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Entrepreneurship and
       Soccer Analytics
                          Howard Hamilton
Founder, Soccermetrics Research & Consulting, LLC




                                    30 September 2011
From Blog to Startup
A post: “Moneyball and Soccer”
A new soccer stat analysis blog
      Started attracting interest!
  Transition to startup company



                                2
Overview
What is soccer analytics?
  Why soccer analytics?
 What are its challenges?
What is its current state?
       What is its future?

                        3
What is soccer analytics?
Quantitative assessment of events
    related to the sport of soccer




                                4
Analytics Infrastructure
        Data Model     Data
      Database

         Extraction
         Input

          Analysis
        Output
        Post-Process   Deliverable
                                 5
Why soccer analytics?
                              Summer transfer fee
                              payments in English
                           Premier League, 2003-2011
                                   (millions of British pounds)
                   600


                   500


     Personnel     400


 payments are      300


a billion-dollar   200


      endeavor     100


                     0
                         2003   2004   2005   2006   2007   2008   2009   2010   2011
                                              Summer Year
                                              Source: Deloitte
                                                                                 6
Why soccer analytics?
Systematic assessment of player
                and team value




                             7
Why soccer analytics?
    Maximize value of investments
Create marginal performance gains




  Winning            Losing    8
Why soccer analytics?
        External pressures
                Competition
                Regulations




                          9
What are its limitations?
          Not a match predictor
         Not a “coach-in-a-box”
             Initial assumptions




                             10
No, I'm not into betting!
                       Choose your customer:
                                         Betting industry
                                                      or
                                         Soccer industry
                                              Morality
                                               Legality
Cantor Gaming – M Resort, Las Vegas
                                      A point to prove
                                                       11
What makes soccer
  analytics hard?
              Data Problem
                      Limited
                      Neutral
                    Summary
         Analysis Problem
  Complex invasion team sport

                          12
Soccer Data Companies
     Company          Location           Specialty
  Opta Sports          London       Live sports data
                                               feeds

     Prozone        Leeds, UK    Real-time player
 (now Amisco)     Nice, France and event tracking
       Tracab       Stockholm Real-time 3D player
                                 and event tracking

Match Analysis   San Francisco In-match player and
                                     event tracking


                                                  13
Complex Invasion Team
                      1
               Sports
                Cooperative action
 Move object to defended position
  Offense/defense interdependent
      Continuous/segmented play
Specialized or hybrid playing roles
1
    Bill Gerrard, “Is the Moneyball Approach Transferable to Complex Invasion Team
                     Sports?”, International Journal of Sport Finance, November 2007.
                                                                                   14
Examples




      15
More Examples




           16
What makes soccer
              unique?
Cooperative and interdependent actions




                                   17
What makes soccer
            unique?
Hybrid offensive and defensive roles




                                 18
What makes soccer
         unique?
 High level of continuous play




                           19
Soccer Analytics
     Challenges
               Technical
      Difficult to formulate
           Difficult to solve
                      Data
                   Sparse
        Restricted access
            Acceptance
       Cultural resistance
                         20
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?”
                                           21
Data Challenges
         Sparse and neutral
         summary statistics




Internal data creates historical data
            Nonexistent before 1990s
                          Proprietary
                                  22
Open Source Data Model
 Basic and comprehensive database
                           Flexible
                         Extensible
             Open-source strategy
                    Public relations
                    Open standards
                   Revenue sources
                                 23
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?”
                                       24
Interest vs. Money
                               Opta Sports' league-specific Twitter feeds
                        1400                                                                    450.00




                                                                     Followers/$MM TV Revenue
                        1200                                                                    400.00
$MM TV Revenue (2010)




                                                                                                350.00
                        1000
                                                                                                300.00
                        800
                                                                                                250.00
                        600                                                                     200.00
                                                                                                150.00
                        400
                                                                                                100.00
                        200
                                                                                                 50.00
                          0                                                                       0.00
                               Jack Joao Franz Jose Jean Paolo Joe                                       Jack Joe Jose Jean Joao Franz Paolo


                                                                                                            Source: OnFooty.com (Sarah Rudd)


                           Europe: Where the money is
                         USA: Where the stats culture is
                                                                                                                                        25
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 limitations
                  Danger of overselling
                                     26
Soccer Analytics:
       Current State
Clubs have more in-match data
      Current level of analysis:
                Micro-level events
            (tabulations/averages)
                      Video overlay
               Clubs use small
      proportion of match data
                                27
Soccer Analytics:
          Current State
Debate over utility of some metrics
            Distance 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
                                  28
Soccer Analytics Blogs

         Blog Title           Author         Location
      Soccer by the     Chris Anderson       Ithaca, NY
           Numbers
        On Football         Sarah Rudd      Seattle, WA
 Soccer Statistically   Ford Bohrmann       Seattle, WA
11tegen11 (11 on 11)                 ?      Netherlands
   Rational Football                 ?        Denmark

                 SoccerAnalysts.com
 An aggregation of soccer analytics websites and blogs
                                                    29
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



                                              30
Future of Soccer
                                             Analytics
         Integration with other aspects of
                      sports performance
               Formation of a truly global
                           transfer market
                     Psychology
      y
   og




                                  Eq
                                  Pla ipm
  iol




                                     u
  ys




                                     y i n ent




             Athletic
Ph




                                          g




           Performance
       Te
         c                            s
       Sk hni                     ti c
         ills ca                 e
                 l            en
                             G


                                                     31
Developing a Sports
  Analytics Startup
                Funding
                  Market
                Product
          Infrastructure
                Network
             First Client
                       32
But before you start...
   Passion absolutely required!
        Bootstrapping essential
          Part-time vs. Full-time
      “Market Value” vs. Reality
     Interesting vs. Compelling
              Exit? What exit??

