Abstract
This study investigated whether the performance of English Premier League (EPL) teams influences the share price returns of their kit supplier sponsors. Using an event study approach, the study analysed the share price movement of companies sponsoring the kit supplier across three seasons, from the 2021/22 to the 2023/24 season. The cumulative abnormal returns (CARs) were calculated over the full event windows surrounding final league matches.
The findings show that overall CARs were statistically insignificant, indicating no measurable impact on the sponsoring companies due to EPL performance league rankings and team results. Additionally, the findings support the Efficient Market Hypothesis (EMH) and suggest that sponsorship benefits may be primarily strategic and brand-related, rather than driven by short-term share price gains. The study contributes to the sponsorship finance literature by focusing on sponsor-level reactions and recommends broader, cross-league analyses that incorporate brand equity and consumer engagement metrics in future research.