“‘World Cup in surplus’, only once in the last 56 years…’Biggest money feast ever’ Qatar World Cup results? [나우,어스]”- Herald Economy

The only surplus is the 2018 Russian competition… “Revenues from broadcast rights increase to offset costs”
The 2002 Korea-Japan Games suffered the biggest loss… Infrastructure costs increase due to the construction of a new stadium
‘The biggest investment ever’ Qatar World Cup expected revenue, only 2.8% of expenses
Plan to strengthen Qatar’s ‘soft power’, ‘shaken’ by human rights and bribery scandals

The players of Qatar and Ecuador line up to listen to the national anthems of the two countries before the opening match of the 2022 FIFA World Cup in Qatar held at the Al Beit Stadium in Qatar on the 20th (local time). [AP]

[헤럴드경제=신동윤 기자] With Qatar hosting the tournament with the largest amount of money in World Cup history, attention is focused on whether the vicious cycle of hosting the World Cup will soon lead to an astronomical deficit in the country of Qatar.

In addition, will Qatar, a ‘small country in the Middle East’ with a population of 2.9 million, manage to find a new future focused on ‘soft power’ such as sports, culture and tourism, escaping from a system economic that depends on natural gas (LNG) as an energy resource is also of interest

The only surplus is Russia 2018… The 2002 Korea-Japan tournament was the biggest deficit

According to The Economist, a British current affairs weekly, on the 22nd (local time), according to a paper published in September by researchers at the University of Lausanne in Switzerland, from the 1966 World Cup in England to the 2018 World Cup in Russia four years ago, among a total of 14 tournaments, Russia was the one that made a profit. He said that only

In this thesis, University of Lausanne researchers calculated ▷ stadium construction costs ▷ competition operation costs as ‘costs’, and ▷ broadcast rights sales ▷ sponsorships ▷ ticket sales, etc. were estimated and compared as ‘profits’.

As a result, they found a net profit of 240 million dollars (about 325.4 billion won) in the 2018 Russian tournament. The research team evaluated, “The amount of broadcasting rights revenue has increased as the number of recent competitions has increased, offsetting the deficit caused by the costs of building a stadium.”

Regarding the 1986 Mexico Games, which showed a surplus of 90 million dollars (about 122.1 billion won), the Economist said, “The data was incomplete. Indeed, it is known that there has been a significant loss.”

The tournament with the biggest loss was the 2002 Korea-Japan World Cup, which cost 4.81 billion dollars (about 6.5195 trillion won). The research team analyzed the reason for the astronomical shortfall, saying, “In the case of Korea, 10 new stadiums were built, and Japan also built 7 new stadiums and expanded 3 stadiums, pouring huge costs into stadium construction.”

‘The biggest investment ever’ Qatar World Cup expected revenue, only 2.8% of expenses

Experts unanimously believe that there is little possibility that Qatar will also record a ‘surplus’.

A view of the stadium where the 2022 FIFA World Cup matches will be held in Qatar. (From top row left) Al Beit Stadium, Lusail Stadium, Ahmad Bin Ali Stadium, (middle row from left) Al Janoub Stadium, Al Thumama Stadium, Stadium 974, (bottom row from left) Stadium Khalifa International, Education City Stadium. [2022 FIFA 카타르 월드컵 공식 홈페이지 캡처]

Qatar built seven new stadiums and expanded one for this tournament. In addition, training grounds were prepared in different places, and in fact, the football infrastructure itself was completely renovated. In addition, three new subway lines were installed connecting the stadium, and astronomical investments were made in infrastructure, such as the establishment of new highways, airports, shopping centers, hotels and hospitals.

On the 15th, Forbes, an American economic magazine, estimated the investment cost of this competition at 229 billion dollars (about 311 trillion won). It is 19.7 times higher than the previous tournament, the 2018 Russian tournament ($11.6 billion).

Standard & Poor’s (S&P) Global Market Intelligence, a market intelligence company, predicted that Qatar would earn $6.5 billion (about 8.8238 trillion won) from the World Cup, a record, but it is only 2.8% of to compare with the investment cost. .

The location of the stadium where the 2022 FIFA World Cup Qatar matches will be held. [2022 FIFA 카타르 월드컵 공식 홈페이지 캡처]

Although most of the expenses are paid by the host country, the fact that most of the revenue, such as broadcasting rights, ticket sales, and sponsorship, goes into the hands of r International Football Federation (FIFA), the researchers at the University of Lausanne noted. The University of Lausanne added, “In the case of social overhead capital (SOC), such as the subway, it is beneficial to the economy in the long term even after the Games, but football stadiums are not ultimately used or hardly stimulate local economic development.”

Plan to strengthen Qatar’s ‘soft power’, ‘shaken’ by human rights and bribery scandals

However, the reason why Qatar started hosting the World Cup is because of the purpose of strengthening ‘soft power’. By showing its presence through soft power among Middle Eastern powerhouses such as Saudi Arabia and Iran, it will lead to strengthening national security and reforming the economic system that depends only on LNG exports.

Dan Plumley, a sports economics lecturer at Sheffield Hallam University in the UK, also appraised, “From a commercial point of view, it’s a gamble for soft power even if there is a big loss.”

Qatari football fans cheer and wave national flags in Doha, the capital of Qatar, on the 20th (local time), when the opening match of the 2022 FIFA World Cup Qatar took place, between Qatar and Ecuador. [로이터]

However, various scandals surrounding the World Cup in Qatar are halving the soft power effect that Qatar wants.

The Economist said, “That would not be the result that Qatar wants to highlight poor human rights conditions such as labor exploitation and oppression of LGBTI people in a country where most of the country is a desert.” It is clearly bad news for Qatar, which is prioritizing improvement.”

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