- The winners of the Qatar World Cup will receive $44 million out of a total prize pool of $440 million, paid by FIFA.
Business is rarely that simple. If you make a product that everyone wants to buy, but costs you almost nothing, you’re going to accumulate a lot of money pretty quickly.
Simply put, this is how FIFA, world football’s governing body, makes money.
In 2018, when the World Cup was held in Russia, FIFA made more than $4.6 billion in revenue.
Must Read: FIFA Cup 2022: What’s Happening in Qatar Besides the Football World Cup 2022?
FIFA pays the organizing committees of the World Cup host countries, prize money, travel and accommodation for teams and support staff, plus a legacy fund to help develop the sport in the host country after the World Cup circus has left the city.
The winners of the Qatar World Cup will receive $44 million out of a total prize pool of $440 million, paid by FIFA.
FIFA organizes its accounts in four-year cycles around each World Cup. For the most recently published 2015-18 cycle, FIFA raised $6.4 billion. In 2021, a single year without a World Cup, FIFA raised $766 million.
Television Rights
Most of FIFA’s revenue comes from the sale of television broadcasting rights for the World Cup and other international tournaments.
Of the $6.4 billion generated in the last cycle, $4.6 billion came from television rights.
Marketing Rights
Global brands pay FIFA for the right to advertise at FIFA events. The biggest brands partner with FIFA in its development and social responsibility plans, meaning they have a foot in the door with the not-for-profit side of FIFA, investing in the sport of football at international, national, and grassroots levels.
The next biggest brands can be announced at the World Cup, which is the most-watched televised event on the planet. About five billion people, more than half of Earth’s population, are expected to tune in to this year’s tournament. That’s a great audience to sell things to.
In the cycle leading up to the 2018 World Cup, marketing rights deals gave FIFA $1.66 billion. And even in 2021, revenue from the sale of marketing rights amounted to $131 million.
Ticketing and Hospitality
Another moneymaker for FIFA is entry revenue. All revenue from ticket sales rights goes to a subsidiary owned by FIFA. In the 2015-18 cycle, this generated $712 million.
In 2021, ticket sales for the Arab Cup, when some 600,000 people attended, generated an estimated $12 million. Around three million tickets have been sold for Qatar 2022. And with prices ranging from $100 to $1,100, it’s sure to be another excellent year.
Branding and Licensing
FIFA also obtains cash through the licensing of its brand. The most well-known of these is Electronic Arts’ FIFA football game series, which reportedly generated $20 billion in sales for EA during its 20-year partnership with FIFA.
It is understood that the game maker has paid FIFA in the region of $150 million annually for the right to use FIFA’s name.
In 2021, FIFA earned $180 million by licensing its brand for merchandise, retail, and games. The same year, FIFA received a $201 million award from the U.S. Department of Justice as compensation for losses due to corruption after dozens of top FIFA executives were indicted in 2015.
Source: AL JAZEERA
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