The Economics of the World Cup

Goldman Sachs has an interesting report on the economics of the World Cup.
Foreign Policy writes:

UEFA’s (Union of European Football Associations) selection of the 2012 Euro Cup host proved prescient, as well. Picking in 2007, Poland won the rights to host the tournament (OK, co-host with Ukraine, but since then UEFA has suggested Poland be the sole host, which the Poles have graciously declined to accept). Poland, however, was the only bid country that hasn’t suffered economic decline since — and yes, Greece was the first bid country eliminated.
Other notable findings: the Growth Environment Scores (a Goldman-devised figure of sustainable economic growth and productivity) of respective countries loosely correlate to soccer performance, but a much stronger connection exists between the improvement of economic conditions and national soccer teams. (Algeria, which did not qualify for the 2006 finals in Germany, posted the highest GES improvement among developing countries over the last four years.) The report also argues that success is partially dependent on the number of males aged 18-34 in countries, and provides a UN chart with predictions for 2050. If the claim is accurate, the Nigerian Super Eagles are going to be really, really good in a few decades.
Lastly, Goldman offers their own predictions of the semi-finals (I won’t spoil, though I will say it’s what my predictions are as well), and lists the probability (with their metrics) that each country will become World Cup champions.
It’s lengthy, but an extremely interesting read, and provides the best rundown of the Cup to come that I’ve seen. Check it out.

Posted by on June 8th, 2010 at 9:45 am


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