or the indigenous people make up less than 3 percent of the us population today. ah, ah, the term strategic autonomy sounds good. the word strategic conjures up a sense of importance and autonomy presents a sense of independence. but when you consider the french president use longer, strategic or autonomy o, the global sports industry is worth over $500000000000.00 today. when north america leading the market and africa expected to be the fastest growing region. the olympics and fifo world cup are 2 major sporting events where countries can come together, as well as to show off their capabilities on the world stage. but how much does it actually costs to host $1.00 of these gigantic events that's going to be broadcasted to billions of people worldwide?

i'm christy i and you're watching the cost of everything. and today we're going to be looking at the economic impact of global sporting events, like the world cup and the olympics, and how it really affects the host cities with the world cup is held every 4 years and is the most popular international sporting competition washed by over 3500000000 people, that is even more than the super bowl or the olympics fans travel from all over the world to follow their favorite teams and a month long tournament. it was also one of the most lucrative sporting events in the world with the total revenue generated by the event estimated to be over $14000000000.00 through broadcasting right sponsorships, ticket sales, like the olympics. the world cup post is determined by a bidding process where host countries submit their plans on how they intend to run

host and accommodate all the players and horsed. as it is such a high viewership that people world cup has a significant economic impact for both the whole country and for the global economy . during the tournament, the whole country gets a boost and tourism, which leads to an increase in local economic activities such as job creation. in addition, indirect economic benefits include increased media exposure, sponsorship, yield, and the sale of merchandise and memorabilia. these factors can help to promote the host country brand and attract further investment guitar, who host to the 2022 world cup is reported to spend over $220000000000.00 on the construction of a new metro system. roads. the new airport neighborhoods and even an entirely new city and 7 new stadiums. for comparison stake, russia spent about $11000000000.00 in 2018 nice countries. hosting

a world cup spent tens of billions on preparations from building infrastructure, hotels, advertising, campaign, ticket, sales, security, etc. and much of that is often not recouped in terms of hard cash. instead, you get tv right, sold to broadcasters around the world, ticket sales, marketing rights, and an influx of tourism. over a 1000000 overseas visitors are expected during the month long torment, which increases sales for hotel, a restaurant tours and over drivers. but these benefits are very short term and often do not outweigh the costs. hotel prices rise during the sell out event by wages of service workers do not necessarily go up by the same amount. this means the returns to capital are greater than those to labor. hosting a world cop is also an exercise in political capital and soft power. it gives the

world a window into that country to show off how new its infrastructure is, how lucrative it is in order to attract future business. investments for our host country is about pride and honor and publicity, more than it is about money. and while it welcomes foreign tourism, at the same time they get to spread its own cultural influence around the world to foreigners, to make them more aware of its traditions and customs. the hope and promise of hosting is that in the long run, the money spent on hosting builds capacity for that country's economy to expand new roads and transport projects will also provide economic benefit. in terms of dollars, guitar has estimated that it will make $17000000000.00 in revenue after hosting the world cup accounting for $1200000.00 visitors and the sale of $3000000.00 tickets

for matches. that is a far cry from the initial investment, but it hope that about 40000000 people will seek to visit the country in the future after heavy media exposure. so now as spring in victor matheson, editor at the journal of sports, economic and professor at the college of the holy cross. so now is hosting the world cup great for the whole country or the whole country when it comes to tourism . so it is actually generally pretty good for your tourism sector and your tourism sector only. so if you look something like cutter cuts are certainly had somewhere in the vicinity of at least $500000.00 additional la hotel room nights because of the world cup. probably a few more than that. we look back to things like rio, rio, had maybe 200000 addition, additional hotel room. nice. we definitely see that again, the smaller events here, the us like the super bowl, again,

identifiable as big tourism events. the question is whether the tourism is enough to pay for all the other bills that come along with hosting these mega vents. now taxing businesses is a common way to raise funds to help pay for these fee for matches and these taxes will still exist for years after fif was done. so what happens to the businesses after that? can they still survive? right, so it all depends on how much you've spent to do this, right. so cutler, for example, spend somewhere in the vicinity of $200000000000.00 in preparations for this that's, that's more than not just any other mega events in history. that's more than every other world cup, for example, in history, all put together, it's more than 4 times what the most expensive olympic games ever cost. so this is, this is something that there's no way you can possibly get any sort of reasonable return out of this. on the other hand, the united states, canada, canada,

