To most, the FIFA World Cup is strictly a sporting exhibition between the world’s greatest football teams. Beyond the pitch, the FIFA World Cup is big business, with billions of dollars being invested by nations to have the honour of hosting the tournament. Here are some winners and losers involved in the business and politics of the Brazil 2014 FIFA World Cup.
· Winning Nation: historically out perform global markets by 3.5% in the first month following the tournament.· Host Nation: historically outperform global markets by 2.7% in the first month following, before under-performing within 3 months.
· Winning doesn’t help a country’s domestic stock market, but coming in second appears to be even worse. On average the World Cup runner-up nation experiences a 5.6% underperformance compared to the global average in the 3 month period following the end of the tournament.
· FIFA: Will profit $2.61 billion ahead of all other international tournaments such as the Olympics. 65% of which comes from TV rights.
· Infrastructure: Much needed infrastructure brought forward, and the majority of which will be able to be used when Brazil host the 2016 Summer Olympics.
· Matt Leckie: 23 year old Australian forward is rumoured to have increased his value to at least $7 million with two great performances – great return on investment for his current club, Ingolstadt, signing him only 1 month before the tournament.
· Tim Cahill: scored two goals, putting his World Cup goal tally above those of Lionel Messi, Cristiano Ronaldo and Wayne Rooney’s combined.
· Ange Postecoglou: appointed coach of the Socceroos only 8 months ago and was nearly able to upset 2010 World Cup runners up, the Netherlands.
· Socceroos: ranked 62nd, were unsurprisingly unable to qualify through the appropriately nicknamed ‘group of death’, which included Spain (ranked 1st), Chile (ranked 14th), and The Netherlands (ranked 15th).
· The Brazilian housing, education and health system: a record $11.7 billion spent on the games, sparking severe protests by the Brazilian people who feel the money should be spent elsewhere.
· Brazilian Tax Office: due to FIFA regulations, the Brazilian government will deprived of $523 million in revenue.
· Safety Inside Stadiums: FIFA forced the government into an embarrassing U-turn on alcohol policies at the games by allowing major sponsor Budweiser to serve beer inside venues. Previously banned in 2003 after 42 people were killed throughout 10 years of football violence.
· Politicians: claims of fraud and suspicious ties with contractors.
· Arena Manaus: $270 million stadium built for only four World Cup matches. Rendered useless afterwards due to its location on the Amazon River, inaccessible by major highways.
Posted By Jacob Levido – Marketing Cadet
Each year we look to give an aspiring uni students the chance to gain some professional experience and learn about business operations through a cadetship. Fostering the growth of young minds is a passion, and benefits everyone involved.