1 00:00:02,600 --> 00:00:09,039 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,360 --> 00:00:12,560 Speaker 2: I'm callin Hedget and this is his Why, where we 3 00:00:12,640 --> 00:00:15,160 Speaker 2: take one big story and explain it in just a 4 00:00:15,200 --> 00:00:18,000 Speaker 2: few minutes with our experts here at Bloomberg. 5 00:00:20,960 --> 00:00:21,720 Speaker 1: We're excited. 6 00:00:22,440 --> 00:00:24,880 Speaker 3: It's not every day the World Cup comes here to 7 00:00:25,040 --> 00:00:28,080 Speaker 3: our backyard. This is all happening at a time where 8 00:00:28,200 --> 00:00:32,800 Speaker 3: the US is experiencing a threat environment that highly volatile, 9 00:00:32,800 --> 00:00:36,400 Speaker 3: complex and the most dangerous I've seen. There's nothing from 10 00:00:36,440 --> 00:00:38,720 Speaker 3: the US has told them they can't come. I mean 11 00:00:38,760 --> 00:00:41,640 Speaker 3: the problem with Iran, it would be not their athletes, 12 00:00:42,000 --> 00:00:43,520 Speaker 3: it would be some of the other people that would 13 00:00:43,520 --> 00:00:45,160 Speaker 3: want to bring with them, some of whom have ties 14 00:00:45,240 --> 00:00:46,960 Speaker 3: to the IRGC. We may not be able to let 15 00:00:47,000 --> 00:00:49,519 Speaker 3: them in right now. One of the challenges I think 16 00:00:49,520 --> 00:00:51,320 Speaker 3: for the World Cup is that none of the matches 17 00:00:51,320 --> 00:00:52,120 Speaker 3: are sold out. 18 00:00:52,400 --> 00:00:55,480 Speaker 1: Ticket prices are way out of the reach of your 19 00:00:55,520 --> 00:00:59,040 Speaker 1: average fan. We are making sure that working people will 20 00:00:59,080 --> 00:01:01,440 Speaker 1: not be priced out of the game that they helped 21 00:01:01,480 --> 00:01:04,160 Speaker 1: to create. The World Cup is great and most successful 22 00:01:04,160 --> 00:01:07,720 Speaker 1: they've ever heard ticket wise, They've never had anything to 23 00:01:07,840 --> 00:01:08,760 Speaker 1: solved so quickly. 24 00:01:09,319 --> 00:01:12,480 Speaker 2: It is supposed to be the world's biggest sporting party, 25 00:01:12,840 --> 00:01:17,320 Speaker 2: thirty two days of football, millions of fans, three host countries. 26 00:01:17,680 --> 00:01:21,400 Speaker 2: But as the World Cup moves towards kickoff, the politics 27 00:01:21,440 --> 00:01:24,880 Speaker 2: surrounding the tournament is getting harder to ignore. The US 28 00:01:24,959 --> 00:01:28,440 Speaker 2: is co hosting with Canada and Mexico, even as relations 29 00:01:28,440 --> 00:01:32,720 Speaker 2: between the three have become much more strained. Iran's team 30 00:01:32,800 --> 00:01:35,920 Speaker 2: is scheduled to play despite the US remaining at war 31 00:01:36,000 --> 00:01:41,200 Speaker 2: with the country. Fans are facing high ticket prices, travel complications, 32 00:01:41,240 --> 00:01:46,200 Speaker 2: and questions over immigration enforcement, and the preparations themselves have 33 00:01:46,280 --> 00:01:51,760 Speaker 2: been disrupted by political turmoil in Washington. So here's why 34 00:01:52,080 --> 00:01:59,080 Speaker 2: this football World Cup is a political minefield. Randal Williams 35 00:01:59,200 --> 00:02:02,919 Speaker 2: is our senior Boughts reporter and he joins me now, Randal, 36 00:02:03,000 --> 00:02:06,040 Speaker 2: good to speak to you. This is the first time 37 00:02:06,600 --> 00:02:09,920 Speaker 2: that FIFA has awarded the World Cup to three host 38 00:02:10,040 --> 00:02:14,440 Speaker 2: countries all at once. How much is the fractured relationship 39 00:02:14,520 --> 00:02:17,120 Speaker 2: between them though, overshadowing the events. 