An option-pricing framework for valuation of football players

Tunaru, Radu; Clark, Ephraim and Viney, Howard (2005). An option-pricing framework for valuation of football players. Review of Financial Economics, 14(3-4) pp. 281–295.

DOI: https://doi.org/10.1016/j.rfe.2004.11.002

Abstract

In this paper we develop a contingent claims framework for determining the financial value of professional football players. Contingent claims style modelling is used to develop two models. The pricing of football players is based on a performance index such as the Carling Opta Index. Unexpected events such as injuries are included into the models as Poisson jump processes. The value of a player varies from club to club, depending on club turnover and the total number of performance points generated by the entire team.

Viewing alternatives

Metrics

Item Actions

Export

You can export this page using these formats Digital Object Identifier - DOI

About

• Item ORO ID
• 1900
• Item Type
• Journal Item
• ISSN
• 1058-3300
• Keywords
• Real options; investment analysis; geometric Brownian motion; jump processes; Ito's lemma
• Academic Unit or School
• Faculty of Business and Law (FBL) > Business
  Faculty of Business and Law (FBL)
• Depositing User
• ORO Import