Yep, a combination of stats and ratings at a particular position. I wouldn't bet record has much weight in it.
I've seen a similar situation in the past that leads me to believe Stronks will still win MVP, though. I think it's a different algorithm there, and hopefully for merch. It's weird that 0 of 8 teams have defended him with guards. One team even played a guard at centre (for training) and then switched a PF onto Stronks defensively. Collusion, I say. :D