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football and economic growth : the power of luck

by Agnes a Paris Thu May 18th, 2006 at 08:30:42 AM EST

I understood from posts here and there that some of you had interest in football (shall I say soccer?-well this is supposed to be an European forum) so I thought I would share with you some anecdotes and thoughts that came to me last week.
Work brought me to Germany last week to visit a bunch of stadiums and talk with club managers, coaches and stadium owners.
For those unfamiliar with the topic, the World Cup is taking place in Germany this year, and there is quite a buzz around this event.

Football sure is a powerful cash drain, considering the amounts at stake when clubs transact the transfer of one star player. Further exploring the connections between football and economic growth is another matter, and may seem pretty far-fetched.
Can the power of luck, the thrill of hosting such an event influence the dreary economic indicators of a country? What takes place on a football pitch determines the mood of the nation- and sometimes even a country's economic welfare for the near future.


Even on a normal weekend in Germany, people's state of mind largely depends on the activities that are taking place on rectangular areas of grass and ash. Germany has 6.2 million people organized in 26, 000 football clubs, and these have 168, 000 teams. Four hundred thousand attend German league matches in the stadiums while eight million watch the game on TV. It's not about seeing "the better team" win but about seeing yours win.
When the Germans go back to work Monday morning, their mood is determined by the direction the ball took over the weekend.
Economically speaking, it will be Monday everyday for four weeks this summer. Moreover, people's expectations are not as modest as they used to be. The world Cup host at the first championships in Uruguay in 1930 had to reimburse European competitors for all their travel and hotel costs. Today, each host country counts on making a tidy profit from the event.

There is a football economy unconnected to results, outside the realm of ticket prices, transfer fees and perimeter advertising. A Postbank study claims that the additional sales of TV sets, beer, soft drinks, VIP hospitality, sporting goods and all the Wordl Cup merchandising by-products will bring in as much as 3 billion Euros. Noteworthy, 6 billion in private and public funds have been invested in stadium refurbishments, roads up-grading, hotels and train stations. In addition, a question rests over the 150 Euro per day foreign fan spending forecast made by the local industry.
Whether all this will end up with a financially balanced and possibly beneficial outcome remains to be seen.

No wonder estimates vary quite substantially as to the effectiveness of this summer's feel good pill. According to Postabank economists, it will boost the annual GDP by half a percentage point. Bochum-bsaed economist Markus Kurscheidt says that only cautious optimism allows contending, "the World Cup, in all probability, will not put us into debt". The last WC was co-hosted by Japan and South Corea. Though we don't know if all other things were equal, the latter's GDP jumped a handsome 7%. That pf Japan slumped a 0.3%. The south Koreans made it to the semi finals while the Japanese were eliminated in the round of sixteen.

The feel-good factor in France, who hosted and won the 1998 world Cup, was an important leveraging link between athletic and economic success. Private consumption jumped an incredible 1.5% in one of the most dramatic quarterly increases of all times. The birthrate in France also surged in the wake of the Bleus triumph, giving concrete meaning to French sociologist Edgar Morin observation that his country was experiencing "a collective orgasm" that summer 1998.
The competition itself remains a speculative science. Dortmund physics professor Metin Tolan claims to have discovered that team Teuton shows a winning streak every four or five world cups and that it's their trun again this year. Unfortunately (but reassuringly enough for his academic credibility) he only has limited faith in his own theory.

One thing is for sure. Wait and we are bound to an exciting competition, perhaps another Bern miracle... My personal favorite is the Ivory Coast team, the Elephants and as for the German team, I hope to see as much as possible of insanely cute Arne Fried.

Display:
Very good story, which highlights aspects not often heard of.
Mass events always make me shiver : It's like losing your own personality and something else taking control.
Football-stadiums make me think of concentration-camps.
No way I go sit in a gated, walled, fenced,armed garded, TV-circuit controled place to watch a game.
I love playing football, in the street with the kids, and with co-workers in a local competition.
This very midday, the radionews had an item about the number of deaths in the latest blasts in Bagdad, immediatly followed by some results in the Belgian football competition. Football is that important ?
Oh well, maybe it is just me ....

