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STRATFOR.com
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Terror Fears Hurting World Cup Dreams
October 17, 2001
Summary
The repercussions of the Sept. 11 attacks on the United States are permeating even the international sports arena, as AXA Colonia terminated its contract to insure the 2002 World Cup in South Korea and Japan. Both countries planned on using the global soccer tournament, held every four years, for large economic and political gains. But although the World Cup will still likely proceed, security concerns will keep the hosts from reaping the expected benefits.
Analysis
German insurance company AXA Colonia, which so far has lost $550 million following the Sept. 11 attacks on the United States, cancelled an $852.1 million contract Oct. 12 to insure the 2002 World Cup. The company cited heightened security concerns in pulling its coverage of the global soccer tournament, which will be held next summer in South Korea and Japan.
Both countries hoped the event would help pull them out of their economic quagmire. Now Seoul and Tokyo face the brunt of the financial fallout from the decision as they will have to shell out more money for increased security and insurance. The prospect of terrorist strikes during the games will also likely keep world leaders from visiting the countries and international companies from making much-needed investment.
The World Cup will run from May 30 to June 31, with South Korea and Japan each hosting 32 games and teams from more than 30 participating countries. The tournament previously held the promise of immense benefits for those involved, including enormous worldwide exposure and viewership.
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Dan
Terror Fears Hurting World Cup Dreams . . .