FM actually has a very very extensive player database and a large number of scouts who provide them with data. There are reports of popular clubs who use the FM

FM actually has a very very extensive player database and a large number of scouts who provide them with data. There are reports of popular clubs who use the FM database (and additional statistical analysis) to find out about players and so on. A slight tangent, there are teams like FC Midtjylland(Danish League) and Brentford(English second tier) who make extensive use of data (think Moneyball) to sign players, and have achieved moderate success.