ENTREPRENEURSHIP & SPORTS FOR DEVELOPMENT

ACTIVITY 3

HOMELESS WORLD CUP

MARTIN ESPAIN
ROMAIN GOMEZ
MARKO STEPANIC
HARSHNI SREEDHAR
1.What are the key factors that explain the growth of the HWC? And the growth accelerators for the
future?

The homeless world cup has demonstrated a consistent year on year growth. This can be attributed to
a number of different factors. The HWC needs to continue focussing on these areas for an accelerated
growth in the future as well.

The rise of the social entrepreneur

Over the last 2 decades, social entrepreneurship has consistently been on the rise. We have seen
historic events like the women’s movement, programs that provide access to education, wider political
freedom etc. This has allowed more people the ability to actually effect change in the world.

With rapid advancements in technology and communication, more people are not only aware of the
problems that surround us but are also better equipped to come up with innovative solutions.

This has led to a decentralization of social entrepreneurship from a handful of elites to more and more
people around the world. Social entrepreneurship has become both more popular and has found
myriad applications. This has contributed significantly to the success of the HWC.

Fig 1: Sources of social entrepreneurship

Media Interest

Unprecedented levels of interest from the worldwide media has played a crucial role in the success of
the homeless world cup. Media coverage has included major broadcasters such as BBC, Channel 4, ITV,
Reuters and Sky Sports.

Social media has also contributed to the virality of the HWC. It has consistently trended #1 on twitter
in the countries where it is held. The last edition in Cardiff had over 8 Million social media impressions.
Consistently being relevant and spoken about is an important factor in the growth of the HWC.
Especially since it helps to spread awareness to more people through word of mouth.

Proven Impact

The single most critical factor to the continued growth of the HWC has been the impact it has
demonstrated in each edition. Both anecdotal and empirical evidence points to the fact that the people
involved in playing have managed to improve their lives for the better in some way possible.

Through its partner networks, the HWC is involved with over 30,000 people every year. 500 people
participate in the actual event. However, the impact extends well beyond these numbers.

Figure 2 : Impact of Homeless World cup

The homeless world cup also helps reduce the financial costs of homelessness by getting people off
the streets.

The spectators who attend the event also show changed perception of homelessness. They are not
only made aware of the problem, but also have a more positive attitude towards the homeless.

Figure 2 : Changed perception of homelessness

What factors may have inhibited the growth of the HWC? And which ones might inhibit it in the
future?

Mel Young, co-founder of the Homeless World Cup organization felt that they were always facing an
uphill battle, which was HWC’s organization’s biggest problem from the start. To scale-up and make
the whole project sustainable and focus on the longer-term objectives are organizers main goals.
According to the published statistics from previous HWC events it is clearly visible that funding is on
the rise over the year, yet still very volatile depending on the global economic situation.

This means the organization is forced to repeat and focus on the same goals every year and most of
them are how to secure enough funds for the next tournaments or next activities. This kind of long-
term status is only good for the start or first 2-3 years. Not succeeding to make the project sustainable
means that people working for it are using their capacities and skills to keep the project’s head over
the surface of the water, or maybe little more than that. For sure there is intention to emphasize HWC’s
institutional matter with a strategic and active approach.
Even Nike, as the first big multinational company which started to sponsor HWC in the first year
participated with a modest amount of money. This partnership gave organizers more background and
power to attract new partnerships, but still it wasn’t exactly force directed in a way to make HWC
sustainable from the start. Nike supported the project from the beginning but became founding
partner for HWC 2005.

Big problem with funding came at the peak of the world economic crisis in 2009. when companies
reduced their marketing budgets and most of them even didn’t have cause budgets or for the projects
like HWC. At that time massive decline in funds and value in-kind support happened. In 2008.
Sponsorship revenue was 1,5 mil euros and in-kind support had almost the same value. In 2009.
sponsorship revenue declined to 150.000 euros and in-kind support 1 mil euros. This kind of economic
tectonic event can put the whole project in doubts for the year. Number of spectators declined
compared to the mentioned years, and it declined for about 80 %.

In 2010. despite successfully bidding to host the Homeless World Cup and being fully aware of the
event’s underpinning ethos, the eve of the tournament’s kick off in 2010 saw the Brazilian government
refusing to acknowledge the country had a homeless population (The conversation, 2014). HWC was
going to happen in Rio de Janeiro and the government was in denial of the homeless issue in the
country. And it went so far that Rio de Janeiro didn’t want to accept the word ‘’homeless’’ in the
Homeless World Cup name. According to journalist Danielle Batist (2010) they objected to the word
‘’homeless’’ and decided to refer to the tournament as the Social World Cup. They objected to the
word ‘homeless’ and decided to refer to the tournament as the ‘Social World Cup’. With ‘beating
homelessness through football’ being the main objective of the Homeless World Cup, skipping the
term ‘homeless’ seems rather bizarre. The mainstream media barely covers the issue of homelessness
and many seem to be comfortable with the ‘if you don’t see it, it doesn’t exist’ approach.

