Free Essay

Importance of Hosting the World Cup

In: Business and Management

Submitted By potea10
Words 574
Pages 3
Importance of hosting the World Cup
Ever since its conception in 1930, the World Cup was mainly hosted in the American and European countries. However, Africa and Asia won the 2002 and 2010 bids respectively, while Brazil hosted the 2014 tournament. Countries spend millions bidding for the world cup and hosting the event in the name of it being an investment and an opportunity to boost a nation’s profile. However, this expectation is not always the case because the returns accruing from the intended ‘economic boost’ are far outweighed by the costs. Host states have to substantially alter its budget to fund the event and the costly preparations at the expense of national issues.
The sporting tournament is expected to accrue a number of benefits to a host country's economy, including an influx of tourism, creation of employment, improved infrastructure and a higher global profile. A country does gain from hosting the tournament, but not as much as anticipated. Consider South Africa, for instance, which hosted the 2010 World Cup. At the time, the state had a number of national issues to resolve such as poverty, crime and drugs. Instead, $ 4.1 billion was refocused from its priorities towards a short term sporting event at the expense of creating employment, facilitating education, funding sustainable infrastructure and mitigating social problems.
In preparation for the 2010 sporting tournament, South Africa bore the costs of upgrading and constructing its facilities in conformity with FIFA standards. The event was anticipated to boost its economy by creating business opportunities. Even so, South African entrepreneurs and manufacturers were served with injunctions by FIFA stopping them from making their own World Cup merchandise. FIFA proceeded to outsource the same from China. The tournament earned the football federation an estimated $ 3.5 billion in profits; this left a smaller portion of revenues for the wider South Africa. In any case the rest was substantially garnered by large conglomerates and a few individuals. This imbalance in benefit-sharing further consolidated the economic position of the upper and middle classes at the expense of the lower segments.
Brazil hosted the 2014 World Cup and in preparation the country spent $ 600 million in renovating the Maracana stadium alone. The country also had to upgrade roads, airports and hotel capacities to cater for the teams, visitors, and media. In effect, these developments translated into modernized sporting facilities, hotels and generally improved infrastructure. However, having world class stadiums that accumulate continual maintenance costs over a short-term event is far from beneficial to any economy. South Africa’s case is good illustration since it currently has idle facilities and hotels built in the event’s capacity. At least Brazil won its bid to host the 2016 Olympics and is located in a vibrant football region, which gives it regular opportunities to use its upgraded stadia.
Countries continue to compete for the opportunity to host the World Cup for prestige and to boost their economies. For the most part, the global sports event fails to accrue the anticipated economic impact on a host state because of the costs of modernizing its facilities. Even though a nation’s profile is raised, the financial profits from the event do not ripple through its economy as substantial profits are pocketed by major foreign players. After the tournament, the country is left with unnecessary world class sporting facilities, which continue to prejudice vital national segments such as education and health because of maintenance costs.…...

Similar Documents

Premium Essay

Education: Its Importance in a Modern World

...Education: Its Importance in a Modern World By: Aaron Ignacio Education: Its Importance in a Modern World By: Aaron Ignacio What is education? Why do we need it in our lives? Education is the path towards knowledge. Our quest for knowledge is something we should never complete; it is a desire that we should never resist. Education empowers us to answer such questions as how and why and gives us the power to start over again. With an advanced education, individuals have more choices in life and more chances to make a difference for their communities. Higher education pays you back: graduates of higher education programs earn more, have more leisure time, and live happier and healthier lives. Education has been said to help a person lead a successful life. Success is defined as the achievement of something desired or attempted. By means of an education, a person learns many things, which he or she uses later on in life particularly in a career. The more education a person has, the greater the chances that person will have a higher paying job. With that, their family will be well supported and hopefully happier. Secondly, an education can help society develop into a better place. There are a number of people who are illiterate or have low literacy skills. This accounts for a majority of the impoverished and undeveloped people. With an education, these people could get a job and make money. The money earned could help pay for food or a place to live. As a result, there......