40 00:02:17,600 --> 00:02:20,560 Speaker 1: I think that it's definitely part of it. Earlier this year, 41 00:02:20,680 --> 00:02:24,040 Speaker 1: late last year, when President Trump was talking about acquiring 42 00:02:24,120 --> 00:02:27,079 Speaker 1: Canada as a fifty first state, some of the pressures 43 00:02:27,080 --> 00:02:30,080 Speaker 1: that he's put on Mexico to appease him over the 44 00:02:30,160 --> 00:02:33,120 Speaker 1: course of almost two years in his presidency. It isn't 45 00:02:33,200 --> 00:02:36,880 Speaker 1: It hasn't been an easy working relationship, and I haven't 46 00:02:36,880 --> 00:02:40,920 Speaker 1: even gotten into everything domestically or internationally. So there's a 47 00:02:40,919 --> 00:02:44,320 Speaker 1: bunch happening and it is not going to be as 48 00:02:44,320 --> 00:02:46,200 Speaker 1: similar as I think people expect it to be. 49 00:02:46,440 --> 00:02:49,560 Speaker 2: Well, this World Cup was awarded back in twenty eighteen, 50 00:02:50,200 --> 00:02:54,080 Speaker 2: actually doing President Trump's first term. Now the US is 51 00:02:54,320 --> 00:02:57,200 Speaker 2: at war in the Middle East. What kind of challenges 52 00:02:57,240 --> 00:03:01,360 Speaker 2: does that actually present to FIFA and also for the 53 00:03:01,400 --> 00:03:04,160 Speaker 2: Iranian football team which is taking part. 54 00:03:04,600 --> 00:03:07,560 Speaker 1: It's been a big dilemma. Iran has asked FIFA to 55 00:03:07,600 --> 00:03:10,919 Speaker 1: move its matches to Mexico. FIFA said no. When there 56 00:03:11,000 --> 00:03:14,880 Speaker 1: was a FIFA event in Canada, they were not permitted entry. 57 00:03:15,040 --> 00:03:18,200 Speaker 1: Leeg was of miscommunication or some documents that were mixed 58 00:03:18,240 --> 00:03:21,120 Speaker 1: up a little bit. And so there is this tension 59 00:03:21,480 --> 00:03:24,680 Speaker 1: as to what happens when around this year. President Trump 60 00:03:24,760 --> 00:03:26,680 Speaker 1: at one point in time earlier this year said that 61 00:03:26,720 --> 00:03:30,440 Speaker 1: he could not guarantee the player safety and so that 62 00:03:30,600 --> 00:03:33,760 Speaker 1: is something very obscure to say about a country that's 63 00:03:33,800 --> 00:03:35,520 Speaker 1: going to be here, is playing a sport. 64 00:03:35,680 --> 00:03:37,600 Speaker 2: At the end of the day, there have been a 65 00:03:37,680 --> 00:03:41,280 Speaker 2: lot of concerns, though not just about the politics. I 66 00:03:41,280 --> 00:03:44,400 Speaker 2: mean about the playing conditions in the heat. Some of 67 00:03:44,440 --> 00:03:48,520 Speaker 2: the stadiums have got covers, others don't. But then there's 68 00:03:48,600 --> 00:03:52,760 Speaker 2: also been this massive issue about snagging tickets in the 69 00:03:52,880 --> 00:03:57,480 Speaker 2: sixteen venues and this so called dynamic ticket pricing, which 70 00:03:57,480 --> 00:03:59,560 Speaker 2: isn't really to do with the US. Is it to 71 00:03:59,600 --> 00:03:59,800 Speaker 2: do with? 72 00:04:00,960 --> 00:04:05,280 Speaker 1: Dynamic ticket pricing is not anything new, but it's really 73 00:04:05,320 --> 00:04:08,520 Speaker 1: the pricing of the tickets themselves. There are not that 74 00:04:08,760 --> 00:04:13,480 Speaker 1: many tickets that are just available for you know, regular people. 75 00:04:13,520 --> 00:04:16,479 Speaker 1: These tickets are going for thousands of dollars, and I'm 76 00:04:16,520 --> 00:04:18,680 Speaker 1: saying two to three to four to five to six 77 00:04:18,720 --> 00:04:21,479 Speaker 1: thousand dollars. And you think about, you know, the average 78 00:04:21,480 --> 00:04:24,440 Speaker 1: consumer of what they might spend on an NFL game, 79 00:04:24,520 --> 00:04:27,640 Speaker 1: an NBA game, even an NFL playoff game or an 80 00:04:27,720 --> 00:04:31,200 Speaker 1: NBA playoff game. The NBA Finals begin this week and 81 00:04:31,680 --> 00:04:35,840 Speaker 1: Knicks tickets, Nicks Verspurs tickets at Madison Square Garden are 82 00:04:35,839 --> 00:04:38,440 Speaker 1: going for thousands of dollars. But that's a seven games series. 