Bulls & Bears
Tom Mayenknecht is host of The Sport Market on TEAM 1040 and TSN Radio, where he regularly rates and debates the Bulls & Bears of sports business. He reviews the major winners and losers of the past week every Saturday in The Vancouver Sun.
Bull- of- the- Week The 2014 FIFA World Cup is such a gargantuan sport property that it delivers a wide range of impacts on the business of sport every four years. It is the world’s most popular sports event ( bigger on TV than the IOC’s Summer Olympics). What makes it the Bull- of- the- Week — and the sport business bull of the coming month — is its massive global reach. No event in the world comes close in terms of aggregate television audiences and media impressions. It draws average global audiences of north of 700 million viewers for the World Cup final ( and cumulative audiences of well more than a billion for its championship matches). Almost every match in the knockout rounds is the equivalent of a Super Bowl in terms of TV clout. CBC will be looking to build on the record 5.8 million who watched Spain defeat the Netherlands at the 2010 World Cup in South Africa. No event drives more sport merchandise and apparel sales or generates more sport tourism. It is also the world’s best marketing showcase, with the FIFA sponsorship model allowing for on- site brand activation through in- stadium event signage ( unlike the Olympics where the IOC sells only the rights to advertise on TV and outside of the sponsor- clean venues). The World Cup’s magic potion is simple: soccer’s global currency, socio- economic accessibility and team focus create unmatched festivals of national, ethnic and cultural pride, not only in the host country but at viewing parties in every major city on every continent. Adding to the bullishness around this Brazilian World Cup is the technology that will be in play, with Sony and FIFA broadcasting in 4K super high resolution television ( four times 1080p HD), 14 GoalControl video cameras in each stadium ( seven focused on each goal), vanishing free kick- line foam spray that evaporates in two minutes and the Brazuca ball, with a record low six panels. Fans will also take note of 30 iRobot 510 PackBots deployed to check for suspicious packages and beef up surveillance at the country’s 12 stadium venues.
Bear- of- the- Week This year’s global soccer showcase is such a paradox of positives and negatives; so huge and with so many layers that it is both our biggest winner and biggest loser going into the weekend. This year’s event in Brazil is like most every major international sports megaevent in that it has been plagued by negative storylines in the years, months and weeks leading to Thursday’s opening ceremonies. That comes with the territory of hosting any event of such complex logistics, infrastructure demands and stadium construction costs. Yet Brazil has been atypical because of the sheer volume and intensity of its domestic critics and public protests, including demonstrations on match day Thursday in Sao Paulo. Violence at last year’s Confederations Cup in Brazil was a warning sign that mega- events carry heightened political risk and social backlash in emerging countries and developing economies. Additional controversies related to price gouging at hotels, match fixing in global soccer and potential bid fixing for Qatar 2022 have only added more social tension around Brazil 2014. The $ 11.5- billion price tag is one thing. The fact that the Arena de Amazonas in Manaus cost $ 319 million — or almost $ 80 million per each of the four World Cup matches it will host — is absurd. The bottom- tier pro club in that Amazon jungle city typically draws 1,000 spectators. Maintenance costs alone for the new 42,000- seat stadium will be $ 250,000 per annum. Can you say “elefante branco?” That’s Portuguese for white elephant.