Q&A


ON THE PLAYRATINGS’ PLATFORM

  1. Why are PlayRatingsi estimations different from others?
    PlayRatings estimations:
    - are based on a proprietary full objective computational algorithm;
    - cover most of the active professional football;
    - are all updated weekly;
    - are independent.
    The methodologies applied by PlayRatings to the football industry, according to the economic practices, international accounting standards and UNIEN ISO 9001:2008 requirement, are based on the twofold principle of efficiency and fairness. They focus on objective evaluation processes, rational and purified from biases typical of any market where image and reputation tend to overcome economic fundamentals and threaten to combine with market sentiment to generate speculative phenomena.
  2. What PlayRatings does estimate?
    PlayRatings executes every week more than 53 economic analysis for each of the 145,000 players, 5 indicators for each of the 400 leagues and 6,000 teams, plus additional 30 aggregate economic analysis. The records cover a three years period.
    Among others, these estimations include the player’s Market Value, its Residual Value for the club he is playing for, the Potential Value for a buyer and the player’s Rating.
  3. Does PlayRatings estimates the players’ price?
    PlayRatings doesn’t aim to make pricing forecasts but to support the decisions of teams and professionals involved in the football market and provides football fans and other football stakeholders with neutral, objective, balanced, complete and updated evaluation tools and economic information on players and teams.
    To this aim PlayRatings doesn’t estimate the market price but negotiations thresholds that make an exchange price convenient for the buyer and the seller.
  4. How player’s value are estimated?
    All the evaluations reported on PlayRatings’ platform don’t reflect expert or other personal opinions, but are completely generated by a computational algorithm based on an advanced proprietary economic model.
    Due to this structure, the estimates are not affected by memory gap, wishful thinking or any other bias.
  5. How many players are monitored by PlayRatings?
    PlayRatings executes every week more than 53 economic analyses for each of the 145,000 players, 5 indicators for each of the 400 leagues and 6,000 teams, plus additional 30 aggregate economic analysis. The records cover a three years period.
  6. How many information PlayRatings manage?
    Every week PlayRatings import 47 billion input data to perform more than 8 billion estimations. Currently the data base works on more than 1.7 trillion data items covering a period of 3 years of statistics.
  7. What is the update frequency?
    All estimations are updated weekly and in some cases more than weekly.
  8. Is PlayRatings linked to any of the football market stakeholders?
    PlayRatings has been realized by OpenEconomics S.r.l., an Italian independent private-owned company bringing in the football market an advanced expertize in economic modeling.
    OpenEconomics is compliant to UNIEN ISO 9001:2008 for mathematic and environmental models for the economic evaluation of investment policies, programs and projects.
  9. Why PlayRatings?
    PlayRatings is a project realized and owned by OpenEconomics S.r.l. In line with the recent directives from UEFA, OpenEconomics tries to give timely, concrete and rational answers to the growing needs in the football industry for efficient programming tools and regulations. These tools not only aim to improve economic and financial performance, but they should also help the clubs, as well as all other companies in the sector, in achieving a self-sustainable and transparent management.
  10. What is PlayRatings’ main goal?
    PlayRatings’ main goals is to contribute to the wellbeing of the football industry, of the professionals and ultimately of the people who experience football as a passion.
    To this aim, the methodologies that OpenEconomics applies to the study of the football industry, according to the best economic practices and international accounting standards, are based on the twofold principle of efficiency and fairness.
    They focus on objective evaluation processes, rational and purified from biases typical of a market, where image and reputation tend to overcome economic fundamentals and threaten to combine with market sentiment to generate speculative phenomena.
  11. What methodology is used in the evaluations?
    PlayRatings uses a proprietary economic model realized by OpenEconomics S.r.l. The economic model represents the football company as a miniature economy system in a dynamic economic equilibrium, and build estimates by applying a the principles of the Human Capital theory, the Real Options theory and advanced risk analysis.
  12. What is the business model of PlayRatings?
    PlayRatings’ revenues are generated by adverting and by providing economic analysis to media, broadcasters, financial institutions, football clubs, agencies and other professionals in the football industry.
    OE doesn’t receive donations or sponsorships from football clubs, players, agents or any other subject involved in any competition. The company is not involved in betting activities.
    In some case, OE may receive compensation for its ratings and certain analyses for which OE always gives immediate and open notice.
    OE KEEPS CERTAIN ACTIVITIES OF ITS BUSINESS UNITS SEPARATE FROM EACH OTHER IN ORDER TO PRESERVE THEIR INDEPENDENCE AND OBJECTIVITY OF THEIR RESPECTIVE ACTIVITIES. AS A RESULT, CERTAIN BUSINESS UNITS OF OE MAY HAVE INFORMATION THAT IS NOT AVAILABLE TO OTHER OE BUSINESS UNITS. OE HAS ESTABLISHED POLICIES AND PROCEDURES TO MAINTAIN THE CONFIDENTIALITY OF CERTAIN NON-PUBLIC INFORMATION RECEIVED IN CONNECTION WITH EACH ANALYTICAL PROCESS.


