World Cup Scores Goal for German Economy SOCCER AS A BUSINESS 1 World Cup Scores Goal for German

Economy 2 Revenues Rise for Retailers and Breweries During World Cup 3 World Cup Commercialization Slurs Put FIFA on Defensive 4 Adidas Cashes In on the World Cup 5 Bayern Munich Under the Christmas Tree 6 Werder Bremen to Appeal Betting Firm Sponsor Ban in Court 7 US Broadcasters go World Cup Crazy in TV Rights Buy-up 8 Kahn Still Worth His Weight in Gold to Advertisers 9 German Hosts Marginalized by FIFA's Occupying Power 10 Businesses and Events at Mercy of FIFA's Trademark Control Since the World Cup ended, host nation Germany has been counting the immediate economic benefits for businesses during the month-long event. It is also hoping the effects are long term. Politicians and business leaders hope happy German soccer fans will spend more for a while Much praise has been heaped upon Germany for the precision engineering of its organization and the laid-back hospitality that welcomed millions of foreign spectators during the soccer extravaganza. Politicians and business leaders have been hoping that the feel-good sentiment would translate into higher consumer spending in a country not exactly known for its extravagant shopping habits. Still, many analysts warned against expecting any kind of 21st century Wirtschaftswunder. "There's been no economic miracle in connection with the World Cup," said Dirk Ulbricht of the Munich-based economic think-tank ifo. Few observers had expected the sporting event to have more than a minimal impact on Germany's gross domestic product (GDP). "Can't keep the entire economy going"

Axel Weber, head of Germany's central bank, the Bundesbank, said on Tuesday that the current party mood in Germany in the wake of the World Cup will not be sufficient to give a lasting boost to the euro zone's biggest economy. The Soccer and beer mix: Oliver Kahn, a German goalkeeper, enjoying the brew "A great World Cup by itself can't keep the entire economy going," Weber said in an interview published in the daily Die Welt. Besides, he said, "the current feel-good sentiment is a short-term phenomenon. It won't be long before we'll be talking about the same problems that we've been trying to solve for years," Weber said. However, "the World Cup marks an enormous gain in Germany's image," Economy Minister Michael Glos wrote in a column in the Monday edition of the business daily Handelsblatt. And that could prove particularly valuable at a time when the German economy, long in the doldrums, has been slowly finding its footing again. Economists hope that the slight uptick of consumer spending will continue to gather momentum. T-shirts, flags and condoms were the hot items at the World Cup Smiles, smiles, everyone! The retail sector certainly appears to have benefited from the soccer championship, with preliminary figures suggesting that shopkeepers saw additional revenues of two billion euros ($2.6 billion) during the month-long World Cup.

Nevertheless, there are two sides to the coin and if sales of television sets, beer or flags have exploded, "people who have bought a flat-screen TV or tickets to a match, are going to have scrimp and save elsewhere," said Roland Doehrn of the Essen-based economic research institute RWI. Sportswear maker Adidas may have sold 1.7 million football shirts bearing the German national team's colors, but the clothing industry as a whole has seen sales dwindle, with football supporters showing no inclination to replenish the rest of their wardrobe, complained the industry federation BTE. Two-thirds of the way into the competition, only 48 percent of hotels and restaurants said they were satisfied with business. Swedish fans saved money by camping Transportation companies did well during the World Cup. According to German public broadcaster ARD, German Railways counted 15 million people who used the railways and trams. The airline Lufthansa calculated an increase of 200,000 passengers compared to last year. Brothel operators, however, did not fare as well. "The World Cup was a bust for brothel owners and prostitute dealers," Munich's Director of Police, Wilhelm Schmidbauer, told the ARD Web site, tagesschau.de. "The fans were more interested in hanging out at the Fan Miles and drinking beer than going to prostitutes," he said. Fans were still frisky, though. Condom manufacturers enjoyed higher sales. Andr Schmincke, spokesman for Durex Condoms, told tagesschau.de that his company sold 30 percent more condoms during the World Cup than usual. "Apparently, people huddled closer during the soccer matches," he said. For the labor market, the World Cup has also been something of a success, creating around 50,000 jobs, said economy minister Glos. But only half of those jobs will still be needed in a year's time.

