Questioning the Economic Wisdom of the U.S. World Cup Bid

The New York Times's Freakonomics blog asks whether it's really a good idea for the U.S. to try to host another World Cup, especially given the fact that the event is not a money-maker for the host.

The truth, however, is that most such events don’t provide much economic stimulus, and often turn out to be money losers. This isn’t to say that cities or countries shouldn’t try to host these events — but, as the Soccernomics authors argue, they should at least realize that what they’re doing is paying for the right to host a big party. The same is generally true for public funding of new sports arenas, as the economist Dennis Coates made clear not long ago.

Should the U.S. Really Try to Host Another World Cup?
The New York Times
July 19, 2010

Lobbyists' Potentially Corrupt Practices for Australia's 2022 World Cup Bid

The Age provides some background on the potentially corrupt practices of two lobbyist who are working with Australia on the country's bid to host the 2022 World Cup.

Two controversial European lobbyists hired to help bring the soccer World Cup to Australia stand to receive up to $11.37 million in fees and bonuses - one-quarter of the taxpayer-funded bid - according to secret Football Federation Australia files.

The files include a spreadsheet that suggests the federal government was not told specific details about how taxpayers' money was to be spent on the lobbyists and grants to overseas football bodies headed by powerful FIFA officials.

World Cup money trail: lobbyists to make millions
The Age
June 30, 2010

Potential Corruption in Australia's 2022 World Cup Bid

Another detailed post from Pitch Invasion looking into the past of one of the consultants working with Australia on the country's bid to host the 2022 World Cup.

Radmann’s links to the global game and the World Cup go back decades, and reach to the highest levels of the sport.

In 2000, Radmann was selected by Franz Beckenbauer to play a key role on the Organising Committee for the 2006 World Cup to be held in Germany, touted as a “marketing and PR expert”. He had previously been the co-ordinator of Germany’s successful World Cup bid, one tainted by allegations of bribes paid to FIFA officials to secure the vote.

Australia’s 2022 World Cup Bid and Fedor Radmann: Buying FIFA Connections
Pitch Invasion
July 4, 2010

Suspicious Activities Mar Australia's 2022 World Cup Bid

This detailed post from Pitch Invasion looks at one of two shady characters working behind the scenes on Australia's bid to host the 2022 World Cup, and the light that shines on FIFA's bidding process.

A couple of days ago, we commented on the revelations coming out in the Australian press about the suspect manner in which their World Cup bid was being made. That piece was on how Australia’s governing body, Football Federation Australia (FFA), and its bid team were taking advantage of FIFA’s lax and inadequate rules on gifts to FIFA Executive Committee members (the 24 of whom will decide on the hosts of the 2018 and 2022 World Cups in December).

Today, we will look at another of the revelations to have come out in Australia’s press that once again affirms the entire process of World Cup bidding is all about who you can buy to get the tournament.

Sadly, it means paying $11.37 million (AUS) to two of world soccer’s least pleasant leeches, Peter Hargitay and Fedor Radmann.

Paying Peter Hargitay: The Price Of A World Cup Bid
Pitch Invasion
July 1, 2010

Obama Stumps for a U.S. World Cup

U.S. President Barack Obama is pushing for his country to play host to an upcoming World Cup. The U.S. is bidding for the 2018 and 2022 tournaments.

While baseball and American football take a front seat, the president said, soccer is a "late entry" to U.S. sports fandom and would only be boosted by a World Cup here.

Obama: U.S. 'very serious' about hosting future World Cup
The Hill
July 14, 2010

Russia Proposes $340 Million Investment in Stadia for 2018/2022 Cup

Russia is expecting to invest about $340 million on new stadia if it wins the right to host either the 2018 or 2022 World Cups.

"Sufficient funds have been allocated by the government for the reconstruction of existing bases, pitches, and infrastructure," [Russian Football Union head Sergei Fursenko] said. "Around 340 million until 2015 is expected to be spent on these needs."

