A Financial Instrument Indexed to Football Players Performance

The football industry is increasingly using financial instruments to expand its activities and manage risk. Clubs face difficulties in raising funds for growth, acquisitions and stadium development, making it crucial to study innovative solutions. The success of a team depends on the performance of its players, raising investors’ interest in linking financial instruments to their performance. This work proposes the creation of a financial instrument indexed to the performance of a football player. In this regard, it is necessary to develop a composite indicator that considers offensive, defensive and other aspects of performance. The PLS-SEM model was selected for the construction of this indicator, with the aim of maximizing the explanatory power of the model. Based on this indicator, a corporate bond is created, representing an innovative instrument designed to combine performance-related returns with face value protection. The bond enables investors to benefit from the growth of a player’s performance over time and to generate returns; simultaneously, it guarantees capital protection in the event of underperformance.