Sport, trade and Visa

I got an interesting update on Monday from Visa Consulting & Analytics (VCA) on the impact that an event has on local community. Their data shows the positive impact that the Winter Olympics is having in Italy:

• Overseas Visa cardholder visits rose by more than 60%, with the largest share of visitors coming from the USA (+160% year-on-year), followed by China, Brazil, Canada and Japan;
• In Europe, Visa cardholders from Germany represent the largest share of visitors (31% year-on-year increase), followed by Switzerland, France and the UK;
• Visitors from Germany, China and the U.S. ranked as the top spenders, with an average spend of €297, €267 and €255, respectively;
• Contactless transactions across both domestic and international Visa cardholders, increased by almost 40% year‑on‑year; and
• The top three merchant categories recorded the highest increase in purchases by international Visa cardholders during the Opening Ceremony weekend are: Clothing & Accessories (+35%), Restaurants, Mobility & Transport.

I’m quite surprised that hotels weren’t in the last category, but I guess that’s because folks haven’t checked out yet. Equally, these stats are comparing figures between years, so it shows that there is generally a big growth in overseas visitors to Milan – those from outside Europe – as well as from inside Europe.

This all generates a lot of revenue from feeding and sleeping the guests from the world to creating and managing the infrastructure that the event needs.

So, it’s not that surprising that cities, countries and governments want to win global events, is it?

After all, if you have a major global event – the World Cup, Wimbledon, the Olympics, the Ryder Cup, the Superbowl … the list goes on – and you’re going to draw a crowd if it is marketed and branded effectively.

The funny thing is that, on reflection, none of these events existed two centuries ago, and neither did Visa or Mastercard. The card industry is seventy years old after Diner’s Club was invented followed by The Fresno Drop in 1958.

Seventy years is quite a long time, but the massive credit market we live in today was generated in just one person’s lifetime. Seventy years. That kind of puts things in perspective.

Equally, the first Winter Olympics was in 1924, the first World Cup was in 1930 and the first Superbowl was in 1967.

So, what we’ve seen in the past century is the mass commercialisation of sport that fuels trade, credit, lending and investment. Imagine a world without it.

The old world was one of localisation. Local trade and commerce, and local sports. Each village or town might have events, but there would be no global interest. Take the old il Palio, a highly competitive horse race in Siena, Italy, that started in the 1630s. This was an event, that still runs today (you can see it on July 2nd), where the local districts competed across the Piazza del Campo square of Siena to win the regional crown.

Why?

Well, it generates trade and superiority. Whose area is the best?

You can trace this back almost 3,000 years ago to the first Olympics, where sport, competition, entertainment and more create a surge of trade, commerce, finance and transacting.

Sporting events and the broader sports industry drive a significant portion of the global economy, contributing around 1% of total global GDP annually, according to Sports Advertising.

The key economic drivers in sport include:

• Job creation: From athletes and coaches to stadium staff and digital marketers, sports employ millions worldwide.
• Advertising and sponsorship: Brands invest heavily in sports partnerships for global visibility.
• Tourism and events: Major tournaments attract international visitors, boosting local economies.
• Infrastructure investment: Stadiums, transport systems and hospitality sectors all benefit.
• Global trade and GDP growth: Sports stimulate imports and exports through merchandise, equipment and media rights.

Talking of which, I’m just working with a few friends on taking the Babilon idea global. It’s basically Gladiator for a worldwide audience. If you’re interested in what it entails, call me (or just email chris@thefinanser.com).