Will Brazil 2014 be the last time the football world cup matters?

International football could be the purest of competitions, but the dominance of the global club brands, the bloated finals tournament and lack of surprise factor together with distaste for FIFA mean that it's increasingly becoming irrelevant.

So England will be at next summer’s football World Cup finals tournament in Brazil. It’s possible this might be the last time it matters.

There’s a rich vein to be tapped into when football’s ultimate prize is juxtaposed with Brazil, a country with a romantic tradition in the game and one whose people have a passionate attachment, and no doubt the marketing machine will make the most of it. But the world is changing and it’s not inconceivable that Brazil 2014 will go down in history as The Last World Cup.

For now, qualification matters. It matters for all the reasons to do with sporting achievement and prestige, and it also matters for hard business reasons. The Football Association guaranteed £8m in prize money for making the finals. If the team reaches the quarter-finals, not an unrealistic expectation, it gets £16m. If anyone at the FA is relying on the £26.5m you get for winning the trophy, they may want to seek some advice. But there’s more money to be made.

World Cup-related merchandising could bring in £10m. Nike reckons it can sell more than one million England shirts. And the FA will be looking to build on the £50m a year it makes from its commercial partnerships. Qualification is good for business. When England failed to make the finals of Euro 2008, the British Retail Consortium estimated the economy lost £600m. Such estimates do not usually stand up to forensic analysis – too many assumptions – but what’s more certain is that the FA loses sponsors and income if the team does not succeed.

After England’s dismal performance in the 2010 World Cup finals, major partners Nationwide and National Express opted not to renew their deals. It took the FA six months to sign Vauxhall as a replacement, during which time it missed out on a potential £3m.

So in the short term, some money will be made and Team England will still carry some clout – despite slipping below Switzerland in the FIFA world rankings. But longer term, the World Cup may be losing its shine.

The staging of a big sporting event always prompts questions about the cost and about who benefits. It’s now estimated that over $3bn of public funds will be spent by Brazil to stage the tournament. Last summer’s huge protests around the Confederations Cup tournament, used as a dry run for next summer’s main event, brought public protest to international attention – and in so doing destroyed the myth that Brazilians were so seduced by football they would stand for anything.

Whenever a major sporting tournament is staged these days, there’s always a debate about who benefits. Remember all that stuff about legacy and the London Olympics? That was just one example of how massive public contribution to what is ultimately private profit must be defended to the host population. Potential benefits have to be played up as much as possible, which leads to increasingly wild claims that are believed by decreasing numbers of people.

Public benefits can only be measured longer-term. Ken Livingston recognised this when he saw that only an event such as the Olympics would leverage the kind of funding needed to clean up the deeply polluted land around Stratford. But in the short term, people see public subsidy helping to generate enormous profits for the few. Funny, isn’t it, how the right never question the role of the state in these circumstances?

From Brazil 2014, it is estimated that FIFA – a charitable body based in Switzerland – will earn $5bn. In 2012, the organisation reported a profit of $89m, with reserves totaling $1.378bn. To win the right to stage the finals, countries must agree to FIFA’s stipulations on tax. And they are that it pays no tax whatsoever. Conservative estimates are that this exemption will see Brazil’s Internal Revenue Service lose out on $248.7m. Tax expert Han Kogels told CNN: “I was (and still am) not aware of any other international commercial sport event being subsidised through full tax exemption at the cost of other taxpayers.”

The distaste for the way FIFA conducts itself goes deeper when the controversies over the bidding process that saw the tournament awarded to Russia in 2018 and Qatar in 2022 are factored in. The process is mired in allegations of corruption. Top that off with the serious human rights issues raised over the treatment of workers in Qatar.

If the World Cup business seems a long way from the feel-good factor, so too does the football itself. Once, the tournament was seen as the chance for the world’s best to compete. Now, with a bloated tournament featuring 32 teams, the early stages don’t have the same magic. World Cups also used to throw up surprises, new players, new tactics. Now, the players and the coaches and the tactics are well-known in advance – familiarity and contempt nuzzle up alongside one another.

International football could be the purest of competitions. On this stage, you can’t buy in talent, you have to work with what you have – something that appeals to sporting pursists. Despite flurries of controversy over national eligibility, that fact remains. And yet it is club football that commands attention, and the big club brand names that have the global appeal. For many fans, it’s club before country every time, and the growth of the global club brands does not look like slowing. Nor does the global popularity of a Premier League in which players from so many nations are represented.

Put the aggressive growth of the Premier League, the dominance of the global club brands, the bloated finals tournament and lack of surprise factor together with distaste for FIFA and for the whole process of staging the finals together and you can begin to see a future in which the World Cup is increasingly irrelevant. And how then will the FA generate its money?

This might be the last time the World Cup matters. Photo: Getty

Martin Cloake is a writer and editor based in London. You can follow him on Twitter at @MartinCloake.

