Who Is Really Getting Rich Off Of The World Cup
The World Cup is easily one of the most lucrative events but those who pay for the tournament aren't necessarily those who see all its profits. While FIFA rakes in billions of dollars every four years, the countries that host the tournaments pay upward of $10 billion. In 2018, Russia spent $11.8 billion in preparation for the tournament and nearly 70% came from public funding alone. In addition to the cost of building multiple stadiums in multiple cities and renovations to infrasructure to accomodate the traffic of the World Cup, the host country is also expected to include massive tax exemptions for the association in their bid to host. But hosting the World Cup has it's benefits as well. Not only does the host country automatically have their team qualify for the tournament, but the tournament increases the nations economy as well. During the 2018 FIFA World Cup in Russia, the former Prime Minister stated that about $14 billion was added to the country's GDP as well as about 220,000 jobs during preparations alone. State officials claimed that by the end of the tournament, $26-$31 billion would be added to the economy.
- FIFA makes billions of dollars every four year from the World Cup in addition to recieving tax exemptions from the host country
- The World Cup tournament potentially adds billions of dollars to the host countries GDP
- In addition to increasing the GDP of the host country, the World Cup also provides thousands of jobs for the countries citizens
1. Even though the host country spends $10+ billion, they estimate the World Cup to add between $20-$30 billion to the economy. In what ways will the World Cup increase the countries GDP?
2. What could be some of the long term benefits of hosting the World Cup for the economy?