Doing business in Russia..
Federico Pasquetti and Eric Luna are two former MSc in Management students who graduated in 2016. Eric, from the USA, obtained a specialization in Business Analytics and Federico, from Italy, in Entrepreneurship.
In 2018 they launched Capology: the world’s first sports salary database and mobile platform designed for fans, experts, and team executives alike.
Capology covers data of more than 300 teams, 10,000 athletes, and 16 professional sports leagues around the world, including the NBA, NFL, MLB, Premier League, La Liga, Serie A, and more. The software company was born in 2018 with a dual purpose: to increase financial transparency in sports and to reduce operational inefficiencies within professional sports organizations. Capology provides teams a secure cloud-based system for player contract management, financial forecasting, as well as salary cap and financial fair play compliance.
The MSc final thesis: a research platform for future projects
Eric and Federico met for the first time in September 2015 when they started their MSc adventure. Between one class and another they found out they had a common passion: they were both NBA lovers. Therefore, they started spending time after class to watch games and discuss players and teams’ performances.
Eric decided that his final MSc project would be a research thesis, so he could take advantage of the prestige of the UPF research community and the quantitative tools he was learning during his specialization. His idea was to develop a database providing athletes’ statistics and show how he could gather and interpret relevant sports data.
He chose to do so because he aimed at working for an NBA team as an analyst and developing a research thesis of that sort supervised by renowned researchers would be an important signal to the market he was targeting. His hard work culminated in “Hiding Behind a Lie: An Analysis of Competitive Balance and Its Effect on NBA Team Valuations”, a research thesis that won the award as the best MSc in Management thesis specialized in business analytics.
While speaking about his idea with Federico, Eric was already collecting his data for his research project and Federico was looking for an interesting entrepreneurial idea, so they were constantly exchanging opinions and advice on how to improve each other position. In fact, Federico’s business plan was related to the sports business, hence very close to Eric’s interests.
After graduation, Federico tried to start a company and Eric was having interviews for NBA teams. However, they kept in touch and their common interest made them think about starting a website based on Eric’s research project idea. They saw that there was not yet available any complete database which dealt with athletes’ salaries statistics as well as teams’ financial performance. They also realized that there was no actual and transparent source of players’ salaries for any kind of sport. At this point, they found their competitive advantage, so they started extending Eric’s database to other sports besides Basketball and other leagues besides the NBA.
Since they launched Capology, Federico and Eric’s main challenge has been to improve their database until it becomes the main reference and the largest source of players’ salaries and contractual issues.