Not only fans reap the benefits of soccer as a driving business force

Soccer safeguards more and more jobs
 

Soccer has a great impact on especially the labor market. As evidenced by a McKinsey study on the economic situation in professional soccer in 2020, the competitive operations of the German Soccer League with its professional leagues produced 127,000 full time positions in season 2018/19 in Germany. Compared to data from the previous study conducted five years earlier, this translates into a growth rate of around 17,000 full time jobs: Mathematically, these jobs are allocated to 185,000 workers.

In the economic benchmark value generation, the sector is also reporting a virtual boom. In 2014, professional soccer in Germany brought in about 7.9 billion Euros in sales, which represented a gain of already 55 percent vis-a-vis 2008. By 2019, the number reached 11 billion Euros. Hence, professional soccer in Germany now contributes a similar amount of value as the entire manufacturing sector in the smaller federal states, such as the Saarland, Bremen or Mecklenburg-Vorpommern.

Since the most recent study in 2015, two new trends arose with regard to value generation: On the one hand, lots of changes have occurred in the media and sponsoring sectors. The online business is growing consistently, established TV broadcasters have to face the competition of online streaming providers DAZN or media offerings of the clubs. On the other hand, athletes and clubs are profiting from promotional campaigns such as social media marketing more than before thanks to the economic growth and can generate new revenues through their own presentations, advertising contracts and brands.

Gigantic earnings for the government
 

The German government is the main beneficiary of soccer's economic power. After the deduction of all costs, the German Federal Republic receives an annual estimate of 3.7 billion Euros in taxes and contributions from  the sport  – an increase of around 50 percent compared to the previous 2015 study. One key contribution comes from the sports bet tax these days - these contributions generated around 400 million Euros in 2019.

Soccer clubs boost the image of cities
 

Not only the soccer clubs reap the benefits of fans visiting their stadiums. Cities also derive benefits since the followers often combine stadium visits with recreational activities in the city. This also boosts the need for public transportation.

This is compounded by growing national and international popularity. Cities like Leverkusen or Kaiserslautern ultimately have soccer to thank for their popularity. As evident from an Institute for Sports, Business and Society study, a city like Leverkusen would have to place 2.2 million ads or spots to generate a comparable promotional value to the one it generates with soccer.  Hence, any city will find it lucrative to have professional soccer in town.

Millions in income thanks to granting of brand licenses
 

Stadiums also have a positive impact on a city's image. Arenas like the Allianz Arena in Munich become synonymous with the city and draw additional visitors thanks to tours. Moreover, the licensing business is extremely attractive for stadiums. The cash boxes of the clubs are full - not only because sponsors featured on the jerseys or stadium lining, but especially thanks to their brand partners.   In the 2019/20 season, German federal league clubs generated amounts of between half a million and six million Euros per season thanks to the sale of stadium licensing rights.

The brand sponsors identify effects especially from the communicative value - for instance because they are mentioned in the media. Especially insurance companies and banks (Allianz, Signal Iduna, Deutsche Bank Park) are typical name providers for arenas.

Major competitions, such as the EC and WC, reach vast business circles
 

Even the "everyday soccer business" generates gigantic revenues for many industrial sectors. In addition, especially the mega events such as the European or World Soccer Championships literally pay off for those involved.  Frequently, in conjunction with the hosting of an EC or WC, not only the venues as such are built or updated, the infrastructure usually profits as well.

For instance, the new construction of Allianz Arena in Munich prior to the 2006 WC, also resulted in the expansion of the expressway, the update of the underground system and the new construction of trade show facilities for a media center. A new main station was built in Gelsenkirchen as a result. Hence, this translated into numerous orders for construction companies that generated a lot of revenue - thanks to the soccer business.

Prior to a major event, such as a WC, the association in the host country will profit. For instance, the DFB celebrated a surplus of 135 million Euros in 2006, while especially sponsors such as sports products manufacturers and breweries also cashed in. Primary sponsor Adidas, for instance increased its profits in 2006 by 26 percent to 480 million Euros. When the WC fevers captures the crowds, countless merchandising products are sold. Bitburger – the only beer supplier in WM stadiums in 2006 – recorded sales gains of 2.6 percent during the "summer fairytale."

The fact that a large event is not always a positive deal for a host, however, is evident in the example of the European Championship in France in 2016.  It was documented that the EURO 2016 translated into a loss of half a billion Euros for the host. The anticipated ticket sales of EUR 1.1 billion were confronted with construction and modernization costs for the stadiums of EUR 1.6 billion. At least France was able to generate added value tax earnings of close to EUR 180 million. The country also identified positive effects for the labor market thanks to the EC. According to information provided by the EC organization committee, each game generated an average of 4000 jobs, i.e. a total of 100,000 additional jobs.
 

6 million professional buyers are waiting for you!
 

Present your product range online to buyers and make sure that your company is visible to the right people. Expand your international internet presence with the leading B2B platform in Europe. With a free profile on europages!
 

The Qatar WC pushes ahead into completely new dimensions
 

The upcoming WC in Qatar is a complete outlier in this respect.  It is virtually impossible to forecast a cost-benefits analysis. The budget for the soccer world cup in the fall of 2022 is pushing all boundaries: The Emirate in the Gulf plans to invest close to 150 million Euros into the soccer WC. By comparison: The most expensive WC took place in Russia in 2018 when it already posted a daunting 21 billion Euro budget.

Qatar will have to erect a completely new infrastructure for this huge event. The construction of eight soccer stadiums alone consumed gigantic amounts - and it is questionable how these structures can be used in the future. For the financially solid rulers of Qatar, economic considerations are likely mute. The desert nation is hoping to gain international recognition, influence and prestige instead.

Soccer has more fans than just stadium visitors.
 

Hence, soccer is not just a game that has 22 athletes running after a ball.  This sport is a growth engine for the economy of any country that has a vast impact. Numerous groups of entitled parties profit from soccer's value generation. Billion Euro revenues are generated through licensing, the media, merchandising, sponsoring and ticketing.  Ultimately, the associations and the government benefit from the earnings and taxes. Cities, the advertising industry and construction companies also profit from soccer, the economic powerhouse.