FIFA events generate lots of revenue. Between sponsors, players, communities, and vendors, these tournaments offer significant economic benefits. The article we read this week covered the 1966 tournament and the 1994 World Cup.
A major part of this reading is understanding the “swarm” theory. The theory states that the FIFA brand is like a hive. Whenever a tournament begins, vendors, services, and committees have to get involved to ensure a successful game; these are compared to bees. The theory states that when a tournament starts, it’s comparable to a new hive being built. All the organizations, or bees, then work to set up the area to maximize profits. This can include civil services, emergency services, utilities, and local economies.
During the 1966 tournament, there was a serious push to see how a mascot would work. They settled on the first World Cup mascot, World Cup Willie. This World Cup was held in England, and the push to have a mascot paid off. The licensed mascot’s merchandising sales took off, proving that large-scale merchandising at one of these tournaments was a viable option. The 1966 World Cup set up the business model for the rest of the tournaments.
The 1994 World Cup was held in the United States. It was also the most financially successful World Cup. This can be attributed to the highly corporate world in which the US lives. TV advertisements provide a big area of gain. “Local marketing partners” became a big money-making opportunity. LMPs would provide their services under “USA 94’” instead of “FIFA World Cup”, allowing them to make revenue without sharing it with the FIFA organization.
This reading introduced me to many different topics that I was curious about. The economics behind these games have always interested me. So having a reading about the intricacies of it was entertaining.
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