In tough times, big sporting events can boost the business economy – or not. Peter Elson reports
IN SPITE of being a soccer-mad city, Liverpool suffers from attention deficit disorder during World Cups.
It’s all to do with the city’s long-held sense of apartness.
Traditionally, what concerns England does not matter too much to Merseyside. And that even affects following football.
Whether it is because of the great Celtic gene base that makes up the city psyche, or still feeling wounded by the image of being the national basket case, is open to argument.
But this isolation from the UK mainstream could be ending as, along with other matters, Liverpool finds it cannot economically be stand-offish.
Not only that, but the appearance of Liverpool stars Steven Gerrard and Jamie Carragher are guaranteed to boost interest.
Betfred, the Birchwood, Warrington-based betting chain with an annual turnover of £1.5bn, said interest in this World Cup is phenomenal.
It expects twice the business of the last World Cup, not only through its 800 nationwide chain of shops, but also driven by the technological advances in the ways people can bet.
“This is the biggest betting event that’s ever been recorded,” said a Betfred spokesman.
“The media has changed so much and everyone in this business has had a countdown. There’s already been a plethora of bets.
“I’ve worked in the industry for six years and compared to the last World Cup the money we’ve taken has more than doubled.
“There’s far more choice now as we can localise interest so clients can bet on who will be the top Liverpool FC or Everton scorers.”
Ian Ayre, Liverpool Football Club commercial director, said: “The World Cup is good for the city’s bars and cafes, as they get a bigger flood of visitors throughout the tournament.
“There used to be an attitude that Liverpool wasn’t bothered with England in the World Cup, but that’s now changing.
“Liverpool is a great footballing city, and if you go in many of the bars they’ll be full to the rafters as people enjoy it as a social occasion.
“The club will sell some non-Liverpool-branded products. We do a lot of fashion items, representing our players’ home countries.
“So this will be Brazil, Argentina, Spain and England, with items like bags and T-shirts.
“We don’t have the rights to England’s three lions, but we can use the St George’s flag.
“I don’t budget for any commercial gain from the World Cup. I think the club’s biggest desire is that players come through fit and England does well.
“I’ve lived out in Asia, where our Premier League is very popular, and 70% of matches are watched out-of home.
“Over there, football is a cafe culture and it’s good to see people in this city now making it a great social occasion.”
Yet perhaps enthusiasm for the World Cup is not as consistent as we’re led to believe. It markedly differs from country to country, according to a survey by ING, the financial services group.
Remarkably, a large percentage of people in English-speaking countries – England (42%), Australia (43%), US (58%) – will not be watching games.
To underpin their support for their national teams, people are stocking up on fan gear.
On average, the English and French are buying 15 euros worth of gear per person.
The Spanish are spending even more: on average 27 euros each, but the Dutch only five.
Chester-based bespoke tour operator ITC – International Travel Connections – can’t promote the World Cup as it’s not an official FIFA-approved supplier.
“That doesn’t mean we can’t sell holidays in South Africa which coincide with the games,” said Jennifer Atkinson, ITC chief executive officer.
“But my contacts across the travel industry agree high prices are putting people off travelling there.
“South Africa hasn’t been inundated with visitors as it expected. Also, the long-haul leisure traveller uninterested in the football won’t go at present. These big events always massively impact on business, as people either want to be at home (ie, the husbands) to see it on TV or want to get away (ie, the wives).
“We’re waiting for it to be over as normal tourism resumes – England may be out after three games.
“June is winter in South Africa, which is windy and rainy.
“It’s a long way to go to see Table Mountain obscured by fog.
“I think the World Cup is a massively corporate and over-hyped event, which prices itself out of the market and people are put off accordingly.”
There are other businesses which are cashing in on the anxieties employers might feel about workers becoming obsessed by watching games.
An interactive seminar on the subject, called Fever Pitch, tackling absenteeism in the workplace, is being held on June 9, at Sonae Industria (UK), Moss Lane, on Knowsley Industrial Estate.
“Have you considered the timing of the matches, and what steps you can take to support your employees who want to watch the games?” says the organiser.
“Have you considered what actions you can take if an employee telephones in sick, or comes into the workplace drunk? What about employees who are too busy talking about the football to concentrate on their work?”
Taking what could be a more measured view is Acas North West, which has issued guidance to help employers get the best from their employees and avoid absence during the World Cup and the football season.
Acas urges employers to start talking to employees early to manage their expectations and minimise the impact on workplace productivity.
Rob Vondy, Acas area director, Liverpool, said: “Big sporting occasions can present a number of dilemmas for employers who might be worried about the impact on productivity.
“With less than two weeks to go, employers need to start planning now to avoid problems later on, check policies and procedures and remind staff how these work in practice.”
Acas encourages employers to be flexible where they can, for example, by altering start and finish times and allowing longer lunch breaks so that staff can watch games during the working day.
Employers should be clear about what employers expect from their employees in relation to attendance and performance.
They should also be communicative, by talking early on about managing leave and working hours.
“Be open and honest about how you will manage changes to working practices and, where this isn’t possible, explain the reasons for this,” said Mr Vondy.
Not every business is happy with the World Cup, though.
Up-market bistro chain Individual Restaurant Co, with North West brands like Piccolino, Zinc and Bank, believes it will depress trade.
UK cinema chain Cineworld Group saw revenue up 13.9% in the first quarter of this year.
The major films for the remainder of the first half, including Robin Hood, The Prince of Persia and Sex and the City 2, will be released before the start of the football World Cup.
However, Cineworld said it expected overall growth for the half to be below that achieved in the year to date, mainly due to reduced cinema demand during the football tournament.
