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Do Football Clubs Benefit from Initial Public Offerings?


  • Dirk G. Baur

    () (University of Technology, Sydney)

  • Conor McKeating

    () (Dublin City University)


This study analyzes the effects of initial public offerings (IPO) on the performance of European football clubs. We use a unique panel dataset consisting of domestic and international performance data to investigate a football club’s on-field performance before and after going public. The study finds that the performance of football clubs does not improve on average with or after an IPO. Only football clubs in lower divisions benefit from a stock market listing. At the international level, there is no evidence of an improved performance associated with the IPO. The findings are consistent with shareholder ownership imposing tacit restrictions towards excessive debt and investments.

Suggested Citation

  • Dirk G. Baur & Conor McKeating, 2011. "Do Football Clubs Benefit from Initial Public Offerings?," International Journal of Sport Finance, Fitness Information Technology, vol. 6(1), pages 40-59, February.
  • Handle: RePEc:jsf:intjsf:v:6:y:2011:i:1:p:40-59

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    References listed on IDEAS

    1. Fama, Eugene F & Jensen, Michael C, 1983. "Agency Problems and Residual Claims," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 327-349, June.
    2. Helmut M. Dietl & Egon Franck, 2007. "Governance Failure and Financial Crisis in German Football," Journal of Sports Economics, , vol. 8(6), pages 662-669, December.
    3. Egon Franck & Stephan Nüesch, 2012. "Talent And/Or Popularity: What Does It Take To Be A Superstar?," Economic Inquiry, Western Economic Association International, vol. 50(1), pages 202-216, January.
    4. Helmut M. Dietl & Egon Franck & Markus Lang, 2008. "Overinvestment In Team Sports Leagues: A Contest Theory Model," Scottish Journal of Political Economy, Scottish Economic Society, vol. 55(3), pages 353-368, July.
    5. Leif Brandes & Egon Franck & Stephan Nuesch, 2006. "Local Heroes and Superstars - An Empirical Analysis of Star Attraction in German Soccer," Working Papers 0046, University of Zurich, Institute for Strategy and Business Economics (ISU), revised 2007.
    6. Egon Franck & Carola Jungwirth, 2002. "Reconciling investors and donators - The governance structure of open source," Working Papers 0008, University of Zurich, Institute for Strategy and Business Economics (ISU).
    7. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    8. Alchian, Armen A. & Demsetz, Harold, 1973. "The Property Right Paradigm," The Journal of Economic History, Cambridge University Press, vol. 33(01), pages 16-27, March.
    9. Helmut Dietl & Egon Franck & Patrick, 2003. "Überinvestitionsprobleme in einer Sportliga," Working Papers 0020, University of Zurich, Institute for Strategy and Business Economics (ISU).
    10. Whitney, James D, 1993. "Bidding Till Bankrupt: Destructive Competition in Professional Team Sports," Economic Inquiry, Western Economic Association International, vol. 31(1), pages 100-115, January.
    11. George Akerlof, 1976. "The Economics of Caste and of the Rat Race and Other Woeful Tales," The Quarterly Journal of Economics, Oxford University Press, vol. 90(4), pages 599-617.
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    Cited by:

    1. Marc Rohde & Christoph Breuer, 2016. "Europe’s Elite Football: Financial Growth, Sporting Success, Transfer Investment, and Private Majority Investors," International Journal of Financial Studies, MDPI, Open Access Journal, vol. 4(2), pages 1-20, June.
    2. Teodor Dima, 2015. "Manchester United’S Ipo (2012)," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 65-71, February.
    3. Stephen Morrow, 2014. "Football finances," Chapters,in: Handbook on the Economics of Professional Football, chapter 6, pages 80-99 Edward Elgar Publishing.

    More about this item


    football; financial markets; initial public offerings; panel data;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism


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