Hosting the Football World Cup: A financial own goal.

While the world is getting ready for football biggest showcase, it's not always true that the countries hosting the FIFA World Cup get the most bang for their buck. With investment in the Brazilian World Cup being speculated as being between 1.1 Billion USD and 11.1 Billion USD the stakes are being raised in Brazil. With internal protests and international concern for a World Cup that will start on time increasing, is hosting sport's biggest spectacle even worth the trouble?

According to official financial reports released by FIFA on a yearly basis, the past World Cups haven't always produced stellar financial returns for their hosts. FIFA's pockets bulge after hosting football's biggest showpiece, with football's governing body posting an average profit of 700 million USD on the back of the the World Cup. Host nations are quick to point out the long term monetary benefit of hosting the World Cup, but this is often difficult to quantify and taxpayers aren't all too enthusiastic to accept this long term focus.

The 2002 World Cup in Asia didn't deliver the goods costing the host nations Korea and Japan, a total of 10 billion USD and still failing to deliver a profit . Admittedly the 2002 World Cup took place months after the 9/11 terrorism attacks and had to contend with a worldwide slump in advertising, but it still failed to live up to FIFA's projections. The 2006 World Cup in Germany turned a healthy 216 million USD profit, but again FIFA was guaranteed a 30% cut of whatever was left over. South Africa came off even worse with a paltry 10 million dollar profit at the end of Africa's first World Cup. With FIFA holding on firmly to broadcasting rights, the World Cup might not be profitable for Brazil, but it will almost certainly be profitable for FIFA.

What does this mean for Brazil? The country has been saddled with astronomical debt from day one and although the seven years they've had to prepare is the most time any host nation has ever received, the official line from FIFA is that “no country has ever been this far behind in their preparation”. Coupled with rising political tension inside of Brazil, the tendency for expensive football stadiums to become white elephants once visitors leave; as well as the world's football public anxiously breathing down its neck, the financial ends at least, might not necessarily justify the means.