England failure 'may hit economy'

According to various reports, the failure of England's footballers to qualify for next year's Euro 2008 finales may cost the economy up to GBP 2bn. Here's one report which mentions that figure:

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Now, the claim is that this is what will be the cost to businesses that make a lot of their profits on the back of sport, such as bookmakers, pubs, sportswear retailers and manufacturers of large-screen TVs. Whether the figure of 2bn is reasonable or not, it's certainly likely to be true that these market sectors will suffer. But, unless I'm missing something really obvious here, I don't see how it's likely to affect the economy as a whole. People will still have the same amount of money to spend, they'll just spend it on different things. It's quite possible that other leisure industries are looking forward to a bumper summer in 2008 - without football keeping them in front of their TVs, people are likely to go out more or buy things that have a different focus - restaurants, for example, are likely to do better, and it's probably also good news for music and games retailers. So it seems to me that claims of damage to the economy as a whole are just special pleading by groups who have the most to lose.

Am I right, or can anyone enlighten me as to what I've missed here?

Mark

Reply to
Mark Goodge
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I reckon you're spot on.

AFAIK, all sportswear and TVs are made in the Far East, the lager for the louts comes from Denmark or Eastern Europe, and that just leaves the bookmakers. Leaving aside the delight we would all feel to see them suffer, the William Hill guy in your beeb extract says they'll do at least as well as last year.

And all that before considering the reduction in the carbon footprint the fans would have left across europe :-))

Reply to
Martin

In message , Martin wrote

I don't see why the pub industry is complaining - most pubs don't have large screen TVs and many publicans blame a slack night on people staying at home to watch football.

Reply to
Alan

Yup! Easyjet will be pissed off about it. And along with the carbon footprint not happening. There will also be blood and vomit footprints that will be less numerous.

Arthur

Reply to
Arthur2

different

I think it's more to do with the 'feel good' factor thing - people are likely to spend more, and hence save less or borrow more, when they 'feel good'.

The same sort of thing is linked with house prices - most analysts recognise that when house prices fall, people spend less and the economy suffers, especially in the UK where most people seem to be stupid enough to think house price inflation is something to 'feel good' about (when for for most it isn't).

So even though a fall in house prices doesn't directly affect the amount of money in the economy (buyers gain by as much as sellers lose), it can still result in an economic downturn, just like England not getting into Euro 2008.

Reply to
Andy Pandy

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