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Entrepreneurship and Soccer Analytics

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Talk given at FSU Sports Management Conference, 30 Sept 2011. Topic was on soccer analytics and the challenges of a sports analytics startup company.
35
Entrepreneurship and Soccer Analytics Howard Hamilton Founder, Soccermetrics Research & Consulting, LLC 30 September 2011
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Page 1: Entrepreneurship and Soccer Analytics

Entrepreneurship and Soccer Analytics

Howard HamiltonFounder, Soccermetrics Research & Consulting, LLC

30 September 2011

Page 2: Entrepreneurship and Soccer Analytics

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From Blog to StartupA post: “Moneyball and Soccer”

A new soccer stat analysis blog

Started attracting interest!

Transition to startup company

Page 3: Entrepreneurship and Soccer Analytics

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Overview

What is soccer analytics?

Why soccer analytics?

What are its challenges?

What is its current state?

What is its future?

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What is soccer analytics?

Quantitative assessment of events related to the sport of soccer

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Analytics Infrastructure

Data Model

Extraction

Analysis

Post-Process

Data

Database

Input

Output

Deliverable

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Why soccer analytics?Summer transfer fee payments in English

Premier League, 2003-2011(millions of British pounds)

Source: Deloitte

Personnel payments are

a billion-dollar endeavor

2003 2004 2005 2006 2007 2008 2009 2010 20110

100

200

300

400

500

600

Summer Year

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Why soccer analytics?

Systematic assessment of player and team value

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Why soccer analytics?

Maximize value of investments

Create marginal performance gains

Winning Losing

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Why soccer analytics?

External pressuresCompetition

Regulations

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What are its limitations?

Not a match predictor

Not a “coach-in-a-box”

Initial assumptions

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No, I'm not into betting!

Choose your customer:Betting industry

or

Soccer industry

Morality

Legality

A point to proveCantor Gaming – M Resort, Las Vegas

Page 12: Entrepreneurship and Soccer Analytics

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What makes soccer analytics hard?

Data ProblemLimited

Neutral

Summary

Analysis ProblemComplex invasion team sport

Page 13: Entrepreneurship and Soccer Analytics

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Soccer Data Companies

Company Location Specialty

Opta Sports London Live sports data feeds

Prozone (now Amisco)

Leeds, UKNice, France

Real-time player and event tracking

Tracab Stockholm Real-time 3D player and event tracking

Match Analysis San Francisco In-match player and event tracking

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Complex Invasion Team Sports1

Cooperative action

Move object to defended position

Offense/defense interdependent

Continuous/segmented play

Specialized or hybrid playing roles

1Bill Gerrard, “Is the Moneyball Approach Transferable to Complex Invasion Team Sports?”, International Journal of Sport Finance, November 2007.

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Examples

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More Examples

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What makes soccer unique?

Cooperative and interdependent actions

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What makes soccer unique?

Hybrid offensive and defensive roles

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What makes soccer unique?

High level of continuous play

Page 20: Entrepreneurship and Soccer Analytics

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Soccer Analytics Challenges

TechnicalDifficult to formulate

Difficult to solve

DataSparse

Restricted access

AcceptanceCultural resistance

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Technical Challenges

What is soccer, essentially?Stochastic processes

Nonlinear dynamical system

Run by people

Attempt to study rationally an irrational process

Difficult to formulate

Difficult to solve

How good is “good enough?”

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Data Challenges

Internal data creates historical dataNonexistent before 1990s

Proprietary

Sparse and neutralsummary statistics

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Open Source Data Model

Basic and comprehensive databaseFlexible

Extensible

Open-source strategyPublic relations

Open standards

Revenue sources

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Acceptance Challenges

Communicating technical information to decision-maker

“We've always done it this way”

“You can't explain everything by statistics”

“What do a bunch of eggheads know about football, anyway?”

“What do a bunch of Americans know about football, anyway?”

Page 25: Entrepreneurship and Soccer Analytics

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Interest vs. Money

Europe: Where the money isUSA: Where the stats culture is

Jack Joao Franz Jose Jean Paolo Joe0

200

400

600

800

1000

1200

1400

$M

M T

V R

ev

en

ue

(2

01

0)

Jack Joe Jose Jean Joao Franz Paolo0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

Fo

llow

ers

/$M

M T

V R

ev

en

ue

Source: OnFooty.com (Sarah Rudd)

Opta Sports' league-specific Twitter feeds

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Improving the Climate for Analytics

Education process required for analysts and end-users

Customers don't always know what they want vis-à-vis analytics

Analysts need to communicate ideas to customers in non-technical language

Be open about the limitationsDanger of overselling

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Soccer Analytics: Current State

Clubs have more in-match data

Current level of analysis:Micro-level events

(tabulations/averages)

Video overlay

Clubs use smallproportion of match data

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Soccer Analytics: Current State

Debate over utility of some metricsDistance run over a match

Time of possession

Number of tackles

Goals-against average

Difficult to develop metrics for “non-glamour” positions

Complex problem, slow progress

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Soccer Analytics Blogs

Blog Title Author LocationSoccer by the

NumbersChris Anderson Ithaca, NY

On Football Sarah Rudd Seattle, WASoccer Statistically Ford Bohrmann Seattle, WA11tegen11 (11 on 11) ? Netherlands

Rational Football ? Denmark

SoccerAnalysts.com An aggregation of soccer analytics websites and blogs

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Soccer Analytics Firms

Company Location

StatDNA Chicago, IL

Chimu Solutions Chicago, IL

PowerStats San Diego, CA

AIMFútbol Santiago, Chile

Sports Statistical Reviews Ltd Southampton, UK

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Future of Soccer Analytics

Integration with other aspects of sports performance

Formation of a truly global transfer market

Psychology

TechnicalSkills

Phys

iolo

gy Playing

Equipment

Genetics

AthleticPerformance

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Developing a Sports Analytics Startup

Funding

Market

Product

Infrastructure

Network

First Client

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But before you start...

Passion absolutely required!

Bootstrapping essential

Part-time vs. Full-time

“Market Value” vs. Reality

Interesting vs. Compelling

Exit? What exit??

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Summary

Challenges in soccer analyticsNature of the game

Traditional attitudes

Proceed from first principles

Be open

The history of sports analytics continues to be written

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Thank you!

Howard H. Hamilton, Ph.D.Founder

www.soccermetrics.net

[email protected]

Twitter: @soccermetrics


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