English defeat would add up to £1bn loss
By David Bond
Last Updated: 12:52am GMT 21/11/2007
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England's players can be in no doubt by now about the consequences of failure against Croatia at Wembley tonight.
But for the British economy the impact could be even more disastrous - costing £1 billion, to be precise.
While most of England manager Steve McClaren's squad are well cushioned from the credit crunch, with reports suggesting that the average Premier League player's salary is now more than £1 million a year, defeat would add to the pervading sense of economic gloom.
Figures from past tournaments demonstrate the economic boost that accompanies England's presence in World Cups and European Championships.
According to one study, by the Centre for Economic and Business Research, based on an examination of the impact of the 2006 World Cup and Euro 2004, the effect of non-qualification could be as much as £1 billion.
The report predicted England's failure to reach Euro 2008 would lead to a dramatic drop in advertising revenue for television companies, along with a sharp fall in income for betting companies and supermarkets.
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Around £300 million was spent on advertising during last summer's World Cup in Germany.
Beer sales would also go flat - the last thing the brewing industry needs after it emerged yesterday that their profits had tumbled by 78 per cent between 2004 and 2006.
The CEBR suggested that a successful tournament for England would contribute to a boost of more than £285 million for pubs, clubs and off-licences.
However, the Football Association insist that the immediate financial impact of failure tonight is manageable.
Having announced that they had secured a £425 million deal for their domestic television rights with ITV and Setanta between 2008 and 2012, they recently added another £150 million for their overseas television rights.
They also have a £100 million sponsorship programme with partners such as Nationwide, Umbro, Carlsberg, E.on and McDonald's which is not affected by non-qualification for major tournaments.
The FA estimate that they will miss out on around £10 million in income from selling licensing and merchandising rights for the duration of next summer's tournament.
But the longer-term impact on the image and marketability of the English game may suffer.
Having negotiated a £2.7 billion TV rights deal, the Premier League are enjoying an unprecedented boom at present. With almost half of the competition's teams under foreign ownership, there can be no doubting the league's international appeal.
Yesterday, Keith Harris, chairman of the investment bank Seymour Pierce, who advised Randy Lerner and Thaksin Shinawatra on their recent takeovers at Aston Villa and Manchester City, respectively, warned that the influx of overseas owners was not about to stop. He added that it was a trend which should not be feared by English football fans.
"Are the foreigners coming to rape, pillage and take a quick turn before returning with their booty to their overseas base?" Harris asked. "The reality is a long way from this fantasy view".
Will foreign businessmen stop investing in the game because England miss out on Euro 2008? Unlikely. However, according to one football marketing expert, the feel-good factor for English football associated with a winning national team is good for the whole of the sport in this country.
Alex Fynn, the former Saatchi and Saatchi executive who was instrumental in the foundation of the Premier League, argued: "The knock-on for the whole game is very significant.
"Maybe not as much as in the past, because the Premier League is so strong, but there's no doubt it can have a damaging effect for the whole of English football's economy."
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Didn't you submit exactly the same article a few weeks ago? In fact, this is the 3rd article on the subject in a couple of months.
Come on Telegraph, sort it out.
Posted by Puma King on November 21, 2007 12:50 PM
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I have to agree with you Dan. Where did these figures come from? Does a drop in spending in supermarkets and on beer really equate to money lost from the UK economy? Surely that money would be spent elsewhere, and as Dan notes, possibly on more meaningful pursuits.
Next time the Telegraph starts throwing around some headline grabbing numbers, i suggest it backs them up with some solid research and statistics.
Posted by SteelyAdam on November 21, 2007 8:49 AM
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Less football-related television advertising and a drop in beer consumption? HaHaHaHa!!
You make that sound like a bad thing!
Somehow, I get the sense that these economic numbers are being generated by some panicky football alarmist. What would the alternative be? A fitter, quieter, better-dressed England?
There's a lot of people who could work with that.
Posted by Dan Hamilton on November 21, 2007 6:28 AM
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England did win this October 13, 2007 match versus Estonia, 3-0 at Wembley Stadium. 
Steve McClaren and his deputy Terry Venables have both been sacked by the English Football Association after a unanimous decision by board members during an emergency meeting held earlier today. 

The decision was announced by the FA chief executive Brian Barwick in a press conference held this morning after widespread speculation due to the poor performance of the English national team which last night failed to qualify for the UEFA Euro 2008 competition.  The cost of removing him from his post is thought to cost £2.6 million.

According to a study by the Centre for Economic and Business Research, missing out on Euro 2008 could cost the British economy as much as £1 billion. 

The recruiting process has already started to find the next manager for the team, only 18 months after 46-year-old McClaren was given the role.  During the press conference the FA admitted that not qualifying for the competition was "embarrassing".