ON PLAYERS’ EVALUATIONS

  1. What is the meaning of the Market Value of a player?
    Market Value (MV) estimates the most likely player value from the point of view of a generic purchasing team.The Market Value is than equal to the net present value of a contract with standard duration to the player's sports performance with the most likely club in cluster level according to the current level of player's performance.The Market Value is also the value that the player generates for a team in a cluster level appropriate to his current performance.Therefore, the difference between the other estimates of PlayRatings (Residual Value, Renewal Value and Potential Value), the Market Value is not an estimate of economic convenience, but a conventional synthetic indicator that identifies the most likely indicative price range for the player in case of transfer.Each player is always associated with a single Market Value.The Market Value is updated every week.Market Value is also the standard value conventionally used by PlayRatings in all aggregated tables and ratings.
  2. What is the meaning of the Residual Value of a player?
    The Residual Value (RV) of a Player gives an estimate of the value generated by the existing contract between the club and the player until the end of its duration. The Residual Value (RV) is the most likely discounted net value that a player's sports performance can generate for the current club. The Residual Value is therefore also the minimum price that a club should be willing to accept to terminate in advance the contract with the player, that is, the minimum transfer price that compensates the club for the waiver of the economic revenue deriving from the performance of the player during the remaining duration of the contract. Each player is always associated with a single Residual Value. The Residual Value estimate is updated weekly. The remaining duration of a contract strongly affects the Residual Value. Therefore, unless the contract has been signed or renewed recently, it does not reflect the real Market Value of a player.

    RENEWAL VALUE
    The Renewal Value (RWV) of a player quantifies the value for the current team in case of renewal or extension of the current contract. The Renewal Value is equal to the current value of a standard duration contract for the exploitation of the player's sports performance by the team he is currently playing. The Value of Reward is also the value that the player generates for the team if it is extended today with a standard duration. The Renewal Value (RWV) is updated every week.

  3. What is the meaning of the Potential Value of a player?
    The Potential Value (PV) of a player represents the discounted net value of a new contract between a club and a player in case of transfer. The Potential Value therefore expresses the economic value that the player's sports performance are able to generate for the club that acquires the rights for a standard duration contract (inversely proportional to the player's age). The Potential Value also detects a maximum threshold for the price that a club should be willing to pay to buy the player. Since this value varies according to the specific buyer, PlayRatings allows its users to simulate multiple estimation scenarios based on the setting of two key parameters: (1) the buyer team and (2) the intensity of use in the new team. It should be noted that none of these estimates aim to predict the transfer price of the player (exchange price), but only to establish cost thresholds for the negotiation. Therefore, RV and PV estimates ultimately suggest a range of objective, transparent, rational and consistent values ​​(cleaned form market distortions) within which there is a value generation for the buyer and the seller. Outside this range, one of the two clubs will experience an economic loss. It should be noted that any uneconomic decision (if associated solely with the transaction in question) may also correspond to an explicit and informed choice of one or both parties within a broader and / or long-term market policy.To estimate the Potential Value of a player, the user must first select the buyer team and then measure the expected usage intensity (in the "bench" - "holder" range).
  4. What is the difference between the Market Price (or Transfer Price), the Market Value, the Residual Value and the Potential Value?
    The Market Price (or Transfer Price) determined by the negotiation is the actual price agreed between the seller and the buyer for the transfer of a player with a residual contract duration. As always, happen on any market, the Market Price is formed on the classical rule of demand and offer, and is usually affected by information asymmetries and other biases.
    The Residual Value (RV) estimated by PlayRatings represents the minimum price that a club should be prepared to accept to terminate the contract with a player before its termination date, thus foregoing the revenues from the player's performances for the residual duration of the contract.
    The Potential Value (EV) estimated by PlayRatings represents is the maximum price that a club should be willing to pay to buy the player for a standard period contract that is inversely proportional to the player’s age.
    The Market Value (MV) estimated by PlayRatings represents the minimum price that a club similar to the current should be prepared to accept or pay for a standard contract.
  5. Why does the Potential Value change according to the buyer selection?

