OK, Tell Me More?
Consumer spending during the FIFA World Cup has ramped up in soccer-frenzied markets. In the UK alone, consumer spending this June was over 5% higher than June of last year.
Hmm, Go On?
There is certainly a correlation between the increase in consumer spending and the increased number of people spending time at pubs to watch England’s extended run in the World Cup. Wins results in better moods, which lead to more spending by consumers. The better-than-usual summer weather has also contributed to consumers spending more time out and about. This trend isn’t unique to the UK.
What About Russia?
In preparation for this year’s World Cup, Russia spent an estimated R162 billion. Check out how their spending stacks up to previous hosts in this infographic. Economists are divided when it comes to the lasting economic benefits that the World Cup will bring. Some feel that the tournament is too short to register a noticeable impact in the massive Russian economy. Others feel that the improved infrastructure in the run-up to the event should result in long-term benefits.
The host country is not the only beneficiary of the event. FIFA is expecting to rake in ~R84 billion during this World Cup cycle. Despite FIFA still making bucket-loads of cash on the World Cup, the fact that Italy failed to qualify was estimated to have cost the organisation ~R1.4 billion in lost TV revenue.
And The Teams?
For the 32 teams competing, there is a pot of ~R5.6 billion in prize money. The winning team gets the largest single payout at a cool ~R448 million. The runners-up aren’t doing so bad either – taking home ~R392 million. Each team that gets knocked out at the round of 16 will pocket ~R112 million. Tidy sums for playing the game you love.