by Benjamin Potter | Creative Director, CLICKON
England’s failure to make it out of the group stages of the 2015 Rugby World Cup will likely cost the country around $5.5 billion.
After a thumping 33-13 defeat to Australia at Twickenham, England exited the World Cup in arguably the biggest shock in Rugby Union history. Experts have warned that the pain will extend beyond the millions of rugby fans. Pubs, shops and restaurants around the country will be stemming the bleeding this week as they come to terms with the disaster.
Economists labelled the England vs. Australia game as the “$750,000 match” in terms of predicted revenue for the hospitality industry if they had won. Defeat means the loss of that revenue, with another $4.75 billion evaporated from the stock market. Say what, now?
According to Professor Edmans, a leading British economic expert, it is usual for the stock market to take a hit when England are eliminated from major sporting competitions.
“A lost competition can have a profoundly negative effect on investor mood,” Edmans was quoted as saying to the British press.
The biggest loser is host broadcaster ITV however, who paid a reported $100 million for the rights to show the tournament. The value of its advertising slots are reported to have plumetted by over $1.5 million per match according to MediaCom’s head of investment, Phil Hall.
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