    Usually, in case of a player transfer, the buyer availability to pay changes according to many parameters. The economic relevance of the buyer and the future performances of the player are the two parameter mostly affecting the Potential value of a player from the standing point of a buyer. Each player usually generates different values according to the team he plays with. Richer teams usually imply higher player’s value. The other main parameter is the future player’s performance. To estimate the Potential Value of a player, the user must first select the buyer team and then measure the expected usage intensity (in the "bench" - "holder" range).

  6. What is the interpretation of the Rating proposed?
    The rating of a player suggests the level of economic and financial risk associated, considering three fundamental variables: the level of historical performance, the effectiveness compared to the rest of the team and growth prospects. Like a financial rating, each of the letter represents the level of the respective component. For example, a player with Rating ABA means he is at top of the performance (A), has an average effectiveness against his team (B) and has a high potential for future growth (A).
  7. Why do some important players have such a low Residual Value?
    The residual duration of a contract strongly effects the Residual Value (RV).
    In some case, important players have a short residual duration of the contract that determines a Residual Value lower than expected, even zero if the contract is almost expired.
  8. What is the meaning of the Performance value component of a player ?
    It is the value component related to the player's sport performance during the last three years. More recent performances have more importance. The estimate is updated every week.
  9. What is the meaning of the Effectiveness value component of a player ?
    It is the value component related to the performance/cost ration in relation with the average performance/cost ratio in the same team. The estimate is updated every week.
  10. What is the meaning of the Availability value component of a player ?
    It is the value component related to the player's availability = (played matches) / (season matches). The estimate is updated every week.
  11. What is the meaning of the Contract value component of a player ?
    It is the value component related to residual duration of the contract. The longer is the contract, the highest is the value. The estimate is updated every week.
  12. What is the meaning of the National value component of a player ?
    It is the value component related to the presence of the player in the national team. The estimate is updated every week.
    Age: (AG) is the value component related to the player's age (and indirectly to his experience). The youngest is the player, the highest is the value because of the potential increase or decrease in the sport performance during the contract in relation to the age. The estimate is updated every year.
  13. What is the meaning of the Reputation value component of a player ?
    It is the value component related to the player's reputation. The higher is the reputation, the higher is the value. The estimate is updated every week.
  14. What is the meaning of the Prospect value component of a player ?
    It is the value component related to the player's potential growth. It is estimated using the Real Option theory and the Monte Carlo simulation for sensitivity analysis of the performance on the basis of the historical variation in the performance of the player. The estimate is updated every week.
  15. What is the standard duration of a contract in the simulation for a buyer?
    The standard duration of a contract is inversely proportional to the player’s age.

    5 years contact duration up to 25 years

    4 years contact duration between 26 and 29 years

    3 years contact duration between 30 and 32 years

    2 years contact duration between 33 and 34 years

    1 year contact duration over 34 years

  16. How does the renewal salary adjustment work?
    Typically, in case of renewal of a contract there is an increase of the player's expected value (Opportunity Value), also linked to the fact that, by renewing the player under contract, the club doesn't have to pay the purchase price for a substitute.
    The assumption of PlayRatings is that the club is available to transfer to the player part of this Opportunity Value in the form of a salary increase. The amount of value transfer to the player depends essentially on bargaining power. Net of contingent and specific elements, RSA is usually linked, on one side, to the level of the player in comparison to the average performance of comparable players of his same role. On the other side, RSA is related to the economic and performing rank of the club (Club Cluster). The potential wage adjustment (the main item of negotiations for the renewal, together with any buyout clauses) is expressed as a percentage.
  17. Is it possible to have players with negative values?
    Yes. For instance, if a player doesn’t play any match he just generates a cost for the team that should be willing to terminate the contract at zero price to avoid that cost.


