Everyone wins, except Qatar

Several businesses are set to benefit greatly from the 2022 staging of the FIFA World Cup.

Athlete Manager and Head of Leep Marketing, Tanya Lee Perkins said everyone from FIFA, to the players and even Jamaican vendors and restaurants, stand to make significant gains from the tournament.

Speaking on Taking Stock with Kalilah Reynolds, Perkins said the host country, Qatar, is the only one expected to take a financial and social hit after the tournament is finished.

Along with making history for being the first country in the Middle East to host the month-long international competition, Qatar has also put on the most expensive World Cup in the tournament’s history.

To date, Qatar has reportedly spent US$669 billion on the World Cup.

“If you were to put the figures together from 1990 to the 2018 World Cup, you’re looking at US$48 billion in spending. Qatar has more than quadrupled that,” Perkins explained.

She noted that Qatar had to invest heavily to get the country ready as it lacked the adequate social infrastructure to host the World Cup at the time.

“They actually built an entirely new city because it’s such a small country. They’re 2.1 million people strong, 70% of which are migrant workers,” she said.

Perkins explained that in addition to the seven new stadiums that the country built to facilitate the games, they also built over 200,000 rooms to accommodate the participating countries and spectators.

“You’re talking about 3 million people descending on a country to watch 64 games over the course of a month,” she said.

The marketing boss added that while Qatar will see a short-term boost in tourist arrivals, she believes the country might not be able to recoup its investment.

“What eventually happens when you host a World Cup of that magnitude in a country that small, is you create what we call white elephants. So, when the circus leaves town, a lot of that infrastructural stuff is unused,” she noted.

“France actually saw a decline in tourist arrivals the year after they hosted the 1998 World Cup. People complained about the heavy traffic, the lack of security. Prices were up during the World Cup as people thought France was too expensive,” she explained.

She noted too that Qatar has come under the microscope for human rights violations connected to the building of stadiums for the World Cup.

“I don’t know if they’ll make the US$669 billion back,” she said.

FIFA, on the other hand, will be very pleased when the tournament is complete. FIFA is the governing body responsible for putting on the World Cup.

Perkins explained that in addition to sponsorship deals, all ticket sales will go on FIFA’s books.

She explained that corporations are willing to pay top dollar for a spot in the associations’ advertising of the competition. She said that the World Cup is one of the most viewed events on television, and companies want to get their products in front of the eyes of millions.

“For FIFA, there is a significant amount of sponsorship money that they collect from various companies. And of course ticket sales,” she said.

Ticket prices range from J$11,000 to J$25,000, or that’s approximately US$69-US$1600 per match. Perkins noted that VIP ticket packages are worth up to J$3.5 million and allow access to as many as 19 games.

“And all sales go back to FIFA,” she emphasised.

In Jamaica, local advertisers also pay a healthy sum to have their ads featured during the games.

The World Cup is being aired on CVM TV.

“Everybody is tuned in to at least one fixture. Advertisers will pay a lot to be in front of so many eyes,” she said.

Perkins noted that vendors selling flags, jerseys, and other World Cup accessories will also benefit.

“Restaurants and sports bars too because they have the big screens and people want to watch the games on the big screens with their friends and family,” she added.

The Athlete Manager also noted that the World Cup is a great opportunity for the players to showcase their skills.

“January is the start of the transfer window in football so a lot of teams are going to be looking at players to see who did well. And a lot of players will be going back to their clubs and agents and saying, ‘Listen we performed really well, let’s put some more money on the table,” she explained.

WATCH THE INTERVIEW HERE

Sashell Williams2024-09-03T21:40:31-05:00