Many people are wondering if it's a good idea to force salary caps into the European Soccer Leagues. I would totally vote for it. Think about it - what are the names of the teams that recently won major tournaments. Yes, it's Chelsea London, Manchester United and Real Madrid. You ask yourself why? It's simply because these teams get huge amounts of money injected by oil billionaires like Roman Abramovich, who bought Chelsea London and has the money to attract the worlds best players. UEFA president Michel Platini (picture) also believes that salary caps should be enforced because it "would reduce the power of the giant clubs of England, Italy and Spain, and allow many more teams a realistic chance of winning trophies."Wednesday, March 17, 2010
Salary Caps in European Soccer Leagues?
Many people are wondering if it's a good idea to force salary caps into the European Soccer Leagues. I would totally vote for it. Think about it - what are the names of the teams that recently won major tournaments. Yes, it's Chelsea London, Manchester United and Real Madrid. You ask yourself why? It's simply because these teams get huge amounts of money injected by oil billionaires like Roman Abramovich, who bought Chelsea London and has the money to attract the worlds best players. UEFA president Michel Platini (picture) also believes that salary caps should be enforced because it "would reduce the power of the giant clubs of England, Italy and Spain, and allow many more teams a realistic chance of winning trophies."
Tuesday, March 16, 2010
Playing Soccer Pays!
It takes a lot to become a professional soccer player. Most of todays professional soccer players started at a very young age and spend a significant time of their lives on a soccer field practicing. It takes skill, hard work and also a little luck to be discovered by a soccer scout. But once you made it and signed a contract with a team it's like a dream come true! You not only get to do what you love the most but you also get paid a considerably salary. This being not enough, the most successful players also get huge contracts with companies like Pepsi. Take a look at this commercial: http://www.youtube.com/watch?v=_sOdVCc5WrE
Where is the money coming from?
We heard that many European soccer teams spend millions of dollars for signing new players. But how can they afford it? Are they going into debt or is the soccer business that profitable?
As in many other professional sports, a team can make a lot of money by selling tickets, jerseys and so on but I would like to focus on the amount of money that is up for grabs by participating in a tournament. First of all you have to qualify but once you're in it's almost like winning the lottery! There are lots of tournaments but I want to put your attention to the UEFA Champions League. After qualifying the team automatically gets 3 million Euros. For participating in the group stage you get another 2.4 million. For every win you receive 600,000 and for a tie 300,000. Each quarter finalist receives 2.5 million, 3 million for the semi-finalists and the winner get to take home 7 million Euros.
Source: http://en.wikipedia.org/wiki/UEFA_Champions_League#Prize_money
World's Richest Soccer Clubs Revealed
Author: Rhea Singh Published: March 02, 2010 at 7:44 am
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With the awards season upon us, its no surprise that Deloitte's sport unit has revealed the world's richest football clubs list. Real Madrid who have dominated this particular list for the last 4 years have yet again topped it with annual revenues of 401.4m euros. The phenomenal figures based on data from 2008/09 season also see's Real Madrid become the first global sports team to top annual revenues of 400m euros according to the Football Money League.
Real Madrid's arch rivals Barcelona take the second spot ahead of English Premier League Champions Manchester United who drop to third. Manchester United had dominated the list for 8 years until Real Madrid dethroned them. The authors however, do point out that Manchester United would have been top of the list had the value of the pound not fallen. Despite the exchange rate issues, seven of the top 20 teams listed in the rich-list are from England. Tottenham (15th), Manchester City (19th) and relegated club Newcastle United (20th) making it in the second half of the list. All the 20 clubs are from the 'big five' Eurpean leagues with Germany contributing 5 clubs, Italy 4 and 2 each from Spain and France.
