World Cup Round of 16 Stakes
Costa Rica v Greece, 29th June 2014
Watching the nail-biting game between Costa Rica and Greece saw crowds of nations sway to and fro with emotions. Being a Round of 16 match, all are knock-out matches now leading to elimination. There are no ties and extra time is added to the clock if after normal full-time there is a draw. The Costa Rica versus Greece match saw an emotional half an hour extra time with no goals scored leading them to a penalty shoot out. The Greek side lost out on the fourth kick when Theofanis Gekas missing his shot. Costa Rican Michael Umana scored the next goal taking their final win to 5 -3.
What the 2014 World Cup teams will be taking home
More than the pride and glory of advancing, there is a bigger prize to be taking home. The Greeks may be boarding a plane back but they will be going home with a cool $9 million.
Each match advancement brings with it swells of pride and bragging rights. As one can see above, it can also bring with a cool cash prize. An additional $1.5 million is also provided to each nation’s football association as contribution to preparations in lead-up to the events. For the sake of argument, assume there are no associations, government, taxing or other costs, dividing the US$35 million amongst the 24 players and coach, each team member would receive US $1,458,333 (to the nearest dollar). Leaving in the Round of 16, each team member would take home $375,000.
What is a World Cup player worth in their home country?
|Round of 16 Teams||Per Capita Household Expenditure (USD)||Player Prize/ Household Expenditure||
The number of households each player could support per year in their country on a Round 16’s earnings1
Using the above table, we could see how the prize fund once being eliminated out of the Round of 16 could be life changing for an individual living in Nigeria. Each player’s winning cut could potentially support 620 Nigerian households for a year in their country!
Is there an actual flow on effect to the community?
This may have all have been fun and good to look at but is there actual potential for a player to contribute back to their community? For many players, their winnings – not counting appearance fees from their government or product endorsements are extremely vital for their families and in extension their community. There are well known football players who donate their earnings to foundations and charities, including Michael Essien who started a foundation in his home country to provide for life essentials such as clean water, and well reported stories like that of Cristiano Ronaldo who’s philanthropic efforts include donating large sums to Portuguese hospitals, covering treatment costs for children and his tsunami fundraising efforts.2 & 3
Governments it seems are more than willing to support their nation’s football teams in these efforts with bonuses, furthering their nation’s sporting success and simultaneously, boosting patriotic morale. For children, in some countries, football appears as a viable option to climb out of poverty. Just recently announced, the Greek team has given up their bonuses to contribute towards the building of a new training site – a nation that saw sports funding cut drastically since the financial crisis of 2009.4 Even if there are not grand philanthropic efforts such as these, there is the hope that there will be local domestic spending and building to contribute to their home country.
It will be interesting to see how things develop in each of these countries after the World Cup is over. Will CPI be affected? What other data events in the Economic Calendar will see a slight aberration? Host nation, Brazil’s economy, will prove to be the most intriguing post-World Cup. We’ll have to come back to this in a few months.
Keep a look out for more of our Forex, economics and football articles in our ‘While You Were Watching‘ series.
1. Data collected from- Argentina’s figures: Tradingeconomics.com, 2014, African figures: 2012 Report from African Development Bank, Rest of the world figures: World Bank Data, 2014
2. Top 5 Charitable Footballers, FTB Pro, 2013
3. Express UK, 2014
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