Numbers Beyond the Pitch: A Conceptual Review Concerning the Impact of Data Analysis on Football Club Valuation

This article investigates how data analytics is revolutionizing how football clubs are valued. Previously, valuations were based on biased opinions and past financial results, which often resulted in errors and missed chances. Data analytics offers a more impartial method that considers elements including player worth, brand power, fan involvement, and online presence. The article delves into specific methodologies employed in data-driven valuations, highlighting their advantages over traditional methods. The article - structured as a literature review - showcases how various stakeholders benefit from this approach. Club owners gain a more reliable way to assess assets, while players and agents leverage data for contract negotiations. The article uses existing studies to delineate elements of data analysis which are prone to be included in valuation models. The article highlights the drawbacks of data-driven valuations, such as data reliability and the difficulty in quantifying intangible elements. It advocates for a hybrid strategy that balances data analysis with the judgment of human experts. Additionally, the article outlines the potential of data analytics for valuing intangible assets and making analytics more common in football, paving the way for a sports industry that is more competitive and driven by data.