Abstract
M.Com. (Investment Management)
This study explores the possibility of the financialisation of professional athletes as a viable investment vehicle. The study commences with an in-depth literature review. The literature review is conducted with two separate objectives that are to be met. The first objective, in Chapter two, investigates the relevant literature surrounding alternative asset classes. The second objective, in Chapter three, investigates whether any existing valuation models exist for professional athletes.
The exploration of the first objective attempted to establish the feasibility of including the newly conceptualised asset class within the realm of alternative assets. The investigation found that no limitations exist to the inclusion of new asset classes to the field of alternative assets.
The second literature exploration was aimed at establishing, whether or not, existing literature can provide guidance to establish a valuation model. The literature was found to be very limited and allowed for researcher discretion in the Conceptualised Index Model.
The Conceptualised Index Model attempted to value professional cricket players that participated in the 2015 Indian Premier League tournament. The study utilised an index model due to the advantages described by Tang and Xiong (2012). The advantages include the ability to compare different variables with each other. The use of an index model is further beneficial as Gomez and Korine (2008) states that indices ease the process of financialisation and liquidity.
The study found that it is possible to value the chosen professional athletes relative to each other through the use of the Conceptualised Index Model.