Geopolitics has always shaped the world of sport, with event hosting and participation in events often determined by socio-political situations within different countries. This is often taken for granted by many countries where society is more stable. For instance, the Russian economy has lost millions of dollars in the past year following its invasion of Ukraine, as various sponsorship agreements hosting rights for various sporting events including the 2022 UEFA Champions League Final and the Russian Grand Prix have been revoked, notes GlobalData.

The leading data and analytics company’s latest report, ‘Geopolitics in Sport – Thematic Intelligence’, reveals that the British economy saw a $12 billion boost in trade and investment a year after hosting the 2012 Olympics.

Hosting major sporting events is considered to be a privilege and is often accompanied by significant upgrades to a city or region’s infrastructure to deal with the influx of visiting tourists using these services. The long-term benefits of these upgrades can be significant for the population living in the city, whose lives are likely to improve as a result.

Tanveer Aujla, Analyst at GlobalData, comments: “However, there are often significant costs associated with hosting events, and governing bodies and federations must balance the risk to the economy against the potential money that could be generated. In 2004, Athens successfully hosted the Olympics, but the event is also believed to have accelerated the country’s major economic downturn.

“Hosting events can be a burden depending on the country’s financial and socio-political situation. Events are becoming more expensive which could be a barrier for some countries that are attempting to break the mould and host an event for the first time.”

Russia’s situation is somewhat unique as the country had seemed to be working hard to improve its sporting reputation across the world in the face of various doping and cheating scandals. The country had become more of a force with regards to event hosting, securing a long-term contract in 2010 to host an annual Russian Grand Prix, and also successfully hosting the 2018 FIFA World Cup.

Aujla adds: “The good work that Russia had done in opening itself up as a home of sport was completely undone in the space of a couple of weeks by its actions towards Ukraine, with any sport or federation now unlikely to consider hosting an event there. While Russia is an extreme example, it serves as a reminder that acting improperly on the global stage could have wider ramifications for sport within any country.”