The U.S.A. Could (And Should) Host Another World Cup

chile-copa_2706getty_875Last night the Copa America Centenario came to a close with Chile defeating Argentina in a penalty shootout after a 0-0 draw. This was almost an exact replica of Copa America 2015 when Chile defeated Argentina in a penalty shootout after a 0-0 draw.  The difference? The United States does it bigger, and does it better.

The predominately Argentine attendance last night in East Rutherford, New Jersey was reportedly over 82,000, a New Jersey soccer record. This comes on the heels of last week’s impressive crowd at the USA vs. Argentina semifinal in Houston, Texas that was reportedly over 70,000, a Houston soccer record.  For a country that has played host in the past to Pele, Ronaldinho, and David Beckham, there are many reasons for tournament organizers to be pleased right now.

The amount of records broken by this edition of Copa America cannot be ignored.  After last night’s final, the accumulated attendance of the 32 games played was just over 1.5 million, shattering a record held for over 25 years by over 350,000. In addition, the average attendance was nearly 46,000 fans per game, topping 5 of the last 9 World Cups (excluding the USA hosted World Cup in 1994).  Average attendance even topped the past 6 European championships despite an average ticket price of just over $100.  Using just attendance alone as a measuring stick, the U.S. has raised the bar as a host.

In terms of TV ratings, even more records were broken.  Not including the final, the first 30 matches of the Copa America Centenario drew over 100 million viewers in the U.S. from the combined broadcasts of Univision and Fox networks.  Univision reported that ratings for the tournament have been higher than average ratings for the 2014 World Cup in Brazil.  The USA vs. Argentina semifinal even drew 3.29 million viewers on Fox Sports 1, a network soccer record.  In terms of reach, the tournament has been broadcast in 160 countries, and 1.5 billion viewers worldwide. While the days until MLS reaches 1.5 billion viewers are still a long way off, competitive international soccer in the US has consistently proven to be record draw since the ’90s.

In short, the Copa America Centenario achieved every feat it intended and then some.  As Sunil Gulati accurately concluded, the United States Soccer Federation successfully proved that this country has the infrastructure, management system, and consumer base to thrive as an international soccer tournament host.  In many ways, the United States has everything that Brazil is missing for the Rio Olympics in less than two months.  Even with all the bribery and scandals that surround FIFA, it would be incredibly hard to avoid the potential money-making machine that the United States just displayed for a memorable, drama-filled, and lucrative three weeks.

REFERENCES

http://www.pressherald.com/2016/06/24/copa-america-has-been-successful-with-attendance-tv-ratings/

http://www.forbes.com/sites/sergeiklebnikov/2016/06/26/successful-copa-america-2016-smashes-records/#44766b89734b

http://www.latimes.com/sports/soccer/la-sp-copa-us-argentina-tv-ratings-20160622-snap-story.html

http://www.news18.com/footballnext/news/lionel-messi-misses-penalty-as-chile-win-copa-america-2016-title-1262520.html

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Empty Seats at Copa America

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This month, soccer is available to the average American soccer fan virtually all parts of the day with three European Cup games on in the morning and afternoon capped off by two Copa America games at night. It’s beautiful isn’t it? It makes you appreciate the ‘worldly’ aspect of the game. But does it provide too much convenience to the average fan? So much so that he or she would not get up off the couch and see a game in person?

As the first round of Copa America comes to a close tonight, and as the first round of Euro 2016 begins, a bit of an alarming trend has become apparent in the stands on this side of the pond. A significant number of seats are empty.

The story lines of the first round were not the problem. We witnessed a United States team with little expectations finish at the top of Group A. Colombia was handed a stunning 3-2 loss to Costa Rica setting up a potential matchup with a Brazil team that was even more stunned by a controversial goal at the hands of upstart Peru to be sent home after one measly round. We saw the spirited frustration of Luis Suarez as he could only watch from the sidelines as his countrymen from Uruguay would exit this tournament early as well. And of course, we saw Lionel Messi dazzle in the limelight with a hat trick despite entering the game as a second half substitute. In most of these cases, you could not ask for a better sequence of events.

The real problem could be a combination of factors. One could be the low expectations for this US team. In the past quarter century, the US has given the nation pride with spirited performances in the World Cups in South Africa and Brazil, possibly reaching a plateau with the heartfelt performance of Tim Howard against Belgium in the World Cup knockout round in 2014. But since 2014 most of the news surrounding the national team has been negative. They finished in fourth place on their home turf in the 2015 Gold Cup, a tournament they usually dominate. Small Caribbean countries like Jamaica and Haiti were no longer easy matchups; the island nations were highly competitive, sometimes even better. The US had gradually ascended into a North American juggernaut from 1990 to 2014. Suddenly, all progress appeared to be lost. But here we are in 2016, and as usual, head coach Jurgen Klinsmann has somehow lit a fire under this team again at the most unexpected moment.

Another factor could be the lack of star power. Before Brazil flamed out of the tournament in spectacular fashion, they were playing without the face of the squad, Neymar. Talented striker, and habitual opposition biter, Luis Suarez was injured or listed as injured in all three matches for Uruguay. Even Argentine sensation Lionel Messi was used as a substitute rather than a starter due to an injury he sustained before the tournament. You could call it bad timing, but without the stars to advertise, smaller nations like Panama, Haiti, and Venezuela have never been crowd pleasers. Unfortunately, Brazil and Uruguay’s eliminations in the group stages could continue to have an adverse attendance in the more meaningful knockout round matches.