Words: 616 - Pages: 3

Premium Essay

World Cup

...The Qatar 2022 FIFA World Cup bid is the successful proposal from the government of Qatar to host the 2022 FIFA World Cup. Qatar, with a population of 1.69 million people, will be the first Arab state to host the World Cup.[1] Sheikh Mohammed bin Hamad bin Khalifa Al-Thani, son of the present Emir of Qatar, was the chairman of the bid committee.[2] Qatar promoted their hosting of the tournament as representing the Arab World, and has drawn support from across the member states of the Arab League. They also positioned their bid as an opportunity to bridge the gap between the Arab World and the West.[3] Qatar gave a feel of what the World Cup would be like by holding a friendly match between Brazil and Argentina.[4] Furthermore, people coming from different nations visited Qatar for this match and strengthened the image Qatar would depict of their interest in the World Cup 2022. Additionally, Qatar hosted the 2011 Asian Cup which had the lowest attendance for the cup in 11 years, since the tournament was held in Lebanon[citation needed]. It was considered a warm-up for 2022. President of FIFA Sepp Blatter endorsed the idea of having a World Cup in the Arab World, saying in April 2010, "The Arabic world deserves a World Cup. They have 22 countries and have not had any opportunity to organize the tournament." Blatter also praised Qatar's progress, "When I was first in Qatar there were 400,000 people here and now there are 1.6 million. In terms of infrastructure, when you......

Words: 310 - Pages: 2

Free Essay

World Cup 2011

...Assignment: “ICC WORLD CUP 2011" * History of “ICC World Cup” : ICC World Cup is one of the great events for cricket. Every four year after this World Cup is happening. The full name of ICC is”International Cricket Council”. Since 1975 in England the fast World Cup was going on. But the fast cricket match was played between Canada and the United States, on the 24 and 25 September 1844 and the fast test match was played between Australia and England in 1877. After 1975 World Cup last but not the list 2011 World Cup was happened. * Introduce with “World Cup 2011”: This time the “ICC World Cup 2011” was held in ASIA. Bangladesh, India, Sri Lanka were organizing this World Cup. It was Bangladesh’s first time co-hosting a World Cup. But in ASIA another country Pakistan was also the co-hosted this World Cup, but unfortunately they missed it. This World Cup took place between 19th February and 2nd April. The opening ceremony was held on 17th February in Bangabandhu National Stadium, Dhaka.19th February was the fast match played between Bangladesh VS India. * Opening ceremony in Bangladesh: In 17th February 2011 was Memorable Day for Bangladesh. Because, the opening ceremony of the World Cup was held in Bangladesh first time ever. In this program all the host country present their culture program, talent and so on...

Words: 725 - Pages: 3

Premium Essay

Nike World Cup Harvard Business Review Questions

...Mekyas Moges 11/18/2013 Sports Marketing Professor Master. Nike World Cup 1. Discuss the factors that have resulted in Nike Football becoming over a $1 Billion division and a major force in the football market. The Nike football brand believed that the only way to seize any kind of opportunity for growth is to first have a product that speaks for itself. Therefore, Nike believed that footwear product innovation should have the most focus. Nike had four steps to product innovation, development, design, marketing and most importantly, testing. The company spent hundreds of millions of dollars to create the right products that the athletes could preform well on. The fact that the 2006 world cup final between France and Italy, an Adidas and Puma team respectively, had 12 of the 22 starts still wearing a Nike shoe is a testament to the quality of the Nike products. Once Nike became a proven brand. It needed to find ways of reaching fans in unconventional ways because the Advertising rights were already bought out from Adidas. But, Nike saw how international players from South America and Asia were moving to European leagues and the game was about to transform from a “scoring matters” culture, to a “getting past your man is just a good” culture. This played well with Nike’s sponsorship with the Brazilian National team who were well known for their stylish way of playing football. Nike piggybacked this niche in the market to bring a new edge of football that promoted......

Words: 1529 - Pages: 7

Free Essay

Fifa World Cup

... The FIFA World Cup, often simply the World Cup, is an international association football competition contested by the senior men's national teams of the members of Fédération Internationale de Football Association, the sport's global governing body. The championship has been awarded every four years since the inaugural tournament in 1930, except in 1942 and 1946 when it was not held because of the Second World War. The current champions are Spain, who won the 2010 tournament in South Africa. The current format of the tournament involves 32 teams competing for the title at venues within the host nation over a period of about a month; this phase is often called the World Cup Finals. A qualification phase, which currently takes place over the preceding three years, is used to determine which teams qualify for the tournament together with the host nation. The 19 World Cup tournaments have been won by eight different national teams. Brazil have won five times, and they are the only team to have played in every tournament. The other World Cup winners are Italy, with four titles; West Germany, with three titles; Argentina and inaugural winners Uruguay, with two titles each; and England, France, and Spain, with one title each. The World Cup is among the world's most widely viewed sporting events; an estimated 715.1 million people watched the final match of the 2006 FIFA World Cup held in Germany. The next three World Cups will be hosted by Brazil in 2014, Russia in 2018, and......

