Advantages and Disadvantages of competing to bring the Soccer World Cup to a city in the United States
The FIFA World Cup has a significant economic, environmental and social impact on the country where it is held. FIFA, soccer's world-wide governing organization with 204 associate countries, is beginning to view itself as a universal large business. This self image is no assumption; it has been proven throughout various World Cups that this soccer event has a global impact.
The sponsorship of this great event has increased from a billion dollars to several billion dollars. This event attracts billion spectators on average from opening to closing of the competition. These sponsors include many big brands like Coca-Cola, Adidas and others. When America was the host of 1994 World Cup, 65% of the total money spent on funding was in sports. It is apparent that hosting a World Cup have a strong impact on the global economy (Smith, 2009).
The United States is a leading bidder for the 2018 and 2022 World Cups. England is expected to host the 2018 bid, leaving the 2022 bid as the focus of the US effort.
The USA Bid Committee has undergone a study to determine how much impact the World Cup in America would have. The results are healthy with a $5billion economic impact expected to benefit the country. AECOM, previously Economics Association (ERA), the world's leading research firm analyzed that the coming event attracts the attention of various sectors. They also conducted the analysis of 1994 World Cup of the United States and many of the Olympic Games. It is expected to earn from 400,000,000 to 600, 000,000 U.S. dollars in the coming event. The study also estimated 5000 to 8000 people in each host city as audience will create the event amazing and interesting.
Each host city will experience a boost to the local economy to million dollars. There are several industries which can give boom to the economy like transportation, hospitality, and tourism and alike. It will give employment opportunities to many jobless populations (Shultz, 1999).
It is not always the case that hosting the World Cup leads to long-term economic gains. It has the negative side too. The games in Japan which co-hosted with neighboring South Korea in 2002 continued to be an economic drag on the local communities. It happened because maintenance of the stadiums built for the games cost more than the revenues they brought in. Eight of the 10 stadiums built or renovated in Japan for the 2002 World Cup dropped between $2 million to $6 million in that year, the balance of which was tolerated by Japanese taxpayers. The main thing is if the strategy is well planned then success is assured. So, proper planning is the main thing.
Include a comprehensive and accurate cost estimation is in the best interests of the Bid Committee, because it will not only make hosting the event look impressive is an economic way but also consider the costs ...