The impact of football games and sporting performance on intra-day fan token returns

This study undertakes an in-depth examination of how football matches and related sporting performance influence the intraday financial performance of corresponding blockchain-based fan tokens. Utilizing an event study encompassing eight distinct fan tokens and 325 football matches, we find a statistically significant average decline of 0.8% in fan token returns during the course of a football match, which subsequently decreases by an additional 0.7% in the post-match phase. Notably, a “loss effect” is identified, where the market reaction to losses is larger compared to wins. Furthermore, our study reveals large abnormal trading volumes before games, most prominently before UEFA Champions League matches, indicating anticipatory market behaviors. Further analysis establishes that abnormal fan token returns are impacted by various match-specific characteristics, such as the game outcome and form, predominantly before and during the match but not after. This distinct correlation between football games, sporting performance, and fan token returns has implications for a wide array of stakeholders and may suggest a challenge for investor (consumer) protection.