Motives for countries to host such events,along with its pros and cons Sources: Circus Maximus: The economic gamblebehind hosting the Olympics and world cup (Andrew Zimbalist, 2015)TheImpact of Professional Sports Franchises on Local Economies. (Jeffrey Pierro, 2014) Throughout the years, it has been evident thatcountries would strive to become the next host of mega-events such as theOlympics or The World cup. Many of which recognize the economic benefits ofhosting the event will provide to local businesses and the region as a whole.However, both the Olympics and the World cup represent an extreme example inwhich such sporting events generate massive revenue for a short period, but inthe long run are a costly endeavor for the city (Pierro, 2014).
Generally, it has been an accepted view byindependent scholars that stadiums and teams could not be expected to have apositive impact on a city’s employment or output. This statement was derived asobservations were made in which of the money of local fans was being spent atan arena was budgeted leisure money, in which could have been spent on otherforms of entertainment or venues within the city, thus the spending ofspectator sport may be replaced with spending elsewhere in the economy (Zimbalist,2015). However, could a mega-event bring forth a more positive impact? This isplausible as a large portion of the attendees to these events come from abroad,thus the money they bring with them will be fresh to the hosting countrieseconomy, rather than the already existing recycled money of the economy. It seems to be the case, in recent years, thatcountries do believe hosting the world cup and other mega-events, along withall its costs, is worth the endeavor for the city in the long run.
We can observethis in the world cup, as each successor host country is spending more with thesetup and preparations in hosting this mega event. Several decades ago, in1994, the costs associated with hosting the world cup was in the several hundredmillion when the united states were the host, to a staggering $5-6$ billionspent by the 2010 hosts, south Africa, followed by $10-$15 billion spent byBrazil in 2014, and estimations suggest the next host country of FIFAs worldcup, Qatar, to shatter all the previous financial price tags with an incrediblespending of $220 billion or more. (Zimbalist, 2015)However, many of the locals of the host cityhave voiced their opinions on their governments hosting these mega events. Asignificant portion on the population in each host country argued all theefforts taken by their governments in hosting this even, financially, couldhave been used elsewhere in their nation such as improving of living standardsand further development in different sectors of the country. The most obviouscosts that use up the finances of the country goes into infrastructure andnon-sport infrastructure (Zimbalist, 2015).