World's Richest Football Clubs
1) Real Madrid: 401.4m euros2) Barcelona: 365.9m euros3) Man Utd: 327m euros4) Bayern Munich: 289.5m euros5) Arsenal: 263m euros6) Chelsea: 242.3m euros7) Liverpool: 217m euros8) Juventus: 202.3m euros9) Inter Milan 196.5m euros10) AC Milan: 196.5.m euros
This Deloitte review however, may be a little misleading as it does not include the cost of transfer fees or player wages, or VAT and other sales taxes, and concentrates solely on day-to-day income from football business. The income includes money from ticket sales, sponsorship, merchandising and other commercial revenues, television monies, corporate hospitality and non-match day stadium use. With Portsmouth becoming the first Premier League club to enter administration, and giants such as Manchester United and Liverpool in financial trouble despite performing well in the league shows that the problem of overspending is still a major concern. The Deloitte list, however, does indicate that their is still a lot of money in the game and with careful administration through measures such as wage-ceilings and prudent transfer fees, football can get through this precarious financial period unscathed.
Author: Rhea Singh Published: March 02, 2010 at 7:44 am
Share16
With the awards season upon us, its no surprise that Deloitte's sport unit has revealed the world's richest football clubs list. Real Madrid who have dominated this particular list for the last 4 years have yet again topped it with annual revenues of 401.4m euros. The phenomenal figures based on data from 2008/09 season also see's Real Madrid become the first global sports team to top annual revenues of 400m euros according to the Football Money League.
Real Madrid's arch rivals Barcelona take the second spot ahead of English Premier League Champions Manchester United who drop to third. Manchester United had dominated the list for 8 years until Real Madrid dethroned them. The authors however, do point out that Manchester United would have been top of the list had the value of the pound not fallen. Despite the exchange rate issues, seven of the top 20 teams listed in the rich-list are from England. Tottenham (15th), Manchester City (19th) and relegated club Newcastle United (20th) making it in the second half of the list. All the 20 clubs are from the 'big five' Eurpean leagues with Germany contributing 5 clubs, Italy 4 and 2 each from Spain and France.
World's Richest Football Clubs
1) Real Madrid: 401.4m euros2) Barcelona: 365.9m euros3) Man Utd: 327m euros4) Bayern Munich: 289.5m euros5) Arsenal: 263m euros6) Chelsea: 242.3m euros7) Liverpool: 217m euros8) Juventus: 202.3m euros9) Inter Milan 196.5m euros10) AC Milan: 196.5.m euros
This Deloitte review however, may be a little misleading as it does not include the cost of transfer fees or player wages, or VAT and other sales taxes, and concentrates solely on day-to-day income from football business. The income includes money from ticket sales, sponsorship, merchandising and other commercial revenues, television monies, corporate hospitality and non-match day stadium use. With Portsmouth becoming the first Premier League club to enter administration, and giants such as Manchester United and Liverpool in financial trouble despite performing well in the league shows that the problem of overspending is still a major concern. The Deloitte list, however, does indicate that their is still a lot of money in the game and with careful administration through measures such as wage-ceilings and prudent transfer fees, football can get through this precarious financial period unscathed.
Soccer Clubs: Big Money, Growing Woes
Liverpool FC's American owners, faced with insurmountable debt, are looking to sell. It's a familiar story in the high-stakes world of European soccer
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American billionaires George Gillett and Tom Hicks were in the vanguard of sports investing when they shelled out $310 million in 2007 to buy Liverpool FC, one of England's biggest and richest soccer clubs. Money was easy, so they took on $500 million in debt to build a big new stadium and cover the team's operating costs. The payout looked promising.
Then the global credit crunch hit and the math started to fall apart. The stadium was postponed and the Americans finagled a six-month extension on their loan. But the $500 million comes due in July 2009, and refinancing in the current climate seems implausible. Instead, Gillett and Hicks hope to sell the club for as much as $700 million—still not a bad return on investment—to Middle Eastern buyers.
Investors Back Off "Football"
So it goes these days in the high-stakes world of professional soccer. Despite revenues last year that topped $270 million, Liverpool's financial predicament is becoming an all-too-familiar tale for soccer clubs across Europe, especially in the world's most lucrative domestic championship, the English Premier League (EPL). Spiraling player salaries, uncertainty over future corporate sponsorship deals, and the deteriorating global economy have made many investors wary of owning a piece of the world's most popular sport
Liverpool FC's American owners, faced with insurmountable debt, are looking to sell. It's a familiar story in the high-stakes world of European soccer
View Slide Show
American billionaires George Gillett and Tom Hicks were in the vanguard of sports investing when they shelled out $310 million in 2007 to buy Liverpool FC, one of England's biggest and richest soccer clubs. Money was easy, so they took on $500 million in debt to build a big new stadium and cover the team's operating costs. The payout looked promising.
