England football team’s failure may hit the economy

 

Sports businesses are warning that England’s failure to qualify for the Euro 2008 football tournament will hurt their profits next year.

England’s kit manufacturer Umbro, and the retailer Sports Direct both issued statements warning of the impact of the team’s loss to Croatia last week.

The defeat may also have a wider impact on the economy, with sales in pubs and retailers likely to be hit.  One estimate puts the cost to the economy as high as £2bn.

“A successful run to the 2008 final would have led to a £2bn bonanza for the economy,” said Simon Chadwick, professor of sport business strategy and marketing at Coventry Business School.

Professor Chadwick also explained that the impact of England not playing in Euro 2008 could even go deeper than just lower retail sales.

“Evidence from previous tournaments also shows that, at another level, worker productivity normally increases as the England national team progresses through major tournaments and the ‘feel good factor’ takes hold,” he said.

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