When reviewing the economy and different indicators, little information is shared to show the impact of sporting activities like rugby to the economy. Indeed, there is a lot that sporting events contribute to the economy and this is what Andrew Charlton, a renowned and successful economics expert, helps us to reveal. To understand better how sporting events contribute to the economy, we’ll take the 2015 rugby World Cup. According to estimations made after the event, it injected directly to the economy a total of 1 billion Euros to the British economy. This is beside the 2.5 billion Euros earned indirectly as a result of the event being held in Twickenham.
Most of the rugby sporting clubs you have come across, either in the U.S. or elsewhere, are sponsored by leading brands in the market, and this is for a reason. Whenever these teams perform well in the market, much credit is directed to the brands offering the support, and it also becomes easier for them to take it as an advertising opportunity.
Television channels have been the biggest beneficiaries of most of these events because at the time tournaments are aired millions are tuned in to watch, and this gives them the audience needed to process different advertising strategies paid for by some companies. This means they earn the most revenue whenever there is a peak in sporting events, particularly rugby, which has seen massive growth across the U.S. over the past two decades.
Spending fan base
The reason sporting events should be sponsored to grow locally is because this also leads to the growth of local economies. One of the examples in which rugby contributes to the growth of the economy is through cases where the fan base is comprised of people who are willing and able to spend during the sporting events. What this does is that it gives financial opportunities to local sellers who specialize in snacks and items that are most common during rugby tournaments. As a result, this money is channeled to the local economy, which in the end is consumed locally to reinforce growth and the economy.
Commercialization in sports is a good move that opens up positions for different kinds of professionals including doctors and financial experts. Just like football which employs hundreds of thousands apart from the players, the commercialization of rugby will not only give players a perfect chance to improve themselves financially, but also comes as a prime opportunity for other professionals who will be required to help manage players and the team. The salaries paid to the players are spent in the local communities and help to develop the regions, not forgetting that this is a way of dealing with unemployment.