The Economics of the World Cup
The month-long excitement of the World Cup has winded down, Spain emerging as the winner in an intense game played on Sunday. Throughout the month, various blogs I follow have posted on a variety of issues concerning the games, and I thought I would highlight some of them here.
First off, Footnoted posted an article talking about how the World Cup affected a variety of businesses:
The Associated Press published an article reporting that after Italian auto workers were told they couldn’t watch a match on company time, they went on strike a half hour before the game started. It also reported that business in Brazil ‘basically shuts down when its team plays,’ and that Germany lost an estimated $8 billion in national productivity because citizens were glued to the games.
The article also mentions some companies that were able to make money during the games, including Nike and Coca-Cola. Nike isn’t a big surprise considering all the merchandise fans bought and sponsorship of the players’ gear; neither is Coca-Cola.
A second, unrelated to the above, article about the World Cup that I enjoyed came from Jodi over at Economist Do It With Models. In it she performs a cost-benefit analysis to argue the case that FIFA should have extra referees at each match, specifically behind each goal post. You should check out the link if you want to read more; it’s an interesting thought process.
The third thing I wanted to post about is an infographic that comes from Mint blog. It was originally posted before the games began, so some of the numbers are estimates, but I still think it’s an interesting way of laying out a general picture of the economics of the World Cup. Click the image below to see the infographic full size.
One final note on the World Cup: Readers, I’m curious. Did you watch any of the World Cup? Any thoughts, economics-related or otherwise?