Santiago de Chile was the host of the HWC in 2014. and team from Namibia landed in Santiago and
were told to remain on the aircraft to undergo Ebola testing. This was maybe one isolated of strange
obstacle for HWC but it was a warning what is possible to happen in the future. Namibia at that time
wasn’t country under threat from Ebola but team complied with the testing. Test were negative and
the team was allowed to proceed. The problem made the Minister for Health who reportedly tipped
off the media that the Namibian HWC was bringing Ebola into Chile.

The Namibian case and testing procedure was at the time (2014) something predicting the future.
Covid-19 is currently the biggest threat to the HWC. Due to Covid-19 pandemic HWC didn’t happen in
2020 and it is already cancelled for the year 2021. Many annual events have been impacted by the
global pandemic and the organiser’s decision to postpone HWC 2021 is only possible at the moment.

International travel is very uncertain and it is impossible to organize travelling for teams from all over
the world to one place according to schedule. But it isn’t just about travel, safety concerns about Covid-
19 are on every step now and HWC staff will need to put extra effort to provide safety for the
participants and the public.

Complete organization of the event now depends on the health and political factors. Host city must
be chosen carefully and in full cooperation from the government. UEFA is having problems with EURO
and Champions league final organization with big resources. HWC as an organization doesn’t have that
amount of funding and it is very likely that before Covid-19 pandemic is not over, the HWC tournament
will not happen. Addition to this, because of the crisis funding is uncertain. It is hard to make a win-
win situation for the sponsors and HWC because it is almost impossible to know if any business effect
will happen. Current situation should force HWC staff to improve implementation of technology in
processes, project management and inventory management. All three have the space for
improvement. Insight in the provided details in the HWC it is visible that HWC is not managing the
inventory and cash cycle in a best way, while project management is too focused on internal delivery
and not so much on the interest of external stakeholders.

Geo-political factors are important to HWC strategy and must have them in focus. Brexit and Russian
sanctions are making an impact on the international business environment.

What are the benefits for Nike to partner with the HWC?

According to its definition, Corporate Social Responsabiliy (CSR) is a type of international private
business self-regulation that aims to contribute to societal goals of a philanthropic, activist, or
charitable nature by engaging in or supporting volunteering or ethically-oriented practices. The
purpose of corporate social responsibility is to give back to the community, and provide positive social
value. Businesses are increasingly turning to CSR to make a difference and build a positive brand
around their company.

In this sense, Nike began its monetary collaboration with the tournament from its first edition in 2003,
which had a tremendous impact and great results. By that time Nike was just beginning to explore the
concept and strategies of CSR, looking for programs that could be effective in communities around the
world. And HWC was an excellent example of how communities can move around a cause through
sport.
So that is when, two years later, Nike participations extended further, including the diffusion of the
brand in the advertising and publications of the tournament, in addition to providing uniforms to the
players.

Nike’s partnership with the HWC runs from direct financial support, consulting with HWC on brand
management and marketing, creating and donating HWC products and merchandise, and employees
volunteering at events. Nike´s goal as a partner is to expand HWC’s capacity to have a positive social
impact on more people in more countries, to amplify the voice, expand and deliver the HWC
organization’s commitment to eliminate homelessness throughout the world.

If we look at the benefits that these partnerships can bring to the actors, we see a win/win scenario.
The social impact of the HWC is consistently significant: every year, around 73 percent of players report
to organizers in a post event survey that it has helped to change their lives for the better by quitting
drugs and alcohol, moving into jobs, education, homes, training, reuniting with families and even going
on to become players and coaches for pro or semi-pro football teams. And that is what exactly Nike
was intended to help create.

From Nike´s perspective, the benefits the company are able to achieve from this partnership:

· Brand value & better brand recognition.

· Positive business reputation.

· Increased sales and customer loyalty. Emotional affiliation with consumers.

· Greater ability to attract talent and retain staff.

· Organizational growth.

The company gets to increase their brand value and getting a deeper connection with customers as
their biggest benefits. There is also a greater brand equity as well, by the impact that this partnership
with HWC causes in the consumers and in the brand´s perception in general.

