Are Listed Soccer Clubs Sensitive to Financial Corruption Scandals? Evidence from the Plusvalenza Case

The Plusvalenza case, affecting Juventus FC, is one of the most significant financial corruption scandals in recent European football. This study investigates how financial markets react to corporate misconduct in sports. Using a short-term event study, it examines cumulative abnormal returns (CAR) around five key events such as judicial rulings, sporting sanctions, and regulatory agreements. Results show that investors react asymmetrically: point-deduction announcements generate significant negative returns, while economic penalties have little or no effect. Markets also anticipate both positive and negative news, showing ex-ante optimism and ex-post disappointment when expectations are unmet. Reputational damage emerges as key driver of market responses, often outweighing purely financial penalties. These findings suggest that while circumventing regulations may not immediately affect the stock prices, investors’ perceptions of reputational harm influence firm value. The study highlights the need for transparent financial reporting and sanctioning mechanisms, offering insights for investors, regulators and sport governing bodies.