Look good, feel good Nevertheless, foreigners' perceptions of Germany appear to be changing and a new term "Teamgeist" (team spirit), which was the name of the tournament's official football, has taken its place alongside words such as "Blitzkrieg" or "Schadenfreude" in the ranks of internationally understood Germanisms, the Financial Times Deutschland suggested. People are saying Germans have a whole new look "And even if it's difficult to put a economic figure on this change in image, the economy as a whole will certainly benefit from it," said minister Glos. That could help in luring foreign investors. In an interview with tageschau.de, Eva Henkel of "Invest in Germany," a government-funded agency that promotes foreign investment in Germany, said: "It's clear that we've shown how wonderful and diverse Germany is." Self-confidence is sexy Germany stands to gain as a tourist destination. According to a poll conducted by the German tourism association DZT of foreign visitors during the tournament, 90 percent of those surveyed said they would recommend the country as a holiday destination. Around two million foreign tourists came to Germany during the month-long tournament, twice as many as anticipated. And those visitors spent an estimated 600 million euros ($766 million). In addition, Germans' own support of their national team, which finished third in the tournament, has led "Germans to gradually believe in themselves again," said Markus Kurscheidt, an expert on sport economics at the University of Bochum. And that will only help consumer morale, which has been looking up for months, even if the boost would have been the greatest had Germany actually won the World Cup, Kurscheidt said. DW.DE

Revenues Rise for Retailers and Breweries During World Cup SOCCER AS A BUSINESS 1 World Cup Scores Goal for German Economy 2 Revenues Rise for Retailers and Breweries During World Cup 3 World Cup Commercialization Slurs Put FIFA on Defensive 4 Adidas Cashes In on the World Cup 5 Bayern Munich Under the Christmas Tree 6 Werder Bremen to Appeal Betting Firm Sponsor Ban in Court 7 US Broadcasters go World Cup Crazy in TV Rights Buy-up 8 Kahn Still Worth His Weight in Gold to Advertisers 9 German Hosts Marginalized by FIFA's Occupying Power 10 Businesses and Events at Mercy of FIFA's Trademark Control There are World Cup winners both on and off the pitch this month. Retailers and breweries are attributing their growing gains to the soccer championship. Soccer souvenirs are bringing in big bucks Since the first whistle sounded, the cash registers have been chachinging in fan centers at the German stadiums. Beer, sausage and souvenir vendors are rejoicing over their financial victory, according to a survey conducted by the dpa news agency in Gelsenkirchen, Cologne and Dortmund. "The people are buying flags, flags and more flags -- even from the more exotic countries. A real collectors' frenzy has developed. The biggest hit is the Hawaiian leis," said Jens Halverscheid, who runs a flag stand in downtown Dortmund. The top seller at another souvenir stand was flags for the car at three euros ($3.79) a piece. Rivers of beer It's no surprise that beer is the preferred thirst quencher of soccer fans. "We definitely expect our sales to double during the World Cup," predicted Georg Schaefer, manager of a private brewery. Slightly less optimistic, individual retailers in Cologne expect sales

increases of 20 percent. With 19,000 hectoliters (501,927 gallons), the Veltins Brewery set an output record last Friday and Monday. In May, the Krombacher Brewery had the best month in the history of the company with 600,000 hectoliters (15.85 million gallons). Bitburger also reached a record on Friday with 29,000 hectoliters (766,000 gallons). On the first World Cup weekend alone, pub owners in Dortmund had to re-order 850 kegs of beer at 50 liters (13.2 gallons) each from the Dortmunder-Actien Brewery. Sunshine and victory Revenues during the World Cup have been stronger than originally expected, said Bavaria's Brewer President Michael Weiss in Munich. Due to the international soccer event, Bavarian brewers are now expecting an additional increase of 10 percent for the month of June. Till now they had counted on only a 5 percent revenue increase. Udo Franke, spokesman for Carlsberg Germany said, "It's because of good weather and German victories that we're selling more beer." Good weather during the World Cup has made soccer fans especially thirsty Extended hours bring no advantage German retailers are also reaping financial fruits from the World Cup, announced the trade association BAG on Wednesday. General Manager Rolf Pangels said that the expectations had been exceeded by a considerable margin. "The classic souvenirs are selling just as well as everything else that's even remotely related to soccer," said Pangels. Increases in the sale of hobby and sports articles have also been observed. Notably, it's the German fans that are consuming and not only the international fans, as had been expected. Sellers of other products, however, aren't doing the same kind of victory dance. According to the trade association, business is going well at the distribution centers. On the other hand, extended shopping hours have not brought in more customers. Pangels

