From the U.S. Soccer Communications Center:Study features three prototype markets and estimates economic impact of
$400-$600 million per city during 31 days of potential FIFA World Cup™ held in the USA
NEW YORK (Oct. 27, 2009) – The USA Bid Committee today released a study conducted by an independent consulting firm that estimates a conservative domestic economic impact of five billion dollars
if the United States is chosen to host the FIFA World Cup™ in 2018 or 2022. The analysis also estimates that between 65,000 and 100,000 total new jobs would be created in the various host cities during the preparation and operation of the tournament in the year of the event.
The study was undertaken by the Economics practice at AECOM, formerly Economics Research Associates (ERA), the world’s leading international sports and entertainment attraction consulting firm. The research firm previously conducted the economic and community impact analyses for the 1994 FIFA World Cup™ in the United States and multiple studies for the Olympic Games, beginning with the 1984 Summer Games in Los Angeles.
The findings of the study indicate that the total economic impact projected for any one host city ranges from approximately $400 million to $600 million at today’s dollar value. That figure is based on 12 host cities staging five to six matches, along with ancillary venues such as the International Broadcast Center (IBC) in one city and FIFA Fan Fest™ in each city. The study also estimates 5,000 to 8,000 jobs would be created in each host city during the event’s operation.
“The numbers delivered by this study fully support our initial estimations,” said David Downs, the USA Bid Committee Executive Director. “While the economic impact to our country and our cities during the World Cup will be of vast significance, our goal is to have an even greater impact during the eight to 12 years leading up to the event that will stimulate the development of the game and the soccer economy, both at national and international levels.”
The USA Bid Committee worked with the Economics practice at AECOM to identify three prototype FIFA World Cup™ candidate markets – Phoenix, Atlanta and Washington, D.C. – to serve as guides for the potential economic impact of the FIFA World Cup™ hosted in the U.S. For this specific study, the identified cities correspond to examples of three predefined market types representative of the 27 metro areas under consideration as host cities. Atlanta was used as the prototype for a market that could host the IBC while Washington, D.C. served as an example of a host for the Opening Match or Final Match. The economic impact on the three cities was then factored by analyzing the following six characteristics: resident market demographics, tourist market factors, competitive market dynamics, climate, regional accessibility and prominence as a soccer and overall sports market.
A list of the finalist cities and stadiums, all of which are vying to be included in the USA Bid Committee’s formal bid book to FIFA on May 14, 2010, can be found on the bid’s official Web page, goUSAbid.com. Numerous U.S. markets that did not host matches during the FIFA World Cup™ in 1994 remain under consideration, including Philadelphia, Cleveland, St. Louis, Denver, Seattle and Miami.
From New York City to Los Angeles and Jacksonville to San Diego, the 27 remaining U.S. candidate cities range widely in size and community offerings. The cities are highlighted by 32 stadiums that average nearly 78,000 seats in capacity and represent a wide spectrum of facilities, including venues typically used for college and professional football, featuring open-air, domed and retractable roof venues. All 32 stadiums currently exist or are under construction with eight accommodating between 80,000 and 108,000 fans.
FIFA’s criterion requires a candidate host nation to provide a minimum of 12 stadiums and a maximum of 18 capable of seating 40,000 or more spectators. To host the Opening and Final Matches, FIFA requires stadiums have a minimum capacity of 80,000. The U.S. used stadiums in nine cities when it hosted the 1994 FIFA World Cup™.
The total potential impact estimates to each region as a result of a FIFA World Cup™ held in the United States in 2018 or 2022 incorporate several factors, beginning with venue and Fan Fest operations (staffing, utilities and maintenance). The figure also includes projected tourist expenditures surrounding the tournament (accommodation, food and beverage, transportation and retail), plus resident and tourist expenditures attributable to the FIFA Fan Fests. Expenditures made by media personnel in regards to the IBC are included as well, along with temporary stadium overlay expenses.
The IBC will be located in one World Cup host city and serve as the headquarters for national and global media leading up to and during the World Cup. It is estimated that more than 9,000 media and staff will be working out of the IBC for the World Cup, producing an estimated direct impact of more than $80 million for that host city. That figure includes more than 325,000 visitor nights during the operation of the IBC by accredited media from around the world and employees of FIFA’s designated host broadcast coverage provider.
