Interesting article, don't remember seeing it before on here and don't know if the validity or source is any measure of quality, this article was from last summer.
The Scouser Report: Soccernomics, Moneyball and Liverpoolâs Transfer PolicyWhat do a British author, an economics professor and the Oakland Athletics baseball team have in common? All three of them are having a serious impact on Liverpoolâs transfer policy under the current regime.
Michael Lewisâ book âMoneyballâ blew open the transfer traditions of baseball, revealing how the Oakland Athletics managed to compete at the top of Major League Baseball despite a far smaller revenue stream than its rivals. By paying more attention to unconventional players, non-traditional statistics and older draft picks, Oakland stayed close to the top of MLB with a miniscule wage budget.
British author Simon Kuper and economics professor Stefan Szymanski teamed up to bring us âSoccernomicsâ or, as itâs better known as, âWhy England LoseâŚâ. Inspired by âMoneyballâ this book attempts to put a football feel on the Oakland way of doing things. So here are the 10 simple rules of Soccernomics:
New managers waste money, ergo, limit their say in transfers.
Draw opinion from several people from different backgrounds.
Avoid stars of recent international tournaments.
Avoid certain nationalities (e.g. Brazilian, Dutch) as they are overpriced.
Buy players in their early twenties; older players are overvalued and youngsters arenât fully developed.
Sell a player either before buyers see deterioration in his game or when a club offers more than heâs worth.
Replace your best players before selling.
Never buy strikers because they are overpriced; develop them instead.
Buy players with personal problems , then help them deal with their issues.
Help new players relocate.
Couple these ten with one key Moneyball rule: Overspend to fill gaps in the squad, as, the quicker they are filled, the quicker a team can start turning a profit. Now you can see some of the reasoning behind the clubâs decisions. Letâs see how each of the rules are applied by Liverpoolâs new ownership, Fenway Sports Group:
1. New managers waste money, limit their say in transfers.
In football, managers are short-term employees unless a club gets extremely lucky. According to the League Managerâs Association, a managerâs average tenure in the Premiership is under 18 months, compared to an average playerâs average stint at a club of 3 years. Player turnover and, therefore, player expenditure increase drastically when a new manager wants to âput his stampâ on the team. From what weâve been told, FSG has a set procedure for LFC transfers:
Kenny Dalglish tells Damien Comolli what he thinks the team needs.
Comolli returns with a shortlist of players that fit the criteria set out by these very rules.
Dalglish chooses a player off the shortlist.
Kuper and Szymanskiâs book provides Lyon as a case study of the application of these rules. The Lyon head coach sits in on transfer meetings but ultimately has little to no say as transfers are decided by committee. I believe the Liverpool model is far more effective than the one Lyon apply. The manager should have the final say regarding incoming players because, at the end of the day, their collective performance is his responsibility. A team is most productive when the manager and players can work as a cohesive unit.
2. Draw opinion from several people from different backgrounds.
At Anfield, transfers are a collaborated effort between Dalglish (who has years of experience both coaching and playing for the club) and Comolli (Liverpoolâs own proponent of sabermetrics and has a sharp eye for talent). This ensures that the entire package encompassing a player is scrutinised. As Andrew Beasley hinted at earlier in the week; a playerâs work ethic, attitude and mentality are given equal weight in comparison with their technical abilities. Comolli and Dalglish ask whether a prospect can adapt to a club of Liverpoolâs stature. How will he react to losing his first XI spot? Will he be happy in a rotation system? These as well as many more questions will have been asked. Thereâs no point in splashing ÂŁ20 million on a phenomenally gifted winger, only to discover that he throws a wobbly at the first sniff of bench action.
