The World Cup, which starts today in Brazil, rarely makes a profit for the host country but is seen as a "global advertising campaign" for the respective nation, says Peter Alegi, Michigan State University historian and one of the world's foremost authorities on soccer.
Alegi said FIFA, the organization that owns and runs the soccer tournament, makes billions of dollars. But the agreement FIFA signs with the host country is “unequal” and typically ends up costing the respective nation millions – or even billions – of dollars in losses, he said.
Still, many experts believe the event benefits the host nation politically and culturally, by strengthening national unity and pride and by selling the country to tourists and foreign investors.
In Brazil, however, residents are complaining about the country’s agreement with FIFA, Alegi noted.
Alegi tweets about the World Cup and other soccer matters at @futbolprof and runs at a blog about everything soccer at http://www.footballiscominghome.info/.
Alegi can be reached at alegi@msu.edu and (517) 483-3993.