What kind of impact do sports events have on our economy?

Without a doubt, sports is one of the largest entertainment industries in the world. Sports events tend to be massive economically, with many sports increasing their global reach and profile. An April 2021 study released by Statista took in responses from around 1,000 people across Europe. When speaking to these age groups, it was found that those within the large age group of 18-65 had a large sports following.

For example, around half of those surveyed said they watched soccer, the ‘global game,’ around once per month. Spain was the most soccer-loving country, with around 48% of those asked in Spain saying they watched soccer several times per month. Big tournament organisers are paying more and more to try and capture those vital eyeballs.

However, the cost of putting on a sporting event can be massive. The 1994 FIFA World Cup in the USA cost around $500 million to host. By contrast, the 2002 World Cup, held in Japan and South Korea, cost around $7 billion. Figures around the 2022 World Cup estimate the entire infrastructure investment made within Qatar topped $200 billion.

The return on investment from sports tourism

Why would countries invest such huge sums of money in hosting sports events? Put simply, it can create massive returns on investment. Sports events bring in economic spending from fans, create jobs for the event, and bring in private investment from those looking to capitalise on the increased value of land and assets thanks to sports stadia.

From direct spending on hospitality to indirect spending on goods and services, the benefits of sports tourism often more than justify the costs committed to creating location-specific sports events. Sports tourism, then, is seen as a worthwhile long-term investment. 

The economics of sports betting

Another example would come from sports betting. The rise of sports betting in the USA, for example, has created an industry worth over $4.3 billion per annum in revenue. Offshore sportsbooks, though, are much harder to estimate. Some believe the online gambling industry could be worth as much as $65 billion and rise to well north of $100 billion by 2028 – with offshore sportsbooks making up a massive portion of this.

What does the future hold?

Expect more countries to see the benefits of hosting sports events across the major sports. The increase in sports participation after an event helps reduce physical ailments and helps to improve the health of the general populous, reducing health service costs. Sporting events also lead to increases in infrastructure which benefit the public long after the event ends.

As more nations, big and small, like Qatar, host sporting events, the long-term return on investment can only be seen as positive, uplifting areas requiring development while creating employment.