3. Avoid stars of recent international tournaments.
What does a club show when it buys a player after a good World Cup performanceâŚ..letâs consult our copy of âMoneyballâ:
âa tendency to be overly influenced by an athleteâs most recent performance: what he did last was not necessarily what he would do next.â
The Reds have been burnt with this one before, Ryan Babel helped the Netherlands to a semi-final spot in the U21 European Championships before moving to Merseyside for ÂŁ11.5 million and bad boy El-Hadji Diouf, currently MIA for Blackburn, claimed a runners-up medal in the 2002 African Nations Cup before being deemed worthy of a ÂŁ10 million investment. An international tournament is not a sufficiently large sampling of matches to fully investigate statistics, hence there tend to be frequent anomalies. Look at Milan Barosâ goal per game at Euro 2004 for the Czech Republic and his more typical tally once every three games at club level.
Luis Suarez signed for LFC just six months after an impressive display at the 2010 World Cup where he netted an average of a goal every two games and showcased his goalkeeping talents to the world. It could be argued that such a signing contradicts this rule but a quick look at his goal scoring feats before the World Cup shows that this wasnât just a purple patch. Suarez managed, on average, to net a goal every hundred and twenty-two minutes in the five years leading up to the WC, scoring forty-nine in all competitions for Ajax in 09-10.
4. Avoid certain nationalities (e.g. Brazilian, Dutch) as they are overpriced.
What conjures more elegant images? A tricky Brazilian or a skillful Slovenian? Does a flashy mohawk come to mind? Thought so. If I were to say there was an attacking midfielder that has just enjoyed the best season of his young career but has never played outside his home country, how much would you say heâd go for and is he worth the gamble? What if the price was only a few million? Compare the âŹ2.3m Palermo paid for Slovenian Josip IliÄiÄ last summer to the âŹ40m Neymar is reportedly commanding and you can see another reason for the Reds focus on British talent.
5. Buy players in their early twenties; older players are overvalued and youngsters arenât fully developed
This stems from the Oakland Aâs concentration on draft picks from colleges. A teenager is not fully developed and there is too wide a margin between success and failure to place an accurate valuation. Have a look at the winners of the Golden Ball at the U17 World Cup to see what I mean. Players in their early twenties are more rounded than teenagers and it can be quite evident to see where their game is heading. Older players command a higher wage and transfer fee because they are seen as established. Joe Cole and Milan Jovanovic, both players approaching the twilight of their careers, were both free transfers yet cost the club upwards of âŹ200k per week in wages. Thus, there is also the added incentive of profiting from twenty-somethings sales once they hit their peak and paying lower wages in the interim.
6. Sell a player either before buyers see deterioration in his game or when a club offers more than heâs worth.
In training, a player will experience far more rigorous tests of all their attributes than in any match. So a deterioration in ability should be more readily recognised by the clubâs own coaching staff well before it is evident in a match situation. Take Raul Meireles, for example. The Portuguese was one of Liverpoolâs best players in the second half of last season but finds himself the subject of strong rumours regarding a move away. We donât know what happens in the day-to-day running of the team but maybe there have been indications of Meireles being on the downward slope.
Arsene Wenger is the best manager around when it comes to this. Whether itâs Thierry Henry, Emmanuel Adebayor, Kolo Toure, Alex Hleb, the list goes on, itâs very rare that a sold Gunner will go on to be as good for his new club as he was for Arsenal. Each of these players has a price tag and the key is not just to sell up, as soon as possible, once a playerâs downward spiral is evident but to maximise the return. As far as potential suitors are concerned, match form indicates that the player in question is still in his prime, often meaning that they are willing to pay an optimum fee. The selling club should always have a price on every single one of these players, if a buyerâs offer greatly exceeds this asking price that means itâs time to sell.
Another prime advocate of this strategy is FC Porto, since the turn of the century they have made a staggering profit of âŹ190m on player sales, while dominating the Portuguese League. Why canât Liverpool achieve similar results in the Premier League?
