The importance of Data Analysis for the understanding of Sports Finances

  This is an individual assignment in which the student must analyze a specific Sports Case, applying the main concepts of Sports Data Analysis. Billions of euros are invested every year by professional football clubs for the recruitment of players. How do market actors decide prices? CIES Football Observatory' developed a methodology to answer that question. The statistical technique used to build the model is multiple linear regression (MLR), with fees paid by clubs as an independent variable. The sample comprises over 2000 transactions of players transferred for money from clubs in the five major European leagues during the period stretching from July 2012 to November 2021. The ;?Dp.cr published by CIES reveals various applications of the approach developed for the football industry to both assess and predict football players' transfer fees and values: transfer negotiations, club sales or purchases, bank credit, fund raising, financial planning and communication, legal disputes, etc. Analyze the case and elaborate a comprehensive analysis concerning the following questions/ topics: 1) Introduction: elaborate about the importance of Data Analysis for the understanding of Sports Finances and the benefits for Sports Organizations, from a management perspective 2) Data Sources and Type: explain what the sources of data are collected, the type of data and the methodology used for establishing the database 3) Variables: elaborate about the variables that were included by the researchers in the econometric model to assess transfer fees and estimate the transfer values 4) Model: explain the statistical technique adopted by the researchers to build the model (MLR) and elaborate about the strengths and weakness of the adopted model. 5) Applications: elaborate about the applications of data analysis methodology for the Scientific evaluation of the transfer value of football players for Sports Organizations — give 3 examples.