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The Quest for the Cup: Assessing the Economic Impact of the World Cup

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Author Info
Robert Baade
Victor Matheson

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Abstract

Baade R. A. and Matheson V. A. (2004) The quest for the cup: assessing the economic impact of the World Cup, Reg. Studies 38 , 343-354. Hosting the World Cup, the world's second largest sporting event, is a potentially expensive affair. The co-hosts of the 2002 games, Japan and South Korea, spent a combined US$4 billion building new facilities or refurbishing old facilities in preparation for the event. An ex post analysis of the 1994 World Cup held in the US suggests that the economic impact of the event cannot justify this magnitude of expenditures and that host cities experienced cumulative losses of $5·5 to $9·3 billion as opposed to ex ante estimates of a $4 billion gain touted by event boosters. Potential hosts should consider with care whether the award of the World Cup is an honour or a burden. Baade R. A. et Matheson V. A. (2004) La quête de la Coupe: une évaluation des retombées économiques de la Coupe du Monde, Reg. Studies 38 , 343-354. Recevoir la Coupe du Monde, le deuxième championnat mondial, pourrait s'avérer coûteux. Les deux pays d'accueil du championnat de 2002, à savoir le Japon et la Corée du sud, ont dépensé à eux deux $4 milliards pour la construction de nouveaux équipements et la rénovation de vieux complexes en vue du championnat. Une analyse ex post de la Coupe du Monde de 1994, organisée aux Etats-Unis, laisse supposer que les retombées économiques du championnat ne justifient pas des dépenses d'une telle importance et que les villes d'accueil ont accusé des pertes consolidées de $5,5 à $9,3 milliards par rapport aux estimations ex ante des bénéfices de l'ordre de $4 milliards vantées dans la publicité. Les futurs pays d'accueil devraient considérer avec prudence si, oui ou non, l'attribution de la Coupe du Monde constitue une manne ou un fardeau. Baade R. A. und Matheson V. A. (2004) Die Jagd auf den Pokal - Beurteilung der wirtschaftlichen Auswirkung des Weltmeisterschaftspokals, Reg. Studies 38 , 343-354. Gastgeber des Wettkampfes um den Weltsmeisterschaftspokal, dem zweitgrößten Sportereignis der Welt, zu sein, könnte sich durchaus als ein kostpieliges Vergnügen erweisen. Japan und Südkorea, die gemeinsamen Gastgeber der Wettspiele im Jahre 2002, gaben zusammen $4 Billionen für Vorbereitungen, für den Bau neuer, bz.w. der Erneuerung alter Anlagen, aus. Eine im nachhinein durchgeführte Analyse der Weltmeisterschaft, die 1994 in den USA abgehalten wurde, legt nahe, daß die wirtschaftliche Auswirkung des Wettkampfes nicht den Umfang der Ausgaben rechtfertigt, und daß Gastgeberstädte Gesamtverluste von $5,5 bis $9,3 Billionen erlitten, im Gegensatz zu vorausgegangenen Schätzungen eines Gewinns von $4 Billionen, den Wettkampfwerbetrommler versprochen hatten. Etwaige Gastgeber sollten sorgfältig überlegen, ob die Verleihung der Weltmeisterschaft eine Ehre oder eine Bürde darstellt. Baade R. A. y Matheson V. A. (2004) En busca de la Copa: una evaluación del impacto económico de la Copa del Mundo, Reg. Studies 38 , 343-354. Ser el país anfitrión de la Copa del Mundo, el segundo evento deportivo más importante del mundo, es potencialmente un asunto caro. Los anfitriones de los juegos del 2002, Japón y Korea del Sur, gastaron una suma combinada de $4 billones construyendo nuevas o restaurando viejas instalaciones como parte de los preparativos para el evento. Un análisis ex post de la Copa del Mundo de 1994 que se celebró en los Estados Unidos sugiere que el impacto económico del evento no puede justificar tal magnitud de gastos y que las ciudades anfitrionas experimentan unas pérdidas cumulativas de entre $5.5 y $9.3 billones en comparación con estimaciones ex ante de ganancias de unos $4 billones pronosticado por los promotores del evento. Aquellos potenciales anfitriones deberían considerar cuidadosamente si la concesión de la Copa del Mundo es un honor o una carga.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Regional Studies.

Volume (Year): 38 (2004)
Issue (Month): 4 (June)
Pages: 343-354
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Handle: RePEc:taf:regstd:v:38:y:2004:i:4:p:343-354

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Related research
Keywords: Sports Soccer Football World Cup Stadiums Sports 'Soccer' Football Coupe Du Monde Stades Sport Fuß Ball Weltmeisterschaftspokal Stadien Deportes Tbol Copa Del Mundo Estadios

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Robert Baade & Victor Matheson, . "An assessment of the economic impact of the american football championship, the Superbowl, on host communities," IASE Conference Papers 9903, International Association of Sports Economists. [Downloadable!]
  2. John Siegfried & Andrew Zimbalist, 2000. "The Economics of Sports Facilities and Their Communities," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 95-114, Summer. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Victor Matheson, 2006. "Mega-Events: The effect of the world’s biggest sporting events on local, regional, and national economies," Working Papers 0610, College of the Holy Cross, Department of Economics. [Downloadable!]
    Other versions:
  2. Victor Matheson & Robert Baade, 2004. "Mega-Sporting Events in Developing Nations: Playing the Way to Prosperity?," Working Papers 0404, College of the Holy Cross, Department of Economics. [Downloadable!]
    Other versions:
  3. Robert Baade & Robert Baumann & Victor Matheson, 2006. "Selling the Big Game: Estimating the Economic Impact of Mega-Events through Taxable Sales," Working Papers 0610, International Association of Sports Economists. [Downloadable!]
    Other versions:
  4. António Miguel Martins & Ana Paula Serra, 2007. "Market Impact of International Sporting and Cultural Events," Working Papers 0720, International Association of Sports Economists. [Downloadable!]
  5. Victor Matheson, 2004. "Is Smaller Better? A Comment on "Comparative Economic Impact Analyses" by Michael Mondello and Patrick Rishe," Working Papers 0407, College of the Holy Cross, Department of Economics. [Downloadable!]
  6. Robert Baade & Robert Baumann & Victor Matheson, 2008. "Rejecting “Conventional” Wisdom: Estimating the Economic Impact of National Political Conventions," Working Papers 0804, College of the Holy Cross, Department of Economics. [Downloadable!]
  7. António Miguel Martins & Ana Paula Serra, 2007. "Market Impact of International Sporting and Cultural Events," FEP Working Papers 240, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
  8. Florian Hagn & Wolfgang Maennig, 2007. "Labour Market Effects of the 2006 Soccer World Cup in Germany," Working Papers 0716, International Association of Sports Economists. [Downloadable!]
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