He added that 13 new stadiums would be built for the tournament, and that even if Russia was unsuccessful in its bid, "we will build six stadiums in any case."

Russia to invest $340 million in football infrastructure
Rian
May 18, 2010

Bribe Comments From the Top Hurt England's 2018/2022 Bid

After the release of a secretly recorded tape in which he suggested that Russia and Spain would try to collude and bribe their way into hosting an upcoming World Cup, the leader of England's Football Association and World Cup Bid Team has resigned. He claims the bribe comments were not meant to be taken seriously. England's bid team has issued formal apologies to the bid teams in Russia and Spain, and some now question whether this controversy will hurt England's chances of being selected as host of either the 2018 or 2022 World Cups. England was thought to be the favorite to win hosting duties for 2018.

The Mail on Sunday revelations came only two days after former England captain David Beckham had helped the FA submit a 1,752-page bid book as they try to persuade Fifa to award England the 2018 World Cup.

"I have decided to resign as chairman of the FA and the 2018 Bid board," Triesman said in a statement.

"A private conversation with someone whom I thought to be a friend was taped without my knowledge and passed to a national newspaper," he added, referring to former aide Melissa Jacobs, who met Triesman a fortnight ago.

Lord Triesman quits FA and 2018 World Cup bid jobs
BBC
May 16, 2010

Japan Emphasizes 3D in its Bid to Host the 2022 World Cup

Citing its predominance in the world of high technology, Japan is bolstering its bid to host the 2022 World Cup through its ability to present matches in 3D. Officials are also touting the nation's recent co-hosting run in 2002, and its financial ability to build the stadia necessary to host the event.

[Japan's soccer chief Motoaki Inukai] insisted there would be no financial barriers to staging the World Cup in 2022 if Japan were named as hosts by FIFA in December.

"If Tokyo had won the (2016) Olympic bid it would have simplified things a lot," he said, referring to the construction of an 80,000 capacity stadium required under FIFA rules.

"Osaka raised their hand and have signed off on the stadium so it will be built. If Japan are chosen as World Cup hosts there will be no (financial) concerns at all."

Japan offers 'Avatar'-style 2022 World Cup
Reuters
May 17, 2010

Houston Has High Hopes on Hosting

Planners and officials in Houston are hoping that the U.S. bid to host either the 2018 or 2022 World Cup is successful, as it could greatly benefit the city.

“We just got done with a successful 2010 NCAA South Regional,” David Tagliarino of Stadium Management Group-Reliant Park said. “We're hosting the NCAA Final Four in 2011 and we'll be hosting the Final Four again in 2016. We've done the All-Star Games. We've done the Super Bowl, and the World Cup would just be icing on the cake.”

An experienced sales pitch
The Houston Chronicle
May 14, 2010

U.S. Pins 2018/2022 World Cup Bid Hopes on Physical Capacity

The United States confidently submitted its bid to host either the 2018 or 2022 World Cup, boasting its physical capacity to host the games and the crowds.

[Sunil Gulati, chairman of the U.S. Soccer Federation] cited several factors that would help make the U.S. case, including having 5 million tickets available, 18 cities with access to international airports and stadiums ready to host the event tomorrow, plus a wealthy populace.

Alas, numbers alone don't win the bidding, and the U.S. also has to convince the 25 members of FIFA's executive committee it has become a full-bore soccer nation. "They don't understand how big it is in this country," Mr. Gulati said.

Confident U.S. Presents World Cup Bid
The Wall Street Journal
May 14, 2010

Other Sports Threaten Australia's 2018/2022 World Cup Bid

Though Australia has submitted its formal bid for the 2018 or 2022 World Cup, its agreements with rugby and other sport leagues are tenuous and could crack the country's seeming abilities to host the event.

A government-brokered deal fixing a formula for compensation was struck at the eleventh hour this week, allowing Australia to hand its bid book to FIFA by the deadline on Friday with a semblance of cooperation [nSGE6490I1].

