Football clubs’ social awareness as a leading strategy for performance: A fan token-based panel data analysis
This paper analyses the extent to which football clubs’ emotional value —fan token-based— is related to economic value—share-based. Specifically, this research investigates the relationship between fan tokens and stock prices in European football clubs, aiming to discern fan engagement’s impact on f...
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| Format: | Article |
| Language: | English |
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Universidad del País Vasco (UPV/EHU)
2025-03-01
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| Series: | Management Letters/Cuadernos de Gestión |
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| Online Access: | https://ojs.ehu.eus/index.php/CG/article/view/27433 |
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| _version_ | 1849389468337831936 |
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| author | Julen Castillo-Apraiz Raúl Gómez-Martínez Jesús Manuel Palma-Ruiz |
| author_facet | Julen Castillo-Apraiz Raúl Gómez-Martínez Jesús Manuel Palma-Ruiz |
| author_sort | Julen Castillo-Apraiz |
| collection | DOAJ |
| description | This paper analyses the extent to which football clubs’ emotional value —fan token-based— is related to economic value—share-based. Specifically, this research investigates the relationship between fan tokens and stock prices in European football clubs, aiming to discern fan engagement’s impact on financial market dynamics. We posit that fan token values are significantly linked to the valuation of clubs’ stocks. To assess this, a panel data analysis employing econometric models is conducted on six prominent football clubs that regularly participate in European competitions. The study period covers comprehensive data on fan token values and stock prices from 2022-2023. The findings reveal a positive and statistically significant correlation between fan token evolution and stock price movement. Individual ordinary least squares (OLS) regressions further confirm this trend. Moreover, a long/short strategy backtest emphasizes the substantial relationship between fan token evolution and stock performance. Hence, we demonstrate that clubs’ emotional perceptions —for which sustainability plays a key role— help predict clubs’ economic results. In other words, we demonstrate that being socially responsible is a strategy that could lead clubs to obtain a competitive advantage by improving fans’ perceptions, which in turn would have a positive impact on clubs’ performance. This study sheds light on the potential influence of fan engagement on football clubs’ financial market standing, offering insights crucial for stakeholders navigating the intersection of sports and finance. |
| format | Article |
| id | doaj-art-e938fed973934a78a8723ea7ff28769d |
| institution | Kabale University |
| issn | 1131-6837 1988-2157 |
| language | English |
| publishDate | 2025-03-01 |
| publisher | Universidad del País Vasco (UPV/EHU) |
| record_format | Article |
| series | Management Letters/Cuadernos de Gestión |
| spelling | doaj-art-e938fed973934a78a8723ea7ff28769d2025-08-20T03:41:57ZengUniversidad del País Vasco (UPV/EHU)Management Letters/Cuadernos de Gestión1131-68371988-21572025-03-01251375410.5295/cdg.242230jpFootball clubs’ social awareness as a leading strategy for performance: A fan token-based panel data analysisJulen Castillo-Apraiz0https://orcid.org/0000-0002-8362-4163Raúl Gómez-Martínez1https://orcid.org/0000-0003-3575-7970Jesús Manuel Palma-Ruiz2https://orcid.org/0000-0002-1039-6243Department of Financial Economics II (Economía de la Empresa y Comercialización), University of the Basque Country UPV/EHU, Calle Av. Lehendakari Aguirre 83, 48015 Bilbao (Spain)Departamento de Economía de la Empresa, Universidad Rey Juan Carlos, 28032 Madrid (Spain)Facultad de Economía Internacional, Universidad Autónoma de Chihuahua, 31000, Chihuahua (Mexico)This paper analyses the extent to which football clubs’ emotional value —fan token-based— is related to economic value—share-based. Specifically, this research investigates the relationship between fan tokens and stock prices in European football clubs, aiming to discern fan engagement’s impact on financial market dynamics. We posit that fan token values are significantly linked to the valuation of clubs’ stocks. To assess this, a panel data analysis employing econometric models is conducted on six prominent football clubs that regularly participate in European competitions. The study period covers comprehensive data on fan token values and stock prices from 2022-2023. The findings reveal a positive and statistically significant correlation between fan token evolution and stock price movement. Individual ordinary least squares (OLS) regressions further confirm this trend. Moreover, a long/short strategy backtest emphasizes the substantial relationship between fan token evolution and stock performance. Hence, we demonstrate that clubs’ emotional perceptions —for which sustainability plays a key role— help predict clubs’ economic results. In other words, we demonstrate that being socially responsible is a strategy that could lead clubs to obtain a competitive advantage by improving fans’ perceptions, which in turn would have a positive impact on clubs’ performance. This study sheds light on the potential influence of fan engagement on football clubs’ financial market standing, offering insights crucial for stakeholders navigating the intersection of sports and finance.https://ojs.ehu.eus/index.php/CG/article/view/27433fan tokensfootball clubsstock pricessocially responsible investingcorporate social responsibilitypanel data analysis |
| spellingShingle | Julen Castillo-Apraiz Raúl Gómez-Martínez Jesús Manuel Palma-Ruiz Football clubs’ social awareness as a leading strategy for performance: A fan token-based panel data analysis Management Letters/Cuadernos de Gestión fan tokens football clubs stock prices socially responsible investing corporate social responsibility panel data analysis |
| title | Football clubs’ social awareness as a leading strategy for performance: A fan token-based panel data analysis |
| title_full | Football clubs’ social awareness as a leading strategy for performance: A fan token-based panel data analysis |
| title_fullStr | Football clubs’ social awareness as a leading strategy for performance: A fan token-based panel data analysis |
| title_full_unstemmed | Football clubs’ social awareness as a leading strategy for performance: A fan token-based panel data analysis |
| title_short | Football clubs’ social awareness as a leading strategy for performance: A fan token-based panel data analysis |
| title_sort | football clubs social awareness as a leading strategy for performance a fan token based panel data analysis |
| topic | fan tokens football clubs stock prices socially responsible investing corporate social responsibility panel data analysis |
| url | https://ojs.ehu.eus/index.php/CG/article/view/27433 |
| work_keys_str_mv | AT julencastilloapraiz footballclubssocialawarenessasaleadingstrategyforperformanceafantokenbasedpaneldataanalysis AT raulgomezmartinez footballclubssocialawarenessasaleadingstrategyforperformanceafantokenbasedpaneldataanalysis AT jesusmanuelpalmaruiz footballclubssocialawarenessasaleadingstrategyforperformanceafantokenbasedpaneldataanalysis |