A third factor could be these over-sized stadiums hosting games. The last Copa America in Chile averaged around 25,000 fans per game, and the previous Copa America in Argentina averaged just under 35,000 fans per game. After 20 games in this year’s tournament, the US average is significantly higher at just above 40,000, with some clear outliers. Despite statistically better turnouts, hosting games in 70,000 to 80,000 seat stadiums makes for a poor aesthetic.

And finally, the biggest factor could be TV coverage. Univision is reportedy averaging 2.8 million viewers per game while Fox Sports 1 is averaging just over 800,000 viewers per game. According to Nielsen Media Research, over 2 million viewers watched the US defeat Paraguay 1-0 to advance to the next round, the most watched men’s soccer match in Fox Sports One history. Yet on TV, you could see whole swathes of sections empty in the upper tiers of Lincoln Financial Field.

In all United States sporting events, going to the game has been marketed as an experience. An experience unlike sitting at home and watching on your TV. Instead of just seeing two century long rivals face off in a battle for glory, you could feel it. Live it. But at what cost?

The price of a TV subscription is relatively low compared to the price of a premium Copa America ticket. Currently on Stubhub, the cheapest ticket to the Copa America Centenario Final in East Rutherford, NJ two weeks from now is just over $300. For almost half that price, you could enjoy a month’s subscription to the cable provider of your choice with access to every game of the tournament on your TV, on your tablet, on your computer, and on your mobile phone at all times of day, alone or with friends and family in the comfortable confines of your home. With the right sound system, and with the right TV, the experience at home could be extravagant on its own. And with all the freedom available to you of watching the game anytime, anywhere, why on Earth would you trek through traffic and parking attendants to see Jamaica play Uruguay?

The organizers of this tournament have learned some unfortunate new realities about soccer in America. Just like with regular television, fans have choice now. The capacity crowds of the 1994 World Cup didn’t have a smartphone and live stream of the event in prime-time. The skeptical “wow me” fans of 2016 do. Unless Mexico plays the US in the final, the remaining tickets at MetLife Stadium have a poor chance of being sold at face value. Welcome to the new age of international soccer in America.

REFERENCES
http://www.starsandstripesfc.com/2016/6/13/11920118/usa-paraguay-copa-america-match-breaks-tv-viewing-record

Univision leading the way in Copa America TV ratings with FOX Sports trailing behind

http://www.newsy.com/videos/don-t-get-too-worried-about-attendance-at-the-copa-america/
http://www.concordmonitor.com/Copa-America-soccer-attendance-2828093

 

What does hosting Copa America mean for US?

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Tonight marks the commencement of the Copa America Centenario tournament, the 100th anniversary of the storied South American competition.  However, all eyes will be on the United States as for the first time ever, the tournament will be held outside the Southern Hemisphere, pitting all 10 South American international teams against 6 of CONCACAF’s finest.  While there are many articles and stories out there predicting which nation will hoist the trophy, and which stars you should watch during the largest competition held in America since the 1994 World Cup, how easy is it to predict the economic implications of this event?

Before Orlando, Florida was awarded the rights to host three group stage matches, its bidding effort launched some pretty bold estimates on how much impact just one game could have on the region.  In the presentation by the Central Florida Sports Commission last March, $30 million to $50 million in revenue were projected figures depending on actual attendance.  In many ways, Orlando has realistic data to use as a reference when conjuring these estimates  based on its history as a host city during the 1994 World Cup.  Some other projections were the possibilities of 10,000 international travelers visiting the city, as well as 40,000-45,000 room reservations for at least one night stays in local hotels.  Orlando will host games on June 4, June 6, and June 8.  Time will tell if these predictions become reality.

The host city in the Bay Area of California, Santa Clara, is currently in the epicenter of American Sports with the Golden State Warriors of basketball competing in the NBA Finals, and the San Jose Sharks of hockey competing in the Stanley Cup Finals.  Tonight, Levi’s Stadium hosts the opening match between the United States and one of the favorites, Colombia.  A reported 67,000 seats have been sold as of the morning of June 3. Considering the capacity is 70,000, local businesses should be very pleased at the turnout.  Before San Francisco was awarded its bid, it projected a $139 million economic impact on the region based on the events. With the United States playing in the stadium, that number could reasonably grow even higher depending on the result.

From a sponsorship perspective, many big brands have hopped on the bandwagon to have their names associated with Copa America Centenario.   Anheuser-Busch, Delta Airlines, Nike, Coca-Cola, and Sprint will all feature prominently in this tournament.  Soccer United Marketing and IMG reportedly guaranteed the tournament organizers a minimum of $20 million for TV and sponsorship rights.  Fox Sports paid $15 million for the privilege of English language rights, while Univision reportedly paid over $60 million for the Spanish language rights. Realistically, the TV ratings for the Spanish language viewers should be tremendous given all the star power.  This proves once again that television reigns supreme in the sports world.

In short, the influx of international soccer fans, the passion of American soccer fans and the tourism revenue that will be present over the next month will be a spectacle that even the most passive sports fan can appreciate.  Copa America is normally held every other year, so the normal schedule would dictate that after the 2015 iteration, the next tournament would not be held since 2017.  To honor 100 years of the tournament (and cash in on the marketing implications of a South American competition on U.S. soil) an exception was made for 2016.  The most amazing part of all this is that the tournament almost didn’t happen after investigators uncovered a bribery scandal involving the organizers in the first place.

In case you’re curious, I predict a Mexico victory over Argentina in the final.

 

REFERENCES

http://www.bizjournals.com/orlando/blog/2015/03/big-score-if-bid-is-successfulcopa-america-could.html

Copa America Soccer Tournament Comes To South Bay

http://www.bloomberg.com/news/articles/2016-04-07/anheuser-busch-delta-to-sponsor-centenario-soccer-tournament