Expect a huge roar when David Beckham and Zinedine Zidane lead their respective teams out of the tunnel for the opening match of Euro 2004 in Lisbon. The 65,000 people crammed into the Stadio da Luz for this England-France match will only provide a meagre part of the noise. More than eight billion others will be screaming from their armchairs around the world.

The European cup of nations is the third most popular sporting event in the world after the FIFA World Cup and the Olympics. On top of the worldwide TV audience, about a million people are expected to attend the tournament matches in Portugal. While the next three weeks will be full of twists and turns (on and off the pitch), heroes and villains, some have already scored even before the first ball is kicked. Funnily enough, they tend to wear suits and have exchanged billions of pounds in the run-in to Euro 2006.

Portugal has invested £400 million in the building or revamping of ten stadiums in eight cities. The government is paying a quarter and providing interest rate subsidies for clubs and cities. With the country in a lengthy recession, unemployment running at 6.5% and the huge national debt spinning out of control, hosting such a major event might sound frivolous. However, the investments should bear a quick return. Portugal should cash in some £180 million in direct tourism revenues from visiting supporters and up to £250 million in additional tourist cash in the next six years.

<B>A real boon for advertisers</B>

While Euro 2004 holds economic promises for Portugal, UEFA?s pockets are already bulging. Sporting events have that rare ability of bringing together audiences from around the world, a real boon for advertisers. Eight multinational brands ? Carlsberg, Canon, Coca-Cola, McDonald?s, JVC, Hyundai, T-Mobile and MasterCard ? signed on the dotted line to become headline sponsors of Euro 2004 two years ago. They have paid a total of £110 million for the privilege.

Euro 2004 marks the first time UEFA has undertaken its own sponsorship negotiations for the event, following the collapse of former marketing and sponsorship intermediary ISL. Its first act was to build sponsorship provisions into its broadcast rights deals, ensuring its partners would be exposed on every network carrying the games. For example, official sponsors are guaranteed the beginning and end of advertising breaks spots on every channel around the globe. The result has been a net sponsorship income three times that of Euro 2000 but also cheaper rights for broadcasters.

?This brings Euro 2004 in line with the way the Champions League works. It does not restrict our ability to make money from spots. The question is whether we would have had to pay more for the TV rights deal if it wasn?t already sponsored,? says Gary Digby, head of sales at ITV.

For advertisers, Euro 2004 is a must-have.

The European location ensures peak-time viewing for the biggest audience chunk and the tournament is shorter than the World Cup, meaning viewer interest is better sustained. Apart from the official sponsors, dozens of other companies are laying out far more on advertising and marketing initiatives related to the event aimed at getting a bit of the glamour to rub off on their brands.

The biggest companies want to be seen in the biggest events. There may be other mass-market broadcast opportunities but none brings with it the sheer emotive force of football.

?Euro 2004 has mass market appeal and the level of exposure brings the brands in. But the main reason these brands become involved, is because they see it as a platform for building brand affinity ? it almost gives them the permission to talk to their target audience about their relationship with football,? says David Reilly of Carat Sport.

UEFA will bank at least £600 million thanks to Euro 2004. As the tournament expenses are expected to total £170 million, it is no wonder the G14, an association of the 14 most powerful clubs on the continent, is fighting for a share of the cake. It argues its clubs are paying the players providing the bulk of the entertainment and should therefore be rewarded. UEFA retorts that a big chunk of the profits will be distributed to the 52 member associations in order to be ploughed back into the grassroots. Baron de Coubertin stressed that participating is the most important thing; at Euro 2004, this will be accompanied by a £3 million cheque. The tournament winner will take £14 million home.

<B>Start of a fabulous season</B>

In England, the Euro 2004 fever is gradually building up. The St George Flag is flying on car bonnets, hanging from windows and is on sale everywhere: from the newsagent to the pharmacy via the post-office. Businesses are rubbing their hands with glee. According to Capital One research, people who stay in the UK for Euro 2004 will spend an average of £68 each on team merchandise and food and drink for match parties during the tournament, a total of £894 million.

Such an audience has inflated the prices of advertising on ITV, the private terrestrial channel, which is sharing the Euro 2004 rights with the BBC ? which does not broadcast any advertising, as it is financed by the TV licence. A 30-second spot will cost advertisers £250,000 while the premium for appearing during an England game pushes the rate to £350,000. If England makes the final, ITV stands to pull in £40 million. However impressive, this does not compare with Euro 2000 when ITV netted £169 million, a figure inflated by an influx of dotcom money.

George Orwell famously said, ?Football is like war minus the shooting?. Half a century later, the sport shares another common point with the defence industry: it is also a money-spinner. But who cares? This is the age we live in and most people will see the England-France game as the start of a fabulous sporting season, which also includes the Athens Olympics. Great if you are a sports fan. Otherwise, the weather is pretty good in Patagonia at this time of year?

<B>by Ryan Coopamah</B> <I>Outlook correspondent in London E-mail: [email protected]</I>