Human Capital Accounting and Market Valuation of Football Players: Assessing the Role of Performance Metrics and Intangible Assets on Financial Reporting and Club Value

This research applies the principles of human resource accounting (HRA) and intangible asset valuation frameworks under IAS 38/IFRS to examine the relationship between the quality of player performance metrics, human capital metrics, and the quality of their financial reporting on the market valuation of football players and the financial performance of the leading football clubs in Europe. Based on a dual-level database, composed by 20 leading European clubs (club-level) and by 120 players (player-level) in the season 2023/24, the study constructs a performance-adjusted valuation model for estimating the interconnection between on-field statistics (goals, assists, expected goals, defensive actions, and performance indices imposed on a composite measure) and accounting or financial number (transfer fees, amortization charges, intangible asset values, book values) and financial results (ROA, club market valuation). The Outcome of multiple OLS Regression Models using Robust Standard Errors shows that Performance Index is the most important predictor of player market value (max 0.497, p < 0.01) whereas club revenue is the most important predictor of club market valuation (max 0.009, p < 0.01, R2 = 0.879). The market to book ratio analysis shows systematic difference between economic value and accounting book value based on player age, duration of contract signed, and performance indicators (Adj. R² = 0.363). The Moderated regression shows existence of positive moderating relationship between IFRS compliance and Big4 audit quality with on-field performance and financial outcomes. The findings add to the intersection of sports finance, accounting and human capital theory, stressing the inadequacy of current IAS 38 provisions in capturing the true economic value of football players as human capital assets.