Then the global credit crunch hit and the math started to fall apart. The stadium was postponed and the Americans finagled a six-month extension on their loan. But the $500 million comes due in July 2009, and refinancing in the current climate seems implausible. Instead, Gillett and Hicks hope to sell the club for as much as $700 million—still not a bad return on investment—to Middle Eastern buyers.
Investors Back Off "Football"
So it goes these days in the high-stakes world of professional soccer. Despite revenues last year that topped $270 million, Liverpool's financial predicament is becoming an all-too-familiar tale for soccer clubs across Europe, especially in the world's most lucrative domestic championship, the English Premier League (EPL). Spiraling player salaries, uncertainty over future corporate sponsorship deals, and the deteriorating global economy have made many investors wary of owning a piece of the world's most popular sport
Manchester United debt increases to £716.5m, latest accounts confirm
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Press Association
guardian.co.uk, Wednesday 20 January 2010 14.40 GMT
Article history
Manchester United's parent company's overall debt has swelled to £716.5m, their latest accounts reveal.
The company, Red Football Joint Venture Ltd, which is owned by the Glazer family, filed accounts today for the year ending 30 June 2009, showing their overall debt has gone past £700m for the first time, increasing by £17m from £699mi.
The biggest rise has come in the payment in kind (PIK) loans, which typically have a higher interest rate, which show a £27m increase to £202m. Bank loans, meanwhile, have dropped by £9m to £509m.
The overall debt figure, not contained in the prospectus for a £500m bond issue released last week, illustrates why the Glazers are so keen to raise cash through bonds to reduce the interest on the debt.
Red Football Joint Venture paid £68.5min interest on their debts in 2009, but unlike the previous year, returned an overall profit of £6.4m in 2009. In 2008, they returned a £47m loss.
The profit can almost entirely be explained by the sale of Cristiano Ronaldo to Real Madrid in the summer for £80m. Red Football Joint Venture's accounts record an £80.7m profit on "disposal of players" compared to a £21million profit in 2008.
A spokesman for the Glazer family insisted that the debt did not have a bearing on the operation of the club.
He said: "The club has a £50m surplus to work with once the interest payments have been made."
Manchester United's accounts also show their chief executive David Gill was paid £1.8million last year.
Tweet this
Press Association
guardian.co.uk, Wednesday 20 January 2010 14.40 GMT
Article history
Manchester United's parent company's overall debt has swelled to £716.5m, their latest accounts reveal.
The company, Red Football Joint Venture Ltd, which is owned by the Glazer family, filed accounts today for the year ending 30 June 2009, showing their overall debt has gone past £700m for the first time, increasing by £17m from £699mi.
The biggest rise has come in the payment in kind (PIK) loans, which typically have a higher interest rate, which show a £27m increase to £202m. Bank loans, meanwhile, have dropped by £9m to £509m.
The overall debt figure, not contained in the prospectus for a £500m bond issue released last week, illustrates why the Glazers are so keen to raise cash through bonds to reduce the interest on the debt.
Red Football Joint Venture paid £68.5min interest on their debts in 2009, but unlike the previous year, returned an overall profit of £6.4m in 2009. In 2008, they returned a £47m loss.
The profit can almost entirely be explained by the sale of Cristiano Ronaldo to Real Madrid in the summer for £80m. Red Football Joint Venture's accounts record an £80.7m profit on "disposal of players" compared to a £21million profit in 2008.
A spokesman for the Glazer family insisted that the debt did not have a bearing on the operation of the club.
He said: "The club has a £50m surplus to work with once the interest payments have been made."
Manchester United's accounts also show their chief executive David Gill was paid £1.8million last year.
