Impact of big match results on stock market value of principal sponsor.

By: Aayush Srivastava, Veldi Sushruth, E Akarsh Reddy

Disclaimer:

This study is meant for the sole purpose of analysis. This is NOT financial advice and cannot be interpreted as such under any circumstance. Neither the author(s) nor the contributor(s) will be responsible under any circumstance for any losses incurred by any individual, business, organization, partnership, company, society or any other third party. The values has been taken from reputable sources on the internet believed to be true, we wont be responsible for any data inconsistencies or misinformation. We have considered the matches that we perceived to be important. The results are primarly based on visual reference.

Brief:

We all know and love the beautiful game including us. Fortunately we also have a passion for the stock markets. And sitting in home during the Covid-19 pandemic we decided to find if there exists any relation between the two. Hence we decided to perform a simple study: Do the results of big football matches have an impact on the stock market value of principal sponsor?

Abstract:

Although we performed this study with high hopes of finding a positive relation between the result of the matches and variations in stock prices of principal sponsor, unfortunately we conclude that no such relationship exists neither positive nor negative, the variations seem to be influenced by other major factors beyond the scope of this study. Although we didn't find a relation between the match result and stock market value of the sponsor, we did find a possible relation between them before the match day.(This is just a hypothesis further research required to reach a conclusion.)

Analysis:

Loading and processing data:

In [1]:
import numpy as np
import pandas as pd
import matplotlib.pyplot as plt
In [2]:
rise=[0,0]
#This variable keeps a track if a temporary bubble is created after the match index 0 corresponds to false and index 1 corresponds to true
In [3]:
data=pd.read_excel('D:\Data Analysis\Football-Market 1\Football data.xlsx',sep='\s*,\s*')
data=data.dropna()
data['Id']=data.reset_index().index
data.head()
Out[3]:
Date Game Name Club Country Brand Share Name Value prior (2 days) On game day (current) Value for ST (2 days) Value for LT (7-9days) Currency Id
1 2019-09-19 UCL PSG France Accor Live Limitless Accor SA 38.97 39.70 38.90 38.37 EUR 0
2 2019-10-02 UCL Bayern Munich Germany Deutsche Telekom Deutsche Telekom AG (DTE.DE) 15.39 15.05 15.13 15.46 EUR 1
4 2019-11-27 UCL Juventus Italy Jeep Fiat Chrysler Automobiles N.V. (FCA.MI) 13.59 13.61 13.42 13.15 EUR 2
5 2019-11-28 UCL Barcelona Spain Rakuten Rakuten Inc 8.59 8.60 8.49 8.46 USD 3
6 2020-02-19 UCL Dortmund(BVB) Germany Evonik Evonik Industries AG (EVK.DE) 26.97 26.85 26.85 23.35 EUR 4

Helper functions:

In [4]:
x=['2 days prior','Match day','2 days after','Long Term Value']
def draw(i):
    plt.plot(x,data.iloc[i][6:10])
    plt.title('Plot')
    plt.ylabel('Values')
    plt.xlabel('Time')
    info(i)
In [5]:
def info(i):
    d=data.iloc[i]
    print('       Date: '+str(d['Date']).split()[0])
    print('       Club: '+d['Club'])
    print(' Share Name: '+d['Share Name'])
    print('   Currency: '+d['Currency'])

Visual Analysis:

In [6]:
draw(0)
       Date: 2019-09-19
       Club: PSG
 Share Name: Accor SA
   Currency: EUR

Analysis: No rise observed.

In [7]:
rise[0]+=1
In [8]:
draw(1)
       Date: 2019-10-02
       Club: Bayern Munich
 Share Name: Deutsche Telekom AG (DTE.DE)
   Currency: EUR

Analysis: Rise observed.

In [9]:
rise[1]+=1
In [10]:
draw(2)
       Date: 2019-11-27
       Club: Juventus
 Share Name: Fiat Chrysler Automobiles N.V. (FCA.MI)
   Currency: EUR

Analysis: No rise observed.

In [11]:
rise[0]+=1
In [12]:
draw(3)
       Date: 2019-11-28
       Club: Barcelona
 Share Name: Rakuten Inc
   Currency: USD

Analysis: No rise observed.

In [13]:
rise[0]+=1
In [14]:
draw(4)
       Date: 2020-02-19
       Club: Dortmund(BVB)
 Share Name: Evonik Industries AG (EVK.DE)
   Currency: EUR

Analysis: No rise observed.

In [15]:
rise[0]+=1
In [16]:
draw(5)
       Date: 2020-03-12
       Club: Atletico Madrid
 Share Name: Plus500 Ltd
   Currency: GBp

Analysis: No rise observed.

In [17]:
rise[0]+=1
In [18]:
draw(6)
       Date: 2020-08-15
       Club: Bayern Munich
 Share Name: Deutsche Telekom AG (DTE.DE)
   Currency: EUR

Analysis: No rise observed.

In [19]:
rise[0]+=1
In [20]:
draw(7)
       Date: 2018-10-23
       Club: Juventus
 Share Name: Fiat Chrysler Automobiles N.V. (FCA.MI)
   Currency: EUR

Analysis: Rise observed.

In [21]:
rise[1]+=1
In [22]:
draw(8)
       Date: 2018-11-06
       Club: Crvena zvezda
 Share Name: OGZPY
   Currency: USD

Analysis: No rise observed.

In [23]:
rise[0]+=1
In [24]:
draw(9)
       Date: 2018-11-07
       Club: Manchester Utd
 Share Name: General Motors Company (GM)
   Currency: USD

Analysis: No rise observed.

