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Investing in athletes : predicting the brand values of Andrew Wiggins and Doug McDermott

by Milne, Ryan Whitt

Abstract

This study investigates the company Fantex as well as creates a hypothetical model used to evaluate two upcoming NBA draft lottery picks, Andrew Wiggins and Doug McDermott. There is very little research on this subject being that Fantex is a relatively new company. Before this study, the only models that this company has created have been for NFL football players Arian Foster, running back for the Houston Texans, Vernon Davis, tight end for the San Francisco 49ers, and only recently EJ Manuel, quarterback for the Buffalo Bills. I will be creating these models so that I can come up with my own equation to value these phenomenal college athletes, and determine if investment in their brand would be a profitable venture. This analysis will provide new information about the effect of endorsement deals, player statistics, current contract, likeability, and other variables (that will be explained later) on a player’s stock. I am coming up with a forecast model to determine the influence of each statistic on a player’s salary. I am taking a specific player, plugging in their actual college statistics into the equation (player’s last year of college statistics + model coefficients) and coming up with each player’s predicted salaries. Once I have their predicted salaries I will estimate the likelihood of endorsements and exactly how much they might bring in. I will then approximate how long each player will play in the league. Finally, I will create a contract, similar to Fantex’s contracts, to offer each player.

Note

The author has given permission for this work to be deposited in the Digital Archive of Colorado College.

Colorado College Honor Code upheld.

Includes bibliographical references.

Administrative Notes

The author has given permission for this work to be deposited in the Digital Archive of Colorado College.

Colorado College Honor Code upheld.

Copyright
Copyright restrictions apply.
Publisher
Colorado College
PID
coccc:9721
Digital Origin
born digital
Extent
77 pages : illustrations (some color)
Thesis
Senior Thesis -- Colorado College
Thesis Advisor
Rask, Kevin
Department/Program
Economics and Business
Degree Name
bachelor
Degree Type
B.A.
Degree Grantor
Colorado College
Date Issued
2014-05