said the association expects a revenue increase of two million euros. The farther the German team gets, the more the expectations grow. Voices of criticism But not everyone has soaring spirits and high hopes. The Munich based ifo Insitute for Economic Research disagreed with the optimists, saying that the economic effects of the World Cup were only moderate, reported the taz daily. Looking at the year as a whole, the soccer championship won't impact the gross domestic product, they said. Thomas Webers, an economic psychologist in Bonn, has already detected a great awakening in the German economy, wrote the paper. From the outset, he said, the World Cup brought about high expectations for an economic boost and revenue increase that hasn't been met. Like the teams who didn't qualify for the second round, some are forced to face the disappointment before the month of soccer comes to an end. DW.DE

Adidas Cashes In on the World Cup SOCCER AS A BUSINESS 1 World Cup Scores Goal for German Economy 2 Revenues Rise for Retailers and Breweries During World Cup 3 World Cup Commercialization Slurs Put FIFA on Defensive 4 Adidas Cashes In on the World Cup 5 Bayern Munich Under the Christmas Tree 6 Werder Bremen to Appeal Betting Firm Sponsor Ban in Court 7 US Broadcasters go World Cup Crazy in TV Rights Buy-up 8 Kahn Still Worth His Weight in Gold to Advertisers 9 German Hosts Marginalized by FIFA's Occupying Power 10 Businesses and Events at Mercy of FIFA's Trademark Control German sports giant Adidas is using its dominance in the soccer gear business during the upcoming World Cup to kit out the German national team as well as five others. And that's not where its magic marketing arm ends. Adidas is on the ball when it comes to making money from sports Adidas' involvement with

soccer dates back to the legendary 1954 World Cup when the German national team jogged out on the pitch with soccer shoes sporting the characteristic three-stripe logo. Adidas founder Adolf Dassler is said to have personally screwed on the spikes under the shoes for captain Fritz Walter and his team, who went on to beat Hungary and clinch Germany's first World Cup title. Ever since that memorable victory, the sports equipment maker from the town of Herzogenaurach has been the German national soccer team's partner and now also that of world soccer body FIFA as well as of European soccer association UEFA. Sponsoring "team spirit" Adidas' new adornment for the German national team The World Cup in June will be no different: in addition to the German team, five other national teams will be running around in Adidas shoes and T-shirts. The sports giant will also outfit all the referees, linesmen, assistants and hostesses at the event. Even the official ball, called "Teamgeist," or "team spirit," is an Adidas product. After all, team spirit is the most essential quality a squad should have to become world champion, said Adidas spokesman Oliver Brggen. A total of 2,650 balls will be produced exclusively for the 64 World Cup games. Adidas made in Asia An Adidas factory in Suzhou, China The German sports heavyweight closed all its home

factories over a decade ago and has now completely moved production to low-cost Asian countries, such as China, India, Indonesia, Vietnam, Thailand and South Korea. The same goes for the World Cup ball. Though "Teamgeist" was conceived in Germany, its valve and rubber pump come from India, the inner cotton sheath from Vietnam, the artificial leather is made in South Korea, and the rubber sticker is produced in Thailand. The ball, which will be assembled in Thailand by a Japanese company, will be marketed and distributed all over the world. Advertising juggernaut Adidas plans to sell more than 10 million "Teamgeist" balls worldwide. At the last World Cup, it sold six million balls. In addition, the massive merchandising drive will pump out around one and a half million T-shirts such as those that the national teams will wear at the World Cup and sell nearly 300,000 jackets, pants and bags with the Adidas' stripes. The advertising juggernaut underlines the fact that soccer isn't just a game for Adidas, but big business. Brggen said the sports equipment-maker was gunning for a turnover of over a billion euros ($1.2 billion) with soccer products alone in the year 2006. Until now, revenue in that sector has been around 900 million euros. But Adidas reached a turnover of more than six billion euros last year with its sports equipment and fashion line. A computer image of the planned Adidas World of Football in Berlin During the World Cup, Adidas' link with soccer will extend beyond the ritual kitting out of the teams. This time the sports giant will also sponsor a World Cup arena -- a miniature version of Berlin's Olympia Stadium -- which will hold up to 10,000 people and is being built on a prime site between the German parliament and the Chancellery in the capital. "We're not just going to broadcast all the games live to create an authentic stadium experience, but we're also planning to stage concerts there with James Blunt and the

Black Eyed Peas, for instance," said Brggen. The provisional stadium will be surrounded by amateur soccer pitches, restaurants and -naturally -- Adidas shops. The savvy marketing campaign will cost Adidas some 20 million euros. Milking the World Cup well in time Thus thee company's marketing strategists have already ensured that business is booming even before the World Cup kicks off. "When the first ball rolls on the field on June 9, we're going to say: The World Cup was successful for Adidas," said Brggen. DW.DE

Flag Factory Scores at the World Cup A historical flag factory in Bonn is top on a market inundated by cheap imports. DWWORLD.DE visited the factory to find out how it all began, how the flags are made, and what the World Cup means for business. The World Cup means high demand for national flags Black, red and gold is everywhere in Germany these days -- waving from car windows, draped outside buildings and breezing from caf awnings. Not to mention the 31 other national colors flying in Germany. Everyone is getting in on the World Cup spirit. Who would have thought that a good portion of these flags come from a 140-year-old family-run factory in the middle of Germany's former capital Bonn. The "Bonner Fahnenfabrik" (Bonn Flag Factory) is housed in what used to be military barracks and employs nearly 100 people. Each year, they produce two million square meters (21.53 square feet) of flags and banners, enough to span between Bonn and Berlin four times over. It all began with the Prussian eagle

As Prussian troops were returning victorious from the war with Austria in 1866, Josef Meyer was thinking business. The king, the military and all those who cheered the Prussian victory needed flags. So, naturally, he founded a flag factory. Screen printing, shown here, is a tedious process where each color must be applied separately By the time the German "Reich" came into existence in 1871, Wilhelm I ascended the throne and the black-red-and-white flag was introduced, Meyer's factory in Bonn was well-positioned on the flag market. Back then as now, the market included more than just German flags: Fraternities, amateur choirs and volunteer fire fighters were all among the customers. Over the next decade, the flag factory dabbled in other textiles like theater costumes and stage scenery, but also focused on developing their textile printing methods. Keeping up with modern techniques Today, the Bonner Fahnenfabrik relies on two primary methods: digital printing and screen printing. The latter is much slower and requires more steps, but produces truer colors. Manager Paula Vieth said the company "is following the demands of the market and has observed a shift toward digital printing" due to its expediency and because technology is improving. City emblems are among the factory's standards, like this one waiting to be stitched "We're technically capable of printing photo-quality

images," said Vieth. In principle, digital printers function exactly like the common laser printers found in many homes and offices. For the more time consuming screen printing, each color is applied to the fabric through a separate screen. No matter which method is used, the flag isn't finished until the dye sets, the strips of fabric are washed and cut, and the edges sown. Then it's put into a special folding machine, packaged and shipped. If not destined for a location in Germany, the Bonn flags are most likely sent off to Scandinavia, Austria, Switzerland or one of the neighboring Benelux countries. Maintaining the handcrafted tradition However, not everything at the Bonner Fahnenfabrik is so modern. It's also possible to order a hand-printed flag -- made according to the very same method used when the factory opened in 1866. The American flag, for instance, presents a technical challenge because the 50 white stars are supposed to be embroidered individually on the material. Since this isn't possible at the factory, the stars are printed instead when the Stars and Stripes are called for -- such as during the World Cup. Top quality and speedy service Though the German tricolor is among the most noticed of the factory's products, national flags make up only about 20 percent of their business. The remaining 80 percent comes from indoor and outdoor advertising banners ordered by car-makers, breweries, hardware stores, department stores, gas stations, and other companies. With the World Cup, the flag factory is counting on a 5 percent revenue increase this year Due to its location in the former capital, the German government and army are naturally also important customers. Manager Paula Vieth noted that the factory hasn't been particularly disadvantaged by the

