World Cup Round of 16

Argentina and Uruguay are both four wins away from getting a third star for their jerseys.

“Europe in Decline While Latin America Shines” was the headline three days ago, as France, Italy and Greece were on the verge of elimination from the 2010 World Cup. Meanwhile local favorites Argentina and Uruguay took care of business in unselfish, workmanlike fashion, as did other Latin American teams: Brazil, Chile, Mexico and Paraguay will all make the cut.

Now Argentina and Uruguay find themselves in Round of 16 brackets that couldn’t be more dissimilar: Argentina’s reads like the Pantheon of Futbol Legends (England, Mexico & Germany) while Uruguay’s reads like a random seating chart at a Model U.N. conference (Ghana, Korea & U.S.A.).

One group has tallied 56 World Cup appearances, 17 Top 4 finishes and 6 World Cup victories; the other group’s stats are padded by Uruguay’s World Cup appearances (10) and wins (2). Since InvestBA focuses on investment opportunities in Argentina and Uruguay, we find the level of local fan confidence going into this weekend intriguing to say the least.

Despite their Pantheon positioning, confidence runneth over among the Argentine press and fan base. Pictures of Maradona sporting shades, headlines like “Vote of Confidence” and stories of fans of the Albicelestes already pushing back their return flights abound. In stark contrast, the Uruguayan fan base seems more reserved and respectful of their future foes. In fact, you can’t find a single story about the Seleccion Uruguaya today on the sports page of El Pai­s.

While Argentina speaks with the swagger of the ‘Canes, Uruguay settles for the occasional tweet from Forlan. Two different teams. Two different approaches. Two different chances to make history. We wish them both well and offer our predictions for this weekend of all weekends.

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Buenos Aires v. Punta del Este

Buenos Aires may have 300x more residents, but thousands of them own homes in Punta del Este.

The first round of the Copa del Mundo is over for local favorites Argentina and Uruguay, and both teams are safely through: Uruguay will face South Korea on Saturday, and Argentina will face Mexico on Sunday. Unfortunately, the only way the two teams would face each other would be in the World Cup final which seems highly unlikely.

So today Reporte Inmobiliario (RI) offers the next best thing: the Copa del Condo with Argentina’s capital city squaring off against Uruguay’s most popular beach resort. The Argentine journal sizes up Punta del Este in terms of total foreign investment, as well as its similarities and differences with Buenos Aires.

The Punta del Estate Real Estate Association says $934 million in transactions took place between March 2009 and February 2010. The majority of the deals were done in Punta del Este ($437M or 48%) followed by Maldonado ($175M or 19%), the Rural Zone ($128M or 13%), and La Barra ($45M or 5%). Over the same 12-month period, over $4.2 billion in deals were done in Buenos Aires or 4.5x as many as PdE, which shows how dynamic Punta’s market is when you consider BA has 300x the population.

Not surprisingly, the summer months (Dec.-Feb.) are the months when most deals are done in Punta del Este. In closing, RI says recent high profile lot acquisitions by U.S. investors will be one of the topics discussed at their July Conference. (Full article in Spanish)

InvestBA Privada

Extra, extra! The first issue of our premium content e-newsletter, InvestBA Privada, arrives on Friday.

After several months of planning and design, we’re very pleased to announce the arrival of our premium content e-newsletter, InvestBA Privada. While the blog often gravitates toward current events, Privada gives our readers a much closer look at macroeconomic trends in Argentina and Uruguay, detailed investment opportunities and general lifestyle topics like golf, wine and polo.

In the July issue, for example, we profile commercial properties from Mendoza to Montevideo, feature some very unique Argentine wines and size-up the Argentine and Uruguayan teams preparing for this month’s World Cup. We also profile a beautiful new luxury golf development in Buenos Aires and several historic properties in Montevideo’s Ciudad Vieja, recently featured by NuWire Investor.

Future Privadas will feature cultural, legal and financial advice, as well as one-on-one interviews with local business and design professionals. If you would like to receive Privada, just click here. While you’re signing up, be sure to tell us what type of content you would like to see in future editions. And because we hate spam as much as you do, your information will not be shared with any third parties.

InvestBA Privada

Argentina Futbol Miracle

With 7-1 odds of winning it all, Argentina's sponsors are hoping for a miracle in South Africa.

Being an Official Sponsor of the Argentine national team has its highs and lows. Just ask The Coca-Cola Company. The Atlanta-based soft drink maker’s corporate logos were visible everywhere at the Estadio Monumental that October night when Martin Palermo scored the miracle goal against Peru in the rain.

A Shawshank moment and dream publicity to be sure. Thirty minutes later in the post-game press conference, head coach Diego Maradona sat at the dais covered with strategically-placed Coke bottles and cordially invited his media critics to give him oral pleasure.

It’s that combination of on and off-the-field unpredictability that raises the stakes for the corporate sponsors going to battle alongside Argentina and the 31 other teams in South Africa. Wharton gives an excellent overview today titled, Why and How Brands Hope to Score at the FIFA World Cup. The hierarchy of World Cup sponsors is explained in detail as are the number of clothing companies vying for team sponsorships “to raise consumption and sales at an exponential rate.”

As always, Argentina suits up with Adidas, while Nike is betting the farm on Brazil and eight other teams. Meanwhile U.S. advertisers will probably get more coverage than the U.S. team: Continental Airlines, McDonalds and Budweiser will collectively invest over US$60 million between now an 2014. In the end, Wharton says, those brands that are most successful are the ones that generate “an emotional connection between the sponsored team, the public and the brand.” For our money, it’s hard to top Argentina beer sponsor Quilmes. Talk about emotional bang for your peso. (YouTube Video)

EA Sports FIFA 2010

EA Sports' World Cup simulation has Uruguay out in Group Play and Argentina losing in the Semis.

While the 2010 World Cup doesn’t officially start until June 11th, U.S. video game giant EA SPORTS is already declaring Spain the winner.

In a clever PR campaign, not likely to sit well with local fans of Argentina and Uruguay, EA ran a simulation of the world’s largest sporting event using its popular 2010 FIFA World Cup South Africa video game. The simulation had Uruguay eliminated in Group Play after a 1-1 tie with France and back-to-back losses to South Africa and Mexico.

Argentina fared much better in the simulation by winning Group B with three consecutive victories over Nigeria, Korea and Greece. However, convincing wins over Mexico and Germany were followed by a 2-1 loss to Spain in the Semifinal round. The simulation had Spain advancing to and winning the Final over Brazil by a score of 3-1.

We can only hope this EA prediction is a curse akin to the kiss of death for college football teams featured on the cover of Sports Illustrated or NCAA basketball teams getting the net-cutting nod from Dick Vitale. For Argentina’s fans, the only bright side of losing the World Cup, either in a video game or the actual event, is being spared the sight of Diego Maradona running down 9 de Julio Avenue in his birthday suit. Video game or not, that’s one visual we can all do without. (Full Story)

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