         

The struggle of man against tyranny is the struggle of memory against forgetting.(Kundera)

by Elco B (elcob at scarlet dot be) on Sun May 14th, 2006 at 09:08:33 AM EST
The importance of football is hardly commensurate to the coverage it gets vs news the importance of which is of a totally other magnitude. But as Roman leaders used to say, give them bread and games to keep them docile...
I agree with you on the fact that football coverage immediately following that of major world events sometimes edges to the obscene. But again, media are money driven, and so is football.
Thank you for your nice comment, you seem very lonely in your appreciation, at least at this stage. My ambition to develop a football coverage from this forum on vanishes.. <s>

When through hell, just keep going. W. Churchill
by Agnes a Paris on Sun May 14th, 2006 at 09:36:32 AM EST
[ Parent ]
The coverage of nothing in the news is commensurate with its importance... But then how do you evaluate the importance of a piece of news objectively, except by the extent of its media coverage?

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Carrie (migeru at eurotrib dot com) on Sun May 14th, 2006 at 09:40:16 AM EST
[ Parent ]
That is a philosophical question, Migeru. Anyway, Tribute to your effort to heighten the debate, and very interesting topic to explore, but my recollection is that it has already been done in some diaries over the power of the media. If not, I would be happy to open that thread.

When through hell, just keep going. W. Churchill
by Agnes a Paris on Sun May 14th, 2006 at 09:43:37 AM EST
[ Parent ]
To some the importance of football is greater than anything we care to discuss here, but they are usually pretty disadvantaged and therefore are usually ignored.
by observer393 on Sun May 14th, 2006 at 11:05:44 AM EST
[ Parent ]
To judge importance by media exposure, we're the disadvantaged ones.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Carrie (migeru at eurotrib dot com) on Sun May 14th, 2006 at 05:41:03 PM EST
[ Parent ]
Well, here comes the World Cup...

"Once in awhile we get shown the light, in the strangest of places, if we look at it right" - Hunter/Garcia
by whataboutbob on Sun May 14th, 2006 at 09:33:05 AM EST
I would be interested to hear ET football fans comments on the preposterous amounts some leading players receive. Why football and not rugby, for eg. ? Okay, football is what keeps the populations of less affluent countries with something to believe in, but this is an easy explanation, I am sure there are more elaborated ones. Looking forward to hearing form you.

When through hell, just keep going. W. Churchill
by Agnes a Paris on Sun May 14th, 2006 at 09:41:11 AM EST
[ Parent ]
Hey Agnès, well thought diary, and here's a bit of football hooliganism that started on ET:

http://www2.eurotrib.com/comments/2006/5/14/05736/3759/25#25

by Alex in Toulouse on Sun May 14th, 2006 at 09:47:01 AM EST
[ Parent ]
How about the preposterous amounts leaders in many other preposterous fields receive? Like, say, "top models", or popular musicians, or tennis players...

As for the difference between football and rugby, it's just a function of the cash flow in each sport, which is a function of their media coverage, which is a function of their "importance".

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman

by Carrie (migeru at eurotrib dot com) on Sun May 14th, 2006 at 09:48:15 AM EST
[ Parent ]
Professional sports = entertainment = money. Movie stars get huge sums for one film, so it isn't much different, except sports people have to perform more intensely for their pay. But...it is entertainment, first and foremost...

"Once in awhile we get shown the light, in the strangest of places, if we look at it right" - Hunter/Garcia
by whataboutbob on Sun May 14th, 2006 at 09:52:40 AM EST
[ Parent ]
That's true, but it's a recursive definition, and doesn't answer the question about why it's football and not - say - cheese rolling or curling.

With music you get paid either for skill or - more often - for sex appeal. In movies it's mostly sex appeal, and occasionally also acting ability and screen presence.

