Europe's strongest economy Germany has been stuck in a recession since last year. However, the 2024 Euros has also enticed fans who spend. But have the profits outweighed the costs of hosting the games?
ADVERTISEMENTThe 10 host cities, including Dusseldorf, Gelsenkirchen and Berlin, will only know in a few months whether they have been able to cover the costs of hosting the UEFA Euro 2024.
German taxpayers are bearing the brunt of the costs of security, advertising and stadium renovations, but UEFA is already expecting a profit of over a billion euros from ticket sales, broadcasting rights and receiving tax exemptions worth millions.
So who profits from hosting the Euro Cup?
Sporting events, including UEFA, FIFA and even the IOC cost millions of euros.
When the previous German government, then still under former Chancellor Angela Merkel, applied to host the tournament in 2018, it was competing with Turkey, who according to German media, offered generous guarantees to UEFA such as complete tax exemptions and rent-free use of stadiums.
To secure the bid, the German government also agreed to comprehensive concessions, including tax exemptions worth millions. The exact figure is shrouded in secrecy, as the Finance Ministry, who current Chancellor Olaf Scholz used to be the minister of in 2018, considers it to be a "tax secret."
International Sports Management Professor Dr Alexander Hodeck says that for Germany to win the UEFA bid, "there were 18 rules that had to be followed. Among other things, these rules stipulate that no sales tax is paid on sales made within the framework of UEFA."
That means, no sales tax is charged on things sold in the stadium.
But what about tourist spending outside stadiums?
Both the German Hotel and Catering Association (DEHOGA) and the German Brewers' Association say most businesses didn't profit from the European Champions.
Managing Director of the German Brewers' Association Holger Eichele said in a written statement to Euronews:
"It is still too early for a European Championship balance sheet - no nationwide figures are yet available for June. But one thing is already certain: Unfortunately, the weather has not always played along as we would have liked. The rollercoaster ride of temperatures and the frequent storms have spoiled the business of many landlords, many a garden party fell through. Like other industries, we are also feeling the reluctance to consume."
DEHOGA also reported disappointing results and said that according to a survey distributed to around 2,730 hospitality companies in Germany between the 2 to 10 July, "The catering and hotel industry in Germany is complaining of massive losses in sales and profits. The concerns are great, but the outlook is clouded. Only a few companies were able to benefit directly from the European Football Championship."
88% of those who took part in the survey "reported no positive effects from the European Championship. Only 8.1% reported positive impulses from the major sporting event."
DEHOGA also blamed the weather for dampened sales.
Could the tournament help Germany's sluggish economic recovery?
Hodeck tells Euronews "It's often overestimated what it actually brings economically."
He adds that the federal government expected 2.7 million fans to attend the games. "If two million of them stay overnight for one or two nights, that's maybe 1% of all overnight stays in Germany," which isn't exactly enough to help bring Germany out of a recession.
ADVERTISEMENTHowever, Hodeck also focuses on the positive effects the tournament has on nations: "There are other things, like how it affects people, changes the mood, makes people perhaps proud to live in Germany, and it's nice when many nations come to Germany."
He also nods at the complaints many fans have had about the German rail network Deutsche Bahn, and added, "Many people have become aware of how important it is to invest in the rail network, which is a positive effect. When people realise that investing in this infrastructure is necessary due to existing problems, it highlights the urgency more than any political debate in the Bundestag."