How the NFL Draft Is Like Building an Investment Portfolio: The Process of Choosing Winners

Executive summary:

  • The team executives who choose players in the National Football League draft have a job similar to that of an advisor picking funds for an investment portfolio.
  • Both have a broad universe from which to select and conduct extensive research before making their picks.
  • For an advisor, this process can take time and resources better used to serve clients.
  • A model provider can conduct the analysis, providing expertise and insight and allowing advisors to focus on helping clients build their wealth.

The 2024 National Football League draft has kicked off in Detroit, and I'm watching it closely. There are 15,167 NCAA D1-FBS scholarship athletes. Of those, only 259 will get drafted. This means that among all Division 1 FBS college football players, only 1.7% are good enough to make the cut.

The amount of research a team does on those players is extraordinary. Their size, statistics, games played, training history, and other details all play a critical part in measuring their success. Additionally, qualitative assessments are conducted through interviews and Wonderlic tests. Their personal life and off-field activities also play into the evaluation.