Football Player Acquisitions
Abstract: The previous decade has experienced a large increase in football player transfer fees, more than quadrupling for the top five European Leagues. In light of this development, our the-sis examines the effect on share prices of the top four publicly listed football clubs, follow-ing the announcement of a new player purchase during the period of 2009-2019. In line with the selected top clubs´ strong brands and high investor expectations, we hypothesise that in contrast to previous findings, the abnormal returns ought to be positive when solely investigating top ranked clubs. By conducting an event study on 174 player purchases, we find empirical support for positive abnormal returns five days post an announcement. Complemented by a Spearman´s rank correlation test, we present strong empirical support of a positive interrelatedness between transfer fee expenditures and commercial revenues. Overall, the results indicate different outcomes when solely examining more equal clubs compared to addressing a larger sample as in previous literature.
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