Dos Lives

What does Mexico’s win against the U.S. mean for their economy? It means mucho mucho mucho!

If Mexico had lost today’s game, it would have reduced ratings during the tournament by 30 percent for Televisa, the world’s largest Spanish-language broadcaster, cutting advertising sales by $16.5 million, or 12 percent of the company’s total estimated growth in sales in 2010 and TV Azteca, Mexico’s second- biggest broadcaster, would see a 15 percent drop in total sales growth, according to our friends at Bloomberg.

Missing the world’s biggest tournament in soccer, Mexico’s most popular sport, may have broader economic consequences for a nation already suffering from a recession, the threat of a possible credit rating downgrade, a H1N1 swine flu epidemic, and rising violence from a war against drug cartels. Consumer spending may fall, said Enrique Alvarez, head of Latin America fixed-income research at IDEAglobal Inc. in New York.

“People will be less willing to buy electronics or consume beer” if their team is not participating, Alverez said. Whoa…Mexicans less willing to down a few Coronas? That’s serious.

Restaurants and bars may also see a decline in sales during the World Cup if Mexico doesn’t qualify, and sales at sporting- goods retailers may also be affected, said Gabriel Casillas, chief economist for Mexico and Chile at UBS AG in Mexico City. Less taco consumption? Uh oh.

“There would be an impact on services and television,” Casillas said. “It’s not the same to watch the World Cup when Mexico isn’t there.”

Aren’t you glad Mexico won today’s game!? Are you?

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