The APC Brand Evaluator ® Methodology
The APC Brand Evaluator® evaluates and measures the monetary value of the Sports Celebrity Image. The Sports Celebrity Image is an intangible asset with commercial value. The commercial value lies within the athlete: it is the athlete’s own, personal goodwill. Personal goodwill in identity is the force that attracts one to a famous individual so a person has a commercial value, given their fame.
As an intangible asset, the sports celebrity image manifests itself by its economic properties, by granting rights and privileges to its owner and by generating income for its owner. The valuation technique utilized to come up with the value of the sports celebrity image is an adapted version of the Income Approach which predicts expected future earnings from commercializing the sports image and calculates their net present value. This methodology is widely accepted by global auditors and tax authorities in many countries and it is sufficiently reliable for use in financial reporting.
In using this methodology, we identify current and predict future streams of revenue from commercializing the image and discount them into the present using appropriate risk rates. It should be noted that the Sports Celebrity Image Valuation is substantially affected by the abilities and the expected performance of the player and that such valuation is carried out according to the expected future utilization of the player’s image rights. Such evaluation is performed on a case by case basis according to the particular corresponding factors and circumstances of each player. Any subjective element in the evaluation procedure is kept to an absolute minimum, at the very least. The process of evaluation is thus a holistic and ‘sui generis’ one.
WHY WE NEED TO HAVE A VALUE OF THE SPORTS CELEBRITY IMAGE
The financial valuation of the Sports Celebrity Image is a relatively new development. Measuring the Sports Celebrity Image value provides players, clubs and sports agents with a framework for strategic management when it comes to licensing, business alliances, joint ventures involving a player’s image rights or other applications.
Specifically, the Sports Celebrity Image valuation can be used in the following ways: