LOGBOOK: Change an opportunity into a threat or leave euphoria and get depression?

Lessons from small countries that stage big sporting events

In medieval Europe rulers who wanted to make a statement built a cathedral. In modern Europe they build sports stadiums. ... The Portuguese bid to host Euro 2004 was made in the middle of a long economic boom. But by the time the tournament was actually on the horizon, the country was suffering from a severe economic hangover. Government spending had got badly out of control and Portugal achieved the dubious honour of becoming the first of the 12 countries in the euro area to break the stability-pact ceilings on budget deficits. The economy is now at least expanding again, but the extravagance of spending on Euro 2004 may seem even more marked when the tournament is over. The Stadium of Light looks and sounds fantastic when capacity crowds of 65,000 roar on their teams. It could feel a little sad and empty during the normal Portuguese football season. Its normal occupant, Benfica football club, attracts an average attendance of 22,000. The figures are even starker for new stadiums outside Lisbon. The new Braga arena holds 30,000 supporters; FC Braga, the local team, attracts an average attendance of just over 5,000. ... Overall, the government reckons that Euro 2004 will bring in some 200,000 extra visitors and generate rather over EU 100m ($120m) in extra tourist revenues. A welcome boost no doubt, but it hardly adds up to a transformation. If the football adds 0.2% to this year's GDP, Portugal will have done well. ... Indeed, the economic arguments for hosting big sporting tournaments are largely spurious. The real case for Portugal taking on Euro 2004 is that sporting success seems to make people feel marvellously good. ... Against most expectations, the Portuguese may even carry off the championship in the final on July 4th. Who needs an empire, or an economic boom, if you can have moments as ecstatic as that?

[What price euphoria?, The Economist, 1st July]