and mexico are hosting the next one. and they're going to spend essentially nothing on new stadiums, at least. so when you keep your costs down, you have the possibility that these can be paid off with reasonable taxes over a reasonable amount of time. but it's impossible when you're spending in the end, the billions of dollars like tokyo spent for the olympics like real spend for the world cup and the rest of brazil spent for the world cup or again in the hundreds of billions like cuts or spend for the last world cup. now it's really remarkable and unprecedented here. why would it guitar spend so much money on it? well, certainly for a country, this was a prestige project. nothing, nothing else. it was we have the money and we want to host this event. the same sort of thing of why would anyone spend $250000.00 on a gold plated custom lamborghini? well, because you can, there's no of,

there's obviously no financial return on that for you. but it's all about showing off your country showing off your well more realistically, at least for some, some countries, it is an investment in infrastructure and future tourism. it's a way to advertise your city or advertise your country. and in those cases, it's possible that it can work, but even most of those cases, it's a pretty big gamble. the van must have morphed into something different. i mean, since the country spent so much money and must have been a completely different experience. yes, so i wasn't there for the event i was, i was in the country a few years before that in the, in the run up for this again. what's, what's astounding in cutters case is, this is a country that's roughly the size of the state of connecticut. and in the u. s, with about half the number of people is about the attempt, the amount of infrastructure. so this is

a country with literally one stadium in place when they are awarded the games that was up to the caliber that they needed for the world cup. they were bidding against the u. s. and when the u. s. put in their bid, we have $79.00 different stadiums across the country that we said could be ready for a world class event. within 3 weeks. they had one stadium in the entire country to do this and the course had to build another 9 stadiums from scratch and, and again, when, when you're doing that sort of the spending on things that don't have a long run value for you, like stadium stadiums are not a good long run investment. again, there's just no way that you're doing this for any sort of plausible economic reason. the economics of hosting things like fif on the olympics are so bad. then why do politicians placed such significance on hosting and fight to have the right to host? so there's a couple different reason tribes. so 1st of all,

just because it's a disaster or can be a disaster for a city of the whole or a countries the whole doesn't mean that there's not special interest within the city who could benefit from that. so for example, no, no better time to be a hotel owner than during mega events. so there's no doubt that certain sectors and of course, those are the sort of sectors that may have the ear of the president or the mayor, or the prime minister. the heavy construction industry loves these, right, because you have to build all those, those stadiums and those airports and those hotels. so they love this. so one thing you can, it can be a give away to the special interests just because it's not good for the country as a whole. doesn't mean that there's not influential people who can benefit. so that's number one. and of course, the other reason here is, is it's just to show per ego, right? we've seen this again and again, china, when they hosted the summer olympics again, this was a way to project power, right?

basically soft our we're sports washing right? when we have obviously guten, posting both at the winter olympics in the in. so t as well as the world cup in 2018. again, this is a time for her to show off his political power and say, look how important russia is. we're hosting the world's most important sporting events. look at how strong a leader i am and i can bring these things to you. so certainly up front i it is an important piece there as well. sometimes it's not always bad either. so for example, south africa, the 1st big sporting event they did when they, when they emerged from decades, carbide was hosting the rugby world cup and that was actually wildly successful. and really bringing together whites and blacks in the country. as you know, not as a white south african, but in our is, is really a great and looking back to the guitar world cup again,

including the thousands of migrant workers who are exploited. was there a quantifiable benefit that justify this tremendous cost? so, so nowhere close that being said, they are going to be left with some things that are, that are fairly useful, right? so they're going to be they're going to be left with a much expanded transportation network. so much better international airport. now monday, it's an international airport that's built to handle the sort of crowds you get during the world cup. not during regular regular business. right. they're going to have a nice hotel sector that significantly improve the over there old hotel sector a. but again, that's again going to be a sector that's rarely use the capacity. and at least in the united states, you need to fill up a hotel room about 70 percent of all nice to make, make it so that that hotel can stay in business. it's unlikely that a bunch of these hotels are going to be having ongoing business. that's enough to

fill up the hotel rooms night after night after night, which is what you need to actually have these things makes sense from an economic standpoint. again, additional additional roads, additional mass transit, again, additional facilities. they're going to be left with a bunch of things, but almost almost certainly much of it's going to be way outsized for the, for the economy itself. a cutter has been put on the map in a way that wasn't in the past. busy although again, that's not necessarily good either because a lot of what people know about cutter is that it is a very, very conservative society, repressive towards women. not no alcohol was i had serious issues with migrant workers during the building phases. so again, some people say there's no such thing as bad publicity, but it's not entirely clear that that's true. thank you so much back there. make

their matheson will stick around with us because after the break we will analyze how costly it is to organize and execute the winter and summer 11. i don't go way. ah ah ah, the us class not last period yet, but it is a way you burial power. it's raining, i'm you read you read different articles, different journals are here. they are aware that their power is waiting. they don't want to with in hungary has been a member of the european union and nato since 1999 during the 1st post soviet wave

of nato's eastwood expansion. a history. my logo thanks his dilemma. a c. like by the quantity. so e, so me to me it, if so would you progress for zayn bud luma? it would be sure very him. yeah. still more gina beach, but i see you, but i see also boshoway mug woochie strongly in the early ninety's hungry was a country with a worst view of russia due to historical disagreements left over from the soviet union, ga younger in this oh, you know what any someone like yours or what i see if you brought my sympathies in the gum handle, political more than those what i see is great and i did it at the political those most with

