FIFA World Cup 2018: Let's talk about the money and outlay!
FIFA World Cup 2018: Let's talk about the money and outlay!
BusinessToday.In
- Jun 11, 2018,
- Updated Jun 24, 2018 12:45 PM IST
- 1/9
Headquartered in Zrich, the Fdration Internationale de Football Association (FIFA) is an international governing body of association football, futsal, and beach soccer. Although Fifa does not control the rules of football, it is responsible for organising tournaments, like the World Cup, and their promotion, which generate revenue from sponsorship.
- 2/9
With 211 associations and 208 countries affiliated to Fifa, world football's governing body is often dubbed as the United Nations of Football. Fifa supports the associations financially and logistically through various programmes. This year at the world cup, 32 nations will be participating. FIFA has decided to expand the 2026 FIFA World Cup to 48 teams in a bid to include more countries and players.
- 3/9
In the 2018 event, Fifa will award a total of $400 million to the 32 teams that have qualified. The winners of the quadrennial event, which begins on June 14, will receive $38 million. The runner-ups will get - $28 million. The teams won the third and the fourth spot, $24 million and $22 million, respectively.
Each team will get at least $8 million for participating in the group stage. An additional $1.5 million is given for preparations. If the team progresses to the next level, round of 16, it will get an extra $4 million. Teams that would get knocked out in the quarter-final stage will receive an additional $4 million.
- 4/9
Apex body Fifa is expected to spend $791 million at the World Cup 2018. The figure was $103 million at the France World Cup 1998. For the Russia event, Fifa will spend 40% more than what it spent in 2014 in Brazil, where the total rewards were pegged at $576 million.
- 5/9
Fifa is a registered charity, which means that it pays very little tax on its earnings in Switzerland. Fifa World Cup alone is a very profitable and low-risk venture for Fifa which resulted in a net profit of $338 million during the period 2011-2014. In 2017, it had revenues of over $734 million. As on December 31, 2017, contracted revenue amounted to $5,555 mn for the 2015-2018 cycle. Overall, Fifa has thus been able to accumulate reserves of $1.523 billion with cash of $1.038 billion.
- 6/9
Fifa earns most of its revenue from broadcast rights. According to the Fifa Financial Report 2017, it earned $228 million from TV rights. The second biggest revenue generator for Fifa is marketing rights. Other verticals are hospitality and ticket sales.
- 7/9
The Olympic Games attract more participants, but nothing comes close to the football fiesta as far as global interest goes. More than one billion fans tuned in to watch the final of the 2014 Fifa World Cup in Brazil. According to FIFA, in-home television audience was about 3.2 billion people.
- 8/9
Though World Cup is the biggest football tournament on the planet, it is nowhere close to the UEFA Champions League in terms of prize money distribution. The UEFA total earnings this season was around $1,100 mn in its latest edition.
- 9/9
Talking about the favourites at this year's World Cup, Germany remains on the top. No one has ever managed to defend the World Cup title since Brazil in 1962. Germany arrived at Russia 2018 with a group of players that is arguably even stronger than the one that brought them glory four years ago.