The high brand recognition across different consumer groups in different countries allows the brand
also to enjoy high consumer volumes, higher sales, and a unique bond with the consumers.

The Homeless World Cup Social cause and a partnership with Nike enables clients to enjoy and feel a
bond of association with the brand allowing consumers to feel emotionally attached to the brand as
well. And this becomes a valuable asset for the company.
Recommend a strategy in order to guarantee the long-term sustainability of the event and of the
organization (focus especially on this point).
The Homeless World Cup (HWC) is a non for profit association. Founded by Mel Young, the first edition
took place in Austria in 2003. The event had a huge social impact on participants and on the homeless
communities around the world. The association founded by Young managed to get Nike involved as a
funds donator and then as a global partner for the event as Nike showed interest in being involved
beyond just giving financial help to the organization. In 2005 Nike became an official partner of the
event providing financial resources but also kit for the players, shoes and balls for all the players
participating in the tournament. While Mel Young objective is to find the right partners that could give
an international reach to the message is trying to deliver, it is also very important to build working
relationships with partners with the same vision, the same passion about socially impacting their
environment and their communities.
Non for profit organizations know that they need to prove to private companies that the collaboration
means benefits for both parties (win-win situation) as private companies do not hold a mission to help
communities but to be profitable by selling products or services. So it is very important also for the
HWC organization to identify the right partners that through the secondary objectives are really
seeking to improve the living situation of these communities and not only benefit from the reputation
of the event to increase their triple bottom line level. In that case we are opposing PR CSR and Real
CSR where on one hand the private company is only trying to benefit from the reputation of the event
to put their name or logo as much time as possible and increase their image/reputation. Real CSR
partnerships are made to grow together, be innovative and be co responsible for the actions whereas
the externalities are positive or even for the risks taken.
The Homeless World Cup would require continued momentum, primarily through building meaningful
and sustainable partnerships to fund and sponsor the organization and its annual tournament. Despite
the success and positive media coverage in Graz, Homeless World Cup was still a very small non-profit
in an early start-up stage. From the beginning, Young’s goal was to partner with other companies and
businesses where a clear mutual benefit would exist for both parties.
Companies could have different intentions but the concept of corporate social responsibility (CSR) and
its accountability as a global business relies on the implementation of a program by which it could be
effective in communities around the world.
After seven editions of the world cup the overall event could be described as a success. The number
of participants has been increasing continuously. Except for the last edition in Milan the revenues from
sponsors also are larger than for the first edition. Homeless people participating in the event all claim
that the opportunity to represent their country was a lifetime opportunity and it gave them hope to
get back on track and improve their situation by looking for a job, quitting addictions and finding a
home.
However the event seems to have lost momentum and its situation, size, reach don’t seem to be
growing especially if we analyze the data collected for 2009 and the Milan Edition. In 2009, there were
fewer nations (teams) participating. Less spectators also than previous years, less media covering the
event, less sponsorship revenues. All these indicators show that despite the evident success of the
event and the HWC the organization hasn’t reached a sustainable situation and further effort needs to
be taken to perpetuate the event for the next decade or so. Also the sustainability of the event will
ensure the sustainability of Young’s association.
In the following paragraphs will describe the actions plan/strategy the organization could implement
to reach that sustainable level and anchor their event, their vision, values deeper in the communities
where the event takes place. Young commented, “It’s not just about the event. It's about making sure
that our partnership organizations are sustainable.”

1. Private companies partnerships

Engaging more local partners is very important. We read in the study case the organization by seeking
partnership with Nike is looking to take advantage of Nike reach around the world as they have a global
presence in many different countries. Because they have notoriety and are very well known. We are
obviously in a win-win situation but in my opinion Nike is “winning more” as their worldwide
dominance is already proven they are seeking to increase their brand image by being associated with
this event.
The HWC needs to work more on developing local partnerships. Other sport apparel brands can
provide the resources Nike is providing without having to be exclusive to this brand as Nike is
demanding.
Thanks to the data we see that even if the event is a big success, participants still have trouble changing
their life when the event is finished. The association needs to implement a follow up event as it’s
sometimes a difficult and long journey. Smaller events in collaboration with the association need to
see the light in the different countries participating in the world cup. The goal of the organization needs
to be the empowerment of the people to continue creating events like this and social value to their
communities. The worldwide event is amazing to raise awareness to give these people hope. But the
smaller scale action/events could help more these communities to get out of the street.
Stricter partnership rules could be implemented, sponsoring this event helps companies add value
aside from financial returns, contributing to a double or triple bottom line philosophy for businesses.
CSR can improve a corporation’s public image and reputation. It contributes to the impression that a
company can be trusted and is not only concerned with the bottom line. It feels that the organization
could ask more of their partners, it will help differentiate between real philanthropy and triple bottom
line focus.
Example of actions :
● The private company needs to finance a team (ideally from their country), pay for the
transport, the food, the hotel during the competition. That way the city hosting the event could
have more budget to help ‘their’ homeless people leave the street and find them a shelter. As
for now they are the one paying for all teams accommodation.
● The companies provides financial help in the organization of try out for the selection if players
for their country

