Investor–fans? An examination of the performance of publicly traded English Premier League teams

Zuber, Richard A.; Yiu, Patrick; Lamb, Reinhold P.; Gandar, John M.

doi:10.1080/0960310042000338713

Cited by 37 publications

(32 citation statements)

References 23 publications

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“…An illustration of this sort of benevolent investment is provided by the purchase of shares in soccer teams playing in the English Premier League. In a recent study of public trading in such shares, Zuber, et al () examine the market's reaction to both positive and negative information about team performance. They found that both returns and trading volume are insensitive to the sorts of information that normally would be expected to generate a reaction.…”

Section: Two‐currency Payoffs and Equilibriummentioning

confidence: 99%

Psychic Payoffs, Overpriced Assets, and Underpaid Superstars

Baumöl

Throsby

2012

Kyklos

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Summary Non‐pecuniary payoff is a significant component of the rewards to workers – artists, academics, and sports people – and to investments in assets, such as paintings. This paper explores the implications of partial input payment via psychic rewards under a range of assumptions concerning mobility and homogeneity of factors in markets for both labor and capital. Depending on these assumptions, we show systematic underpayment of inputs in some situations and overpayment in others. Particular attention is paid to the earnings of superstars. The paper is illustrated throughout by references to labor and capital employed by firms in the arts and in sport.

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Section: Two‐currency Payoffs and Equilibriummentioning

confidence: 99%

Psychic Payoffs, Overpriced Assets, and Underpaid Superstars

Baumöl

Throsby

2012

Kyklos

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“…However, the findings signal an unexpected fact to be explored in more detail. Approaching to the analyses with a focus on on-season attributes, the study of Zuber et al (2005) is not a close match to ours. In this study, we handle the case with a target to understand the distinction between two periods initiating from off-season characteristics.…”

Section: Introductionmentioning

confidence: 72%

“…It is obvious that fans prefer stocks mostly with other motives than profit (see e.g. Zuber et al 2005;Demir and Danis, 2011).…”

Section: Discussion Of the Findingsmentioning

confidence: 99%

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New Season New Hopes: Off-Season Optimism

Ersan¹,

Demir²

2017

EJEF

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While literature on the relation between on-field sports performance and stock returns is ample, there is very limited evidence on off-season stage. Constituting around 3 months, off-seasons do not only occupy a significant part of the year but also represent totally different characteristics than on-seasons. They lack the periodic, unambiguous news events in on-seasons (match results), instead they are associated with highly uncertain transfer news and rumors. We show that this distinction has several impacts on the stock market performances of soccer clubs. Most notably, off-seasons generate substantially higher (excess) returns. After controlling for other variables, the estimated effect of off-season periods is as high as 38.75%, annually. In line with several seminal studies, we link this fact to increased optimism and betting behavior through uncertain periods; and periods prior to the start of a new calendar (in our case, new season). For all of the examined 7 clubs (3 from Italy and 4 from Turkey), mean excess returns over the market are positive (negative) in off-seasons (on-seasons). On-seasons are associated with increased trading activity due to more frequent news. Stocks of Italian clubs are evidently more volatile through off-seasons while volatility results for the stocks of Turkish clubs are not consistent.

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“…Whereas the second aspect related to results of match results might appear in the context of stock markets in the form of stock prices of clubs. Zuber et al (2005) stated that the profit and transaction volume of sports clubs traded in the English Premier League were not sensitive to match results, which would mean that the investor-fans were not making interactions regarding information which might affect cash flow. Analyzing 1274 matches of eight teams in five countries of Europe, Scholtens and Peenstra (2009) found out that the share market had a significantly positive reaction regarding wins and a significantly negative reaction regarding defeats; moreover that the reaction was greater for European competitions than it was for local games.…”

Section: Introductionmentioning

confidence: 99%

The Relationship Between Footballer and Head Coach Transfer News and Stock Prices of Sport Clubs

Dayı¹,

Gök²,

Ulusoy³

2018

Proceedings of the 39th International Academic Conference, Amsterdam

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Sportive performances of sports clubs are closely pursued by investors and the effect of match results on stock prices are widely investigated in the literature. On the other hand, whatever the results of the matches might be, the football players and head coaches affect the game by their physical performances, abilities, intelligence and strategic thinking characteristics. Football players and head coaches are the most important assets of the clubs that they work for. Nevertheless, the impact of transfer news of football players and head coaches on the clubs' stock prices have rarely been studied. We aimed to analyze the effects of transfer news of Trabzonspor (TSPOR: Istanbul), one of the four sports clubs traded in Borsa Istanbul, on stock prices within the scope of this study. The transfers exceeding a capital of 1 million Euros during the period of 2013-2017 were investigated by event study analysis. By analyzing 47 events related to football players and 15 events to head coaches, it was found that the contract news of head coaches had more prominent effects on returns than that of footballers'.

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Investor–fans? An examination of the performance of publicly traded English Premier League teams

Cited by 37 publications

References 23 publications

Psychic Payoffs, Overpriced Assets, and Underpaid Superstars

Psychic Payoffs, Overpriced Assets, and Underpaid Superstars

New Season New Hopes: Off-Season Optimism

The Relationship Between Footballer and Head Coach Transfer News and Stock Prices of Sport Clubs

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