Economics of The FIFA World Cup - North America

North America

The 1994 World Cup in the United States was hosted in a number of different cities. In Los Angeles, site of the final, there was a total economic profit of 623 million dollars that went directly into the metropolitan economy. To help one better understand this figure, in comparison of that same year the Super Bowl only accounted for 182 million dollars (Nodell). These figures were calculated over just a one month period in which these games took place. Just in California, reports from the Pasadena Convention and Visitor’s Bureau conclude that 1,700 part-time jobs became available during the preparation and duration of the event (Deady). New York, San Francisco, and Boston received combined revenue of one billion and forty-five million dollars. The overall increase on hotels and food and beverages was ten and fifteen percent from the previous year. This money spent on hotels and restaurants helps the entire U.S. economy in that many of these hotels and restaurants are chains and corporations. Hence, the money made is spread throughout the corporation and it was found to be used for the opening of new facilities and expansions of the corporation.

In addition to the direct impacts of the 1994 World Cup, there are many indirect impacts as well. In order to host the Cup the USA had to develop a national soccer league. This necessity quickly led to the formation of the MLS or Major League Soccer in 1996. This created an ongoing economic factor for the United States. This opened doors for new facilities to be built, sponsorship of new teams, and the revenue of the ticket sales. The indirect impacts didn’t stop there either; the newly introduced professional league in the US endgendered one of the fastest growing youth sports in the country. Youth soccer took off and the selling of apparel and gear for the sport was a target for private businesses to focus on selling.

However, a critic has argued that the event cost the U.S. $5.6 billion.