                               33
Summary
Challenges in soccer analytics
              Nature of the game
              Traditional attitudes
 Proceed from first principles
                       Be open
The history of sports analytics
       continues to be written
                                34
Thank you!



Howard H. Hamilton, Ph.D.
                   Founder
     www.soccermetrics.net
    info@soccermetrics.net
    Twitter: @soccermetrics

                         35

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Entrepreneurship and Soccer Analytics

  • 1. Entrepreneurship and Soccer Analytics Howard Hamilton Founder, Soccermetrics Research & Consulting, LLC 30 September 2011
  • 2. From Blog to Startup A post: “Moneyball and Soccer” A new soccer stat analysis blog Started attracting interest! Transition to startup company 2
  • 3. Overview What is soccer analytics? Why soccer analytics? What are its challenges? What is its current state? What is its future? 3
  • 4. What is soccer analytics? Quantitative assessment of events related to the sport of soccer 4
  • 5. Analytics Infrastructure Data Model Data Database Extraction Input Analysis Output Post-Process Deliverable 5
  • 6. Why soccer analytics? Summer transfer fee payments in English Premier League, 2003-2011 (millions of British pounds) 600 500 Personnel 400 payments are 300 a billion-dollar 200 endeavor 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 Summer Year Source: Deloitte 6
  • 7. Why soccer analytics? Systematic assessment of player and team value 7
  • 8. Why soccer analytics? Maximize value of investments Create marginal performance gains Winning Losing 8
  • 9. Why soccer analytics? External pressures Competition Regulations 9
  • 10. What are its limitations? Not a match predictor Not a “coach-in-a-box” Initial assumptions 10
  • 11. No, I'm not into betting! Choose your customer: Betting industry or Soccer industry Morality Legality Cantor Gaming – M Resort, Las Vegas A point to prove 11
  • 12. What makes soccer analytics hard? Data Problem Limited Neutral Summary Analysis Problem Complex invasion team sport 12
  • 13. Soccer Data Companies Company Location Specialty Opta Sports London Live sports data feeds Prozone Leeds, UK Real-time player (now Amisco) Nice, France and event tracking Tracab Stockholm Real-time 3D player and event tracking Match Analysis San Francisco In-match player and event tracking 13
  • 14. Complex Invasion Team 1 Sports Cooperative action Move object to defended position Offense/defense interdependent Continuous/segmented play Specialized or hybrid playing roles 1 Bill Gerrard, “Is the Moneyball Approach Transferable to Complex Invasion Team Sports?”, International Journal of Sport Finance, November 2007. 14
  • 15. Examples 15
  • 17. What makes soccer unique? Cooperative and interdependent actions 17
  • 18. What makes soccer unique? Hybrid offensive and defensive roles 18
  • 19. What makes soccer unique? High level of continuous play 19
  • 20. Soccer Analytics Challenges Technical Difficult to formulate Difficult to solve Data Sparse Restricted access Acceptance Cultural resistance 20
  • 21. 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?” 21
  • 22. Data Challenges Sparse and neutral summary statistics Internal data creates historical data Nonexistent before 1990s Proprietary 22
  • 23. Open Source Data Model Basic and comprehensive database Flexible Extensible Open-source strategy Public relations Open standards Revenue sources 23
  • 24. 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?” 24
  • 25. Interest vs. Money Opta Sports' league-specific Twitter feeds 1400 450.00 Followers/$MM TV Revenue 1200 400.00 $MM TV Revenue (2010) 350.00 1000 300.00 800 250.00 600 200.00 150.00 400 100.00 200 50.00 0 0.00 Jack Joao Franz Jose Jean Paolo Joe Jack Joe Jose Jean Joao Franz Paolo Source: OnFooty.com (Sarah Rudd) Europe: Where the money is USA: Where the stats culture is 25
  • 26. 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 limitations Danger of overselling 26
  • 27. Soccer Analytics: Current State Clubs have more in-match data Current level of analysis: Micro-level events (tabulations/averages) Video overlay Clubs use small proportion of match data 27
  • 28. Soccer Analytics: Current State Debate over utility of some metrics Distance 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 28
  • 29. Soccer Analytics Blogs Blog Title Author Location Soccer by the Chris Anderson Ithaca, NY Numbers On Football Sarah Rudd Seattle, WA Soccer Statistically Ford Bohrmann Seattle, WA 11tegen11 (11 on 11) ? Netherlands Rational Football ? Denmark SoccerAnalysts.com An aggregation of soccer analytics websites and blogs 29
  • 30. 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 30
  • 31. Future of Soccer Analytics Integration with other aspects of sports performance Formation of a truly global transfer market Psychology y og Eq Pla ipm iol u ys y i n ent Athletic Ph g Performance Te c s Sk hni ti c ills ca e l en G 31
  • 32. Developing a Sports Analytics Startup Funding Market Product Infrastructure Network First Client 32
  • 33. But before you start... Passion absolutely required! Bootstrapping essential Part-time vs. Full-time “Market Value” vs. Reality Interesting vs. Compelling Exit? What exit?? 33
  • 34. Summary Challenges in soccer analytics Nature of the game Traditional attitudes Proceed from first principles Be open The history of sports analytics continues to be written 34
  • 35. Thank you! Howard H. Hamilton, Ph.D. Founder www.soccermetrics.net info@soccermetrics.net Twitter: @soccermetrics 35