Football teams in stock market: litterature review

Résumé du document

Ce document est une revue de littérature de mémoire, qui répond à la problématique suivante : in a diversified portfolio, what is the impact of football stocks of France, Germany, Italia on the risk adjusted return?

Voici le plan de ce texte :

Introduction :
1. Some characteristics of the business model of European football

2. Efficiency of football clubs on the stock market
2.1 Advantages of being publicly traded
2.2 Financial efficiency on the football stock market
2.21 Overview of the English football club's listed on the stock market
2.22 Overview and performance of the DJ Stoxx Football Index
2.3 Factors determining the stock price: sport performance

Conclusion

Extraits

[...] & Szymanski, S. (2006), "Team sports and finance" in Andreff, W. & Szymanski, S. Handbook on the Economics of Sport, Edward Elgar, Cheltenham, UK and Northampton, MA, USA, pp. 689-699. Andreff, W. (2017),"Le modèle économique du football européen", Pôle Sud, 41-59. Baroncelli, A. & Lago, U. (2006), "Italian football", Journal of sports economics 3-28. Baur, D.G & McKeating, C. (2009), The Benefits of Financial Markets: A Case Study of European Football Clubs, The Institute for International Integration Studies Discussion Paper Series. [...]

[...] It is interesting to notice that the financial size of football clubs in the stock market is too small compared to the global capital markets. Indeed, market capitalization is really low on this market. According to Aglietta, Andreff and Drut (2010), Galatasaray had in September 2010 the most important market capitalization in this index (Euro72 million). As a result, the football stock market presents a low attractiveness for institutional investors. The financial size of football clubs in the stock market is extremely small ( of the Dow Jone EurostoXX 50 market value the 1st September 2010) when compared to global capital markets. [...]

[...] Rosen, S. & Sanderson, A. (2001), Labour markets in professional sports, The Economic Journal 47-68. Samagaio, A., Couto, E. & Caiada, J. (2009), Sporting, financial and stock market performance in English football: an empirical analysis of structural relationships, CEMAPRE Working Papers. Stadtmann G. (2006) Frequent news and pure signals: the case of a publicly traded football club. [...]

[...] Moreover, returns on football shares are unstable. Finally, football index is uncorrelated with the stock and bond index According to this descriptive analysis, these three authors argue that institutional investors are not attracted in publicly traded football clubs. Chart 1. Overall returns, comparison between the three indexes, January 1991 - September 2009 Source: Aglietta, Andreff and Drut (2010, p. Different causes can explain the bad performance of the DJ StoXX Football Index. First, the overall turnover of football shares is very low; some stocks are not even traded during a long period of time. [...]

[...] Indeed, most football club shares tend to be thinly traded. For most listed clubs, days when there is no movement in the quoted share price, occur frequently. In the English case, that we focus below, Manchester Utd is the only one for which the market is sufficiently liquid, so that share price daily fluctuates 2.21 Overview of the English football club's listed on the stock market The first initial public offering of a European football club Tottenham Hotspur in October 1983; then, Millwall (October 1989) and Manchester United in October 1991. [...]