Game On: Summer of Sports
Welcome back to Power to the Pricing People! In this edition, we’re diving into the season of sport to see who’s taking gold and who’s walking away empty-handed.
Scoring Economic Goals Worldwide
The Euros might not have ended in victory for England on the pitch but off the pitch, it was a financial goal for businesses across the country. The tournament netted a £3 billion boost for the British economy with football fans making investments in everything needed to enjoy the beautiful game from TVs to merchandise. Across Europe, the UK was the biggest spending nation in the tournament with
The U.S. is also scoring big when it comes to cashing in on sporting events. As the host country for this year’s Copa America, they’ve been awarded a cool $10 million just for hosting. No amateurs when it comes to capitalizing on hidden costs, U.S. Soccer will be taking a 5% ‘sanctioning’ fee from every ticket sold, which is projected to net them an additional $10-15 million. However, this is no knockout when compared to its previous total profits of $75 million last time it played host.
Cricket World Cup: Bowled Over by Profits
Other countries are hitting it out of the park by hosting major sporting events too. ICC Cricket World Cup hosts are projected to experience a $330 million boost. With a combined total of 1 billion watchers worldwide, this competition has bowled over the Caribbean, repositioning it as not just a top tourist destination, but a sporting one too.
Olympic Hopes Meet Financial Hurdles
However, back across the Atlantic, it could be a photo finish to determine whether the Olympics has been a win for France. While major investment is needed by any host nation, its generally expected that those investments pay back, but the 2024 Paris Olympics got off to a shaky start with lackluster ticket sales.
Airline Air France KLM has seen its shares slide as the company reports sales are down due to holidaymakers avoiding the capital. The company is predicting revenue to be down between €160mn and €180mn between June and August. Likewise, an oversupply of accommodation has pushed Airbnb prices down and hoteliers have slashed prices by 41% from their ambitious initial rates in the months leading up to the games.
While travel and hospitality might not be cashing in on the games, luxury group LVMH is hoping that its reported €150m investment will pay back in exposure. As the ‘creative partner’ for the games, LVMH has gone far beyond traditional branding and is instead turning the games into a luxury showcase, from the medals to the tres chic opening ceremony uniforms. We wouldn’t expect anything less from the style capital of the world.
That’s full-time for this edition of Power to the Pricing People. If your pricing strategy isn’t getting you to the top of the league table, it could be time to make a substitution. Connect with Flintfox today and get your pricing game in top shape.