IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-04140902.html
   My bibliography  Save this paper

Floating European football clubs in the stock market

Author

Listed:
  • Michel Aglietta

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Wladimir Andreff
  • Bastien Drut

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

Abstract

Since the first initial public offering of a European football (soccer) club in 1983, more than forty other clubs have experienced a venture in the stock market. In this paper, it is investigated how much relevant and successful these experiences of listing and floating football clubs at the stock exchange have been. First, by showing that investing in the Dow Jones StoXX Football index is of little attractiveness in the perspective of an investor's efficient overall asset allocation. Then in examining the determinants of a football club's fair value and the relationship between stock performances and sporting results. Finally, an approach (alternative to the Anglo-American model of capitalism) of corporate governance, based on the concept of a soft budget constraint, is applied to European football clubs taking stake of their lasting financial deficits and debts. This alternative theoretical approach paves the way for an empirical testing of a vicious circle between negotiating higher TV rights revenues and player wage inflation.

Suggested Citation

  • Michel Aglietta & Wladimir Andreff & Bastien Drut, 2010. "Floating European football clubs in the stock market," Working Papers hal-04140902, HAL.
  • Handle: RePEc:hal:wpaper:hal-04140902
    Note: View the original document on HAL open archive server: https://hal.science/hal-04140902
    as

    Download full text from publisher

    File URL: https://hal.science/hal-04140902/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gennotte, Gerard & Leland, Hayne, 1990. "Market Liquidity, Hedging, and Crashes," American Economic Review, American Economic Association, vol. 80(5), pages 999-1021, December.
    2. J. Kornai & E. Maskin & G. Roland, 2004. "Understanding the Soft Budget Constraint," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 11.
    3. Renneboog, L.D.R. & Vanbrabant, P., 2000. "Share Price Reactions to Sporty Performances of Soccer Clubs listed on the London Stock Exchange and the AIM," Other publications TiSEM 0907f95d-bfed-4fe9-a13d-f, Tilburg University, School of Economics and Management.
    4. Renneboog, L.D.R. & Vanbrabant, P., 2000. "Share Price Reactions to Sporty Performances of Soccer Clubs listed on the London Stock Exchange and the AIM," Other publications TiSEM 0907f95d-bfed-4fe9-a13d-f, Tilburg University, School of Economics and Management.
    5. Umberto Lago & Rob Simmons & Stefan Szymanski, 2006. "The Financial Crisis in European Football," Journal of Sports Economics, , vol. 7(1), pages 3-12, February.
    6. J. Kornai & E. Maskin & G. Roland., 2004. "Understanding the Soft Budget Constraint," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 12.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Do professional sports teams belong on the stock market?
      by Economic Logician in Economic Logic on 2011-01-14 21:19:00

