Articles in this issue:

• The Effects of (Un)Expected Match Outcomes on Stock Return: A Case Study of Borussia Dortmund

  Bernd Frick and Dirk Semmelroth

  We analyze the nature of stock price reactions of Borussia Dortmund, the only publicly traded soccer club in Germany, following domestic league and international matches over an extended period of time. Our results suggest that abnormal returns vary with the match result, the match venue, the competition type, bookmakers’ expectations, and the importance of the Bundesliga match. Although our results confirm the evidence presented in previous studies, they are surprising insofar as the legal form of Borussia Dortmund GmbH & Co. KGaA—a mixture of a stock company (AG) and a limited...Read more

• Sports Betting and The Black-Litterman Model: A New Portfolio-Management Perspective

  Isabel Abinzano

  Maria Jesus Campion

  Luis Muga

  and Armajac Raventós-Pujol

  This paper transfers and adapts the Black-Litterman portfolio management model and its subsequent generalizations to the characteristics and specificities of assets quoted on sports betting markets. The results show that these assets are suitable for the application of portfolio management models with the possible inclusion of investors’ opinions. Information based on the variability of market prices and the attention received by NBA teams in Google Trends is successfully used to simulate the opinions expressed by a hypothetical portfolio manager. Furthermore, the assets are suitable for...Read more

• Domestic League Competitive Balance and UEFA Performance

  Craig A. Depken II and Tomislav Globan

  This paper investigates the relationship between European football league competitive balance and the performance of that league’s participants in UEFA competitions. The evidence suggests that competitive balance measured using performance points fits the performance coefficients of countries participating in the Champions League and Europa League and that a reciprocal model fits the data best. The evidence suggests that marginal improvements in competitive balance can lead to increase of one-third a win for a league’s participants in the Champions League. The increased rewards for UEFA...Read more

• Player Pricing Mechanisms and the Daily Fantasy Sport Chance Versus Skill Debate

  Jeremy M. Losak

  Differentiating and defining games of skill versus chance have major legal implications when classifying gambling, especially in relation to daily fantasy sports in the United States. This paper provides a theoretical discussion and introduces an empirical approach to analyzing game player pricing mechanisms. If game pricing mechanisms are fully efficient—player prices fully reflect the expected contributions from players—then that game is one of chance since there is no opportunity for skill to play a role in outcomes. This paper examines player prices from DraftKings’ daily fantasy...Read more