£2 billion cost of England football flop

Thursday, 22 November 2007 12:00

England's failure to reach the European championship could cost the UK economy £2 billion.

Today kit England maker Umbro and high-street chain Sports Direct both put out profit warnings linked to the team's 3-2 loss to Croatia last night, but the effects of defeat are due to be felt far beyond the mire fans may currently feel themselves in.

Simon Chadwick, professor of sport business strategy at Coventry Business School, estimates the cost to the wider economy will be £2 billion.

With no home nation heading to Euro 2008 - pubs will see no greater crowds heading out for the finals to drink million of pints of beer and England fans - some of Europe's mostly likely to travel en masse abroad - are not going to book trips to Austria and Switzerland.

"For the country as a whole, the failure to qualify is likely to have even more dire consequences," Professor Chadwick said.

"A successful run to the 2008 final would have led to a £2 billion bonanza for the economy. At one level, this would have been the result of sales increases in food and beverages, merchandise, magazines and newspapers and so forth."

He added the feelgood factor from a good performance in a tournament can increase workers productivity.

The £2 billion figures does not seem so outlandish - the British Retail Consortium estimates the World Cup in Germany last summer created £1.25 billion of extra sales.

However, the football splurge from the last World Cup did result in a spending hangover in the subsequent months, suggesting the sport increased caused wallets to open suddenly - but no extra cash was spent.

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