Football defeats to hit economy?
Updated on 18 October 2007
The British economy could miss out on a boost of almost £1.5 billion if - as looks possible - none of the home nations qualifies for next year's Euro 2008 football championships, figures suggest.
Sales of everything from beer and nibbles to replica kits and flat-screen televisions traditionally surge during major tournaments such as the World Cup or European championships.
But defeats for England and Scotland against Russia and Georgia have dented hopes of a UK side competing in Austria and Switzerland next year. The gloom sent shares in firms selling replica football shirts downward in early trading.
JJB Sports fell 2%, while Umbro - the official maker of England kits - also slipped back 2% as worried investors digested the news of the side's 2-1 defeat in Moscow which seriously hit qualification hopes.
Meanwhile billionaire retailer Mike Ashley - owner of the Sports World chain and Newcastle United FC - saw shares in his Sports Direct International company fall more than 5%.
Research by the Centre for Economics and Business Research (CEBR) ahead of the 2006 World Cup predicted a £1.25 billion boost for the economy if England did well. The figure included estimates for retail, pubs and advertising.
Adjusting for the whole of the UK, a similar tournament could therefore be expected to boost the national economy to the tune of about £1.46 billion if the home sides were playing.
John Ward, managing economist at the CEBR, said Euro 2008 could be comparable to a World Cup in terms of its economic benefit.
Because it will take place in an area only one hour ahead of the UK, the event would also have fewer negative effects on the economy, such as disruption from people missing work to watch matches, than other tournaments.
"I think certainly some parts of the economy would notice it, the hospitality sector in particular would be very conscious of the fact that interest levels aren't as high as they would be."
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