government's move to Berlin in the mid-1990s. On the contrary, Bonn is conveniently located in the middle of Europe, she said, which facilitates access to customers both to the west and the east. And location contributes to the factory's success, despite relatively high labor costs in Germany and tight competition, both foreign and domestic. "We can compete with producers in China and the Middle East for two reasons," said Vieth. "We separate ourselves from the competition by offering extremely high quality and fast delivery." Coming to grips with the colors The Bonner Fahnenfabrik enjoys a strong reputation, which earns them large contracts. They produced, for example, banners for the city of Hanover to welcome spectators to the games and for the city of Bonn to welcome the Japanese national team, which is headquartered there. Without a doubt, the black-red-and-gold stripes are top sellers. The factory learned from the last World Cup in 2002 to be prepared for extra high demand. Vieth said she believes "it will be easier for the Germans to show national pride in the future. They are shedding their feelings of guilt over the past and that's a good thing." DW.DE

Bayern Munich Under the Christmas Tree SOCCER AS A BUSINESS 1 World Cup Scores Goal for German Economy 2 Revenues Rise for Retailers and Breweries During World Cup 3 World Cup Commercialization Slurs Put FIFA on Defensive 4 Adidas Cashes In on the World Cup 5 Bayern Munich Under the Christmas Tree 6 Werder Bremen to Appeal Betting Firm Sponsor Ban in Court 7 US Broadcasters go World Cup Crazy in TV Rights Buy-up 8 Kahn Still Worth His Weight in Gold to Advertisers 9 German Hosts Marginalized by FIFA's Occupying Power 10 Businesses and Events at Mercy of FIFA's Trademark Control Shops selling souvenirs for soccer fans are doing good business in Germany ahead of Christmas and in the lead up to the 2006 World Cup matches.

Jerseys and other items representing soccer teams are selling like hotcakes It is the season of good will, it is the season of merchandising. Soccer fans in Germany seem happy to combine the two. "We have special articles that are only produced for Christmas time -- Christmas jerseys, in co-operation with our sponsor, which sold very well," said Mathias Serba, CEO of BVB Merchandising, describing what is on offer for Borussia Dortmund fans. "We have sweets that we sell for Christmas like chocolate Santa Claus and advent calendar Christmas chocolate," he added. "Besides that we have seasonal articles like scarves and gloves that sell very well because of the weather." As Germany gets ready to host the World Cup next year, shops selling articles for soccer fans have already been doing a brisk business this Christmas. In Germany, there's a whole industry that mixes goals with Glhwein, or mulled wine. As well as promoting regional culinary specialties, it has almost everything else the discerning fan could possibly want for the festive season. Ornaments, cookies and other goodies Specialties such as Aachener Printen Christmas cookies are also offered Almost all the clubs, whether Hertha BSC Berlin, Arminia Bielefeld or FC Bayern Munich, sell chocolate advent calendars to help pass the time before the day the jersey is put under the

Christmas tree arrives. Ornaments in the club's color for decorating the Christmas tree are also popular. Hamburg's FC St. Pauli fans can buy them in black with a skull and cross bones. Hungry fans can tuck into those regional mouth-watering German Christmas delicacies which come in special fan packaging. The border town of Aachen is famous for its Aachener Printen -- Christmas cookies -- they're being sold in a wooden box with the emblem of the local club Alemannia Aachen -- a big letter A in yellow on a black background, perched above an eagle. Fans of FC Bayern Munich can order a set of three liter bottles of Glhwein. On the label is Santa Claus, clad in the characteristic red of Bayern Munich. And on their Web site, they sell fruit tea as well. Win a jersey The 2006 World Cup is increasing sales There is also an advent quiz on the website of the DFB, the German football federation, inviting readers to find Santa Claus who is hiding somewhere on the site. At the last count, there were 171 jerseys still to be won as prizes. Fans of FC Nrnberg can send Christmas greetings on a seasonal club postcard and almost all clubs sell Christmas stockings in club colors. But which gift really sells better than all the others. "It's definitely the jersey, the Christmas jersey as well as the normal home jersey," Serba said. DW.DE