Words: 256 - Pages: 2

Free Essay

Should the Qatar World Cup Be Held

...Ever since the announcement in Zurich, Switzerland on December 2nd 2010, controversy started to come out about Qatar hosting one of the world’s biggest and prestigious tournaments in the world. The main issues surrounding Qatar’s World cup is that did they bribe FIFA officials into voting for them, also if the world cup was moved to the winter would major European leagues allow for a three month break halfway through their season. However if the event was moved to the winter, many would be not be happy as the World Cup has always been a Summer event and it would be breaking its tradition and with stadiums being built with air-conditioning and other modern features, in addition to this it has been suggested that games could commence at night. On the contrary, with many countries which have tropical climate’s having already hosted the competition and the tournament being hosted in Brazil next year, why weren’t questions asked about them hosting a winter World Cup. Firstly, why should the World Cup be moved from summer to winter, or even be re-voted – Many high ranking FIFA officials have spoken publically about their opinion that they want the event moved from summer to winter, or even the tournament moved to another country. The reason for the public outcry is that they fear for the player’s, official’s and fan’s safety at the event because of the soaring heat which can exceed past 50 degrees. In addition to this the average low temperature doesn’t fall beneath 30 degrees.......

Words: 478 - Pages: 2

Premium Essay

Summarised Essay on the Project of Hosting the 2008 Under 20 Women’s Fifa World Cup by the Chile Government. Based on an Extract from a Journal.

...SUMMARISED ESSAY ON THE PROJECT OF HOSTING THE 2008 UNDER 20 WOMEN’S FIFA WORLD CUP BY THE CHILE GOVERNMENT. Based on an extract from a journal. When in 1990 Chile became a democratic state, the Ministry of Public Infrastructure (MOP) in line with the country’s sustained growth and development embarked on the rehabilitation of the decayed public infrastructure. This was achieved through private concessions and working closer with the local city governments. With this in mind, the country led by President Michelle Bachelet aimed at attracting major sporting events. Consequently Chile won the right to host FIFA under 20 women’s world cup. This would be a national project that had presidential backing and priority. An unprecedented challenge however arose in that of the four cities selected to as possible hosts none had stadiums that complied with FIFA’s regulations. Thus the task to build four stadiums from the ground with a timeline of nine months was set. Though the exponential growth in investor funds took care of the project’s financing there was a great deficit in experienced and certified project managers to run the complex projects with aggressive deadlines. The MOP thus needed to strengthen the human capital for the project’s efficiency. The solution for the MOP lay in replacing the outmoded project management principles used for past projects with modern techniques and practices by adopting a structure based on standards from the Project Management Institute (PMI)....

Words: 803 - Pages: 4

Free Essay

Fifa World Cup 2014

...The 2014 FIFA World Cup is the 20th FIFA World Cup, a tournament for the men's football world championship, that is currently taking place in Brazil. It began on 12 June, with a group stage, and is scheduled to conclude on 13 July with the final.[1] It is the second time that Brazil has hosted the competition, the first being in 1950. Brazil was elected unchallenged as host nation in 2007 after the international football federation, FIFA, decreed that the tournament would be staged in South America for the first time since 1978 in Argentina, and the fifth time overall. The national teams of 31 countries advanced through qualification competitions that began in June 2011 to participate with the host nation Brazil in the final tournament. A total of 64 matches are being played in 12 cities across Brazil in either new or redeveloped stadiums. For the first time at a World Cup finals, match officials are using goal-line technology, as well as vanishing foam for free kicks.[2] With the host country, all world champion teams since the first World Cup in 1930: Argentina, England, France, Germany (who won three times as West Germany), Italy, Spain and Uruguay, have qualified for this competition. Spain are the title holders, having defeated the Netherlands 1–0 in the 2010 final to win its first World Cup. They were eliminated at the group stage. All previous four World Cup tournaments staged in South America were won by South American teams...