However, the Memorandum of Understanding merely papers over the cracks, and allows the rival codes to schedule matches in direct competition with the tournament, opening up the embarrassing possibility of half-empty stadiums as local fans vote with their feet.

"Not negotiable for us, if you wanted to articulate it as a deal-breaker, was that we had to have the ability for our season to play through," Gillon McLachlan, chief operating officer of the Australian Football League (AFL), told Reuters.

Australia W.Cup bid papers over home game cracks
Reuters
May 14, 2010

Green Cup With Bikes A-Plenty for Belgium and Netherlands Bid

Belgium and the Netherlands have submitted their joint bid for either the 2018 or 2022 World Cup, highlighting their commitment to creating a "green" World Cup. Their plan includes free public transit and 2 million free bikes for fans to use during the event.

"It will be the greenest World Cup ever with an environment protection plan the world has never seen before," said [Ruud] Gullit, who is president of the bid.

"The games will be played in 14 truly green stadiums. The compactness of our countries is a great asset, due to the short distance the next game is never far away and we will offer the fans a network of free public transport and 2 million free bikes.

"In the Low Countries, everyone can go to the stadiums by bike, just like we arrived this morning."

Gullit goes green as FIFA receives World Cup bid books
Reuters
May 14, 2010

England's 2018/2022 Bid is In

England has submitted its bid to host either the 2018 or 2022 World Cup, touting its success as host of the 1996 Euro championship and the upcoming 2012 Summer Olympics.

"He said that this country has great infrastructure and facilities and has a history of delivering great major sporting events like Euro 96; he said people in England were fully behind the bid," [said a FIFA spokesperson about a call FIFA President Sepp Blatter had received from new British Prime Minister David Cameron.]

England bid organisers believe that one of their trump cards is the ability to drive up the commercial revenues of the event.

Fifa is expected to net £2.1bn in TV and sponsorship from the 2010 World Cup, and England estimates it can increase that income by a third, taking it near the £3bn mark.

Beckham hands over England 2018 World Cup bid
BBC
May 14, 2010

Australia Submits 2018/2022 World Cup Bid

Australia has completed its formal bid to host either the 018 or 2022 World Cup, and submitted its documents to FIFA after securing cooperative statements from rugby officials.

The Bid contains unified Australian Government support and the unified support of the other major sporting codes after the final agreements required by FIFA were signed over the weekend.

It is a welcome announcement for the game in Australia just a day after AFL boss Andrew Demetriou threw his belated support behind the bid after his code and two others (Rugby Union and League) signed a binding agreement that resolved outstanding issues surrounding stadium use and the possible suspension of other codes during a World Cup year.

Australia's World Cup Bid Finalized With Support From All Rival Codes
Goal.com
May 10, 2010

Qatar's World Cup Hopes Go Far Beyond Soccer

Qatar is pinning its ambitions toward becoming a global city on its bid to host the 2022 World Cup.

Qatar's wealth is mind-boggling, and with that comes opportunity. Perhaps the biggest opportunity occupying the minds of those creating Qatar's horizon is the World Cup.

Hosting the world's most popular sporting event would be a game-changer, which believes its next incarnation will be as a global IT and financial centre. Bringing the world to its shores is the chance to change perceptions. Eventually, someone has to fill the thousands of empty offices and the condominiums stretching across the desert sand.

To make that happen, white-collar nomads need to be convinced they can make a life in Qatar, not just make money. The World Cup is the chance to prove the point.

World Cup dreams rise like the Doha skyline
The Sydney Morning Herald
April 26, 2010

Qatar Plans Air-Conditioned Stadia for 2022 Bid

As part of its bid to host the 2022 World Cup, the hot desert nation of Qatar is proposing a plan to build 12 air-conditioned stadia to fight the heat.

The new venues would use solar power to provide what officials say will be optimum pitch-side conditions despite the scorching Arabian sun.