Photo: Bulent Kilic/Getty Images
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We need to talk about the origins of the refugee crisis

Climate change, as much as Isis, is driving Europe's migrant crisis, says Barry Gardiner. 

Leaders get things wrong. Of course they do. They have imperfect information. They face competing political pressures. Ultimately they are human. The mark of a bad leader is not to make the wrong decision. It is to make no decision at all.

David Cameron’s paralysis over the unfolding human tragedy of Syrian refugees should haunt him for the rest of his natural life. At a time when political and moral leadership was most called for he has maintained the most cowardly silence. 

All summer, as Italy, Greece, Hungary and Macedonia have been trying to cope with the largest migration of people this continent has seen in 70 years, Downing Street has kept putting out spokespeople to claim the government is working harder than any other country “to solve the causes of the crisis” and that this justifies the UK’s refusal to take more than the 216 refugees it has so far admitted directly from Syria. The truth is it hasn’t and it doesn’t.

Anyone who truly wants to solve the causes of the nightmare that is Syria today must look beyond the vicious and repressive regime of Assad or the opportunistic barbarism of ISIL. They need to understand why it was that hundreds of thousands of ruined farmers from Al-Hasakeh, Deir Ezzor and AL-Raqqa in the northeast of that country flocked to the cities in search of government assistance in the first place - only to find it did not exist.

Back in 2010 just after David Cameron became Prime Minister, the UN Food and Agriculture Organisation warned that, after the longest and most severe drought in Syria, since records began in 1900, 3 million Syrians were facing extreme poverty. In 2011 the International Institute for Strategic Studies published a report claiming that climate change “will increase the risks of resource shortages, mass migration and civil conflict”. These were some of the deep causes of the Syrian civil war just as they are the deep causes of the conflicts in Tunisia, South Sudan, Somalia, Libya and Egypt. So what about Cameron’s claim that his government has been working to solve them?

Two years after that Institute for Strategic Studies report pointed out that conflict as a result of  drought in countries like Ethiopia, Eritrea and Somalia had already claimed 600,000 lives,  the parliamentary Committee on Arms Export Controls found the UK Government had issued more than 3,000 export licenses for military and intelligence equipment worth a total of £12.3bn to countries which were on its own official list for human rights abuses; including to Libya, Tunisia, Somalia, Sudan, Egypt and Syria. That was the same year that UK aid to Africa was cut by 7.4% to just £3.4billion. Working to solve the root causes? Or working to fuel the ongoing conflict?

A year later in 2014 home office minister, James Brokenshire told the House of Commons that the government would no longer provide support to the Mare Nostrum operation that was estimated to have saved the lives of more than 150,000 refugees in the Mediterranean, because it was providing what the government called a “pull factor”. He said: “The government believes the most effective way to prevent refugees and migrants attempting this dangerous crossing, is to focus our attention on countries of origin and transit, as well as taking steps to fight the people smugglers who wilfully put lives at risk by packing migrants into unseaworthy boats.”

In fact the ending of the rescue operation did not reduce the number of refugees. It was not after all a “pull factor” but the push factor – what was happening in Syria - that proved most important. Earlier this summer, David Cameron indicated that he believed the UK should consider joining the United States in the bombing campaign against Isis in Syria, yet we know that for every refugee fleeing persecution under Assad, or the murderous thuggery of ISIS, there is another fleeing the bombing of their city by the United States in its attempt to degrade ISIS.  The bombing of one’s home is a powerful push factor.

The UK has not even fulfilled Brokenshire’s promise to fight the people smugglers. The Financial Action Task Force has reported that human trafficking generates proportionately fewer Suspicious Activity Reports (SARs) annually than other comparable crimes because the level of awareness is lower. Prosecuting the heads of the trafficking networks has not been a focus of government activity. Scarcely a dozen minor operatives pushing boats on the shores of Turkey have actually been arrested. But it is not the minnows that the UK government should be concentrating on. It is their bosses with a bank account in London where a series of remittances are coming in from money transfer businesses in Turkey or North Africa. Ministers should be putting real pressure on UK banks who should be registering SARs so the authorities can investigate and begin to prosecute the ultimate beneficiaries who are driving and orchestrating this human misery. They are not.

That image, which few of us will ever completely erase from our mind, will no doubt prompt David Cameron to make a renewed gesture. An extra million for refugee camps in Jordan, or perhaps a voluntary commitment to take a couple of thousand more refugees under a new European Quota scheme. But if the UK had been serious about tackling the causes of this crisis it had the opportunity in Addis Ababa in July this year at the Funding for Sustainable Development Conference. In fact it failed to bring forward new money for the very climate adaptation that could stem the flow of refugees. In Paris this December the world will try to reach agreement on combating the dangerous climate change that Syria and North Africa are already experiencing. Without agreement there, we in the rich world will have to get used to our trains being disrupted, our borders controls being breached and many more bodies being washed up on our beaches.