Social and Behavioral Sciences Commons^™

A Dichotomy Of Sport Sponsorships: Does The Nature Of Competition Among Sponsors Matter?, Thomas Doellman, Brian Walkup, Adrien Bouchet, Brian Chabowski

Faculty Publications

In this paper, we argue that the firm value implications of sport sponsorships for sponsors may depend on the competitive environment during the bidding process for different types of sponsorships. More specifically, we contend that the bidding environment for professional football (soccer) kit sponsorships represents a form of common value auction, while the bidding environment for corporate logo sponsorships on teams’ shirts does not. As common value auctions are prone to winner’s curse, the firm value implications should be different for kit sponsorship announcements than for shirt sponsorship announcements. Our results suggest that shareholders indeed perceive the value derived from …