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Italy Win Will Boost Economy by €4 billion

12 July 2021
This article is more than 2 years old.

Italy’s win against England in the UEFA Euro 2020 final will benefit the Italian GDP by €4 billion in the short-term according to analysis by Brand Finance, the world’s leading independent brand valuation consultancy.

Held at Wembley stadium on Sunday 11th July 2021, the Euro 2020 final between England and Italy attracted remarkable public attention, with England fans hoping to win their first Euro tournament and Italy supporters holding out for their first victory since 1968. Just by reaching the final, both nations potentially enjoyed a significant increase in GDP due to increased consumer confidence leading to spending at pubs, bars, supermarkets, and other hospitality venues, this is particularly true given that both countries hosted numerous Euro matches.

Following Italy’s win, a bounce in consumer confidence and spending has further been predicted, spurred by the timing of the tournament, which occurs after a long period of lockdown and reduced opportunities to socialise. Subsequently, high spirits following Italy’s victory could lead to an increase in spending, particularly on food and drink, alcohol and tobacco, household goods and services, transport, recreation, culture, and hospitality.

Massimo Pizzo, Managing Director of Brand Finance Italy, commented:

“Italy’s victory will certainly mark a significant moment for the nation, particularly following the difficulties faced over the last year and a half during the pandemic, with Italy being especially hard hit. This moment has undoubtedly revived the nation’s spirits, therefore restoring consumer confidence and spending.”

Occurring at a time when audiences are extremely tuned in and more desperate than ever for opportunities to celebrate, Italy’s win is also set to further build global sentiment about its nation, culture, heritage, people, values, and sports leadership, therefore boosting perceptions of the nation.

Sponsorship – is Puma the ultimate winner?

The France men’s national team went into the 2018 World Cup with €71 million in annual sponsorship, but after coming away with the trophy their annual sponsorship rocketed by 29% to €91 million for the Euro 2020 tournament played this summer.

The England team's respectable 4th place World Cup finish delivered a 10% boost to sponsorship income between the two tournaments, from €70 million to €77 million, whereas Italy's failure to qualify contributed to a 5% fall in sponsorship income.

Based on France’s performance after winning the 2018 World Cup, Italy’s Euros win could deliver an additional €13 million in sponsorship income, taking total sponsorship income to €59 million. England’s strong performance has the potential to deliver a €25 million boost to sponsorship income for the FA, taking England's Men’s National Team sponsorship to total to a record €95 million for the world cup in Qatar 2022.

However, for most of the national football teams, the biggest individual sponsor is the kit manufacturer. Italy signed an 8-year kit manufacture contract with Puma in 2015, before a sponsorship value explosion around the 2018 World Cup, which has their kit deal bringing in just €22 million per year until 2023. Italy winning the Euro could result in Puma getting a significant return on this sponsorship investment. Puma only partners with 4 teams at the tournament – Italy, Switzerland, Austria, and the Czech Republic – compared to Adidas’ 8 and Nike’s 9.

Lorenzo Coruzzi, Associate at Brand Finance, commented:

“While Italy’s success at the Euro 2020 marks a big victory for the team and wider nation, it marks an even bigger victory for Puma, as kit manufacturers see a significant return on investment following a win of this nature. With Italy as the biggest property that Puma has at the competition, the brand has certainly reaped the rewards from this historic moment”.

England signed a new deal with Nike starting at the 2018 world cup: a £400 million, 12-year contract. This delivers £33 million per year, but this could now be seen as limiting the potential sponsorship upside for a team that has performed admirably in getting to the final. as this value is already behind contracts for France (Nike, £44 million annual value) and Germany (Adidas, £44 million annual value) and is not up for renewal until 2030. Nike could be seen as the winner here, holding a property that is now likely worth at least £11 million more than they are agreed to be paying until 2030, based on England’s closest competitors.

Who are the other winners?

Players, and their core team such as agents and managers are set to benefit in various ways as a result of winning the Euros. The Italy squad will undoubtedly share in bonus payments as the winners of the tournament receive a total of £24 million. Additionally, all players in the Italian squad will undoubtedly have higher price tags placed on any future transfers to another club in any future transfer windows.

To illustrate the potential increase in player market values one need only look at the increase in the value of the French squad as a result of winning the World Cup in 2018. Going into the tournament at the end of 2017 the squad had a total value of £817 million. However, by the end of 2018 the squad value had increased 54% to £1,267 million.

Further benefits for players come in the form of increased endorsement and sponsorship income as brands clamour to associate themselves with the likes of Gianluigi Donnarumma, Federico Chiesa, and Nicolo Barella.


Editor’s note


  1. Brand Finance identified the following areas of household consumption within the national GDP calculation that are positively impacted through Italy winning the Euros: Food & Drink,  Alcohol and Tobacco, Clothing and Footwear, Household Goods & Services, Transport, Recreation & Culture, and Restaurants and Hotels.
  2. Brand Finance then ran a social sentiment data search prior to and during the Euro tournament to determine the increase in net sentiment for both England and Italy expressed through digital channels such as social media platforms.
  3. Brand Finance ran a correlation analysis between monthly GDP and monthly consumer confidence index figures to determine the relationship between increasing consumer confidence and increasing GDP.
  4. Brand Finance applied the increase in social sentiment to the correlation between monthly consumer confidence index numbers and monthly GDP numbers to determine the increase in GDP as a result of increasing consumer confidence throughout the Euro period. 

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