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
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