With football there's some skill involved, but not any more than in other sports. Local cultures always seem to develop their own versions of an us-vs-them aggressive team sport, so it's probably just a historical accident that grew through positive media feedback. Ireland has hurling, Australia has its own take of two teams on a pitch, the US has footballTM and baseball. Aside from teams and a ball these are all very different, but they all get fanatical local support. So I'd guess if football didn't exist one of these alternatives could easily have filled the gap, and no one would have been too bothered.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Sun May 14th, 2006 at 10:25:22 AM EST
[ Parent ]
I do not fully agree with the fact that movie stars have to perform less intensely. Constrains are quite different.
Same for top models. Having to do swimwear shooting when temperature is a bare 10° C. , and that during 2 hours because the lighting equipment is faulty and and the sun is not rising quickly enough, is not without constrains too.
In movies, some of then at least, there is supposed to be an artistic dimension. I enjoy a good game, but would not contend it is art ...

When through hell, just keep going. W. Churchill
by Agnes a Paris on Sun May 14th, 2006 at 02:53:55 PM EST
[ Parent ]
I'll be supporting France against South Korea and Switzerland, but not when we play Togo (I hate it when an ex-colony finally makes it to the world cup only to find itself in the same groupe as us, the leviathan, and I hate it when such a team is not very strong and stands a risk of being trashed, in which case my "go for the underdog" feeling becomes very strong). When France loses I'll be supporting the Ivory Coast (if they're still around). After that I suppose it'll be Argentina, depending on who's left of course.
by Alex in Toulouse on Sun May 14th, 2006 at 09:51:07 AM EST
I'm totally new to football, but I live in Switzerland now, so: "Hopp Schwiiz!!"

"Once in awhile we get shown the light, in the strangest of places, if we look at it right" - Hunter/Garcia
by whataboutbob on Sun May 14th, 2006 at 09:53:49 AM EST
[ Parent ]
Allez le Togo, allez les bleus, and long live la maFifa.
by Alex in Toulouse on Sun May 14th, 2006 at 09:57:26 AM EST
[ Parent ]
I had never been too much of a football fan, but I followed the national league, and the international competitions, and watched all the big games. However, after 4+ years in the US, I don't give a fig about football any longer.

For about a year I still tried to follow the Spanish league, but when there's nobody else around to bring it up in conversation and you can'tt watch any games, you sort-of lose interest quickly. I did do my best to watch Spain's 2002 world cup games, but t was a little hard to find a bar that would show them... I ended up spending a couple of late nights (2am, 3am) in the campus' "Getaway Cafe", in the company of about 1 other hardcore football fan...

Now I've been in England for over a year. The football coverage in the local press is mostly a noisy nuisance, I still haven't managed to get hooked on Spain's league again, and I have to confess I don''t even know who the big players in the various international squads are...

So I think I'll pass, at least until our child catches the bug from his school mates.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman

by Carrie (migeru at eurotrib dot com) on Sun May 14th, 2006 at 10:01:22 AM EST
[ Parent ]
There was some big violence after the Basel-Zurich championship game yesterday...seems it was "hooligans" who were unhappy about Basel losing. Police fired tear gas, water cannons and rubber bullets!!! This is the thing that really ruins sports, as far as I'm concerned...and it makes you wonder if this is going to be a problem in the World Cup. The Swiss Government is quite upset about the events in Basel...

"Once in awhile we get shown the light, in the strangest of places, if we look at it right" - Hunter/Garcia
by whataboutbob on Sun May 14th, 2006 at 12:29:17 PM EST
[ Parent ]
World Cup organisers are generally clever, for example they sandwich English supporters between buddhist monks (Tibet supporters) and Taekwondo black belts (South Korean supporters).
by Alex in Toulouse on Sun May 14th, 2006 at 12:33:51 PM EST
[ Parent ]
Funny why we (Agnès and I, and many others) support the French-speaking African nations though, it was already like that with Senegal at the last world cup (ps: even the main news anchor of the first channel had a Senegal supporter scarf on air, at prime time)...
by Alex in Toulouse on Sun May 14th, 2006 at 10:01:50 AM EST
[ Parent ]
To what extent is supporting your former colonies a paternalistic instinct?

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Carrie (migeru at eurotrib dot com) on Sun May 14th, 2006 at 10:02:47 AM EST
[ Parent ]
That's what I'm trying to figure out. Is it paternalistic, is it cultural (ie. in this case based on language?), is it media-driven (no, I doubt that), is it the fact that many players in those ex-colonies play in the French championship and we know their names? What is it exactly?

