A project which focused on the economic benefits a country expects by hosting a major sports event like the FIFA World Cup and what it actually gets in return.

1. SOCCERNOMICS
An insight into the economics of the FIFA World Cup 2014
and other Mega Sporting events

2. BRAZILIAN ECONOMY: AS IT STOOD
• At the 7th rank globally with a
GDP of US$ 2.246 trillion
• Tremendous Absolute GDP
figures

3. • The GDP growth has been very
unstable over the last ten
years

4. • The 2014 FIFA world cup and the
summer Olympics of 2016
ensured an upward graph of the
amount invested in Brazil
throughFDI

5. • Sudden spurt in 2003
pertaining to the
announcement of hosting WC
2014
• Constant from 2006

6. FACTS AND FIGURES

7. $13,000,000,000

8. EXPECTATIONS
 The investment and construction would
create thousands of new jobs and
investment opportunities would
multiply.
 It would attract thousands of tourists
who will pump millions into the
economy by spending on food,
entertainment and accommodation.
 Worldwide media attention would enable
Brazil to brand itself once and for all on the
global stage as a vibrant, rich, diverse, and
sophisticated country
 It would accelerate the economic boom and
convert the country from an emerging market
to a developed one.

9. $90,000,000,000
Aldo Robelo,
Minister of Sports
Brazil

10. REALITY CHECK
 Germany 2006-15 year impact
under $5 billion.
 South Africa 2010 revenue-
$500million. $900 million estimated.
 World cups generate very little revenue
compared to the expenses.
Most of which goes to FIFA.
 Issue of white elephants

11. ATHENS, 2004

12. $124 million per year maintenance cost

13. Arena da Amazonia
• Capacity 40,000
• Will host Nacional Futebol Clube,
only 1,500 spectators on an
average.
$250,000 per month

14. Tourist issue
• Brazil already a tourist destination. Rio de
Janerio most visited city in southern
hemisphere with 2.8 annual tourists
Athens 2004, 10% drop in tourists
from 2003 to 2004.
Beijing 2008. estimated less tourists
in 2008 than in 2007

16. Look at the Past:
South Africa 2010
Was supposed to be a major boost for the
developing African Nation

17. Expenses
Total $3 billion spent on the World Cup:
Transport was the biggest cost, with $1.3 billion
$1.1 billion on building and upgrading stadiums
alone
Only 16% of expenses were paid by foreign sources, such as FIFA Organising
Committee, the media, sponsors and broadcasters.
Rest all came from the public funds.

18. Concessions to FIFA
“The concessions that South Africa had to give to FIFA were simply too demanding
and overwhelming for us to have material monetary benefits”,
Adrian Lackey spokesperson for the South African Revenue Services (SARS).
Concessions included:
• Tax-free bubble around FIFA Unrestrictedimport-
export, exchange and conversion of all foreign
currencies
• Suspension of any labour legislationthat could
restrict FIFA or its commercial partners
• Guarantees to indemnify FIFA against all claims

19. Benefits
• Tourism Industry managed to earn $400 million
Figures highly exaggerated
• 695,000 new jobs were created
Only 280,000 sustained
The biggest financial benefits, such as TV rights and
sponsorships are pocketed by FIFA

20. Intangible Benefits
The successful world-cup left a positive image of
South Africa across the world
Supposed to boost FDI and tourism

21. The South African government was
compelled to act in a manner to fulfil
the financial greed of FIFA and its
commercial partners.

22. PREDICTING THE SOCIAL AND ECONOMIC
IMPACT OF THE WORLD CUP IN BRAZIL

23. BRAZIL MIGHT BE ABLE TO BUCK THE
TREND
 Hosting consecutive events
Sports related investment is relatively low
Construction, Telecom and Transportation sectors poised for
maximum investments

24. DIRECT AND INDIRECT IMPACTS
Creation of jobs
Investment
Spending by visitors
The Domino Effect
Legacy

25. INFERENCES BASED ON INITIAL
TRENDS
 Brazil lost the World Cup, on the ground and off it as well
Low growth, Recession looming
Fall in productivity
World Cup hangover

26. HIT OR MISS
CONCLUSION