Thursday, May 30, 2024

How much FIFA made from the World Cup? Staggering

The FIFA World Cup Qatar 2022 concluded in grand fashion at the Lusail Stadium on Sunday night with a phenomenal victory over the defending champions France. The South American country ended up winning the coveted World Cup trophy by winning the penalty shootout 4-2 after the summit clash ended in a 3-3 draw. Meanwhile, the tournament was a grand success for FIFA  both in terms of viewership and revenue.

The global football governing body registered record revenues of USD 7.5 billion in the four years of commercial deals for the FIFA World Cup 2022 in Qatar. This value is USD 1 billion higher than the previous World Cup tournament in Russia. The jump in revenue for FIFA comes after the governing body made major cost-cutting by hosting the tournament in one city. 

FIFA saved major revenue as the costs of travelling and extra infrastructure were saved due to the fact that the eight stadiums used in the tournament were within a radius of 50 km. As per FIFA’s website, the governing body’s major source of income is said to be the World Cup, which is held every four years, which delays the pattern of revenue recognition. Meanwhile, FIFA’s budget for the next four-year cycle, as presented to the FIFA Council on December 16, states expected earnings for the 2026 World Cup to be USD 11 billion.

The next edition of the marquee football event will be jointly hosted by the US, Mexico, and Canada. As reported by the Guardian, FIFA officials expect the tournament to generate an addition USD 700,000 investment for the game, alongside the USD 300,000 accounted for in emergency Covid-19 funding. Here’s a look at the revenue breakup for FIFA at the World Cup 2022 in Qatar.

It is pertinent to mention that the five earning categories for FIFA during a tournament are television broadcasting rights; marketing rights; hospitality rights and ticket sales; licensing rights; and other revenue. The TV right is understood to account for 56% of the total earnings, while the marketing rights account for 29% of earnings. The remaining factors accounted for 15% of revenue in the 2022 budget.

As per FIFA, the revenue target for the TV rights during the 2022 tournament was USD 2.64 billion, while the budget for the marketing rights sale was USD 1.35 million. At the same time, the licensing budget for the tournament was USD 140 million. As per the German media outlet, Keller Sports, the ticket revenue during the FIFA WC 2022 is estimated to be about USD 1 billion.

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