ON THE AGGREGATED INFORMATION

  1. How does the value of a player reflect on the Team's and/or the League's value?
    The value of a Team considers only the value of the players and doesn’t considers other tangible or intangible assets (like the brand, the stadium, and others).
    Team Value, equal to the sum of all the Market Value (MV) of the players playing for the team.
    The estimate is updated every week.
    The Value of a League is the cumulative value of all the Teams competing in that League.
  2. Is the Team Value reflected in the club official Balance Sheet?
    The accounting principles generally do not allow the potential Market Value of the players to be fully reflected in the club’s official balance sheet.
  3. How does PlayRatings identify the emerging players?
    Every week PlayRatings selects from the database a list of relevant players that are experiencing the highest increase in terms of Market Value (MV).
    This selection aims to identify among 145,000 players present in the database the emerging ones with the higher potential.


ON THE REGISTRATION

  1. Why should I register?
    Registration is free and allows to access to exclusive contents and also to better interact with the platforms. It also allows users to improve the information available, add contents to the player’s pages (like videos and images), became the manager of a page and contribute to the platform in many other ways.
  2. Is registration free?
    Registration is completely free.
  3. Can I open multiple accounts?
    Yes. Each account is associated to an email. To open multiple accounts you have to use different emails.
  4. I found and error on the website. Can I suggest a revision?
    Yes, please do it. Enter the page and click on the report button.
  5. I like the platform. How can I collaborate with PlayRatings?
    You can became the manager of a page related to a team or a player contacting us by email at info@playratings.net


USE OF DATA, ADDITIONAL INFORMATION AND COLLABORATION

  1. I’m an amateur user. Can I use PlayRatings’ data?
    PlayRatings’ Website and the App are distributed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International license (CC BY-NC-ND 4.0). Attribution: You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.

    NonCommercial: You may not use the material for commercial purposes.
    NoDerivatives: If you remix, transform, or build upon the material, you may not distribute the modified material.
    No additional restrictions: You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
    Exception and limitation: You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation.
    Warranties: No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
    Breaches: Any breach of the aforementioned clause may be tantamount to a violation of applicable intellectual property rights within the European Union and other applicable laws. The Provider and any other party authorized on its behalf reserves the right to seek damages to the fullest extent permitted by law against any party committing directly or indirectly this breach.
    For a full explanation please refer to the Terms of Use http://www.playratings.net/terms.php
  2. How can I import data on my website from PlayRatings?
    You can use the Feeds and Widgets section.
    http://www.playratings.net/widget.php
    http://www.playratings.net/feeds.php
    Feeds and Widgets are free tools.
  3. I’m a professional media operator. Can I use PlayRatings’ data?
    No content (including ratings, economic-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, for professional use without the prior written permission of OpenEconomics S.r.l. or its affiliates (collectively, OE).
    If you are a journalist or a professional media operator and you are interested in using PlayRatings contents, please contact us by email at info@playratings.net.
  4. I’m a football market professional. Can I use PlayRatings’ data?
    You can use PlayRatings’ contents for professional evaluations. You can’t modify, reverse engineer, reproduce or distribute any content in any form by any means, or store in a database or retrieval system without our prior written permission.
    If you are a football market professional and you are interested in using PlayRatings contents, please contact us by email at info@playratings.net.
  5. I’m a football player on PlayRatings platform. Can I manage my own page?
    You can use PlayRatings’ contents for professional evaluations. You can’t modify, reverse engineer, reproduce or distribute in any form by any means, or store in a database or retrieval system without our prior written permission.
    If you are a football player and you are interested in using PlayRatings contents, please contact us by email at info@playratings.net.
  6. I’m a football player on PlayRatings platform. I disagree on my evaluation. Can I change it?
    You can’t change the evaluation from the platform but you can contact us by email to discuss on the assumptions and the evaluation methodology.
  7. I’m a team manager. How can I better understand the evaluation criteria?
    If you are a football manager and you are interested in using PlayRatings contents, or the additional tools not present on the platform please contact us by email at info@playratings.net.
  8. I’m a player/agent/team. Can I receive a report on a player with more details than those on the platform?
    For more details please contact us by email at info@playratings.net.
  9. Is it possible to simulate the effect of a player sale or acquisition on the Team’s value?
    Yes, it is possible. But it needs an additional toll of analysis that is not yet present on PlayRatings.net.


For more details please contact us by email at info@playratings.net.