Words: 250 - Pages: 1

Free Essay

Fifa World Cup 2014 Social Impact

...KNH 313 Sport Economics and Finance Assignment #3 Economic Impact of the FIFA World Cup 2014 on the Host Destination Brazil Table of Content Introduction 3 Economic Impact 3-4 Event Tourism 4-5 Image and place marketing 5-6 Urban development and renewal 6-8 Social development 8-9 Conclusion/Discussion 9-11 Bibliography 12 Introduction The purpose of this report is to analyze and define the economic impact of the FIFA World Cup 2014 in Brazil. An economic impact report allows public sector bodies to analyze their economic return on investment and it also demonstrates how events drive economic benefits that enable event organizers to develop practices maximizing these benefits. (eventIMPACTS) In 2007 Brazil was announced as the host of the world`s biggest football event, the FIFA World Cup 2014. This will be the second time the country has hosted the competition, making Brazil the fifth country to have hosted the FIFA World Cup twice. This extraordinary event will be held from 12 June till 13 July and will take place in 12 stadia spread over Brazil. (Brazilian Federal Government) This paper begins with an overview of the economic impact by hosting this event. Furthermore I will outline the impact of the 2014 FIFA World Cup on tourism, the destination image and the development of infrastructure. I will then conclude by......

Words: 3883 - Pages: 16

Premium Essay

Heineken and the 2022 World Cup

...2022 FIFA World Cup to gain the major beer sponsorship Anthony Colaluca Southern New Hampshire University Table of Contents Heineken Background: Past and Present Information about Qatar Risks and Opportunities for Heineken to consider Cultural Differences between the Netherlands and Qatar Entry Strategy into Qatar Recommendations for Heineken setting up an operation in Qatar World sporting events bring people together throughout the globe to one location for the event. These events happen usually every four years and bring the host country great tourism and added income. One world sporting event in particular, FIFA World Cup, happens every four years and is one the best attended world sporting event. FIFA has decided to award the 2020 World Cup to the country of Qatar, the first Middle East nation to host such an event. Big events like the World Cup have major sponsors that are able to advertise their name to millions of fans attends and even more watching throughout the world. One of the major sponsors and marketing affiliates of the World Cup is beer. A major beer company that has the potential to be a sponsor for the 2022 World Cup in Qatar is Heineken. However Heineken currently does not have an operation set up in Qatar and needs to look into this idea to help it stand a chance to gain the major beer sponsorship for this worldwide event. We will be looking at what Heineken has to do to set up operation in Qatar before the 2022 World Cup to......

Words: 3553 - Pages: 15

Free Essay

World Cup 2010: Africa’s Ultimate Example of Globalization

...The World Cup is an international spectacle that has the ability to bring excitement to all corners of the world. The World Cup has always been an example of globalization, because, essentially, globalization is the transforming of a local happening or product into a global happening or product. According to the governing body of football, the Fédération Internationale de Football Association, “The FIFA World Cup™ in South Africa is an international event with great historic importance to the African continent. It will be the first FIFA World Cup ever to be hosted in Africa since the competition began in 1934, and I am convinced that Africa is ready to welcome this momentous FIFA World Cup with open arms. I am also convinced that the host nation, South Africa, will be up to the task, not least because it has abundant potential and resources (#1)” Given all of this information, one cannot deny that the World Cup is an obvious example of globalization, and the 2010 World Cup in South Africa will be Africa’s greatest display of Globalization to date. In order to accurately access South Africa as a site for a huge international event such as the World Cup 2010, one must first look at the various social problems that are existent in South Africa. When looking at any African country, the fact that most African countries have only been independent for less than a century must be factored into any assessment. The majority of African countries have a number of social problems...

Words: 2508 - Pages: 11

Premium Essay

Rugby World Cup Opening Ceremony

...Rugby World Cup Opening Ceremony; a Commemoration of Rugby’s Origin YourFirstName YourLastName Instructor's Name Course Title 27 September 2015 Rugby World Cup Opening Ceremony; a Commemoration of Rugby’s Origin             “Ladies and gentlemen, I am greatly honored for being part of this colorful event where history will be made. We are all here to celebrate the opening ceremony of this beautiful landmark in world rugby. We have waited four years, but now we are just one hour away from the kickoff of the first match of the 2015 Rugby world cup in our iconic Twickenham stadium at the heart of England, the beautiful city of London. Wow, this is beautiful; I am standing in front of 81000 rugby fans, the biggest rugby stadium on earth. I assure every rugby fan that this world cup will offer breathtaking moments that will live in us forever. Heroes will be born, rivalries will emerge all in the name of glory, but only one country will emerge as victorious.             This event is a place where athletes measure their strengths and abilities but a source of unity all over the world. The sport has brought in 20 of the best nations in the world to do battle for a chance of taking the beautiful Webb Ellis cup home. The rugby world cup and the world rugby organization, is against all forms of discrimination, from racism to gender discrimination, we stand firm and against this forms of discriminations. Who can forget in the year 1995 when Nelson Mandela...

