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on Sports and Economics |
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Issue of 2013‒01‒07
three papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Sébastien SOULEZ; (CEREFIGE - Université de Lorraine (France)); ; |
| Abstract: | The aim of this paper is to measure the relationship between sports sponsorship announcements and the stock prices of sponsors. The results of an event study show that, overall, the announcement of a sponsorship agreement, as well as the announcement of the non-renewal of a sponsorship agreement, do not significantly affect the stock prices of sponsors. However, the announcement of a sponsorship agreement with a sports team generates abnormal returns of 1.60% over the [-5; 5] window while the announcement of a sponsorship agreement for an event generates abnormal returns of -0.48% over the [0; 1] window. The results also show that the sponsorship of sports with a good image (rugby, sailing) generates positive abnormal returns while the sponsorship of sports with a poor image (football, cycling) results in negative abnormal returns. Finally, a strategy of single-sport sponsorship is valued by the market (RAMC of 1.09% on the [-5, 5] window). These findings, which deepen and sometimes challenge the results of previous research, can discuss the effectiveness of sports sponsorship from a financial point of view. |
| Keywords: | sports sponsorship, sports marketing, event studies, stock prices, financial value of marketing. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:fie:wpaper:1204&r=spo |
| By: | Peeters T.; Szymanski, S. |
| Abstract: | In 2010 UEFA, the governing body of European soccer, announced a set of financial restraints, that clubs must observe when seeking to enter its competitions, notably the UEFA Champions League. We characterize these “Financial Fair Play” (FFP) regulations as a form of vertical restraint and assess their impact on the intensity of competition in the English Premier League. We build a structural empirical model to show that introducing FFP would substantially reduce competition, resulting in lower average payrolls, while average revenues would hardly be affected. Depending on the exact regime, wage to turnover ratios would decline by 8% to 15%. |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:ant:wpaper:2012028&r=spo |
| By: | Tainsky, Scott; Mills, Brian; Winfree, Jason A. |
| Abstract: | We address potential racial bias by Major League Baseball umpires with respect to ball-strike calls. We offer a number of econometric specifications to test the robustness of the results, adding the role of implicit and explicit monitoring as well as pitch location. Our analysis shows mixed results regarding the matching of umpire and pitcher race. We conclude that evidence of own race bias is sensitive to specification and methodology. How results can differ based on different data sets, specifications, time periods and race classifications are discussed. |
| Keywords: | Discrimination; Race; Baseball; Monitoring |
| JEL: | J71 |
| Date: | 2012–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43234&r=spo |