2014 FIFA World Cup2012 Summer Olympics

• History– Played by many ancient cultures• Romans (early Olympics)• Japanese (110 B.C.)• Chinese (611 A.D.)

– Evolved in England• Originally outlawed for being “vulgar and indecent”• Grew in popularity by the 1800s• Rules of game established in 1863• Annual contests held in northern and middle England

SOCCER / FÚTBOL

• History (continued)– 1872 - 1st international football

match played between England and Scotland

– 1904 Fédération Internationale de Football Association (FIFA) formed• Established to promote international play

– 1908 football became an official Olympic event• World football championship for amateurs

– 1909 – Lipton Trophy tournament• Championship between individual clubs – not national teams• The First World Cup

SOCCER / FÚTBOL

World Cup

• Held every 4 years– Except 1942 and 1946

• 1930 - 1st World Cup – Uruguay– Reward for winning last 2 Olympics– 13 teams participated

• 7 South America• 4 Europe• 2 North America

– 3 venues– ≈ 600,000 attendance– Uruguay won

World Cup Today

• 19 FIFA World Cup Tournaments• Won by 8 different teams– Brazil (5)• Only team to have played in every tournament

– Italy (4)– Germany (3)– Argentina & Uruguay (2)– England, France, & Spain (1)

World CupYear Host Country Continent

Host's Performance Winner Sites/Towns Matches Attendance

1 1930 Uruguay S. America 1st Uruguay 3 / 1 18 590,549 2 1934 Italy Europe 1st Italy 8 / 8 17 363,000 3 1938 France Europe QF Italy 10 / 10 18 375,700 4 1950 Brazil S. America 2nd Uruguay 6 / 6 22 1,045,246 5 1954 Switerland Europe QF Germany 6 / 6 26 768,607 6 1958 Sweden Europe 2nd Brazil 12 / 12 35 819,810 7 1962 Chile S. America 3rd Brazil 4 / 4 32 893,172 8 1966 England Europe 1st England 8 / 7 32 1,563,135 9 1970 Mexico N. America QF Brazil 5 / 5 32 1,603,975

10 1974 West Germany Europe 1st Germany 9 / 9 38 1,865,753 11 1978 Argentina S. America 1st Argentina 6 / 5 38 1,545,791 12 1982 Spain Europe top 12 Italy 17 / 14 52 2,109,723 13 1986 Mexico N. America QF Argentina 12 / 11 52 2,394,031 14 1990 Italy Europe 3rd Germany 12 / 12 52 2,516,215 15 1994 United States N. America top 16 Brazil 9 / 9 52 3,587,538 16 1998 France Europe 1st France 10 / 10 64 2,785,100 17 2002 S. Korea & Japan Asia 4th / top 16 Brazil 10 / 10 64 2,705,197 18 2006 Germany Europe 3rd Italy 12 / 12 64 3,359,439 19 2010 S. Africa Africa Group Spain 10 / 9 64 3,178,856 20 2014 Brazil S. America 4th Germany 12 / 12 64 3,429,873

2014 World Cup

• Brazil (also hosting 2016 Summer Olympics)• June 12 – July 13• 32 Teams• 64 Matches• 736 Players• 12 Venues– Estadio do Maracana in

Rio de Janerio hosting Final match• 200,000 seating• 3.7 million total capacity

for all 12 stadiums

What Are They Playing For?

• The Jules Rimet Cup– Original trophy– Awarded permanently to Brazil in 1970• 1st nation to win 3 World Cups

– Every trophy awarded to the winner since then has been a replica

What Are They Playing For?

• $70 Million Prize Money– $35 Million to winning team

2014 World Cup Awards

• Budweiser “Man of the Match”– Awarded after each game by a fan vote via

fifa.com, Twitter, and FIFA’s official app

2014 World Cup Awards

• Adidas Golden Ball– Awarded to the competition’s best player– Determined by the media and FIFA

2014 World Cup Awards

• Adidas Silver Ball • Adidas Bronze Ball

2014 World Cup Awards

• Adidas Golden Glove– Best Goalkeeper

• Manuel Neuer, Germany

• Adidas Golden Boot– Leading Goal Scorer

• James Rodriguez, Columbia

2014 World Cup Awards

• Hyundai Young Player Award– 1st year player with the biggest impact in the

tournament• Technical qualities• Fair play• Love of the game

– Paul Pogba, France

2014 World Cup

Where did the US place?

