High costs for cities

UEFA expects 2.4 billion euros in revenue from the European Championships

The European Championship kicks off on June 14, 2024 with the opening match in Munich's Allianz Arena between hosts Germany and Scotland. The goal of all participating teams is the final on July 14, 2024 in the Olympic Stadium in Berlin.

(Bild: AFP/APA/John MACDOUGALL)

The 2024 European Football Championship in Germany will be a billion euro business for the European Football Union UEFA. The association expects the tournament to generate revenue of 2.4 billion euros, according to a budget report. In return, UEFA says it will pay taxes in Germany estimated at 65 million euros.

A possible tax concession in connection with the European Championship is controversial in Germany. According to the Federal Ministry of Finance, an exemption from income tax is possible in certain cases. The ministry did not provide any specific information on the extent to which a tax concession actually exists, citing tax secrecy as the reason. "However, tax concessions for international sporting events in the form of government guarantees have been issued for years and are also a regular international practice in many countries. They are only granted within the framework of the applicable legal situation."

The costs for the ten host cities are in the double-digit millions, Munich, for example, estimates its costs at 21 million euros. In addition, the federal states will cover the costs for the state police, the amount of which is unknown. In return, the cities can advertise themselves due to the high number of visitors.

Retailers in Germany are also expecting additional revenue. "Major sporting events can always be important sales drivers for the retail sector. Especially when they take place in your own country, like the European Football Championships, this also triggers larger streams of visitors," said a spokesperson for the German Retail Association. According to Holger Eichele, Managing Director of the German Brewers' Association, around five percent more beer was sold in the 2006 World Cup year before and during the tournament than in other summer weeks.

Experts do not expect an economic boom
However, there is virtually no hope of an economic boom in Germany. No "significant economic stimulus is to be expected", emphasized Michael Grömling from the German Economic Institute in Cologne. "Hotels and restaurants in particular will benefit from additional demand, but this will not have a major impact on the economy as a whole," explained Marcel Fratzscher, President of the German Institute for Economic Research in Berlin.