. mm. welcome back to the cost of everything. while the olympic games have become the biggest sporting event in the world, attracting thousands of athletes to come together and compete and win pride for their home country. these games have come under immense criticism over the last decade. for much of the 20th century, the olympics was just a manageable burden for their host countries. games were publicly funded with the advanced countries, better position to bear the cost due to their larger economies. however, once there was a jump in viewership and television, broadcasting revenue hosting cities began to grow more ambitious, creating more expensive plans to demonstrate their progress on the world stage. host cities organizing the events need to invest millions into creating specialized

sports facilities. you limping village and then you large enough to host the opening and closing ceremonies. infrastructure costs range anywhere from hundreds of millions of dollars to tens of billions of dollars, depending on what infrastructure needed to be upgrade or built out. operational costs make up a smaller but still significant chunk of the host, the limping budget, which includes security and what is problematic or the so called white elephants or expensive facilities that because of their specialized nature, have limited posts. olympic, you need often impose costs for years to come, such as the birds and the stadium in from the beijing olympics, which was the $500000000.00 crown jewel center piece of the event that now stands empty. aside from hosting a few cultural exhibitions and the occasional concert, much of the time this uniform venue stand empty. meeting up to the games,

china husband, $43000000000.00 on the 2008 olympics at the time. more than 3 times more than any other olympic other venues go unused and will likely be demolished. many of the residential developments that were built up to house the extra core them crowds are also standing empty. now, the building had almost 0 economic long term benefits. pulse olympic financial problems are common for host cities, spending billions to host a 2 week event, almost never makes a profit. the city usually spending years paying off its olympic debt, and it's often left with unused venue and white elephant main stadiums. athens also when billions over the plan budget of $1600000000.00 for the 2004 summer olympics and the greek citizens were left to pay for everything. in the aftermath, after tourism died down,

there just wasn't any use for most of the building stadiums and courses. these huge abandoned investments have been especially painful as they all contributed to greece's financial crisis. gang wong, south korea, which was responsible for the 2018 games is expected to incur $8500000.00 of annual deficit due to the upkeep of unused facility. and now we're going to welcome back victor matheson. thank you so much for coming back selector, how many countries had netted an actual profit from hosting the olympics? and one of the benefits are there to be gained from hosting? yeah, so uh the united states as them very well several times when we hosted the world cup and 994, i was still to this day the most successful world cup in terms of average attendance. we didn't build any new stadiums. we spent a little bit of money putting a new coat of paint on, on a couple of stadiums. we installed grass in the,

in the indoor silver dome in detroit, a. but again, we spent almost nothing on this and yet attracted a tens of thousands of visitors from across the country. i, the, the organizers ended up with a big profit fif, ended up with a bunch of money. the money that of the united states netted on profit from selling tickets is still part of the u. s. soccer foundation been billed soccer fields in disadvantaged neighborhoods. so that's great. and again, is because the united states was able to host an event without having to spend billions tens of billions or again, hundreds of billions of dollars on new infrastructure. same thing happened in 1984 in an los angeles. when we hosted the summer olympics there, what was very unique about that kings is that when it came time to a ward, the a vent to a ho city. los angeles was the only city that was willing to be the host in $1084.00. and therefore, it could dictate the terms of the event to the i o. c rather than the other way

around. and they said, hey, we're not building and even stuff. we're going to use the roseville. we're gonna use the coliseum stadiums that were had that had been used 50 years earlier at the, at the last time the yelp was built that los angeles had most of the games are, they didn't build new dorm side any in any athlete village they built the handed right over to you, c, l, a and u u s. c. so they ended up having with the entire cost of the games. was only about $1500000000.00 in today's dollars. that may seem a lot, but in, in, you know, in comparison just the stadium for the tokyo olympics that never got a dest decoded idea, but just the stadium cost over $1500000000.00. so the entire $984.00 summer olympics cost less to host than just building the national stadium for the tokyo

