MERIT (Methodology for the Evaluation and Rating of Intangible Talent) is part of an academic endeavour that has broad applications in the area of sports management and business. This novel methodological approach makes it possible to evaluate the economic value of intangible assets in professional sports.
MERIT was conceived and developed within the context of university research and one of its traits of identity is that it is closely linked to academia. In addition to providing rankings, our databases make it possible to carry out studies on relevant issues in the field of economics and business. The basic guidelines of this methodology for estimating social value consist of analysing two criteria: popularity and media value. Building upon these notions, MERIT calculates accurate indexes for appraising the economic value of talent, as captured by the interest of fans and the level of mass media exposure.
The strength of the MERIT methodology derives from its capacity to deliver homogeneous indicators of social value in a wide variety of sport competitions and in other entertainment industries. This feature makes it possible to carry out accurate comparisons between individuals today and over time. Based on individual media value appraisals, we are also able to work out the media value of teams, institutions and leagues, and to calculate related measures.
In addition to rankings, our datasets allow us to conduct analyses on a wide variety of economic and business problems: estimates of the market value (or “fair value”) of players’ transfer fees; calculation of the brand value of individuals, teams and leagues; valuation of the economic return from alliances between sponsors; image rights contracts of athletes and teams; and a great deal more. These rankings and measurements are useful, given the growing number of companies whose business relies on the exploitation of media impact as a source of potential income. In the context of sports, MERIT addresses issues like:
Ranking and media evolution of athletes, teams and leagues.
Estimate of the market value (“fair value”) for contracting players.
Appraisal in value of seasoned players and promising youngsters.
Regional analysis of media value rankings of players and teams.
Analysis of perception and reputation of players and teams in the media.
Players’ individual brands and evaluation of strategic alliances with teams.
Measurement of the visibility of the sports sponsorship, etc.
The approach adopted by MERIT allows us to reach where others cannot. Often, the crucial point is not to have more information at one’s disposal but to be able to rely on the appropriate methodology and capabilities for analysis. Our team includes analysts that apply a methodology verified in academic forums, providing valuable data for decision-making in professional sport. More information can be found in: www.meritsocialvalue.com
The MERIT approach, which was originally inspired in the methodology developed by ESI (Economics, Sports and Intangibles) research group, has proved to be useful in measuring the economic value of intangible talent in professional sport and in other entertainment industries.
History of the ESI research group
Francesc Pujol Department of Economics Universidad de Navarra
Pedro Garcia-del-Barrio School of Business and Economics Universitat Internacional de Catalunya