England defeat will result in losses to the economy

According to the British Retail Consortium, England’s failure to qualify for the European Championship next year will mean England’s economy is likely to suffer losses of around £2 billion.

The retail figures for alcohol, fast food and flat-screen TV’s during the championship would be approximately £600 million. However, this amount was brushed off by experts who said £2 billion is a more realistic figure.

Proof from previous football tournaments show employee productivity rises as the England football team advances through major tournaments and the feel good factor kicks in. According to Simon Chadwick, Professor of Sport Business Strategy and Marketing at Coventry Business School, a successful run to the 2008 finals would have led to a £2 billion boom for the economy.

Non-football fans may be relieved that the nation won’t be glued to the TV during the championship but the affect on the economy should not be under-estimated. Research has shown that sporting events bring 3% of the Gross Domestic Product each year and during World Cup and Euro football matches, takings in pubs, clubs and supermarkets increase by £35 million.

Supermarkets across Britain were taking an extra £124 million each week during last year’s World Cup in Germany with Sainsbury’s reporting a 70% rise in beer sales during England matches.

Furthermore, experts believe media payments, merchandising sales and sponsorship deals would have brought in around £15 million.

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