JUVE, THREE EXPLANATIONS FOR THE -6,5% REDUCTION IN THE STOCK EXCHANGE. AFTER THE VICTORY OF THE THREE-STAR SCUDETTO
Buy on rumors, sell on news. The old stock market adage is confirmed in the case of Juventus. This morning the title of the new Italian champion team is subject to strong sales which have pushed the price of the black and white club down by 6,50% to 0,2692, amid intense exchanges compared to the average. An apparently incomprehensible behavior, given that, in general, sporting performance and quotation go hand in hand in the case of clubs. But there are many possible explanations:
a) The more "accounting" is linked to the logic of the Scudetto prizes. Paradoxically, the best performance of a club in the balance sheet is linked to the achievement of the second place which allows access to the Champions League (collecting the UEFA contributions for the event and the related TV rights) without having to pay badge prizes which absorb a considerable part of the proceeds ;
b) The hypothesis that behind the descent there is the more credible willingness to cash in the profits of a speculation (or bet) lucky. But in the last week the stock had gained a total of 17,5% and in the last month it had appreciated by 35 percent;
c) In this sense, many purchases have probably had the function of a hedge with respect to sports bets. Those who bet against Juventus have partially “covered” themselves with purchases of the stock, using the Stock Exchange as a CDS.
