How would football coming home impact brands?
3rd July, 2018 by Jonathan Gabay
With over 23 million people tuning in to see a nail-biting penalty shoot-out, the entire nation has sweet dreams to relive the glory that was 1966.
But what would really happen if England actually lifted the cup in 2018 in front of a global audience of over a billion strong?
Here are some thoughts from a brand perspective:
Firstly, regarding the brand value for the England football team.
Secondly, the brand value for the UK economy.
In terms of football…
… Individual players like Harry Kane have secured deals with Lucozade Sports and Beats by Dre. In the event of a World Cup victory, the commercial viability of the major players in a World Cup winning team skyrockets. Endorsement deals would flow in and the footballers already established deals based on performance goals i.e. winning a domestic league or an international tournament would become a lot more lucrative, with quite significant bonuses. A good example for footballers are the football boot deals that the England players have with the big sports brands. According to reports England internationals have deals with these companies ranging between £250,000 and £3million per year and winning the World Cup would get them all significant bonuses.
Should a striker like Harry Kane win the coveted Golden Boot award for scoring the most goals in the tournament, the brand cash would flow from bonuses with existing sponsors, as well as a slew of new commercial deals.
The footballing nation that wins the World Cup can expect a huge spike in the sale of their merchandise across the world after their win. Adidas and the DFB(Germany’s footballing association) sold over 3 million Germany jerseys and 2.1 billion worth of merchandise in total.
Secondly – the economy…
If England were to win the World Cup, the feel-good factor alone would have dramatic implications on the entire economy. It would push up the dials on consumer spending.
Let’s put this into some perspective…
…Recently the UK’s economic growth was revised upwards, with growth for the first quarter of 2018 being at 0.2% (upgraded from an earlier estimate of 0.1%). The value of the pound also increased, with talk of a possible interest rate increase later in the year.
Economists attribute the growth to a combination of construction data as well as improved matrixes when gauging the economy.
The key services sector – which accounts for about 80% of the UK’s economy – grew by 0.3% in April, the fastest monthly rate since last November.
PwC, expect UK GDP growth to pick up slightly from 0.3-0.4% in the second quarter of 2018 and to average around 1.3% in 2018 as a whole.
Irrespective of precise figures, should England win the World Cup, the country’s finances, as well as political prospects, would make a U-turn.
One of the core reasons consumers spend is simply because they feel good. Factors affecting a sense of well-being include influences like the weather, (consider how ‘The Beast from The East’ decimated high-street sales). Once the party to end all parties would have been wound down, a World Cup win would continue to invigorate the nation’s sense of greatness.
The inferred meaning of Brexit would also change– with people sensing that the British Bulldog was snapping back on the global stage. Just as in America, the world would be reminded that our island stalwartly stands up for itself -as it has done so many times in the past – against even the most challenging odds. That, in turn, could potentially affect everything from tourism to retail sales.
…Ah, sweet dreams are made of this…
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