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Germany, bouncing from obscurity to action

Mohan Murti

World Cup 2006 is big business worth billions of euros, with the sale of television transmission rights alone bringing in more than € 1 billion.


Public life in Germany has been buoyed by an unmatched World Cup mania. No station square or public plaza, no city centre, no newspaper, no store window, no television station and barely a single programme, let alone any adverts, is without reference to the games.

Just before Lufthansa flight LH 269 started its glide into Berlin, the charming airhostess handed passengers soccer ball- shaped chocolates and a lapel button with the LH logo, to promote its brand along with an enticement to share the excitement with "Germany's soccer airline".

I was among the bemused passengers. It is Emirates, the Dubai-based airline, that has paid millions of euros for the rights to sponsor the World Cup in Germany and to wax its corporate silhouette.

Ambush Marketing

This is the new strain of what is known as "ambush marketing", in which advertisers bond themselves indirectly with high-profile competitions without paying up. The international sports authorities are aggressively fighting to eradicate this.

Over the years, ambush marketers have become cleverer. They will endeavour and test the precincts, which is a very fine stripe between what is clever and what is overstepping the soul.

Cup Mania

This year, 15 official World Cup sponsors are each paying € 30 million to € 50 million, for rights to connect with the games. All 15 sponsorships sold out a year ahead of the qualifying games that started two years ago. In addition, Federation Internationale de Football Association (FIFA) sold six Official Supplier sponsorships, which grant limited domestic marketing rights to companies in the host country, for € 15 million each.

Public life in Germany has been buoyed by an unmatched World Cup mania. No station square or public plaza, no city centre, no newspaper, no store window, no television station and barely a single programme, let alone any adverts, is without the obligatory reference to the games.

The actual sporting event — 64 games of soccer in 12 stadiums, in which 32 national teams are playing against one other for the world championship — seems tame beside the insidious orgy of advertising and commercialisation.

Controlling Hooligans

As fans from around the globe pour into Germany, security experts from government agencies and international police groups — Europol and Interpol — are glued to computer screens evaluating thousands of messages generated daily by security authorities on the ground in what is billed as the biggest joint operation in history by European police.

Among the officers, plainclothes agents have been sworn in as police officers for the duration of the tournament. They will team up with German officers, but have the power to arrest fans from their country or send them home.

It is an excellent symbol of the growing cooperation in the European Union. Officers have been deployed at airports, train stations and waterways, they work with states that have a World Cup stadium, and in Cologne, inside ZIS, which is Germany's central office for controlling hooligans!

Securing Airspace

Should a situation reach a certain `critical' level, such as an unauthorised airplane heading in the direction of a stadium (all planes are banned from flying within 5.4 km of a stadium three hours before and after a game), an Interior Ministry emergency unit would move swiftly to make critical decisions.

Also, Advanced Warning and Control System (AWACS) reconnaissance planes control the German airspace.

Security

Each game will see the deployment of about 6,000 police officers, with airspace above the grounds being closed. The FIFA is also employing some 20,000 private security guards. A few thousands CCTV cameras have been installed in public areas.

Indeed, preparing for a friendly soccer tournament looks more like the country is getting ready for a minor war.

Some 2,000 soldiers from Germany's army are assisting local authorities in providing medical care, transportation, logistical assistance and protection against biological and chemical weapons.

The Schengen agreement — permitting free passage across 15 countries — has been suspended during the World Cup.

In Berlin, for the first time, a DNA sample will be taken from anyone with a previous conviction for hooliganism.

Football Business

World Cup 2006 is big business worth billions of euros, with the sale of television transmission rights alone bringing in more than € 1 billion. Over € 400 million will accrue to the sponsors from the sale of marketing rights, about twice the amount expected from ticket sales.

Sponsors

FIFA estimates that fans will pay for merchandise worth € 2 billion, and will pocket 15-20 per cent of the total. FIFA, which is registered in Switzerland as a not-for-profit organisation, pays just 4.25 per cent in business taxes.

The official sponsors include Adidas, Coca-Cola, McDonalds, Yahoo!, American Express, Anheuser-Busch, Avaya, Deutsche Telekom, Continental, Toshiba, Philips, Hyundai, MasterCard, Fujifilm, Emirates and Gillette. In addition, there are six national promoters, which include Germany's state railway company and the Postbank.

FIFA is not only offering these corporate sponsors exclusive use of the World Cup emblems, but is also providing them vast numbers of complimentary tickets, use of VIP boxes in the stadiums and first consideration when it comes to new contracts.

Hi-tech arena

Some stadiums changed their time-honoured names, in return for money. Thus, Gelsenkirchen's Auf Schalke stadium is now the Veltlins (a brand of beer) Arena; the Frankfurter Waldstadion is now the Commerzbank Arena; Hamburger Stadion is the `AOL' Arena, and Nuremberg's Frankenstadion is the `easy Credit' Arena.

In the north of Munich, € 340 million was spent on a new football stadium, the Allianz Arena. I watched a match at this state-of-the-art arena, which is enveloped in hundreds of inflatable cushions made in a virtually indestructible hi-tech polymer. The roof remains open but the viewing is spectacular, unlike Munich's Olympic Stadium, made for the 1972 Olympics as an athletics track.

The World Cup is also being used to set new norms in the field of work. Saturday and Sunday working has now become the norm, and shop opening times, which have traditionally been heavily restricted in Germany, are being extended.

Optimism and Action

Just one week into the tournament, the dreams of many nations have already been traumatised while some are facing their own finals over the coming days.

Others such as Germany and England have forged ahead, but their final pool matches will be far from training exercises as the mind games begin for the road to the final.

For now, the German economy confirms the wise words of German philosopher, Wolfgang Goethe: "It won't occur overnight but it will come about."

This country has gone from post-War miracle economy to become the "sick man" of Europe. Even if the economy is not turning around, the general ambiance in Germany has replaced glumness and obscurity with buoyancy and action.

(The author, a former Europe Director of the CII, lives in Cologne, Germany. Feedback may be sent to mohan.murti@t-online.de)

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