My preference is the cultural solution ... for instance in football I'll always favour a Spanish-speaking nation against an English-speaking one, there's nothing I can do about that.

However this all stops at football, when it comes to rugby I don't give a cat's ass about the underdog and wouldn't support Togo (I care about the rugby underdog only in the case in which the underdog not getting trashed is good for the future of rugby, as a developing sport, in the underdog's country)

by Alex in Toulouse on Sun May 14th, 2006 at 10:07:57 AM EST
[ Parent ]
I think rooting for the underdog in Football but not in other sports has to do with the fact that Football is "the real thing" [as a war proxy or for national pride].

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Carrie (migeru at eurotrib dot com) on Sun May 14th, 2006 at 10:10:29 AM EST
[ Parent ]
What you say is almost certainly right, and could only be true for other sports if these attained the same statute as football.
by Alex in Toulouse on Sun May 14th, 2006 at 10:16:58 AM EST
[ Parent ]
I think within the Commonwealth, Cricket has the same status a Football, but I'd need independent confirmation from Brits.

The 6-nations has a similar status for national pride, but it is restricted in scope. It's really like a reenactment/setting of scores for the English wars of the middle ages. The addition of Italy is weird: they only had wars with the French.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman

by Carrie (migeru at eurotrib dot com) on Sun May 14th, 2006 at 10:22:59 AM EST
[ Parent ]
Cricket in Sri Lanka is definitely perceived as a good opportunity to settle the score, although the "enemies" are more India and Australia, than England, and strangely so. I suspect the media of fomenting rivalry in this case, as opposed to culture and history, although the latter are not exempt from reproach (India's IPKF saga for example was never really forgiven, and speaking now not from Lanka's persecptive, England cricketeers have on more than one occasion lifted their arms in the air, crossed, as symbolism for being shackled, when playing Australia).

Anyhow Lanka comes to a halt when there is a cricket world cup.

by Alex in Toulouse on Sun May 14th, 2006 at 10:30:13 AM EST
[ Parent ]
I had a conversation about Togo during my weekend at Angoulême, and I remember telling these two guys that I was pissed off that Togo had fallen in our group (like I said for fear of us trashing them), and they said "you know maybe they're proud to play us, and would be even prouder if they beat us, you can look at it the other way".
by Alex in Toulouse on Sun May 14th, 2006 at 10:19:32 AM EST
[ Parent ]
On the subject of football as war proxy, I am not sure whether it is a good or a bad thing that the earliest Iran can play the US is in the semifinals.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Carrie (migeru at eurotrib dot com) on Sun May 14th, 2006 at 05:55:32 PM EST
[ Parent ]
Probably a good thing, if we consider that it's unlikely either team will make it that far. But a bad thing if they do make it that far and the US wins (ie. if Iran wins I don't think it'll quite be so dramatic, but if the Great Satan wins, all hell could break loose, pun intended).
by Alex in Toulouse on Sun May 14th, 2006 at 06:12:31 PM EST
[ Parent ]
I, on the other hand, think it would be bad if Iran won, because then the US would add that to the 1979 hostage crisis and support for military action would increase.

If the US made it to the World cup final by defeating Iran, maybe WWIII could be averted. I hope someone from FIFA is reading this so they can rig the necesary games.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman

by Carrie (migeru at eurotrib dot com) on Sun May 14th, 2006 at 06:15:51 PM EST
[ Parent ]
hehehe Migeru that last phrase was hilarious

May I add: "operator, put us through to the Italian representation at Fifa."

by Alex in Toulouse on Sun May 14th, 2006 at 06:21:02 PM EST
[ Parent ]
The nightmare scenario would be for that match to have an Israeli referee.
by Alex in Toulouse on Sun May 14th, 2006 at 06:21:36 PM EST
[ Parent ]
Hahahahaha...

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Carrie (migeru at eurotrib dot com) on Sun May 14th, 2006 at 06:22:11 PM EST
[ Parent ]
I feel like adding "with Palestinian linesmen" but that would be pushing my luck.
by Alex in Toulouse on Sun May 14th, 2006 at 06:26:48 PM EST
[ Parent ]
Then again, if Uruguay plays the Solomon islands, and the latter shows signs of being a total underdog (fumbling passes, looking sad each time an opponent gets the ball, panting heavily, diving and falling all over the place ...), I would definitely favour them.