2. Public/private educational institutions partnerships

Another data provided by the study case shows the % of participants finding a job or wanting to access
educational programs after participating in the HWC. Around 30% of participants in 2003 mentioned
that they opted to develop their education, the same amount mentioned having found a regular job
afterwards. Which is very good but can be improved as the main goal of the organization should not
be only the event itself but to provide long lasting help to these communities.
Building partnerships with universities for each country participating in the event is crucial. Funds can
be given to build an educational program where during the whole year of training for the completion
every person taking part of the selection is provided with educational classes in different fields of
study. It could help them in the task of finding a job after the HWC. These people often lack the
opportunity to study or to have access to educational content. With the development of online classes
the different training centers could have access to the university program and that way having more
competences and skills.

3. Fundraising
When considering potential funding options, organizations need to take into account two important
factors: the level of involvement they would like from a funder, and whether the funder’s intentions
are purely philanthropic or they are expecting a commercial return. Increasing the focus on individual
crowdfunding with online pools. The system must rely on different incentives of the people giving
money. As it is done for other humanitarian associations, giving money to the event/organization could
result in a substantial tax exemption for givers and that way more people could help participating in
the event. This decision will only succeed if the communication is increased and a very large number
of people are aware of this possibility. Obviously financially participating would grant you online access
to the platform where you could watch the event.
4. Cost efficiency
To increase the amount of funds (from sponsors, donators, crowdfunding) available to build new
initiatives to help these communities the event needs to control as much as possible the expenses the
overall cost of the world cup is controlled and monitored. And the organization needs to finance as
little as possible.
Various actions decisions could be taken to ensure better cost efficiency :
● Involve specialized businesses as sponsors to decrease overall cost for main partners
o Flight companies for transportation
o Local restaurant for food and beverage
o Hotel for event accommodation
● Find local agreement with sport centers to benefit from their installation (stadium or arenas,
training grounds) typically a professional club could host by himself almost the whole event.
For example the ‘ciudad Real Madrid’ in Valdebebas has football pitches, medical rooms,
hotels to accommodate players, restaurants. As the competition is only over one week an
agreement could be reached. That way the budget reserved on temporary structures built
especially for the event could be allocated to another activity or task. The objective is to find
redundancy and synergies to decrease overall cost. That way the vent will be more sustainable,
and environmental friendly
Moreover we identified thanks to the data that the media coverage was decreasing for the last events.
As the data collected is from 2003 to 2009 we can assume that media covering the event are traditional
media : newspaper, TV, and maybe online articles. With the development of new media the
organization needs to grasp the opportunity to raise awareness and increase their communication
thanks to these new media. The whole event needs to be available online on YouTube so everyone
with the internet could see it from their home. Also new features on web platforms like YouTube give
the opportunity to help the content producer by giving money. It’s another way for people to help
finance the event. New platforms like Netflix could be interested in making a documentary about the
event so they could assist and film the whole event from the preparation in each country to the final
tournament.
In conclusion after a couple of years of growth the event organization needs to rely on new
partnerships, new ideas and innovative solutions to enhance the event reach and its popularity. A lot
of different actions could be implemented to build a better tournament, and to give more sustainability
to the non for profit organization. By chance in increasing competitive markets (retail, multimedia,
sport) the different companies need to develop their CSR programs to differentiate from the
competition and the HWC is a perfect opportunity for them so Mel Young will by chance always have
a diversified pool of companies wishing to be associated with the event. His role will be to identify the
rights reasons behind de corporations desire to sponsor or be partners of the event. To perpetuate the
organization in time it is important to establish smart and meaningful partnerships with schools and
universities to provide educational programs to these communities and help them in the long run.
Even medical associations to raise awareness of psychological situations or addiction would be
powerful and very important for these communities. The realm of possibilities is quite large for the
organization as sport is the best social vector to promote the right values and help people in need. The
different association born locally thanks to Mel Young events benefit is proof of that.

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