The Determinants of Prices of Fan Tokens as a New Sports Finance Tool

Year 2024, Volume: 24 Issue: 2, 221 - 232, 25.05.2024

Ersin Kanat Emrah Öget Ferudun Kaya

https://doi.org/10.21121/eab.1309596

Abstract

In the Covid-19 era, the income sources of sports clubs decreased, but the importance of fan tokens as new communication, management, and income source for sports clubs increased with Blockchain technology. For this reason, the relationships between fan token prices and club success, transaction volume, and attractiveness factors were examined and the important determinants of fan token prices were tried to be revealed. To determine the most suitable methods for panel data model, first of all, cross-section dependence, homogeneity, and unit root tests were carried out. Then the durbin test was performed and it was concluded that the variables were cointegrated. Finally, the coefficients were examined with the PMG/ARDL test and it was observed that the most important determinants of fan token prices were club success and transaction volume, respectively. While these factors affect fan token prices positively, the effect of the attractiveness factor is seen as less important and negative compared to other factors. In addition, in the error correction model established, the existence of a long-term equilibrium relationship between the variables was confirmed. It was concluded that the short-term deviations returned to the equilibrium after approximately 21 days.

Keywords

fan token, sports finance, club success, google trends, euro club index

Thanks

We thank Mr. John Kleppe, consultant at Hybercube Business Innovation, for his assistance in providing the ECI data.

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