Articles on: Yield

How do you calculate the yield?

The yield is calculated each month based on the algorithm used for talent’s income valuation. For example, football players are valued based on our proprietary SoccerMind algorithm, which takes into account:
the footballer’s recorded salary
potential income from his/her social media influence
age, as well as assumes the potential talent’s income growth over the contract length.

It is very important to understand that the yield is relative to the talent’s introduction valuation and pricing. This essentially means, that the baseline average yield will already take into account talent’s performance and growth up until now AND also will assume the growth based on talent’s age and stage of the career.

Therefore, huge & already established stars, such as Mahrez, can sometimes bring more yield in the first years than young stars, but the growth of the talent as well as the yield might be limited. Whereas a young talent, like Samaké could bring less yield in the beginning, but the yield can increase more rapidly in the future as the talent grows his/her income.

We can also draw a parallel with companies: investing in a young startup is riskier and the profit is usually smaller and less consistent, but its potential in the future is higher. By contrast, an established company - let’s say McDonald's - has solid and predictable profits, but rather flat growth perspective. Of course, there are always exceptions, so we recommend that you do your own research and read the news about the talents and analyze the patterns that are emerging.

Ultimately, the best indicator of the upcoming yield amount is whether the talent over-performed or under-performed himself/herself as compared to the introduction valuation and assumptions that were priced in there.

Royatiz Team

Updated on: 20/07/2023

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