The Time I Quit My Job

Best decision I ever made

In June of 2006, I quit my job. I had spent the last three years working in the booming mortgage industry. While the housing market had already started to slow down for those of us working in the industry, the real reason I quit my job was because I wanted to watch every single game of the 2006 World Cup. I am happy to tell you that I did manage to accomplish that goal.

The 2006 World Cup was held in Germany. The time difference made it easy for me to watch the games. Summer of 2006 was also the summer before I started my Ph.D program at the University of Kentucky. Looking back at it, it was probably the best way to spend the summer before I started the Ph.D. Today, I want to talk about the economics of the World Cup.

The Qatari World Cup

The 2022 World Cup kicked off on the 20th of November and will go on till December 18th. It is the first World Cup hosted in the Arab world, and the first time they are held in November. Usually they are held in the summer, but due to the harsh summer weather in the Arabian Gulf the games were moved to accommodate the fans. The World Cup has been mostly hosted and won by Europeans. Hosting the World Cup in Qatar will help expand the audience and build stronger brand loyalty in that Arab Gulf region, an area with an appetite to spend on luxury and experiences.

Table 1: List of host countries and winners from previous World Cups. The wins Europeans and Brazil have dominated.

Most Expensive World Cup Ever

Qatar has spent $220 billion dollars in preparation for this event! This number is more astonishing when you compare it to $15.1 billion that Brazil spent in 2014, the next highest spending by a host country. While the media has latched on the $220 billion price tag, the number is misleading. According to Reuters, most of Qatar’s spending was planned independently of the World Cup and is part of its effort to compete in the region with the likes of the Dubai and Abu Dhabi in the UAE. How much of the $220 billion went towards World Cup specific investments is unclear.

Get Paid to Lose

Every team participating in the World Cup will receive prize money. Here is the 2022 prize money list.
Winners $42 million
Runner-up $30 million
3rd place $27 million
4th place $25 million
5th – 8th place $17 million
9th – 16th place $13 million
17th – 32nd place $9 million

Will You Watch?

There were 3.5 billion people that tuned in for the 2018 World Cup in Russia. It is not clear how many will watch this year. FIFA is expecting that 5 billion people will watch the World Cup in Qatar.

Productivity Decline

Economists have examined the relationship between sporting events and worker productivity. Long-duration tournaments like the NCAA March Madness or the World Cup are associated with declining labor productivity. This report estimates the loss from productivity declines associated with March Madness to total $13.1 billion. Nearly 41% of individuals surveyed in the Gulf plan to watch the World Cup during work hours. For those not permitted to watch the games while at work, they plan on taking annual leaves, leaving work early, or calling sick. While no one reported that they will quit their jobs, most plan to leave work unattended.

Are you watching the World Cup? What games have surprised you so far?