a longstanding concept (Becker, 1964;Weisbrod, 1961), thoroughly embedded in the structure of human societies. Commercial examples include salary differentials, athlete transfer fees (Leifheit & Follert, 2021), and payments for client lists or social media followers. Policy examples include public funding for education (Grosse & Zhou, 2021) and healthcare (Hanly et al, 2022;Rice & Cooper, 1967), and visa programs for migrant skills and labor.…”

Section: Theoretical Framework: Human Capitalmentioning

confidence: 99%

Economic Value of Tourism Through Human Capital Gains

Buckley

2022

Journal of Travel Research

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Leisure tourism can be analyzed as a mechanism to rebuild human capital depleted by work. Human capital is an essential input to human economies, and possesses a corresponding economic value. Therefore, tourism possesses an economic value additional to expenditure and multipliers, which can be seen as investments in increasing human capital as an asset. Calculating the financial value of human capital gains is likely to prove a more powerful political tool for the tourism sector, than current political perceptions as discretionary leisure.

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“…Research gaps concerning football clubs o Human resources topics (Dobson et al, 2000;Morrow, 1996Morrow, , 1997Shareef and Davey, 2005;Lozano and Gallego, 2011) o Football clubs listed on the stock exchange or the shareholders' perspective (Callejo and Forcadell, 2006;Demir and Danis, 2011;Prigge and Tegtmeier, 2020) o Marketing and media in football (Garcia del Barrio et al, 2016;Garcia-del-Barrio and Pujol, 2021; Garcia del Barrio and Pujol, 2013) o The economic perspective (Dermit-Richard et al, 2019;Terrien and Andreff, 2020;Terrien et al, 2017;Andreff, 2011) o Corporate governance (Ma and Kurscheidt, 2019;Schubert, 2014;Winand and Anagnostopoulos, 2019) o Mainly the English, Spanish, Italian, German and French men's leagues o Assessment of the applicability of corporate valuation methods Scelles et al, 2013Scelles et al, , 2016Scelles et al, , 2017) o Assessment of financial information disclosed by annual reports (Lozano and Gallego, 2011) o Valuation of intangible assets (Shareef and Davey, 2005;Perechuda, 2020;Leifheit and Follert, 2021) o Key performance indicators (KPIs) and the holistic performance management of football clubs (Plumley et al, 2017) o The stakeholders' perspective (Terrien and Andreff, 2020;Senaux, 2008;Gerke and W€ asche, 2019) o Central and Eastern Europe football leagues where football remains the top national sports o Women's leagues (Valenti et al, 2018) Source(s): Own elaboration Table 1. Literature summary of football management studies on performance and valuation SBM 12,1 other two, are, for instance, measures of the effectiveness and performance of processes, human resources manageme...…”

Section: What Is the Problem With Value Of Football Clubs? Theoretica...mentioning

confidence: 99%

“…Moreover, most football clubs in Poland have negative financial results, which is why they need local government support. Further, football club research in Europe primarily deals with media value, football player value and the stock price of listed clubs (Callejo and Forcadell, 2006;Demir and Danis, 2011;Garcia del Barrio et al, 2016;Garcia del Barrio and Pujol, 2013;Leifheit and Follert, 2021;Garcia-del-Barrio, 2018), where it is suggested that a football player is both a specific asset and a human resource (Dobson et al, 2000;Morrow, 1996Morrow, , 1997Shareef and Davey, 2005;Perechuda, 2016;Lozano and Gallego, 2011). Garcia del Barrio et al (2016) and Garcia-del-Barrio and Pujol (2021) propose a methodology for evaluating and rating the intangible talent of football players.…”

Section: Stakeholders and Valuementioning

confidence: 99%

Influence of stakeholders' perception on value creation and measurement: the case of football clubs

Perechuda

Čater

2021

SBM

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PurposeThe presented study aims to identify and classify the value factors that influence the value of football clubs from the stakeholder perspective, while also discussing how these factors can affect the choice of valuation methods. The paper considers how value should be measured from the perspective of stakeholders. Research focuses on clubs embedded deeply in a wide interrelated network of stakeholders.Design/methodology/approachA mixed research approach was established in order to obtain a more holistic understanding of value creation, value factors and measurement. The research builds on observational study with a mix of retrospective longitudinal study of Polish men's football clubs and interviews with stakeholders, which are then triangulated as part of a critical discussion on valuation methods.FindingsThe results show the most significant value factors determined by the stakeholders. The study discusses which performance and value measures should be used to measure value for the stakeholders of football clubs. Intellectual capital methods and asset-based methods should definitely be relied on as part of measuring the performance of football clubs within the stakeholders' network. All findings suggest the use of the multivariate valuation method in accordance with previous research.Originality/valueThe classified key value factors enable the management of football clubs to properly manage stakeholder relationships and address various stakeholders' concerns in a sustainable way. The paper proposes a research process, which may also be implemented in other studies in the non-profit sector and contributes to the literature in the fields of sports management.

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Financial player valuation from the perspective of the club: the case of football

Cited by 10 publications

References 46 publications

Football players in light of economic value theory: Critical review and conceptualisation

Football players in light of economic value theory: Critical review and conceptualisation

Economic Value of Tourism Through Human Capital Gains

Influence of stakeholders' perception on value creation and measurement: the case of football clubs

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