World Cup Russia: A spot in the finals for the economy as well?
One life, live it up, ’cause we got one life – A time to get together, forming a team for your country. A time to get together, watching a football match. A time to get together, to feel the love for sports through your veins. With the finals of the world cup in Russia just behind us, the economy has not been standing still. What are the major economic impacts of the world cup in Russia? One life, live it up, ’cause you don’t get it twice – Live It Up (FIFA World Cup Russia Anthem) by Nicky Jam
The world cup so far is stunning, just like Moscow. The economy has had a major boost, especially with the unpredictable results of the Russian team leading them to the quarter finals, which the Russian squad just lost with a penalty shoot-out against Croatia. According the Russian media, Russia spent 14.2 billion dollars on the organisation of the event, which mostly includes investments on stadiums, infrastructure and accommodation. According to Dvorkovich, a Russian economist, over 200,000 jobs have been created as a result of the investment.
Russia spent 14.2 billion dollars on the organisation of the event
However, according to the CNBC, the Consumer News and Business Channel, experts before the event said that the world cup will only have a short-term result on the Russian Economy. The positive recent results of the Russian team will certainly lead to a significantly other result than expected beforehand. Time will tell what the leftover impact will be on the Russian economy.
‘’Strength in numbers, is a force we can mix. We raise our flags and put our pride on our back’’
It is nevertheless the world cup. People from all over the world are following their ‘own’ team and others’. The Dutch business sector was pretty unhappy about ‘Oranje’, the Dutch team, not qualifying for the tournament. However, many other countries are enjoying commercial possibilities to ‘score’ their own goals. Look at England, for example. The team managed to get themselves to the semi-finals, which is a great achievement. A research conducted by Centre of Retail Research and VoucherCodes, estimated that the UK economy will have a boost of 2.72 billion pounds because of this.
Many other countries are enjoying commercial possibilities to ‘score’ their own goals
The figure below shows the estimated economic benefits in the UK resulting from the achievements of the national soccer team. The economy significantly benefits by the team reaching the finals instead of getting knocked out at the round of 16.
Not many concrete numbers of the worldwide economy about this world cup have shown up (yet). However, the event is a huge hype for the whole world, especially for the favorite teams. This would lead to big opportunities, for people and businesses. Already convinced to start a professional football career?
‘The whole world is watching, so let’s get this popping’
Empty stadiums, empty future?
Previous world cups also have resulted in major drawbacks, however, especially after the big events. The world cup 2010 located in South-Africa and the world cup 2014 located in Brazil were a huge success. However, according to Davies, with great benefits also come great costs. A lot of money was invested in the tournaments, but counts for a small percentage in Brazil’s GDP of 2014. Most of the money was on budget, hence, there is no immediate local benefit. Furthermore, the Brazilians questioned the tournament, which started political turmoil and protests against the government and FIFA. These drawbacks were similar to the ones in South-Africa. Moreover, hosting the tournament resulted in largely unused stadiums, which are very expensive to maintain, mostly because the demand for such big stadiums are just too low. The world cup of 2022 in Qatar is already being questioned as well. Future will tell what the results will be on such a country.
The world cup of 2022 in Qatar is already being questioned as well
The impact of earlier world cups has shown that there is certainly a significant economic impact on the host country as well as in the remaining countries. The longer a country ‘stays in the game’, the longer the benefit. However, the results for certain host countries with a less stable economy are questionable. The world cup in Russia was, once again, a huge success. Despite the competition, we should always remember that sports are for fun and should be enjoyed together. ‘One life, one dream One moment, one team’Jeroen Zuidberg 19-07-2018
Ellyat, H. 2018, June 14th.The World Cup will give Russia’s economy a boost — just don’t expect it to last. CNBC. Acquired on: https://www.cnbc.com/2018/06/14/russia-world-cup-will-give-economy-a-boost.html
Davies, C. 2018, June 14th. What Is The World Cup Worth?: Evaluating the socio/economic costs for host nations. arcdigital media. Acquired on: https://arcdigital.media/what-is-the-world-cup-worth-cec4f7d92de8
Moneycontrol. 2018, June 9th. FIFA World Cup 2018: UK economy to get a 2.7 billion pound boost, if England make it to the finals. Money Control. Acquired on: https://www.moneycontrol.com/news/trends/sports-trends/fifa-world-cup-2018-uk-economy-to-get-a-2-7-billion-pound-boost-if-england-make-it-to-the-finals-2686131.html