7. Replace best players before selling.
This should be common practice but oft-times itâs not. When LFC were selling Fernando Torres they ensured that the fee they got was sufficient to cover Andy Carrollâs transfer and net a profit of ÂŁ15m from the over all deal. The Stewart Downing deal, allegedly, was so drawn out because Aston Villa wanted to ensure their replacement, Charles NâZogbia, was a done deal before selling. When you look at the Reds current central midfield options, one counts nine players. For two or even three available first team places, thatâs some heavy overstocking. That begs the question, who is whomâs replacement?
8. Never buy strikers because they are overpriced, develop them instead.
By combining a report from accounting firm KPMG and the Annual Review of European Football, we can estimate that strikers cost an average of ÂŁ3.8m per season compared to goalkeepers (ÂŁ1.2m), defenders (ÂŁ2.1m) and midfielders (ÂŁ2.9m). So strikers cost more and spend less time at their clubs on average, go figure.
âOh but Liverpool spent ÂŁ35m on that lanky Geordie bloke, heâs a striker. They donât follow the strategy, oh the shameâŚ.â Relax, Iâll get to you lot soon enough.
9. Buy players with personal problems and help them deal with their problems
Alcoholic? Gambler? Penchant for prostitutes? It doesnât matter; youâre just undervalued. Players with personal problems are typically available on the cheap. Violent and enjoys the odd drink? Yes, itâs him again: Andy Carroll. Night club bust ups, training ground fracas, Range Rover torched? Carrollâs been there done that. The former Magpie seemed to curb his drinking when he moved to Merseyside, evident in this little quip from Kenny Dalglish:
âWell heâs never bought me a drink. Iâve been with him at Boyzone concerts and heâs still never bought me a drink!â
Players with personal problems usually attract very little interest and their market value tends to be lower than usual.
âHow is Carroll undervalued at ÂŁ35m, they still donât follow the strategyâŚâ Didnât I tell you to wait?
10. Help new players relocate.
Seems like common sense, right? Help a player get settled quickly so they can concentrate on their game, but those of you who have read âWhy England LoseâŚâ will know how few clubs actually do so. Players are human; just because their weekly wage packet may equal (or exceed) your yearly salary doesnât change this. In fact, it exacerbates it. What type of wild fantasies do you have about what youâd do if you won the lottery? Well, theyâre living them, without a safety net. So, itâs best to help the new player settle in quickly and get him focused on the business at hand. If that means going to a Boyzone concert with your newest investment, so be it. It will only make him productive sooner rather than later.
For all those people that are questioning Liverpoolâs dedication to the Moneyball strategy with regards to Carroll, remember the one final rule that trumps everything: Overspend to fill gaps in the squad, as, the quicker they are filled, the quicker a team can start turning a profit.
A club doesnât start making money until it is competitive and, to be competitive, a strong squad is needed. When Torres started sounding out a move away from Anfield, that left the club with only David Nâgog, Dirk Kuyt, Daniel Pacheco and Jovanovic to play up front. True, they had already been negotiating for Suarez but were not happy with Ajaxâ high valuation of their captain. None of those in house were adjudged to be capable of assuming the Spaniardâs mantle, so FSG, caught in the crossfire, bit the bullet and signed Carroll and Suarez for ÂŁ58 million.
The depth in midfield was appalling. After Meireles, Steven Gerrard and Lucas Leiva, there was only Jay Spearing and Christian Poulsen. FSG sanctioned bids totalling ÂŁ23.5m for Blackpoolâs Charlie Adam and Sunderlandâs Jordan Henderson.
There hasnât been a top winger at the club since Steve McManaman. Last season the Redâs faithful were subject to Kuyt, Maxi Rodriguez, Cole and even Meireles on the wings. None of which are natural wingers, so to fix that FSG threw over ÂŁ20m at Aston Villa for the services of Stewart Downing.
Next week, when youâre pulling your hair out wondering why Liverpool have just gone over the moon to beat Arsenal to Scott Dann, just remember there is a method to the madness.
http://worldfootballcolumns.com/2011/07/15/the-scouser-report-soccernomics-moneyball-and-liverpools-transfer-policy/