The $4 billion Qatar World Cup bid has been dismissed by many as a publicity stunt because of ferocious summer temperatures that can top 50 degrees Celsius but organizers say they can harness this power to create carbon-neutral arenas.

Qatar plans air-conditioned stadiums if it gets World Cup
The Washington Post
Aoril 28, 2010

Qatar Plans Temporary Stadia for 2022 World Cup Bid

Hoping to catch the eye of FIFA and reduce the likelihood of post-event white elephants, World Cup organizers in the desert nation of Qatar have proposed a plan to build temporary stadia for the 2022 World Cup, should the country be chosen as host. The stadia would then be deconstructed after the tournament and rebuilt in other places or countries in need of sports infrastructure.

The idea is an expanded version of the original vision for London's 2012 Olympic Stadium in Stratford, which was to have been reduced from 80,000 to 28,000 seats after the Games but may now remain at a larger capacity. In-stadium cooling technology that is being developed to reduce temperatures for players and spectators that can average a sweltering 41 degrees in June – a huge handicap for any Middle Eastern bid – will also be shared with other countries that have to date found their climates incompatible with hosting major events.

Qatar build up 2022 World Cup bid with flat-pack stadiums
Guardian
April 28, 2010

Russia and Australia Kick Up Efforts to Win 2018 or 2022 World Cup Hosting

Leaders in Russia and Australia are pushing their countriies' respective efforts to play host for either the 2018 or 2022 World Cup.

Putin added the issue to March 24's meeting of the Government Presidium of the Russian Federation, and has overseen progress on the guarantees since. The documents now having been signed, they will form part of the official bid presented to FIFA on May 14.

Putin said: "The World Cup preparations will not only require a large number of new sports facilities. They will also mean that we must develop - and are certain to do so if our bid is accepted - additional infrastructure: airports, roads, hotels and other tourist facilities in at least 10 major Russian cities, if not more. All of that would remain to be used by our people for decades to come.''

Meanwhile, Football Federation Australia chief executive officer Ben Buckley believes forecasts of social and economic growth in Asia make a compelling case for his country, which joined the Asian Football Confederation in 2006.

Australia and Russia step up World Cup bids
ESPN
April 19, 2010

Prospective World Cup Host City Atlanta Sees Economic Opportunity

This article from Global Atlanta looks at the economic boom underway in South Africa's World Cup host cities, and sees a similar opportunity for Atlanta, which is among the list of host cities for the United States' 2018/2022 World Cup bid.

Atlanta is one of 18 cities included in the U.S. World Cup bids for 2018 and 2022. Since hosting the Summer Olympics in 1996, the city has solidified its credentials for hosting big sporting events.

But it wasn't always so. Before the Games, many didn't think Atlanta could pull off the event. The city had to improve infrastructure and public safety. Every effort was made to help visitors see the city as a destination for global business.

Similarly, South Africa hopes to use the World Cup to showcase its business opportunities and overcome stereotypes, said Donald Gips, U.S. ambassador to South Africa. Crime and corruption are often cited as hurdles for doing business in the country.

South Africa's Soccer Stimulus: World Cup Boom Keeps Recession at Bay
Global Atlanta
April 2, 2010

If 2022 Bid is Successful, South Korea Will Offer Some Game Hosting to North Korea

South Korea is reaching out to North Korea, offering to let the country host some of its World Cup games if South Korea wins its bid to host the 2022 tournament. The move is seen as a goodwill effort intended to help mend the rift between the two countries.

South Korea, who co-hosted the 2002 tournament with Japan, are promoting the message that sport, and in particular football, can help relations between the two countries.

...

"We don't know exactly what the situation will be by the year 2022, we might be a unified country or we might still be a divided country, either way it will be a good opportunity to bring North Korea into the mainstream of the world and it will contribute good relations between north and south," said Han Sung-Joo, South Korea's bid chairman.

S Korea offer North games in 2022 bid
ESPN
March 31, 2010