Adidas extends FIFA deal for 2010 FIFA World Cup
Adidas has extended its sponsorship agreement with FIFA for the World Cup soccer tournaments in 2010 and 2014 in a deal worth $351 million, FIFA boss Sepp Blatter said on Wednesday.
Adidas will get priority access to TV and stadium advertising at the two events, the world's second-largest sports goods firm told a news conference at the headquarters of the world soccer organisation in Zurich.
Adidas will as at previous events supply the official match ball and equipment for FIFA officials with licensing for endorsed retail equipment included in the deal.
The agreement comes as no surprise as Adidas has been FIFA's partner since 1970 and the firm has been keen to expand its soccer activities to fend off increasing competition from sector giant Nike and German rival Puma.
Sponsoring deals are important for sports goods firms to boost brand awareness, though analysts have expressed concern at the cost of marketing at big events.
Adidas saw a double-digit rise in sales of goods from endorsement deals in Asia after the Bavarian firm sponsored the 2002 World Cup in Japan and South Korea, where Brazil beat Germany in the final. The 2010 World Cup will be held in South Africa, while the venue of the 2014 tournament has still to be decided.
Adidas Chief Executive Herbert Hainer also said the firm has reached its 2004 sales and profit targets. It has forecast a 20 percent rise in net profit with currency-adjusted sales growing 5 percent.
Adidas has extended its sponsorship agreement with FIFA for the World Cup soccer tournaments in 2010 and 2014 in a deal worth $351 million, FIFA boss Sepp Blatter said on Wednesday.
Adidas will get priority access to TV and stadium advertising at the two events, the world's second-largest sports goods firm told a news conference at the headquarters of the world soccer organisation in Zurich.
Adidas will as at previous events supply the official match ball and equipment for FIFA officials with licensing for endorsed retail equipment included in the deal.
The agreement comes as no surprise as Adidas has been FIFA's partner since 1970 and the firm has been keen to expand its soccer activities to fend off increasing competition from sector giant Nike and German rival Puma.
Sponsoring deals are important for sports goods firms to boost brand awareness, though analysts have expressed concern at the cost of marketing at big events.
Adidas saw a double-digit rise in sales of goods from endorsement deals in Asia after the Bavarian firm sponsored the 2002 World Cup in Japan and South Korea, where Brazil beat Germany in the final. The 2010 World Cup will be held in South Africa, while the venue of the 2014 tournament has still to be decided.
Adidas Chief Executive Herbert Hainer also said the firm has reached its 2004 sales and profit targets. It has forecast a 20 percent rise in net profit with currency-adjusted sales growing 5 percent.
Monday, March 15, 2010
2010 Fifa World Cup
The great thing about the World Cup is that it involves everyone and gets them excited about soccer. The 2010 World Cup in South Africa is creating jobs, new infrastructure, greater transportation, and most importantly allows South Africa the increase in publicity, creating a stronger economy, and improve on profit margins. This will also allow for a ripple effect to the greatest soccer tournament in the world by attracting tourists and increases in revenue (from hotels, new stadiums, and mechanise sold at these games).
Picture: google images
Top 10 Most Expensive Transfers In Soccer History
It's almost hard to imagine how much money teams like Real Madrid or Chelsea FC are willing to spend in order to win the Champions League, which is the highest achievement a soccer club can earn.
Real Madrid set the world record in 2008 when they paid the record breaking transfer fee of $131 million to Manchaster United. This made Christiano Ronaldo (picture) the most expensive soccer player to date.
