The Super Eagles’ outing at the 2018 World Cup was generally underwhelming from the onset. As such, it was not much of a surprise to many Nigerians when the national team eventually lost out of the competition; after playing just three matches.
The Eagles’ lackluster performance and eventual 2-1 loss to Argentina on Tuesday, saddened quite a lot of Nigerian football lovers. But could the unfortunate loss also potentially portend negative implications for some Nigerian businesses?
Focus here is on businesses that typically leverage major sporting events (such as the World Cup) to drive sales and ensure profitability. These include sports betting, beer parlour businesses, the travel industry, cable TV companies, media/advertising and merchandising sales.
Below are our findings:
The Sports Betting Industry
The betting industry thrives on major sporting activities like the World Cup, which is arguably one of the biggest sporting events in the world. The FIFA tournament provides immense opportunity for businesses like NairaBet, Bet9ja, and Baba Ijebu Lotto to thrive, especially when teams like the Super Eagles are in the competition.
News continues after this ad
That said, it would be safe to assume that Super Eagles’ loss would have negative implications for the industry. Interestingly, it does not. Based on our findings, sports betting businesses in Nigeria will continue to boom despite Nigeria’s loss.
According to Mr Lekan, a representative of Baba Ijebu Lotto who spoke to Nairametrics, “People are still continuing to place their bets on Baba Ijebu Lotto despite the Super Eagles’ loss.” He said that the rate of betting on their site has not reduced in any way, and the reason for this is because people bet on matches, regardless of which team is playing.
News continues after this ad
In other words, even though potential new customers may not want to bet again now that the Super Eagles are out, this is largely mitigated by the fact that most people will continue to place bets on the other teams remaining in the tournament.
Beer Parlours (Pubs) and Viewing Centres
Beer parlours and viewing centres are also businesses that thrive during major sporting events like the World Cup. This is the case because many football lovers would rather watch matches in the company of other football lovers, instead of watching alone. Let us not forget that the epileptic power situation in Nigeria could also mean that many Nigerians will not even be able to watch the matches in their homes.
According to our findings, beer parlour and viewing centre businesses will continue to attract customers throughout the duration of the World Cup. This is despite the fact that they just went out of the World Cup competition.
The Travel Industry
As expected, operators in the travel industry typically benefit from the World Cup. For instance, many football lovers prefer to travel all the way to Russia to watch their favourite team[s] play. This presents a good opportunity for operators in the industry to generate money.
But considering the Super Eagles’ loss, will players in Nigeria’s travel industry be negatively affected?
Unfortunately, it appears that Nigeria’s travel industry is already being slightly affected by the Eagles’ loss. This is because Nigerians are no longer trouping to Russia to watch the live matches like they did when the Super Eagles were still in the competition.
According to Tosin, a representative of Wakanow, Nigerians are no longer booking flights to Russia at the same rate they did on the three occasions when Nigeria played against Croatia, Ice and Argentina.
Pay TV Companies
Pay TV companies such as MultiChoice and Kwese TV typically make money on a normal day. But we have good reasons to believe that the subscription rate increases exponentially during major sporting events like the FIFA World Cup. With that said, Pay TV companies stand to make a lot of money.
Cable TV providers will not be affected by Super Eagles’ loss. This is because prior to Nigeria’s discontinued participation in the tournament, many TV watchers already paid for their bouquet subscriptions. Moreover, considering the fact that Nigerians love football, they will definitely subscribe for their Paid TV in order to watch the tournament till the end.
Media and Advertising
Another set of businesses that typically benefits from the World Cup is media and advertising. Already, there are a slew of campaign messages out there, all sponsored by corporate entities (such as Pepsi and Coca Cola) who are hoping to key into the World Cup feeling while facilitating brand awareness.
Super Eagles’ poor outing in Russia will not change this. This is because prior to the tournament, virtually all the advertising deals pertaining to the World Cup were signed between companies, advertising agencies and media houses. These adverts will run throughout the duration of the World Cup.
In conclusion, Super Eagles may have lost the World Cup, but business continues.