83 00:04:38,480 --> 00:04:41,200 Speaker 1: We're talking about one hundred and four matches here, and 84 00:04:41,279 --> 00:04:45,160 Speaker 1: yet the group stage matches are some of the most 85 00:04:45,160 --> 00:04:49,360 Speaker 1: expensive tickets I've seen for an early stage playoff tournament 86 00:04:49,560 --> 00:04:51,719 Speaker 1: that I've ever seen. It's very odd. 87 00:04:52,320 --> 00:04:55,320 Speaker 2: How much pressure, though, are the organizers also under to 88 00:04:55,720 --> 00:05:01,960 Speaker 2: reassure fans then about the travel arrangents, about security when 89 00:05:02,000 --> 00:05:06,920 Speaker 2: they're there watching the events. There's even a concern about ebola. 90 00:05:07,640 --> 00:05:10,440 Speaker 1: There are a bunch of different concerns in regards to 91 00:05:11,400 --> 00:05:14,280 Speaker 1: specifically United States. You think about the things that were 92 00:05:14,279 --> 00:05:17,000 Speaker 1: happening with ice earlier this year, and the two killings 93 00:05:17,160 --> 00:05:20,440 Speaker 1: and I believe it was Minnesota, and the worry that 94 00:05:20,600 --> 00:05:23,240 Speaker 1: if you travel to the US, are you safe? Will 95 00:05:23,279 --> 00:05:25,400 Speaker 1: you be able to get in and out of games 96 00:05:25,880 --> 00:05:29,599 Speaker 1: and not potentially be harassed by either a police presidence 97 00:05:29,760 --> 00:05:33,080 Speaker 1: or a federal presence if you're just you know, having 98 00:05:33,120 --> 00:05:35,240 Speaker 1: a good time. I think that what we're going to 99 00:05:35,240 --> 00:05:37,800 Speaker 1: see over the next sixty days or so is a 100 00:05:37,839 --> 00:05:40,919 Speaker 1: melting pot of culture. And there is nothing in the 101 00:05:41,000 --> 00:05:44,560 Speaker 1: United States from a culture perspective, that is quite like 102 00:05:44,680 --> 00:05:47,960 Speaker 1: soccer overseas, whether that be in South America or in 103 00:05:48,000 --> 00:05:50,719 Speaker 1: Europe or wherever. The closest thing that we have to 104 00:05:50,800 --> 00:05:53,359 Speaker 1: it is probably college football or college basketball, and even 105 00:05:53,400 --> 00:05:57,080 Speaker 1: then that is very small and compared to the level 106 00:05:57,080 --> 00:06:00,720 Speaker 1: of fandom that exists overseas, And so for all these 107 00:06:00,720 --> 00:06:03,479 Speaker 1: fans who are spending hundreds of thousands of dollars not 108 00:06:03,720 --> 00:06:07,479 Speaker 1: just on accommodations but the tickets themselves. You want to 109 00:06:07,480 --> 00:06:10,400 Speaker 1: come here and have a good time and feel safe 110 00:06:10,680 --> 00:06:14,120 Speaker 1: and also be healthy. And if those things aren't happening, 111 00:06:14,120 --> 00:06:16,400 Speaker 1: that it's going to cause a real, real issue throughout 112 00:06:16,400 --> 00:06:16,920 Speaker 1: the tournament. 113 00:06:17,640 --> 00:06:20,320 Speaker 2: What are you going to be watching? Once the competition begins? 114 00:06:20,960 --> 00:06:25,640 Speaker 2: There are some rule changes which season fans will notice. 115 00:06:25,920 --> 00:06:28,360 Speaker 2: Which are the teams to watch? Then? Aside of course 116 00:06:28,400 --> 00:06:31,960 Speaker 2: from well the defending champions Argentina. 117 00:06:31,839 --> 00:06:34,160 Speaker 1: The teams that I'll be watching, of course, I should 118 00:06:34,200 --> 00:06:36,640 Speaker 1: selfishly say Team US. Say because of the fact that 119 00:06:37,160 --> 00:06:40,160 Speaker 1: they are the host country or one of the host countries, 120 00:06:40,200 --> 00:06:43,920 Speaker 1: and there is an increased amount of pressure for Team 121 00:06:44,040 --> 00:06:47,240 Speaker 1: USA because of the fact that this is thought to 122 00:06:47,320 --> 00:06:51,400 Speaker 1: be a springboard for soccer in the US. If Team 123 00:06:51,480 --> 00:06:53,680 Speaker 1: USA can get to the round of sixteen