Researcher ORCID Identifier
0009-0001-3767-5226
Graduation Year
2024
Date of Submission
4-2024
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Richard Burdekin
Terms of Use & License Information
Rights Information
©2024 Henrik D Stromback
Abstract
This study examines the impact of transfer spending on international players on the firm value of publicly listed European football clubs from 2009 to 2023, utilizing a panel data analysis of 13 firms. Results indicate no significant relationship between transfer spending on international players and a club’s winning percentage or annual stock returns. However, a statistically significant relationship was found between transfer spending on international players and a club’s annual total revenue and gross profit. Namely, if a firm increases transfer spending on international players by 10%, gross profit increases by $1.56M in the same year and $1.14M in the following year. Typically investing in international players is riskier as a result of their higher cost, but the research highlights the financial benefits of strategic investment in international talent.
Recommended Citation
Stromback, Henrik, "Sports finance, revenues, gross profits, sport performance, publicly listed football clubs, transfer spending, international players" (2024). CMC Senior Theses. 3702.
https://scholarship.claremont.edu/cmc_theses/3702
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.
