Credit Card News UK Economy Will Suffer £2bn Loss As McClaren's England Team Exits Euro 2008 862
UK economy will suffer £2bn loss as McClaren’s England team exits Euro 2008
23 November 2007
According to the British Retail Consortium, the retail figures for beer, flat-screen TVs and fast food during the tournament would typically be around £600 million but that figure has been dismissed by experts who said a more realistic number would be £2 billion.
Simon Chadwick, Professor of Sport Business Strategy and Marketing at Coventry Business School, told the Daily Mail that the probable loss is more than three times that figure: “Evidence from previous tournaments shows that worker productivity normally increases as the England national team progresses through major tournaments and the ‘feel good factor’ takes hold. A successful run to the 2008 finals would have led to a £2billion bonanza for the economy,” he said.
Not one single country from the British Isles will be playing in next year’s Euro football tournament and this is likely to have a knock-on effect on the rest of the economy.
While those who do not follow football may feel relieved that the country won’t be gripped by Euro fever next year, the impact on the economy should not be underplayed. Research has shown that sporting events contribute to three percent of the Gross Domestic Product each year and during World Cup and Euro football matches, takings in pubs, clubs and supermarkets rise by £35 million.
During last year’s World Cup in Germany, supermarkets across Britain were taking an extra £124 million during each week England remained in the tournament while Sainsbury’s reported a 70 per cent increase in beer sales during England matches.
Although the FA’s Chief Executive put the figure at around £5 million, experts have said that this is grossly underestimated as media payments, merchandising sales and sponsorship deals would have brought in around £15 million.
Furthermore, the pressure is now on for the FA as they enter a new round of sponsorships negotiations. Nationwide, National Express and Carlsberg are just three of the possible deals on the table but officials are concerned that they could be lost in the wake of England’s dismal performance at Wednesday’s match.
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