Bets, booze, and billions: Is the EURO2020 what the country needs?

Words Sarah Adama

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Today is the day. Will the EURO2020 finals be enough to cushion the economy?

Football is considered the national sport of England. Governed by the Football Association, it is the most popular spectator sport in the U.K, drawing in over 2 million spectators and wagers.

This is the first time in 55 years that the England’s men’s team have reached the finals, as such, optimism is high. People are spending. On drinks, food and even England football shirts. In 2020, the lockdown restrictions meant there was no stadium audience and changes to broadcast agreements cost the Premier League and English football league a staggering £1.7 billion. Meanwhile, experts estimated that £90m will be pumped into the UK’s economy ahead of the match today. The final is set to become the most watched UK TV event of all time, even more than the England vs Germany match 55 years ago, which drew in a tv audience of over 30 million. This week, over 24 million people tuned in the watch England secure a place in the finals against Denmark, making it the 8th most watched viewing event of all time. Many employers are giving employees time off, even Tesco, one of the country’s biggest retailers announced its closure on match day so that staff can support the national team. Pub are sold out across the country; many restaurants and places of leisure will be supporting England vs Italy at the finish line.

An England victory could boost the economy. Here’s how.

Economists have predicted that England’s success alongside other factors will boost economic growth. 

So, what’s at stake? More than national pride, the country needs a consumer confidence boost, the Three Lions ‘bringing it home’ can ensure this. Chancellor Rishi Sunak says he expects a ‘bounce back’ in spending thanks to England reaching the finals. With national morale and consumer confidence at a high, Chief Economist Andy Haldane’s prediction that the economy will benefit from ‘enormous amounts of financial energy waiting to be released, like a coiled spring’ couldn’t be truer. 

It seems everybody wins. The hospitality, leisure and betting industries have all seen a massive boost in profits. Pubs are expected to sell over 13 million pints on the final’s day. With Wembley stadium and pubs across the stadium sold out, the British Beer and Pub Association (BBPA) estimates nearly 13 million pints will be sold on Sunday, 7.1m during the match itself. However, venues are only operating at 50-60% capacity due to covid restrictions. Experts have commented that the strict rules on customer numbers means that struggling pubs hosting the finals may not make enough to restore their pandemic losses. The BBPA predicted that pubs are set to lose out on £9m in beer sales alone. Yet, the impact of spending on hospitality could bring £150million to UK GDP, according to Chief Economist at Panmure Gordon, Simon French. The feel-good factor could bring a much-needed consumer sentiment. 

Retail benefits from spending either way, as retail analyst Catherine Shuttleworth predicts a “massive” weekend for supermarkets as the final comes. As well as a mini spending boom on cares and homewares, and a boost in productivity. Consumers have been spending on food and leisure, and the England squad’s victories have only set off the feel-good factor. Even retailer Nike reported that it had sold out its £70 England kits for the semi-finals.

Gambling groups are set to benefit from wagers. Already Ladbroke’s owner Entain reported that customer bets on the tournament to be about £250 million as wagers on the finals saw up to 17.5million. Morgan Stanley analysts estimate that sports betting operators acquire more new customers in June and July in years with a tournament compared to those without, according to Bloomberg.

We are yet to know the economic legacy of the EURO2020, but if football really does come home, we can expect a high surge in consumer confidence and productivity all across the country.