Words: 633 - Pages: 3

Premium Essay

World Cup Economics

...This results in an extremely high overestimation of economic benefit. “The I-O model is long-run in nature (every input varies with output) and the importance of timing is ignored. When the hotel was built and when the rooms were rented is not critical to the way the model works. If over the functional life of a hotel room it is rented to 10,000 visitors, the model will associate 1 million visitors with the construction spending needed to build a 100-room hotel even when all 1 million visitors came on the same day and could not possibly stay in one hotel” (Porter, 2008, Page 475). The timing of the model is ineffective. It associated that the life of the hotel is 10,000 visitors and if 1 million visitors came he same day it would be an enormous economic benefit. But in reality the hotel cannot hold that many people. Furthermore the economic impact analysis considers that the increased spending comes from more people spending but in reality it is just an increase in price. Often the price of goods are increased a lot due to the fact of the increase in visitors. So in reality no increase of output or input is introduced just a change in prices. "When the assumption of constant prices does not hold, increased spending might result from increased prices and not from real changes in output” (Porter, 2008, Page 476). The effect of hosting the Olympics has a positive effect on the real estate market according to research. Prior to the Olympics the price for housing goes up......

Words: 2024 - Pages: 9

Free Essay

Nike and the World Cup 2010

...Salma Dahbi MKT 5305 December 2nd, 2015 Nike Football: World Cup 2010 South Africa Nike is considered one of the most successful companies worldwide. It is well known for being the greatest producer and provider of sport gear, shoes, equipment, and different services. As most countries are now taking part in all different kinds of sport disciplines, we can undoubtedly say that in nowadays’ business world, the sport industry is deemed as one that is worth billion of dollars. Besides, it is very important to mention that Football (Soccer) in its turn is one of -if not the only- most famous sport played all over the world. This is the main reason why most companies belonging to the sport industry have great chances getting into this significant and profitable international market. As a matter of fact, the football market analysis has showed that the demand of football products gets quite preeminent with time. The following article points out to the different marketing strategies used by Nike to stay at the peak of the market concerning their varying types of football products, as well as it displays, in details, Nike’s 2010 Football World Cup campaign. Moreover, the case study in hand reflects the background of Nike and how its industry operates. It also shed light on the issues that the company had to deal with all through the 2010 World Cup campaign. Next, it analyzes how Nike is positioned in the market, and how the company is conducting itself as regards to its......

Words: 1332 - Pages: 6

Free Essay

Qatar World Cup 2022 Bid

...Qatar World Cup 2022 Bid With the 2010 FIFA World Cup in our rear view mirror, soccer fans are still singing the catchy theme song “It’s time for Africa” by Shakira, but who will it be time for in 2022? According to FIFA rotation, since Brazil is hosting in 2014 and Europe in 2018, either Asia or North America will host the 2022 FIFA World Cup. The U.S., bidding on behalf of North America has already had the opportunity to host the 1994 World Cup, unlike Qatar bidding on behalf of Asia and the Middle East, but is Qatar capable of hosting this magnitude of an event? The answer is yes! Qatar has experience in hosting large sporting events, has the financial assets to make them possible, developed cooling technology to reduce temperatures in stadiums, will have improved infrastructure and more than adequate housing for teams and visitors alike. All of these factors are elements that FIFA looks at when choosing host countries for World Cups. The first factor FIFA considers when choosing a host country is whether or not it has the ability to organize and put on an event like a World Cup. Qatar impressed many with how it was able to organize and accommodate the 2006 Asian Games which included more than thirty events for men and women. The way in which thousands of volunteers were directed and utilized for this event is still unrivaled in the Middle East. Sepp Blatter, president of FIFA, endorsed the idea of Qatar being the host of the 2022 FIFA World Cup based on the......

Words: 1096 - Pages: 5