Transatlantic Sport

Transatlantic Sport

The Comparative Economics of North American and European Sports

Edited by Carlos Pestana Barros and Muradali Ibrahímo

This book offers a comparative perspective on the economics of sport and highlights both the similarities and differences in the North American and European models of sport. It tackles policy issues, such as the organising, financing and regulation of team sports alongside theoretical issues regarding income redistribution and competitive balance. It also evaluates the impact of sport and sports events on local communities and the wider economy providing a useful contrast of methods and results on the two continents.

Chapter 8: The Soccer World Cup 2006 in Germany: choosing match locations by applying a modified cost–benefit model

Bernd Rahmann and Markus Kurscheidt

Subjects: economics and finance, sports


8. The Soccer World Cup 2006 in Germany: choosing match locations by applying a modified cost–benefit model Bernd Rahmann and Markus Kurscheidt 1. INTRODUCTION On 6 July 2000, the Fédération Internationale de Football Association (FIFA) awarded the right to host the Soccer World Cup 2006 to Germany. This brought a bidding campaign of the German soccer association (DFB) of over seven years and a (costly) neck-and-neck struggle between five ambitious candidates to an end.1 Likewise, from an economic perspective, FIFA’s voting finished the first level of a two-stage decision problem that faces a national soccer association willing to host a World Cup. On the first level, it has to be decided whether it can be rationally justified by socioeconomic criteria to bid for the event. On the second level, the soccer association and FIFA must determine, relative to strategic goals, the venues where the World Cup matches are to be held. In practice, besides the usual uncertainty and measurement difficulties, a number of analytical problems as to this two-stage decision comes forth, among others: which evaluation approach and decision rules to choose and how to keep the first-level evaluation consistent with the second-level analysis. For the case of the Soccer World Cup 2006 in Germany, Rahmann et al. (1998) carried out an ex ante study by the use of cost–benefit analysis (CBA) mainly intended to underpin the decision on the first-level problem (see also Kurscheidt and Rahmann, 1999; Rahmann, 1997). They...

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