or have 124 00:06:53,800 --> 00:06:56,640 Speaker 1: some incredible success story, then it might inspire the next 125 00:06:56,680 --> 00:07:02,040 Speaker 1: generation of American kids to love and really appreciate soccer 126 00:07:02,080 --> 00:07:04,719 Speaker 1: the same way that they appreciate football, basketball, baseball, and 127 00:07:04,760 --> 00:07:07,760 Speaker 1: even hockey. I'd also say, beyond that, I think Spain 128 00:07:07,880 --> 00:07:09,960 Speaker 1: is a really fun team to watch because of le 129 00:07:10,080 --> 00:07:14,600 Speaker 1: Miga mal and the global superstardom that he will be 130 00:07:14,760 --> 00:07:17,559 Speaker 1: elevated to even beyond where he is at right now. 131 00:07:17,640 --> 00:07:20,440 Speaker 1: Outside of that, I'd say the brands who stands to 132 00:07:20,480 --> 00:07:24,120 Speaker 1: benefit the most from all these companies that have aligned 133 00:07:24,120 --> 00:07:27,360 Speaker 1: themselves with FIFA that as struck partnerships with FIFA, whether 134 00:07:27,440 --> 00:07:31,000 Speaker 1: that be the companies that are manufacturing the boots for 135 00:07:31,040 --> 00:07:34,160 Speaker 1: players or someone like Airbnb. Who is going to be 136 00:07:34,280 --> 00:07:36,640 Speaker 1: the main winner from this? I think we're going to 137 00:07:36,720 --> 00:07:38,760 Speaker 1: find out over the next fifty or so days. 138 00:07:39,160 --> 00:07:42,320 Speaker 2: Will the attention then turn to what's actually happening on 139 00:07:42,360 --> 00:07:45,840 Speaker 2: the pitch when the national teams begin playing. Because the 140 00:07:45,880 --> 00:07:51,280 Speaker 2: potential global audience is also absolutely staggering, more than five 141 00:07:51,400 --> 00:07:53,520 Speaker 2: billion people expected to tune in. 142 00:07:54,320 --> 00:07:57,880 Speaker 1: I think that so long as there is not any 143 00:07:58,000 --> 00:08:02,200 Speaker 1: drama in or outside of the stadium, that that's a 144 00:08:02,240 --> 00:08:04,600 Speaker 1: win for FIFA. You can have whatever you want, you 145 00:08:04,600 --> 00:08:09,240 Speaker 1: can have a potential controversial call or something along that 146 00:08:09,240 --> 00:08:13,240 Speaker 1: that's part for the course in sports. But when potential 147 00:08:13,240 --> 00:08:16,960 Speaker 1: politicians are making an example or might try to make 148 00:08:17,000 --> 00:08:20,000 Speaker 1: an example out of you know, people who are going 149 00:08:20,040 --> 00:08:23,720 Speaker 1: and attending games, or if the public views potential arrest 150 00:08:23,880 --> 00:08:27,680 Speaker 1: as unlawful or maybe you know, those acts of force 151 00:08:27,760 --> 00:08:30,640 Speaker 1: shouldn't have been taken, that's when it becomes a problem. 152 00:08:30,920 --> 00:08:33,560 Speaker 1: And we're not there yet. There's still a lot to 153 00:08:33,600 --> 00:08:36,920 Speaker 1: be seen, and I'm excited for the matches themselves, and 154 00:08:36,960 --> 00:08:39,880 Speaker 1: I hope it stays in sports. 155 00:08:39,720 --> 00:08:41,800 Speaker 2: It's going to be really interesting, isn't it. Well. The 156 00:08:41,840 --> 00:08:45,080 Speaker 2: FIFA World Cup twenty twenty six starts on the eleventh 157 00:08:45,080 --> 00:08:47,040 Speaker 2: of June, doesn't it. Randal, thank you so much for 158 00:08:47,080 --> 00:08:50,760 Speaker 2: your time. Randall Williams is our senior sports reporter. Really 159 00:08:50,800 --> 00:08:53,880 Speaker 2: appreciate it. For explanations like this one from our team 160 00:08:53,960 --> 00:08:56,400 Speaker 2: of three thousand journalists and analysts around the world, go 161 00:08:56,480 --> 00:09:00,360 Speaker 2: to boomberg dot com slash Explainers. I'm Caroline Hepca. This 162 00:09:00,440 --> 00:09:02,840 Speaker 2: is his why. I'll be back next week with more. 163 00:09:03,000 --> 00:09:04,040 Speaker 2: Thanks for listening.