Fan Involvement and Unusual Investor Behavior: Evidence from a Football Fan Bond

Daniel Weimar and Alexander Fox

Sport clubs offer marginal substitutable services and thus achieve strong emotional ties with their customers and fans. If sport clubs need financial support from their fans via a bond, the behavior of these investors might differ from that of less tied-in bond investors. The degree of fan involvement might be a decisive factor. Therefore, we use survey data obtained during a football club bond issue. We find correlations suggesting that fan bond investors with a higher fan involvement have a higher probability of investing as well as a greater tendency toward unusual investment behavior. The results are of relevance to sport managers when planning the issue of a bond.

JEL classification: G12, G30, G40, L83, Z23

http://doi.org/10.32731/IJSF/161.022021.02