Soccer Sponsor: Fan or Businessman?

13 Pages Posted: 3 Mar 2014

See all articles by Iuliia Naidenova

Iuliia Naidenova

National Research University Higher School of Economics

Petr Parshakov

National Research University Higher School of Economics

Alexey Chmykhov

National Research University Higher School of Economics

Date Written: March 3, 2014

Abstract

This paper investigates how soccer sponsorship influences the financial performance of sponsors. We use an instrumental variable regression framework combined with a fixed effects model to avoid the possible endogeneity raised by omitted variables and reverse causality. The number of tweets containing both team and sponsor names were collected to use as the instrumental variable. Top European leagues were analyzed. Our results show that soccer sponsorship is more charity than commercial investment. Shareholders should be aware of sponsorship deals, and senior management should analyze the financial assumptions of cash flow forecasting for such projects carefully.

Keywords: soccer, sponsorship, instrumental variable, twitter

JEL Classification: L83; O16

Suggested Citation

Naidenova, Iuliia and Parshakov, Petr and Chmykhov, Alexey, Soccer Sponsor: Fan or Businessman? (March 3, 2014). Higher School of Economics Research Paper No. WP BRP 28/FE/2014, Available at SSRN: https://ssrn.com/abstract=2403716 or http://dx.doi.org/10.2139/ssrn.2403716

Iuliia Naidenova (Contact Author)

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Petr Parshakov

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Alexey Chmykhov

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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