The FIFA Fan Fest™ made a successful debut at the 2006 FIFA World Cup™ in Germany. These public viewing parties enhanced the atmosphere around the 64 tournament matches in 2006 by giving fans an opportunity to experience the community of the FIFA World Cup™ without purchasing a ticket. FIFA Fan Fest™ will continue to be staged in each host city in cooperation with FIFA and its major corporate partners. It is estimated that 18 to 21 million people attended the Fan Fest events in the 12 German host cities over the 31 days of the 2006 tournament. According to the Economics practice at AECOM economic impact study, the prototype U.S. cities would generate from $29 million to $37 million each from their Fan Fest events.
The economic impact, earnings and employment figures included in the study are assumed to occur in the calendar year in which the FIFA World Cup™ would take place (2018 or 2022). These numbers do not incorporate additional expenditures and impacts that would occur in the years leading up to the tournament, as the cities and local organizing committees prepare for the event. The analysis also presents its data for 2018 and 2022 based on today’s U.S. dollar, but an expected annual inflation of three percent could appropriately be applied to the figures.
“While the quantifiable results of this research are quite impressive, they do not begin to calculate the enormous goodwill and international advertising exposure that each city would receive by means of the billions in cumulative television audience that will tune in for the event worldwide,” added Downs. “We have shared this report with all 27 candidate host cities and envision it serving as a guide for them to develop their own proprietary analysis. Representatives from each candidate city have been encouraged to examine the data and draw their own conclusions based on their city's internal forecasts and economic predictions.”
The United States, Australia, England, Indonesia, Japan and Russia have formally declared their desire to host the FIFA World Cup™ in 2018 or 2022. Netherlands-Belgium and Portugal-Spain have each submitted joint bids for the 2018 and 2022 tournaments, while Qatar and South Korea have applied as candidates to play host only to the tournament in 2022.
All candidates must have their bid applications to FIFA by May 14, 2010. FIFA’s 24 member Executive Committee will study the bids, conduct site visits and name the hosts for the 2018 and 2022 tournaments on December 2, 2010, completing a 21-month bid and review process.
ABOUT U.S. SOCCER:
Founded in 1913, U.S. Soccer has helped chart the course for soccer in the USA for more than 95 years as the governing body of the sport. In this time, the Federation’s mission statement has been simple and clear: to make soccer, in all its forms, a pre-eminent sport in the United States and to continue the development of soccer at all recreational and competitive levels. To that end, the sport’s growth in the past two decades has been nothing short of remarkable as U.S. Soccer’s National Teams have continually succeeded on the world stage while also growing the game here in the United States with the support of its members. For more info, visit
ussoccer.com.
ABOUT THE USA BID COMMITTEE INC.:
The USA Bid Committee is a non-profit organization created to prepare a successful application to host the FIFA World Cup™ in 2018 or 2022 on behalf of the United States Soccer Federation. The Bid Committee will submit its comprehensive bid to FIFA by May 2010, with FIFA’s 24 member Executive Committee making a decision in December 2010. Members of the USA Bid Committee in alphabetical order include Houston Dynamo and Los Angeles Galaxy owner Philip Anschutz, comedian and Seattle Sounders FC part-owner Drew Carey, former Goldman Sachs Vice Chairman (Asia) Carlos Cordeiro, U.S. Men’s National Team player Landon Donovan, Executive Director David Downs, U.S. Soccer CEO and General Secretary Dan Flynn, U.S. Soccer Foundation President Ed Foster-Simeon, Major League Soccer Commissioner Don Garber, U.S. Soccer President and USA Bid Committee Chairman Sunil Gulati, U.S. Women’s National Team former player Mia Hamm, Walt Disney Company President and CEO Robert Iger, former U.S. Secretary of State Dr. Henry Kissinger, New England Revolution and New England Patriots owner Robert Kraft, California Gov. Arnold Schwarzenegger, University of Miami President Donna Shalala and Univision CEO Joe Uva. For more info, visit
goUSAbid.com.
ABOUT ECONOMICS AT AECOM:
The Economics practice at AECOM (formerly Economics Research Associates) is the world leader in real estate consulting services. They advise clients on economic and financial planning issues for a myriad of commercial land uses, including sports venues and major events, tourism, theme parks, hotels and resorts, complex mixed-use developments as well as economic regeneration schemes. The Economics practice at AECOM has made important contributions to some of the world’s most innovative and successful projects. AECOM (NYSE: ACM) is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental, energy, water and government. A Fortune 500 company, AECOM employs nearly 45,000 people and serves clients in more than 100 countries and has annual revenue in excess of $6 billion. For more info, visit
www.aecom.com
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