Tienes la idea correcta. Sin embargo, MySQL no garantiza el orden de evaluación de las expresiones. Además, tienes un group by position
en la subconsulta.
Así que creo que podrías querer:
SELECT . . .
FROM (SELECT name, surname, position, value, points,
(@num := if(@type = position, @num + 1,
if(@type := position, 1, 1)
)
) AS row_number
FROM players p CROSS JOIN
(SELECT @num := 0, @type := '') params
WHERE (name LIKE '%$searchphrase%' OR surname LIKE '%$searchphrase%') AND
value >= '$minvalue' AND value <= '$maxvalue'
ORDER BY position
) x
WHERE x.row_number <= 2