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Carles Murillo: "A sporting event has an economic, but also social, impact as an integrating factor in society"

Carles Murillo, Director of the Spanish Society of Sports Economy, and Francisco Borao, President of S.D. Correcaminos focus on the economic impact of sports events in the second dialogue of the series “Sports, Economy and Health: Changing the Rules of the Game”

The Ernest Lluch Foundation and the Ivie, in collaboration with the Bancaja Foundation have organized the second dialogue of the series “Sports, Economy and Health: Changing the Rules of the Game” which focused on the economic impact of sporting events with Carles Murillo, Director of the Spanish Society of Sports Economy, and Francisco Borao, President of S.D. Correcaminos.

Beyond the celebration of large sporting events, such as the Olympics or professional soccer league games, the two speakers focused their debate on the impact of smaller events, e.g., popular races and marathons. According to Carles Murillo, these events have an important economic impact due not only to the income they generate, but also the social effect they have as an integrating element for citizens in society. Along these lines, the President of the Association of International Marathons and Distance Races, Francisco Borao, explained that sports events also help to project cities at an international level, giving the example of the Valencia Marathon, which has placed Valencia at the same level as New York on the world map of popular races.

Murillo emphasized that the economic impact of sports also has a carryover effect on other sectors such as health and tourism, which benefit from the popularity of these activities. Therefore, in order to calculate the total impact of an event, the direct, indirect and induced impacts have to be considered, as well as any investment needed in infrastructures. Along with this economic impact, Murillo also emphasized the intangible impact and the increasingly important environmental sustainability of sports events. Borao added that these impacts on the economy of the city where each activity is held occur despite the fact that marathons and other popular races are among the few sports competitions that are free for spectators.

In addition, Borao pointed out that while the Valencia Marathon’s organizers spend over 5 million euros on the race, its runners and their guests generate a tourist expenditure of 22 million euros that has an impact on the Valencian economy, generating income and employment.

Both speakers recognized the support given by the public administration in the development and promotion of sports activities in general, although most of the spending on events such as the Valencia Marathon is sustained by private investment.

Effects of COVID-19

The effects of the COVID-19 pandemic on the organization and celebration of sporting events also marked an important part of the dialogue. In Murillo’s opinion, the three most significant challenges facing the future of sports are the change in planning and organizing events, i.e., 1) the need for the sports industry to reinvent itself in order to survive; 2) the increase in safety measures to protect the health of participants and spectators; and 3) the development of new technologies that allow the celebration of events under these new circumstances.

Francisco Borao was aware of the harsh consequences that COVID-19 will have on popular events. According to his data, out of the 272 races that were programed between March and September 2020, only 30 have been held. However, in his opinion, “popular races are here to stay and will recover after this crisis, because the world can’t stop because of a pandemic”.