Here are the top ten most expensive transfers:
1.Christiano Ronaldo (Real Madrid, Spain) - $131 million
2.Kaka (Real Madrid, Spain) – $92 million
3.Zinedine Zidane (Real Madrid, Spain) - $64.6 million
4.Andriy Shevchenko (Chelsea FC, England) - $57.6
5.Robinho (Manchester City, England) -56.9 million
6.Luis Figo (Real Madrid, Spain) - $55.6
7.Dimitar Berbatov (Manchester United, England) - $55.3 million
8.Hernan Crespo (Lazio Roma, Italy) - $50.9 million
9.Christian Vieri (Inter Milan, Italy) - $49.3
10.Karim Benzema (Real Madrid, Spain) - $49.1 million
2.Kaka (Real Madrid, Spain) – $92 million
3.Zinedine Zidane (Real Madrid, Spain) - $64.6 million
4.Andriy Shevchenko (Chelsea FC, England) - $57.6
5.Robinho (Manchester City, England) -56.9 million
6.Luis Figo (Real Madrid, Spain) - $55.6
7.Dimitar Berbatov (Manchester United, England) - $55.3 million
8.Hernan Crespo (Lazio Roma, Italy) - $50.9 million
9.Christian Vieri (Inter Milan, Italy) - $49.3
10.Karim Benzema (Real Madrid, Spain) - $49.1 million
Source: http://sportsillustrated.cnn.com/multimedia/photo_gallery/0907/soccer.transfers/content.1.html
Sunday, March 14, 2010
Soccer Delivers The Kicks!!!
Soccer as a sport has influence over young youth today. One may involve their children into the sport at a young age since it is easy to join community soccer; it requires almost no equipment (soccer cleats and shin pads with socks) and is relatively inexpensive to continue with club teams. For practising and perfecting skills for the game one just needs a soccer ball and an open field. It is almost as if these players are made in many European countries to play soccer to their individual limit and as long as this formula continues, soccer will always have players and continue to be profitable.
Picture: www.famemphis.net
Source: Al Bains
Saturday, March 13, 2010
The 15 largest business of soccer – February 2010
February was a month of great activity with regard to signing new sponsorship agreements and various rights. The industry of football is still in full recovery, with particular reference to renewing and signing contracts with FIFA and UEFA in order the next big event selections.
[1] UEFA | ARD and ZDF - The two public television channels secured the rights to broadcast the games of Euro 2012 in Poland and Ukraine. The total business reached 120 million Euros.
[2] AC Milan | Emirates Airline - The airline Emirates will be the new sponsor on the shirts of AC Milan during the next 4 years. The total contract value is 60 million, about 15 million euros per season.
[3] Premier League | BBC TalkSport, Absolute Radio - The Premier League sold the rights to their radio sets of seasons 2010/11 and 2012/13 by 45 million, about 15 million euros per one of the 3 seasons.
[4] FC Zurich - The Swiss club has acquired land for 34 million Euros, with a view to build the new stadium. The new stadium will have capacity for 20,000 people and an estimated cost between 70 and 80 million Euros.
[5] FIFA | Yingli Green Energy - The energy company will sponsor the FIFA Word Cup in South Africa FIFA Under the agreement will receive 30 million Euros.
[6] FIFA | Continental AG - The German car tires will be an official automotive partner of FIFA World Cup 2014 in Brazil. For sponsorship contract FIFA will receive approximately 30 million Euros.
[7] Philadelphia Union | PPL EnergyPlus - A power company has acquired the naming rights to the stadium's new team in Major Legue Soccer. The stadium will be called PPL Park for the next 11 years in exchange for 14.7 million euros, about 1.3 million euros year.
[8] UEFA | Coca-Cola - The soft drink company has renewed its partnership with UEFA by 2017. The new contract with a duration of 7 years has a total of 12.8 million, about 1.8 million euros per season.
[9] FIFA and UEFA | NTV - The rights to the qualifying criteria of Turkey to the Euro 2012 and World Cup 2014 group were acquired by Dogus Media Group. The agreement will last for 3 years for which they were paid 8.8 million euros, about 2.9 million Euros per year.
[10] Celtic and Rangers | Tennent's Lager - The two biggest clubs in Scotland have a new sponsor on the shirts. The contract is the same for both clubs, with the last 3 seasons, a total of 10 million, about 3.3 million euros per season for each.
[11] FC Sochaux | Peugeot - French car manufacturer will be the new sponsor of the jerseys of French. The contract has a duration of 18 months, by which the club will receive 4.4 million euros, about 2.9 million euros year.
[12] FC Basel | Novartis - A pharmaceutical company will be the new sponsor on the shirts of FC Basel, during the next 3 years. The total value of the agreement is 5.5 million, about 1.8 million Euros annually.
