A Brazilian fan reacting to the 7-1 blowout loss to Germany. It was at this point all of Brazil had realized that their $14 billion investment had gone to waste.
The FIFA World Cup is the grandest stage of them all, it is where legends are made and the hopes and spirits of people around the world are lifted. While all of this is utterly amazing, the business side of the World Cup is the exact opposite, and as Brazil learned this year, sometimes the price tag is just too much to handle.
Reports had Brazil spending close to $14 billion on the World Cup, a staggering figure that is almost 2.5 times more than what South Africa had spent on the sporting spectacle in 2010. To make matters worse, the Brazilian officials had promised private funding would provide financial support for this project, but all of that near $14 billion came directly out of the public purse. Despite having the strongest economy in South America, Brazil has serious issues, specifically that of poverty and sanitation, as 50% of their population does not have access to basic services.
In my opinion, this article links strongly to our discussions about ethics in business. The Brazilian government had made the poor ethical decision of putting a sporting event ahead of the well being of their own citizens, the same citizens who are the very backbone of their economy. By doing so, they have not only made the living conditions of their citizens worse than before, but they have also “shot themselves in the foot” so to speak, in the sense that they have incurred an enormous debt that will take years to pay off. If I was given the expected cost figures and had the choice on whether to host the World Cup or not, I would 100% say no, and rather than invest that $14 billion into a sporting event I would invest it into things such as education and healthcare, which would make the living conditions of my citizens stronger and as a result, my country’s economy as whole better off.
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