Year of Graduation
Evaluating Companies’ Investing in Sponsorship
My article presents a study about the impact of investments in a football clubs on companies’ revenue and market capitalization. Sponsorship of football clubs is growing rapidly in the past decade, attracting more investors. Nevertheless, the majority of foreign authors still considers financial platform of sports teams rather young and underdeveloped. This work shows whether sponsors of football teams are rational in investment enlargements in this area. Is there any reason to continue to invest in such projects? All calculations are carried out on the data of 80 European clubs and their title sponsors for the period from 2001 to 2012. Regression analysis shows that the fact of sponsorship has a positive effect on the financial performance of corporations, as well as the case that clubs of the major leagues in Europe are in the highest priority due to greater returns. Companies aspire to invest in the most popular football clubs, so the teams have an incentive to achieve awards and then to sign contracts that are more favorable. In further studies of the topic, it is necessary to identify the place of the advertising through logos on players sportswear among all advertising carried out by a company, therefore, to identify the importance of investments just in football projects.