games. and when you can keep costs down like that, it's possible to make a profit. and, and in reality, a los angeles actually did come away with a healthy profit in the hundreds of millions of dollars. but that only was the case because they didn't spend multiple multiple billions or tens of billions putting the event on. now how does the government recruit the extra costs from spending on the olympics? i the citizens on the hook for it and do taxes usually go up leading up to these events like the olympics? yes, so the i o c. and certainly fees as well. a requires some sort of back stop. so even if a private entity says that they're going to put on the olympics, it requires a public back stop that says if there are any overruns that the government guarantees that this event will go on. in all cases we have a huge overruns and, and we have billions of dollars that cannot possibly be recovered just through

things like hotel rentals and ticket sales and merchandise and things like this. so that does mean that countries are on the hook for that. for example, montreal, ah, who, which hosted it in 19 a 76. and they took them 30 years to pay off the debts from their stadium building projects. and of course, they were going to use their olympic stadium for baseball team a by the time they actually got done up paying for the stadium, that baseball team, the montreal expos had already moved out of town. and is now the washington nation's which event has been the most wasteful. it seems like today, every country just keeps on trying to top each other building the big is this the biggest that just to show off. there's no doubt that the carter said, every record, i mean, i could have been standing here sitting here a few years ago and say, wow, so she was a disaster. you know, and thing. there is no way that so she could could be there's no way you could do

worse. and so she and of course culture said here, hold my beer. of course they didn't because it was covers interest and they lympics has been waning as viewership is down quite a bit in recent years. is this model of hosting still as prestigious as a once was thought of to be yes. so i would say probably is still fairly prestigious. again, i don't know what the tv numbers are in every country in the world. but again, the opening ceremonies of the, of the olympics tend to be the highest rated sporting event in the united states in any given year outside of the nfl. so that means that they don't draw more than championships baseball, hockey or basketball or soccer. so you know, this really is a fairly prestigious event and i think that remain so. and of course the world cup itself. we don't like pizza. we don't like what happened in color, but we all tune in because it's the world sport. and again,

it showcases the greatest player from. busy all across the country and it's is one great chance to unabashedly route for your country, no matter what. right. so it's the one chance we're fans of barcelona and real madrid can come together and root for spain or, or, you know, man, city and man, united fans instead of being angry with one another on the street, can get together in the power of the and toast to the success of england. so, you know, there's, there's nothing like it on the planet. but again, it's, it certainly shouldn't be seen as any sort of great economic driver because in most cases, stadiums there's no way you're going to make your money back on this. thank you so much, victor, for your time and insight today. it's been a pleasure. so our hosting cities, the winners or losers in the sporting scheme. i mean on the one hand, the city gets

a temporary boost in tours and recognition. it gets to exports culture out and the city will undergo a major investment to build up the public transport and hotels, to house the expected inflow of tourism. but on the other hand, many cities are left with abandoned stadiums and arenas afterwards that were a complete waste of taxpayer money. the city is left with debt and once the temporary boost and tourism has gone, it's like nothing ever changed. in fact, researchers have found the impact of tourism is mixed as the security crowding and higher prices that the olympics bring. dissuade many visitors, sidney vancouver and barcelona all saw slight increases and tourism after they holsted. but beijing, london, and salt lake city, all sol decreases and tours them after years after the olympics. ultimately, there is little evidence for an overall positive economic impact with no long term

impact on the hosting countries g d p. so now a consensus has grown a mon economists that the olympic games need reforms to make them more affordable and also less corrupt. i'm christy, i thanks for watching. and we'll see you back here next time on the cost of everything. ah ah ah ah ah

ah, ah, the charm strategic autonomy sounds good. the word strategic conjures up a sense of importance and autonomy presents a sense of independence. but when you consider the french president using this term, they were forced to wonder if he is a serious person. after all, europe is no longer strategic or economist. i may be able to turn a blind eye to atrocities in other countries, the united states of america is different wherever people long to be free, they will find a friend in the united states. ah, with

it out of anybody i think all ready basie. so the city draw the look at the book, they incentives of each cigarette. a few color revolutions is one among several means to reach the goal of conquering foreign lands and bringing them onto the help of u. s. weston economic interest. people think sadie, i didn't that he did to everybody did them. okay. yeah, it's pretty cool actually. so that's a little bit soft by way. i mean, he can, the final goal of these seem revolutions is to ensure that there are no independent players in the world. anymore ah, breaking news on the art c overnight artillery strikes by ukrainian troops leads to civilians dead to others wounded in russia for border region. according to local

officials, a to p is 1st nuclear power plant built by a russian company receives the official status. now the 2 countries respective leaders attend memorization ceremony via video link coming. despite rumors about mr . to ones ill health with gunfire. clashes under a strikes market 3rd week of fighting in.