A review of football player metrics and valuation methods: a typological framework of football player valuations

This paper introduces a framework for football player valuations, integrating Damodaran's valuation typologies and providing a decision framework for selecting the typology.Purpose/RationaleIt aims to refine Damodaran's valuation typologies of intrinsic, relative, real options and probabilistic methods to football valuations, highlighting current limitations of using proxies and addressing the conflation between price and value.Design/Approach/MethodologyThe paper employs a conceptual analysis of a literature review, aiming to determine valuation typologies in the literature and their limitations, aligning the literature to the established typologies of Damodaran and provides a framework for using different valuation types.FindingsWhile intrinsic valuations are robust in theory, their practical application faces challenges. Relative valuations are more pragmatic and contingent on standardised metrics. Real options and probabilistic approaches present potential for future research.Practical ImplicationsThe framework guides researchers and practitioners when to apply different valuation typologies within sport finance, offering insights for conducting comprehensive player valuations.Research ContributionThis paper unifies existing valuation methods into a cohesive framework, filling methodological gaps and suggesting areas for further research in football player valuations.Originality/ValueThe paper's originality lies in integrating Damodaran's approaches with sports finance, offering valuable insights for both academic research and practical applications.