<abstract xmlns="http://www.w3.org/1999/xhtml">This paper indicates the possibilities of using Monte Carlo simulations methods in players’ performance rights value monitoring. The authors have formulated a hypothesis that connects Monte Carlo methods (MC) and econometric models of the player’s life cycle that could give club managers another source of information for the decision process. The MC method in finance is usually used to value the option price on the basis of assumed distribution of price changes. In this approach, the method was used to determine future the hypothetical value of footballers’ performance rights. Using econometric models of the player’s life cycle we could observe and analyse the phase in the life cycle of a football player and determine volatility.In this paper we use historical data of the market values of chosen football players from the website <ext-link ext-link-type="uri" xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="http://transfermarkt.de">http://transfermarkt.de</ext-link>. The analysis is based on popular valuable players after the growth phase of their life cycle. For the visualisation of the “Championships games bubble” problem we analyse the periods before and after the UEFA EURO 2016.The opportunities and threats of a such an attempt are shown in this paper.</abstract>

This paper indicates the possibilities of using Monte Carlo simulations methods in players’ performance rights value monitoring. The authors have formulated a hypothesis that connects Monte Carlo methods (MC) and econometric models of the player’s life cycle that could give club managers another source of information for the decision process. The MC method in finance is usually used to value the option price on the basis of assumed distribution of price changes. In this approach, the method was used to determine future the hypothetical value of footballers’ performance rights. Using econometric models of the player’s life cycle we could observe and analyse the phase in the life cycle of a football player and determine volatility.In this paper we use historical data of the market values of chosen football players from the website http://transfermarkt.de. The analysis is based on popular valuable players after the growth phase of their life cycle. For the visualisation of the “Championships games bubble” problem we analyse the periods before and after the UEFA EURO 2016.The opportunities and threats of a such an attempt are shown in this paper.

Using Monte Carlo Methods for the Valuation of Intangible Assets in Sports Economics

Faculty of Economics and Management, Institute of Finance

Folia Oeconomica Stetinensia

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

This paper indicates the possibilities of using Monte Carlo simulations methods in players’ performance rights value monitoring. The authors have formulated a...

Using Monte Carlo Methods for the Valuation of Intangible Assets in Sports Economics

Published Online: Dec 27, 2017

Page range: 71 - 82

Received: Mar 28, 2017

Accepted: Oct 09, 2017

DOI: https://doi.org/10.1515/foli-2017-0019

Keywords
valuation, players’ performance rights, econometric models, Monte Carlo methods

© 2017 Sebastian Majewski et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Using Monte Carlo Methods for the Valuation of Intangible Assets in Sports Economics

Published Online: Dec 27, 2017

Page range: 71 - 82

Received: Mar 28, 2017

Accepted: Oct 09, 2017

DOI: https://doi.org/10.1515/foli-2017-0019

Keywordsvaluation, players’ performance rights, econometric models, Monte Carlo methods

© 2017 Sebastian Majewski et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
valuation, players’ performance rights, econometric models, Monte Carlo methods