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carlos Pestana Barros & Gaël Bertrand & Laurent Botti & Scott Tainsky, 2014. "Cost efficiency of French rugby clubs," Applied Economics, Taylor & Francis Journals, vol. 46(23), pages 2721-2732, August.
    2. Teodor Dima, 2015. "Manchester United’S Ipo (2012)," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 65-71, February.
    3. Ferreira, Paulo & Loures, Luís & Nunes, José Rato & Dionísio, Andreia, 2017. "The behaviour of share returns of football clubs: An econophysics approach," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 472(C), pages 136-144.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Antonio Samagaio & Eduardo Couto & Jorge Caiado, 2009. "Sporting, financial and stock market performance in English football: an empirical analysis of structural relationships," CEMAPRE Working Papers 0906, Centre for Applied Mathematics and Economics (CEMAPRE), School of Economics and Management (ISEG), Technical University of Lisbon.
    2. Koethenbuerger, Marko, 2008. "Federal tax-transfer policy and intergovernmental pre-commitment," Regional Science and Urban Economics, Elsevier, vol. 38(1), pages 16-31, January.
    3. Palomino, F.A. & Renneboog, L.D.R. & Zhang, C., 2005. "Stock Price Reactions to Short-Lived Public Information : The Case of Betting Odds," Other publications TiSEM 059428e3-2ed6-42e2-8d3c-2, Tilburg University, School of Economics and Management.
    4. Maria Fotaki & Apostolos Kourtis & Raphael Markellos, 2023. "Human resources turnover as an asset acquisition and divestiture process: Evidence from the U.K. football industry," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 2696-2711, July.
    5. Andrea Schertler & Jarmo Beurden, 2023. "How relative competitive strength moderates stock price responses after European soccer tournaments," Journal of Business Economics, Springer, vol. 93(8), pages 1385-1414, October.
    6. Aurélien François & Nadine Dermit-Richard & Daniel Plumley & Robert Wilson, 2021. "Analyzing the effectiveness of UEFA's financial fair play regulations: A comparative study of the French Ligue 1 and the English Premier League [L'analyse du fair-play financier au prisme de son ef," Working Papers hal-03167685, HAL.
    7. Nyberg, Sten & Priks, Mikael, 2017. "Public order and private payments: Evidence from the Swedish soccer league," Journal of Public Economics, Elsevier, vol. 153(C), pages 1-8.
    8. Palomino, F.A. & Renneboog, L.D.R. & Zhang, C., 2008. "Information Salience, Investor Sentiment, and Stock Returns : The Case of British Soccer Betting," Other publications TiSEM 91f34e3c-7702-4ab3-bf1d-7, Tilburg University, School of Economics and Management.
    9. Giampiero Maci & Vincenzo Pacelli & Elisabetta D'Apolito, 2021. "Societ〠Di Calcio Europee Quotate E Mercati Finanziari: Un'Analisi Empirica Sulle Determinanti Dei Corsi Azionari," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 17(2), pages 69-90, novembre.
    10. Celine Gimet & Sandra Montchaud, 2016. "What Drives European Football Clubs’ Stock Returns and Volatility?," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 23(3), pages 351-390, September.
    11. Roberto Gásquez & Vicente Royuela, 2014. "Is Football an Indicator of Development at the International Level?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(3), pages 827-848, July.
    12. Robert Ślepaczuk & Igor Wabik, 2020. "The impact of the results of football matches on the stock prices of soccer clubs," Working Papers 2020-35, Faculty of Economic Sciences, University of Warsaw.
    13. Andreef, Wladimir (Андрефф, Владимир), 2016. "French professional football in European context: how much different? [Французский Профессиональный Футбол В Европейском Контексте: Насколько Велики Отличия?]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 3, pages 108-137, June.
    14. Vahabi, Mehrdad, 2011. "Soft budget constraint and the parastatal sector," MPRA Paper 37926, University Library of Munich, Germany.
    15. Robin Boadway & Jean-François Tremblay, 2006. "A Theory of Fiscal Imbalance," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 62(1), pages 1-27, March.
    16. Zhang, Yue, 2025. "Debt distribution and ESG performance: Evidence from Chinese listed companies," Research in International Business and Finance, Elsevier, vol. 73(PA).
    17. Palomino, Frederic & Renneboog, Luc & Zhang, Chendi, 2009. "Information salience, investor sentiment, and stock returns: The case of British soccer betting," Journal of Corporate Finance, Elsevier, vol. 15(3), pages 368-387, June.
    18. Saggu, Aman & Ante, Lennart & Demir, Ender, 2024. "Anticipatory gains and event-driven losses in blockchain-based fan tokens: Evidence from the FIFA World Cup," Research in International Business and Finance, Elsevier, vol. 70(PA).
    19. Pedro Godinho & Pedro Cerqueira, 2018. "The Impact of Expectations, Match Importance, and Results in the Stock Prices of European Football Teams," Journal of Sports Economics, , vol. 19(2), pages 230-278, February.
    20. Hámori, Balázs, 2012. "Kornai János válogatott művei sorozat a pozsonyi Kalligram kiadásában [The series of selected works of János Kornai published by Kalligram of Bratislava]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 220-228.

    More about this item

    Keywords

    [No keyword available];

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • Z19 - Other Special Topics - - Cultural Economics - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-04140902. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.