[13] FC Energie Cottbus | Umbro - A subsidiary of Nike will be the new supplier of equipment of the German club. The contract lasts for 4 seasons in a total of 4.4 million, about 1.1 million Euros per year.
[14] Burnley FC | Fun88 - The English club has signed a new sponsorship deal for their jerseys with the last of bookmakers to join the Premier League, Fun88. The contract will run for 2 years for which the club will receive 3.6 million euros, about 1.8 million euros per season.
[15] SPL | Irn-Bru - The Scottish Premier League has renewed sponsorship contract with the company Irn-Bru. The new contract with a duration of 3 years has a total of 3.4 million, about 1.1 million euros per season.
Essay source: www.futebolfinance.com
Picture source: google image
What Is The Fattest Cash Cow Among the Soccer Clubs Worldwide?
What is the fattest cash cow among the soccer clubs in the world? Having a study of the annual ranking of the Deloitte Football Money League may help to find the answer.
It is the Spanish Real Madrid Soccer Club! It has topped the Deloitte Football Money League ranking for five consecutive years since 2004. From €275.7 million in 2004~2005 to €401.4 million in 2008~2009, its annual revenue of football operations realized an amazing increase of 46% within five years. To better illustrate the change of its annual revenue, I made the following chart with the original figures from Deloitte Football Money League. From the chart we may easily find that Real Madrid keeps on earning higher yearly revenue gradually and continuously, and the global economic crisis seems to make no apparent impact on it!
Picture Source: http://www.realmadrid.com
Bar chart of “Annual Revenue of Real Madrid” made by Olivia
Post written by Olivia
Ranking Of the Top Twenty Money Making Soccer Clubs
As a huge money-making industry, there are thousands of soccer clubs in the world operating vividly like cells of this soccer monster. But how well do these soccer clubs make money? What are the top ones in the aspect of the financial strength? Is there any publicly released material that can provide us such information?
The Deloitte Football Money League is just such a thing that might lead us to the answers of the questions! It is a ranking of soccer clubs by their revenues generated from the football operations. It is produced annually by the accountancy firm Deloitte and released every early February. Although some may argue that the ranking has its disadvantage that it does not take into account how much debt the club has, it is still a wonderful way for outsiders to see what money making machines successful soccer clubs can be, and to assess comparatively the football clubs' financial strength.
The following is a Deloitte Football Money League Ranking for the 2008–09 Season sourced from Deloitte’s website.
Source of the table: Deloitte Football Money League 2010
Post written by Olivia
The Deloitte Football Money League is just such a thing that might lead us to the answers of the questions! It is a ranking of soccer clubs by their revenues generated from the football operations. It is produced annually by the accountancy firm Deloitte and released every early February. Although some may argue that the ranking has its disadvantage that it does not take into account how much debt the club has, it is still a wonderful way for outsiders to see what money making machines successful soccer clubs can be, and to assess comparatively the football clubs' financial strength.
The following is a Deloitte Football Money League Ranking for the 2008–09 Season sourced from Deloitte’s website.
Source of the table: Deloitte Football Money League 2010
Post written by Olivia
Friday, March 12, 2010
Excellent so far!
You have a very good start here. Your posts are all interesting, and your site is very attractively formatted with good graphics and objects.
Thursday, March 4, 2010
Popularity of Soccer = $$$
The popularity of soccer is undoubtedly strong. The game is traditional and ancient for it was created in 1863 and has grown by popular demand which naturally allows the supply (countries) to also increase. It is now considered probably the largest participant sport in the world. Although, North America is relatively ethnocentric to certain sports such as baseball, football, and hockey the business and profit from ticket sales at soccer games around the world are just as compatible and possibly more. This allows soccer to become more profitable as more countries join in. Not only does the fan base for the sport increase, but more importantly this has a direct relationship to profits.
