The investment in these events promotes the Mexico Brand in tourism, but that image will be affected, according to the opinion of experts consulted by El Economista.
The figure was calculated with the studies carried out by the firm Ernst & Young, which delivered to the Tourism Secretariat for the editions of 2016 and 2017. Both games contributed a total of 104 million dollars (2,135 million pesos). The match of 2017 (New England vs Oakland) registered an increase of 21% in the economic spill in relation to what was reported in the 2016 meeting.
The Azteca Stadium court did not meet the standards of the League and after the evaluation that it made in conjunction with the Players Association determined that the game scheduled for Monday, November 19 will be moved to the Memorial Coliseum in Los Angeles, provisional home of the Rams, since it was the team that would play at home.
The Secretary of Tourism through the Tourist Promotion Council (CPTM) disburses annually 14.5 million dollars and the payment is made in five exhibitions. So far the deposit of 10.8 million dollars would have been made, because the rest is paid by the government 10 business days after the event.
The contract between the NFL and the CPTM, in section 7 related to early termination and suspension, indicates that “in case the provider (NFL) terminates this contract (on the understanding that the termination is due to an event of force majeure and if the Board has paid all or part of the consideration for an event with respect to one that was not carried out, as a consequence of the termination of this contract, the provider shall reimburse the Board the total amount of the consideration for event that the provider has received. “
In addition, the reimbursement also applies if the NFL cancels or relocates the match outside of Mexico. It is noted that the League has no obligation to replace any game and the money that is reimbursed is less expenses. Which would be money lost to the government, because it does not apply for events stipulated as force majeure.
Mexico still has three years of contract left, after a renewal that agreed until 2021. For the six parties, it would mean an investment of 87 million dollars for the Mexican government.
The investment in these parties promotes the Mexico brand in tourism and shows the capacity of the country to organize international events.
The NFL is given the operation of the property one week in advance.
“Until recently, we did not have any major concerns, but the combination of a difficult rainy season and an agenda of many events in the stadium have caused significant damage to the field that presents an unnecessary risk to the safety of the players and makes it unsuitable to host an NFL game, “said Mark Waller, vice president of NFL International, through a press release.
With the cancellation of the third game in our country, a negative impact is generated. Rodrigo Cobo, executive director of Talaria, and expert in tourism marketing, mentioned that there are four affectations: brand-country, image and tourism. On the other hand, he hopes that it does not generate a domino effect in other sporting events, like the NBA or Major League games.
“There will be a series of contractual consequences, we will see the size of the impact. The NFL contract with the Mexico brand also contemplates many aspects of advertising guidelines and there will be many cancellations. It is terrible that as a country we were not able to solve a problem of this magnitude, it has an impact as a country, in the income of foreign currency and in the image of Mexico internationally. I think that the ability to organize events of this magnitude is questioned. “
The NFL indicated that in the next few days it will announce how the ticket refund procedure will be carried out.
The travel agency Mundomex sold 350 tickets for hospitality; 85% of the people who bought these packages are amateurs who reside in the CDMX and the rest come from the interior of the country. In spite of the conditions of the field and the possible doubts on the realization of the game, his clients did not realize any cancellation.
Rafael Nosti, director of Sales and Special Events, mentioned that the NFL will tell you about the ticket reimbursement process.
“I believe that it will not affect the following years and will affect the international perception. It does not affect us because we have the license with the League and they will give us the money paid. In the case of those who sold the tickets on the outside, we will see what they will respond to their clients when they have already lost their business. “
The manager mentioned that most of the losses are with the sponsors. The reimbursement for box office is estimated to be 8.08 million dollars -the price of the hospitality area was not taken into account, which was the most expensive ticket 356 dollars (7,500 pesos). The cost of the ticket on average for the match was 105 dollars (2,155 pesos).
Source: el economista
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