The mystery of valuing a soccer player

BVWireIssue #177-4
June 28, 2017

If the valuations of Silicon Valley startups have you scratching your head, take a look at a recent New York Times article on calculating the value of a soccer player. According to the report, even those whose job it is to monitor the transfer market fail to see a pattern behind the prices quoted for certain players. Or, as Chelsea manager Antonio Conte is quoted as saying, in the biannual buying and selling frenzy, nobody is sure anymore what the “real valuation” of a player should be. Models for market valuations exist, but the price a team ends up paying, what the article calls, the “intuitive price,” may deviate substantially. “Ultimately … the only measure of worth that counts is what someone is willing to pay,” the article says.

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