Ok scrap what I said earlier, I can't make any sense of it, there may be no logic as to who I support after all ...

by Alex in Toulouse on Sun May 14th, 2006 at 10:14:15 AM EST
[ Parent ]
Well, for me Ivory Coast is not a former colony, but a country where I grew up, hence a special feeling.
As I do not have any subjective and even not that many objective reasons to identify with France's history, the colonialist past does not bear any weight in my support choices :)

When through hell, just keep going. W. Churchill
by Agnes a Paris on Sun May 14th, 2006 at 02:58:13 PM EST
[ Parent ]
Possibly totally. England fans always support home nations in otherwise neutral games. However that attitude is totally not reciprocated, most Scots, Welsh and Irish would rather cut off their right arm than support England.

No doubt, Scots Welsh and irish will now deluge the thread to argue otherwise.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Sun May 14th, 2006 at 03:04:41 PM EST
[ Parent ]
When Portugal hosted the Euro 2004 one of the argumens for doing it was the potencial for a wave of optimism and th effect on the population as a motivator...

Well, besides the fact that during the competition and up to the final with greece there was a terrific athmosphere  of support and even a sort of joyfull nationalism and pride (something portuguese are not very big on...) after all the numbers were crunch, the Euro 04 was an economic failure.
Not least because of the insistance on building or improving 10 stadiums... when 8 would be more than  sufficient, but local power lobbies, and the construction lobby eventually got away with it.

Any optimistm that might spur from the simple fact that we were able to organize the event is lost on the bill we have to pay...

by Torres on Sun May 14th, 2006 at 12:24:56 PM EST
Not quite on topic, but I have always looked upon football as mass mental health therapy.

In our everyday life our emotions are generally clamped down or expressed in complicated ways. Even love and sexual passion become compromised by who's done the hoovering etc etc.

But football remains pure : For 90 minutes you can be totally focussed on a patch of grass and 22 men running around chasing a pig's bladder.

In that period of time you will probably get a complete emotional work-out. Incredible highs when you take the lead, gnawing gut-wrenching fear as you defend a fragile 1-0 lead in the dying minutes of important games. Resignation as your team falls behind and seems incapable of doing anything about it and then the surprise and exstacy when they pull something out of the bag.

Absolute joy, utter despair and every sensation in between coupled with the absolute uncertainty of what might happen next.

And when the final whistle comes, you put on you coat and go home back to grey reality.

It is not a condemnation of the individuals that nothing else seems quite as real, quite as intense as those confected moments. Rather it is a comment on the lives most of us lead that most of the time we just aren't really that engaged, that involved. After all it is inevitable that it is so; however diverse your life, it comes to be the same old same old.

So for adults it is probably necessary that they have a chance to indbulge such purity of feeling, such passion in a contained environment. Without such release I think many more would find themselves feeling they are depressed and unfulfilled in their life.

Bread and circuses indeed. Even Caesar understood we need to engage with the visceral to keep our sanity.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Sun May 14th, 2006 at 02:25:06 PM EST
Dortmund physics professor Metin Tolan

By the way: I wonder whether Turks will cheer for Germany.

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Sun May 14th, 2006 at 04:24:48 PM EST
hm, I can see I am going to have to write some diaries as both you and Migeru are intent on the downsides of football supporting.
by Metatone (metatone [a|t] gmail (dot) com) on Sun May 14th, 2006 at 05:39:29 PM EST
[ Parent ]
Me not grok.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Carrie (migeru at eurotrib dot com) on Sun May 14th, 2006 at 05:43:21 PM EST
[ Parent ]
Downsides?

I thought mine is an upside! Turkey is out of the WC, and with the strenuous ties between the two countries, it just may happen that for many Turkish supporters, Germany will be Plan B.

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Sun May 14th, 2006 at 05:44:03 PM EST
[ Parent ]
But wirte your diaries in any case! With your photos if possible!

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Sun May 14th, 2006 at 05:45:02 PM EST
[ Parent ]


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