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11 June 2010

FIFA World Cup: Australian Business To Score, by Greg Tingle - 11th June 2010

FIFA World Cup has taken the world by storm. Down Under in Australia punters, casual fans and news media et al know that the Socceroos don't stand a chance in hell, likely aiming for a draw we hear, but its still shaping up to be a business bonanza. Media Man and Gambling911 have obtained some interesting hard numbers, statistics and the like, which is bound to be of interest to the sports betting savvy audience that those who need to know everything World Cup! Let's kick off, and may you score your own goals...

The Socceroos are not going to get far in the World Cup. That's a given. However, FIFA's soccer mania is adding to Australia's and the world's economy, and we're not just talking about the lucrative sports betting market, which has already been well covered on the pages of new media powerhouse Gambling911.

Who is set to win, other than sports mad fans and media companies? Merchandisers, retailers, football organisations and bookmakers. Yes, Media Man (Australia and International) is winning also, we admit it.

Stats nuts. Did you know that about 1 in 17 Australians play organised soccer (football for Europeans). That a mile in front of rival footy codes Australian Rules (1 in 49), rugby league (1 in 117) and rugby union (1 in 170).

That FIFA stats are going to influence a number of Australian business sectors, coming off the Socceroos - South Africa connection, win (won't happen), loose or draw (if we're lucky).

TV

The FIFA World Cup is the world’s largest sports event and a cumulative total of more than 40 billion viewers are expected to tune into this year’s tournament that runs from 11 June to 11 July. 60% or so of Aussies (13 million of the Kangaroos nation) watched the 2006 FIFA World Cup and insiders says the 2010 FIFA World Cup viewing audience will be greater ("on the back of the success of the A-League, grassroots soccer programs and Socceroos results in recent years").

Fan Supporting - $ Support

A number of media analyst's and sports business experts predict Socceroo interest at the FIFA 2010 World Cup will generate approx the average Aussie will spend $AUD40.05 (total being $884.2 million), no matter how great or bad or team does.

Should the Socceroos playing more than their 3 2010 FIFA World Cup 'Group D' matches – unlikely, then these numbers might kick on towards $369.51 per Australian (a total of $8.16 billion) in the event that they reach the final (and Hell freezes over).

The Aussie stats are small compared to a number of our overseas "friends"...
England, Germany and Spain. Get this, experts reckon that a grand total of $265.6 billion will be spend out worldwide. Don't ask us what the illegal sports betting numbers are. We are not in a position to know (with Media Man and Gambling911 being above board and not underground).

Merchandise: Show Me The Money

1 million Aussies will buy merchandise. What you ask? Jersey, scarf, beanie... whatever. Think $85 million on clothing. Socceroos merchandise is forecast to account for the majority of the estimated clothing spending ($74 million), with the others... $11 million going on crap... er quality items... of the other 31 teams.

FIFA is also being used to promote everything from TV shows, breakfast cereals to online casino games. Think an extra $300 million in revenue, or 3% of Australia’s overall monthly retail spend.

Games and TV's

The World Cup will help move more TV's and games, but retail and stats insiders say most who were going to buy a new TV, 3D or not, already have. The NRL State Of Origin and the positive press re Network Nine Australia and Foxtel, was a trigger point for many a month or two back. DVD and and hard-drive recorders and TiVo devices are likely to get a decent boost. There's going to be most of the 64 games broadcast to Aussie land.

Think a 4% revenue boost for Australia’s TV and electrical goods bracket, which is about $10 million all told.

Pubs - Clubs and Hotels

Aussies use sport as a thing to share with family and friends. Pubs, clubs and hotels are going to get a good slice of the action. The Sydney International FIFA Fan Fest at Darling Harbour will be huge, as will sports bars at Bondi Beach, Sydney, Coogee and Kings Cross. Tourism hubs, fueled by mad backpackers, will be biggest.

For Aussies, kick-offs are going to be in the wee hours of the morning, so that will effect numbers and pints of beer sold. If the Socceroos go well, more drinks will be sold, and more people will be likely to spend more.

Food and Drinks

Liquor retailers, take-away, convenience shops will also benefit. Think June - mid July $21.6 on takeaway and $20.5 on drinks.

Sports Punting

Sports betting is the biggest growing gambling sector in Australia according to the Australian Productivity Commission report.

Wagering to be an estimated $104.6 million despite the fact that the Socceroos are odds on (4-11) not to get past the Group Stage and long odds (66-1) to win the tourney.

It's possible to bet on everything from the winning team to Australia’s top goal scorer.

Advertising

Product tie ins gone crazy. Cars, clothing, FMCG, food and drinks. Just about nothing is sacred.


South Africa Tourism

18,000 Socceroos fans will fly into to join the 300,000 international supporters at the 2010 FIFA World Cup. Forecasts of 700,000 visitors to South Africa!

Australians will spend $180 mil following the Socceroos at the 2010 FIFA World Cup. This is compared to the modest $68 million spent by 14,000 Australians at the Beijing 2008 Olympic Games. Suffer China, just kidding, despite what the Sydney taxi drivers tell us via the Australian Taxi Driver News Network, as Media Man and friends know it.

Punters, keep chipping in via the Gambling911 forum, don't score an own goal, and as always, know the odds, bet with your head, not over it, and have fun. Aussie Aussie Aussie, Oi Oi Oi, Aussie Oi, Aussie Oi, Aussie Aussie Aussie, Oi Oi Oi!

*Greg Tingle is a special contributor for Gambling911

*Media Man http://www.mediamanint.com is primarily a media, publicity and internet portal development company. Gaming including sports betting is just one of a bakers dozen of sectors they cover.

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