European Economy to Receive €1.4 Billion Boost from UEFA EURO 2008™

Mon, 03/12/2007 - 10:49

Events | Europe | Finance | Football Soccer

According to a MasterCard commissioned study UEFA’s EURO 2008™ will generate upwards of €1.4 billion for the European economy

The study, conducted by one of Europe's leading sports business experts, Professor Simon Chadwick, to coincide with yesterday's EURO 2008 draw in Lucerne, Switzerland, suggests the positive impact will be felt at a local, national and international level, and include a rise in ticket sales, travel, food and beverage sales, merchandising, sponsorship revenue, advertising and use of telecommunications and new media services.

As part of the MasterCard study, Professor Chadwick, founder and Director of the Birkbeck Sport Business Centre and Professor of Sport Business Strategy and Marketing at Coventry University, also predicted that each match played at EURO 2008 next summer could be worth an average of €42 million. The economic boost will be shared between the national economies of the two sides involved, the host nations of Austria and Switzerland and have a ‘halo’ effect on the wider European economy. The most lucrative games will potentially generate nearer €49-56m.

Based on the EURO 2008 draw, Professor Chadwick anticipates the games with the greatest economic impact will be France vs Italy in Zurich, the Netherlands vs France and Italy vs the Netherlands both in Bern – all from Group C – which alone could be worth more than a combined €168m to the European economy.

The most lucrative games from other Groups are predicted to be Switzerland vs Portugal in Basel (Group A), Austria vs Germany in Vienna (Group B), Spain vs Russia in Innsbruck (Group D).

Professor Chadwick also predicted that the 'ultimate' games to deliver the greatest economic impact would all involve Germany: Germany vs Italy, Germany vs France and Germany vs the Netherlands, should these ties occur at some stage of the tournament.

Professor Chadwick said: "The UEFA European Championship is Europe's premier sporting contest and as such, EURO 2008 will have a major impact on the economies of the 16 nations involved, as well as a halo effect on the wider European economy to the tune of more than €1.4 billion.

"This impact will be felt in many countries, principally driven by sponsorship and commercial revenues, with each game in the Group stage generating upwards of €42 million on average. Matches played in the later stages of the competition are likely to deliver an even greater economic boost."

Paul Meulendijk, Head of Sponsorship, MasterCard Europe, said: "EURO 2008 will be priceless for fans, especially those making the trip to Austria and Switzerland next June. But while you can't put a price on fans' passion, you can make predictions on the impact it will have on their home economies, as our study with Professor Chadwick shows.

"MasterCard has been at the heart of football commerce for years, through our sponsorships of tournaments such as the UEFA European Championship and UEFA Champions League, but also by facilitating the purchase of travel to games, merchandise, refreshments, match tickets and so on. We want fans to enjoy a priceless experience and through promotions with our customers, such as new card programmes, and facilitating commerce together with merchants, that’s exactly what we can help fans achieve."

The qualification of Russia, at the expense of England creates an interesting dimension to EURO 2008, according to Professor Chadwick. In the last 10 years, the continent’s largest nation has only qualified once for a tournament based in Europe – EURO 2004 in Portugal. As such, Professor Chadwick suggests it is difficult to predict what the economic impact of the country's participation in EURO 2008 will be.

Economic growth and income levels are rising, the telecommunications market is strengthening and the sponsorship and commercial rights market is burgeoning. Importantly, expenditure on overseas tourism and interest in football are growing. However, Professor Chadwick considers EURO 2008 a tournament too soon for the real impact of Russian growth starting to take hold and expects EURO 2012 in Poland and Ukraine, with greater proximity to Russia, to be where the 'Russian bear' awakes.

MasterCard has been an Official Sponsor of the UEFA European Championship since 1992.

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