a) Social and cultural
The staging of major sports events effects the host community in several ways. The most important is the so called “feel-good” factor created by the success reached in sports competition and the image created of the host city (Bowdin, et al. (2006) pp). This factor can even led to better motivation at the work place as stated in a study by the Hudson company: “Real-life accounts reveal that the sporting ‘feel good’ factor has a significant impact on the world of work: on individuals’ motivation, approach to tasks and relationships with colleagues. ‘Talking sport’ is a way of breaking down barriers between colleagues, customers and suppliers. Often, it can make or break a sale or the relationship between a manager and his/her team. ..Sport enhances creativity and promotes sharing of ideas.” (http://www.sirc.org/publik/sport_and_the_workplace.shtml, accessed 12.04.10). Furthermore it can expand the cultural perspective of the host city and its inhabitants and be a tool to learn more about a foreign culture and break down barriers. “The City of Bristol illustrated the benefits to be gained through social inclusion, from hosting the West Indies cricket team during the Cricket World Cup 1999.
The council in partnership with Gloucester County Cricket Club and First Group developed a range of events targeted at schoolchildren and the local Afro-Carribean community, including free access to warm up sessions, coaching clinics and school visits.” (Bowdin, et al. (2006) pp). But there are not only positive social impacts. The biggest problem in that context is the bad crowd behaviour and through that the building of a negative community image. “… However, the image was tarnished by the alcohol-fuelled violence of fans abroad during the World Cup 1998 in France and European Championship in Holland and Belgium in 2000, which some believe to be a main factor in England losing their bid to host the World Cup 2006.” (Bowdin, et al. (2006) pp). One way to prevent this, is the close collaboration of the host city police with the police of the participating countries known for their problems with bad crowd behaviour.
This happened for example during the World Cup 2006 in Germany and was a quite useful tool to keep especially the English hooligans quite (http://www.berlin.de/imperia/md/content/seninn/imk2007/beschluesse/imk180_bericht_top05.pdfstart&ts=1264503105&file=imk180_bericht_top05.pdf, 12.04.10). Another problem is the effect on the social life and community structure. The staging of a major events can influence the normal day to day life through more traffic, noise and crowds. In this case it is very important that communities have a major say in the planning and can convince its inhabitants of the positive effects, because only if they take part it can get a successfull event (Bowdin, et al. (2006) pp).
b) Physical and environmental
Major sports events are often viewed of having a catalytic effect on the provision and building of infrastructure. Also it is often one of the biggest budget components, it may result in an improved environment and facilities. (Bowdin, et al. (2006) pp); (Large Scale Sports Events: Event Impact Framework Report to UK Sport , University of Sterling) Sheffield for example profited from an investment of £139 million in the development of the state-of-the-art facilities for the 1991 World student Games and The Olympics in 1972 in Munich accelerated urban public transport plans by 15 years. (http://www.muenchnerubahn.de/geschichte/baubeginn/) (Bowdin, et al. (2006) pp)
But at the same time the environment is in real danger. This happens because of the following reasons. The distance and mode of travel produces various levels of carbon emissions much more than would be generated if spectators had stayed in their home area. Furthermore all visitors have to use and demand the local energy like water and electricity no matter where they stay. Although food and drink is a major component of economic impact analyses, from this perspective it is viewed in terms of the extent to which it is produced locally and is processed highly likely with convenience foods and a high energy consumer and the packaging also produces substantial waste. These impacts can be measured by the ecological footprint. (Large Scale Sports Events: Event Impact Framework Report to UK Sport , University of Sterling) “The ecological footprint of tourists takes the form of a satellite account and, in the case of the FA Cup Final, a bottom-up approach was used via the locally collected data. The final estimates are as follows: Additional footprint: 2633 global hectares/0.0364 gha/visitor Overall: 7 times greater than at home location
Travel: 55% of footprint, 14 times greater
Food and drink: 4 times greater than average
59 tonnes of waste
The above ecological impacts need to be assessed in the context of the fact that the retained additional income from the FA Cup Final was estimated to be £1.5 million” (Large Scale Sports Events: Event Impact Framework Report to UK Sport , University of Sterling) This shows how important it is for the event manager to know about the risks and the ways to prevent serious problems. “For the event manager, incorporating a waste management plan into the overall event plan has become increasingly good policy. Community expectations and the health of our environment require that events demonstrate good waste management principles and, and provide models for recycling.” (Bowdin, et al. (2006) pp)
c) Political (WM 2006)
Major sports events even have political influence. They can arouse international prestige and improved profile for investments, due to the administrative and logistic effort. Furthermore it can bring new pride, political believe and social cohesion to the local community. (Bowdin, et al. (2006) Events Management. Butterworth-Heinemann, Oxford pp) This happened for example during the World Cup 2006 in Germany. After the second world war it was the first time, except the fall of the berlin wall, that it was not embarrassing or seen as a dangarous patriotism to go to the streets with the german flag. It developed a patriotism that was enjoyed and seen positive of 65% of the population. Even abroad the critics did not see growing up a new form of german danger but saw as normal and good identrification with the own country, a circumstance that never happened before. (Allensbach-Analyse, Ein neuer deutscher Patriotismus?, von Professor Dr. Renate Köcher) The biggest political risk is the failure of the event. It is not only the loss of money and taxes that is the biggest danger, but the loss of reputation of the government. This loss can be internationally as well as locally. Because of this a goverment has to proof all risks and doubts before bidding for a major sports event. (Bowdin, et al. (2006) Events Management. Butterworth-Heinemann, Oxford pp)
d) Tourism and economic
“The economic impact of major sports events is of critical importance when it comes to justifying the investments made. The impact, if negative, can be a lasting and costly legacy for local taxpayers, but if positive, can bring important revenue to bolster municipal budgets.” (Strategic Sports Events Management An International Approach, Guy Masterman) To understand how it is possible to generate economic profit of staging a major sporting event, it is important to have a look at the “multiplier analysis”. “The key mechanism via which events are supposed to produce economic returns is known as the multiplier. The multiplier analysis is based on the notion of a chain of spending and respending. The construction of facilities and the holding of large scale events involve spending in the local economy (e.g. wages, purchase of materials, spectator expenditure). In turn, this expenditure becomes income to others (local workers and businesses), who in turn spend their (possibly increased) wages in the local economy and this becomes someone else’s income and so on.” (Large Scale Sports Events: Event Impact Framework Report to UK Sport , University of Sterling)
Due to this the most important part to earn money is the tourism and the creating of a good tourist destination image to attract more tourists in the future. “One of the most important impacts is the tourism revenue generated by an event. In addition to their spending at the event, external visitors are likely to spend money on travel, accommodation, goods and services in the host city or region.” (Bowdin, et al. (2006) Events Management. Butterworth-Heinemann, Oxford pp)