Soccer Is a Good Business Risk
Soccer is not popular in North America, instead it is substituted for baseball, football, and hockey. However it is popular everywhere else in the world which means high profit. These franchises of Manchester United are more valuable than most successful football teams (Washington Redskins) and baseball teams (New York Yankees). Sponsorship deals with Pepsi, Nike, and Gillette allow more soccer players to earn millions in profit on top of their salary to play soccer. This is possilbly due to the fact that there is a global audience.
Picture: www.majorleaguesoccertalk.com/mls-superliga-adding-to-the-sum/4499
Thursday, February 18, 2010
FIFA World Cup - A Magnificent Money Meet!
2010 FIFA World Cup matches are to be held soon in South Africa. As the previous FIFA world cups saw, it is not only a grand sports-meet but also a magnificent money meet.
According to Ruben van Leeuwen and Charles Kalshoven, who conducted a research to the ABN AMRO bank and published their findings in “Soccer and the Economy: March 2006 Edition”, the winning countries of FIFA world cup tend to see a 0.7% increase in their market, with only two exceptions to this theory since 1970. The two exceptions as experienced by Germany in1974 and Argentina in 1978 were probably caused by the great contraction of the whole European macro economy and the political situation of Argentina respectively. Moreover, at the same time, the economy of Holland, the losing finalists of both years, had a far greater loss.
From the study, Leeuwen and Kalshoven found an average of 10% gain for the World Cup champions! Soccer and wealth, World Cup Champion and the economic development go hand in hand like good friends. As a matter of fact, winning in the World Cup brought the whole country feelings of pride and happiness, which generated lots and lots of parties to celebrate and purchases of souvenirs to commemorate the big win. These consumption activities then all turned into revenues and further work opportunities. With the multiplier effect, the wealth generated directly from the success of World Cup may be passed and amplified from one industry to another industry. Moreover, a champion country may boost its reputation and popularity around the world, which may attract more potential investments and tourists from other countries. Hence such positive drive may be even prolonged to boost the future economic development.
With Italy, Brazil and France had enjoyed the great pride, happiness and wealth by the exciting win of the previous World Cups, let’s wait and see which team will win the golden cup together with the glamorous wealth behind it in the coming 2010 FIFA World Cup matches!
According to Ruben van Leeuwen and Charles Kalshoven, who conducted a research to the ABN AMRO bank and published their findings in “Soccer and the Economy: March 2006 Edition”, the winning countries of FIFA world cup tend to see a 0.7% increase in their market, with only two exceptions to this theory since 1970. The two exceptions as experienced by Germany in1974 and Argentina in 1978 were probably caused by the great contraction of the whole European macro economy and the political situation of Argentina respectively. Moreover, at the same time, the economy of Holland, the losing finalists of both years, had a far greater loss.
From the study, Leeuwen and Kalshoven found an average of 10% gain for the World Cup champions! Soccer and wealth, World Cup Champion and the economic development go hand in hand like good friends. As a matter of fact, winning in the World Cup brought the whole country feelings of pride and happiness, which generated lots and lots of parties to celebrate and purchases of souvenirs to commemorate the big win. These consumption activities then all turned into revenues and further work opportunities. With the multiplier effect, the wealth generated directly from the success of World Cup may be passed and amplified from one industry to another industry. Moreover, a champion country may boost its reputation and popularity around the world, which may attract more potential investments and tourists from other countries. Hence such positive drive may be even prolonged to boost the future economic development.
With Italy, Brazil and France had enjoyed the great pride, happiness and wealth by the exciting win of the previous World Cups, let’s wait and see which team will win the golden cup together with the glamorous wealth behind it in the coming 2010 FIFA World Cup matches!
Essay written by Olivia
Picture source: http://www.fifa.com
Soccer and Business
Soccer, in the eyes of its fanatical fans, is no doubt a charming sport that deserves their great devotion of enthusiasm and money. But if we take a second thought, we may find that it covers much more than this emotional part. It's a prosperous business, where the fans are consumers, soccer matches and players are products, and various clubs and football associations are business entities! It's even a huge rapidly developing industry, which fosters investment and consumption demands, generates billions of dollars, and contributes a considerable portion to the GDP of quite a few countries!
Picture source: google image
Post written by Olivia
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