Quantile-on-quantile connectedness between European football clubs and bitcoin: insights for safe-haven assets and portfolio optimization

Purpose This study explores the quantile-on-quantile connectedness between major European listed football clubs and Bitcoin, providing a deeper understanding of their interdependencies. The selection of these assets is motivated by their prominent roles in both financial and sports markets, especially during periods of market volatility. By employing advanced portfolio optimization strategies, the research examines how these strategies enhance resilience and effectively manage risk during periods of market volatility. Design/methodology/approach Utilizing the quantile-on-quantile connectedness framework by Gabauer and Stenfors (2024), a robustness test is conducted using Quantile Granger Causality analysis by Jeong et al. (2012). Optimal investment portfolios are constructed using three strategies: Minimum Variance Portfolio (MVP), Minimum Correlation Portfolio (MCP) and Minimum Connectedness Portfolio (MCoP). The research analyzes a decade of data (2014–2024) from major European listed football clubs. Findings Results demonstrate that inversely related quantiles exhibit stronger total connectedness than directly related ones, highlighting the importance of managing tail risks. Bitcoin displays characteristics of a safe-haven asset during market downturns, yet under specific conditions, it can act as a shock transmitter for clubs such as Juventus and Olympique Lyonnais. Portfolio analysis indicates that Bitcoin serves as a critical diversification tool, with its optimal allocation varying across different strategies. Research limitations/implications These findings provide important insights into the dynamic relationship between football clubs and Bitcoin, offering practical implications for investors and portfolio managers. This study’s focus on market volatility and tail risks highlights Bitcoin’s role in improving portfolio resilience, enabling more informed decision-making in investment strategies. Originality/value This study contributes to the existing literature by exploring the novel interplay between European football clubs and Bitcoin using quantile-based connectedness analysis. It underscores the strategic role of Bitcoin as a diversification tool, offering valuable insights into risk management and portfolio optimization in dynamic financial markets.