2014 World CupPros

• $4 billion estimated revenue– 66% more than 2010 World Cup in South Africa– Biggest revenue sources?• Television $1.7 B• Marketing Rights $1.35 B

– Adidas, Sony, Visa, Hyundai, Coca-Cola

• Ticket Sales– 6.15 million ticket requests

» Average ticket price b/w $440 - $990

2014 World Cup

• Television– $600 million

• 8 marketers paid Brazil’s main TV network (Globo) for commercials during World Cup broadcasts– AmBev - Coca-Cola– Banco Itau - Johnson & Johnson– Hyundai - Nestle– Oi (wireless) - Luiza (magazine)

• Marketing– $708 million

• 6 top-tier FIFA sponsors pay a combined $177.125 million annually for 4 years

– $524 million• 8 second-tier sponsors contribution over 4 years

Top-Tier FIFA Sponsors

Second-Tier FIFA Sponsors

2014 World Cup

• Economic Impact on Host Country– Additional $30 Billion to Brazil’s GDP– 3.63 Million new jobs/year– $8 Billion tax revenues– 3.7 Million new tourists to country• Spend an average of $2,500

2014 World CupCons

• $14 Billion estimated cost– Highest in history of World Cup

• More than 2x cost of World Cup in Germany

– Biggest expenses• Stadium works ($3.6 B)

– 5 brand new venues– 1 demolished and rebuilt– 6 extensive renovations

• Infrastructure projects– Airports

» 600,000 flying in for tournament» 3 Million traveling between matches

– Roads» 2,600 miles of roads required work

– May 2014, 36 of 93 planned projects completed

2014 World Cup

• Concerns– Construction safety• 9 people died during the construction of the various

World Cup venues

– Corruption– Security• Gangs, drugs, other crimes

– Productivity• £4 Billion loss to UK economy

Comparison to Olympics / Super Bowl

• 3.2 Billion (46% of global population) watched live coverage of the tournament for a minimum of 1 minute– Comparison to Summer Olympics? 3.6 Billion

• 909 Million watched at least one minute of final game– Comparison to Summer Olympic Opening Ceremonies?

• Too close to count

– Comparison to Super Bowl? 111.5 Million

2012 Summer Olympics

• XXX Olympiad• Names submitted in July, 2003– Cities considered

• Moscow• New York City• Madrid• London • Paris

• London selected in July, 2005 to host 2012 Games

Compared to 2012 Summer Olympics

• 204 nations participating• 10,820 athletes• 6,000 coaches & officials• 5,000 Olympic families• 20,000 media• 7,000 official sponsor representatives• 70,000 volunteers

Logistics

• 31 different venues– 9 new venues with 169,000 seats

• 9.6 million spectators• Est. 4 billion global viewers

2012 Summer Olympics

• Adidas• BMW• BP• British Airways• British Telecom• EDF• Lloyds TSB

But Do They Make Money?

• Sponsors– Large, well known corporate brands– Raise brand awareness– No big profits– Keep chief competitors out

But Do They Make Money?

• Olympic Product Providers– Tennis rackets, swimming suits,

running shoes, etc.– IOC strict rules on what logos

athletes can wear– No big profits

• World Cup Sponsors– Adidas forecasts a 30% increase in

World Cup apparel and soccer sales

But Do They Make Money?

• Olympic Athletes– Huge cost in taking part in Olympics– Few athletes have sponsors or government

support– US athletes • $25,000 Gold• $15,000 Silver• $10,000 Bronze

– Possible sponsorship upon return

But Do They Make Money?

• Professional Soccer Players– Cristiano Ronaldo, Real Madrid• $49 million salary• $24 million endorsements

– Lionel Messi, Barcelona• $42 million salary• $23 million endorsements

But Do They Make Money?

• Host Country– Tourism?– Residents?– Ad agencies?

Assignment

• In your groups, pick a city for the next World Cup or Olympic games– Cannot be a city already selected/hosted