Report Hosting the World Cup

Introduction

Following the considerable economic and social benefits of hosting the Olympics in 2008, the Chinese government is keen to make a bid to host the 2026 Football World Cup. This report analyses the positive and negative impacts of hosting this tournament in two other countries: the USA and South Africa.

Findings

In the USA the economic impact of the 1994's World Cup was -$9.26bn instead of the projected +$4bn, a difference of $13.26bn. However, the revenue from football has increased drastically year over year. This has dampened the difference between the projected and the actual economic impact.

In South Africa the story is similar: The original budget for the World Cup in 2010 was estimated to $421m. The event was over budget by 1257% and cost the country $5.16bn. During the World Cup 220'000 soccer fans visited South Africa, increasing the awareness and spreading its culture.

Conclusion

Analysing these past World Cup and drawing conclusions from it, the Chinese World Cup in 2026 will be likely over budget as well. In exchange for hosting the World Cup, Chine will be able to improve it's public image and receive stellar publicity.

Recommendations

The planing committee should set out a clear budget and use realistic estimates based on past World Cups. This should contain the run away costs. The event will doubtless still be over budget, but to a lesser degree.

It is advisable to create a clear marketing message to extract the maximal amount of positive exposure possible.

Notes: Recommedations: Multiple Options can be shown. Like If the the government tries to make money, the shouldn't run the event, however if they want to promote the soccer culture and improve the popularity of the Chinese government, then they should