This infographic shows how the cost of staging the World Cup has grown, while the benefits are generally very small. For example, in South Africa many of the legacy stadiums are little used.
This infographic shows how the cost of staging the World Cup has grown, while the benefits are generally very small. For example, in South Africa many of the legacy stadiums are little used.
The cost to Brazil of this year’s World Cup has been at least £8.6bn and many experts think that the eventual bill could be double that. Brazilians love their football, but there have been riots protesting at the high cost and the diversion of money needed for education, health and infrastructure improvements.
With a presidential election due in October, if Brazil lifts the trophy on July 13th it could unite the country to the advantage of centre-left incumbent Dilma Rousseff whose popularity has been on the wane. Paradoxically, this could hit the stock market as many investors regard Dilma as statist and intervetionist and woud rather see the presidency going to either one of two more market-friendly candidates.
Countries hosting the World Cup typically enjoy strong stock market performance in the month after the event, according to a report issued by Goldman Sachs. Good performance continues for about three months, but is followed by underperformance of about 4 per cent in the year after the tournament.
It is perhaps not without significance that the next two World Cups are to be staged by semi-authoritarian and authoritarian regimes. Democratic countries may find it increasingly difficult to justify the cost involved to their voters.