In [25]:
rise[0]+=1
In [26]:
draw(10)
       Date: 2018-11-28
       Club: Tottenham
 Share Name: AIA GROUP LTD (7A2.BE)
   Currency: EUR

Analysis: No rise observed.

In [27]:
rise[0]+=1
In [28]:
draw(11)
       Date: 2018-12-12
       Club: CSKA Moskva
 Share Name: Rosetti Marino SpA (YRM.MI)
   Currency: EUR

Analysis: No rise observed.

In [29]:
rise[0]+=1
In [30]:
draw(12)
       Date: 2018-12-12
       Club: Young Boys
 Share Name: OBI Pharma
   Currency: TWD

Analysis: Rise observed.

In [31]:
rise[1]+=1
In [32]:
draw(13)
       Date: 2019-05-01
       Club: Barcelona
 Share Name: Rakuten Inc
   Currency: USD

Analysis: Rise observed.

In [33]:
rise[1]+=1
In [34]:
draw(14)
       Date: 2019-05-07
       Club: Liverpool
 Share Name: Standard Chartered PLC (STAN.L)
   Currency: GBp

Analysis: No rise observed.

In [35]:
rise[0]+=1
In [36]:
draw(15)
       Date: 2019-05-08
       Club: Tottenham
 Share Name: AIA Group Ltd(1299.HK)
   Currency: HKD

Analysis: No rise observed.

In [37]:
rise[0]+=1
In [38]:
draw(16)
       Date: 2019-05-29
       Club: Chelsea
 Share Name: YOKOHAMA RUBBER (YRB.BE)
   Currency: EUR

Analysis: Rise observed.

In [39]:
rise[1]+=1
In [40]:
draw(17)
       Date: 2018-04-10
       Club: Liverpool
 Share Name: Standard Chartered PLC (STAN.L)
   Currency: GBp

Analysis: Rise observed.

In [41]:
rise[1]+=1
In [42]:
draw(18)
       Date: 2020-06-26
       Club: Chelsea
 Share Name: YOKOHAMA RUBBER (YRB.BE)
   Currency: EUR

Analysis: No rise observed.

In [43]:
rise[0]+=1
In [44]:
draw(19)
       Date: 2020-03-08
       Club: Manchester Utd
 Share Name: General Motors Company (GM)
   Currency: USD

Analysis: Rise observed.

In [45]:
rise[1]+=1
In [46]:
draw(20)
       Date: 2020-02-02
       Club: Tottenham
 Share Name: AIA GROUP LTD (7A2.BE)
   Currency: EUR

Analysis: Rise observed.

In [47]:
rise[1]+=1
In [48]:
draw(21)
       Date: 2019-10-24
       Club: Inter Milan
 Share Name: Pirelli & C. S.p.A. (PIRC.MI)
   Currency: EUR

Analysis: Rise observed.

In [49]:
rise[1]+=1
In [50]:
draw(22)
       Date: 2019-11-10
       Club: Liverpool
 Share Name: Standard Chartered PLC (STAN.L)
   Currency: GBp

Analysis: No rise observed.

In [51]:
rise[0]+=1
In [52]:
draw(23)
       Date: 2019-08-11
       Club: Manchester Utd
 Share Name: General Motors Company (GM)
   Currency: USD

Analysis: Rise observed.

In [53]:
rise[1]+=1
In [54]:
draw(24)
       Date: 2019-09-22
       Club: Inter Milan
 Share Name: Pirelli & C. S.p.A. (PIRC.MI)
   Currency: EUR

Analysis: No rise observed.

In [55]:
rise[0]+=1
In [56]:
draw(25)
       Date: 2020-06-20
       Club: Dortmund(BVB)
 Share Name: Evonik Industries AG (EVK.DE)
   Currency: EUR

Analysis: No rise observed.

In [57]:
rise[0]+=1
In [58]:
draw(26)
       Date: 2019-11-28
       Club: Schalke 04
 Share Name: OGZPY
   Currency: USD

Analysis: No rise observed.

In [59]:
rise[0]+=1
In [60]:
draw(27)
       Date: 2018-10-28
       Club: Barcelona
 Share Name: Rakuten Inc
   Currency: USD

Analysis: Rise observed.

In [61]:
rise[1]+=1
In [62]:
draw(28)
       Date: 2019-11-11
       Club: Marseille
 Share Name: Orange S.A. (ORA.PA)
   Currency: EUR

Analysis: Rise observed.

In [63]:
rise[1]+=1
In [64]:
draw(29)
       Date: 2019-02-21
       Club: Atletico Madrid
 Share Name: Plus500 Ltd
   Currency: GBp

Analysis: No rise observed.

In [65]:
rise[0]+=1
In [66]:
draw(30)
       Date: 2019-11-11
       Club: Juventus
 Share Name: Fiat Chrysler Automobiles N.V. (FCA.MI)
   Currency: EUR

Analysis: No rise observed.

In [67]:
rise[0]+=1
In [68]:
draw(31)
       Date: 2018-05-17
       Club: Atletico Madrid
 Share Name: Plus500 Ltd
   Currency: GBp

Analysis: Rise observed.

In [69]:
rise[1]+=1

Final Stats:

In [71]:
print('Rise occours:'+str(rise[1])+'/32')
print('Rise dose not occurs:'+str(rise[0])+'/32')
Rise occours:13/32
Rise dose not occurs:19/32

Result:

The price of the principal sponsor rises in about 59.3% of cases, and falls in about 40.6% of cases. The final stats suggest the there's no strong relation between the outcome of match and stock price of principal sponsor and the price depends on several other factors beyond the scope of this study.
Hence, we reject the hypothesis.