What drives the value of football clubs: An approach based on private and socio-emotional benefits

Tiscini, Riccardo; Strologo, Alberto Dello

doi:10.22495/cocv14i1c4art14

Cited by 9 publications

(2 citation statements)

References 5 publications

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“…Only financial investors solely focus on dividends and share price appreciation. All other things being equal, the investors who expect additional benefits from holding shares, called private benefits of control and the socio-emotional benefits by Tiscini and Dello Strologo (2016), are willing to pay a higher price than that indicated by the valuation models, which are the benchmark for the financial investor. This leads to: H1.…”

Section: Company Valuation Modelsmentioning

confidence: 99%

Market valuation and risk profile of listed European football clubs

Prigge

Tegtmeier

2019

SBM

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Purpose The purpose of this paper is to explore whether stocks in football clubs are valued in line with the valuation of other capital assets in the capital market. Moreover, it analyzes the risk profile of football stocks. By taking this perspective, the paper also contributes to the discussion on the motives of those who invest in football clubs, particularly the question of whether they expect extra benefits, i.e., in addition to dividends and share price appreciation, from the investments. Design/methodology/approach The empirical study analyzes the share prices of 19 listed European football clubs from January 2010 to December 2016. Building on the capital asset pricing model, the authors used Zellner’s (1962) seemingly unrelated regressions. Findings The results indicate that the majority of the football clubs in the sample are overvalued. This implies that investments in football stocks are mainly attractive for those investors who expect to derive extra benefits from their investment. That might be likely for strategic, patron and fan investors, but not for purely financial investors. Research limitations/implications As a next step, more advanced factor models could be applied to the analysis. Practical implications For investors, the results imply that portfolio diversification is particularly beneficial while buying football stocks. For football clubs, the rather low general market risk, combined with the overvaluation, leads to low equity costs when new shares are issued. Originality/value The results suggest that dividends and share price appreciation are not the only benefits football stock owners derive from the stocks, thus underlining that further investigations in their motives to hold football stocks are very promising.

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Section: Company Valuation Modelsmentioning

confidence: 99%

Market valuation and risk profile of listed European football clubs

Prigge

Tegtmeier

2019

SBM

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“…This result is consistent with the research of Mirzaei et al (2018). In fact, players are one of the assets of clubs, which on the one hand affect the value of clubs and on the other hand improve sports performance and success, which in turn attracts more fame and fans and revenue from ticket sales, television broadcasting rights, financial support, and business increases (Tiscini & Strologo, 2016). The success of a professional club hinges largely on its ability of assembling the best team.…”

Section: Discussionmentioning

confidence: 99%

To Win or Not to Win: How to Success in the Asian Champions League

2022

CCD

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In professional sports, predicting success factors is very vital and important and is always questionable. The failure of teams in the leagues has been a constant issue and progress and gaining status has been a challenge for all clubs; and managers, officials, sports federations and clubs, and even researchers, are trying to shed light on the various dimensions of this issue. The purpose of this study was providing a model of predicting the success of football clubs in the Asian Champions League. The present study is descriptive-correlational. Seven Asian countries that won the Asian Champions League (ACL) were analyzed between 2014 and 2019. At the level of descriptive statistics, mean and standard deviation, and at the level of inferential statistics, because the response variable (success) was a qualitative variable, the logistic regression model was used. Data analysis was performed using SPSS software. Findings showed that 80% of the success of clubs in the ACL is correctly identified using the research model and foreign players, the average value of each player, the total value of the club and the number of players in a team have a positive impact on the success of football clubs. The age of the players has a negative effect, in other words, the lower average age can contribute to the success of football clubs. Therefore, these factors are considered as a comparative advantage for the success of clubs and managers and stakeholders are suggested to put the necessary planning and investment on their agenda to achieve these things.

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Exploring new trends of sport business: Japanese companies’ investment in ownership of foreign football clubs

Marín

Lee

2020

Sport in Society

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What drives the value of football clubs: An approach based on private and socio-emotional benefits

Cited by 9 publications

References 5 publications

Market valuation and risk profile of listed European football clubs

Market valuation and risk profile of listed European football clubs

To Win or Not to Win: How to Success in the Asian Champions League

Exploring new trends of sport business: Japanese companies’ investment in ownership of foreign football clubs

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