[ad_1]
The FIFA World Cup is one of the most prestigious and popular sporting events in the world. Most of the World Cup matches are watched by millions of fans from all over the world. Apart from the fan following and lots of fun and excitement, the World Cup also generates truckloads of moolah. It is basically a cash printing machine if we look at it from a business perspective. It makes us wonder who and how much money the FIFA World Cup makes. Here are some facts and insights to understand who financially benefits from the FIFA World Cup.
Team Earnings – Teams participating in the FIFA World Cup are handsomely rewarded for their efforts and skills. Each team is paid a certain amount of money. Regardless of match results, each team will receive $1.5 million at the 2022 FIFA World Cup. It’s for the group stage. It basically covers the expenses incurred by the teams in preparing for the World Cup. All teams will receive an additional $9 million just for participating in the World Cup.
Teams are also awarded according to their performance in the World Cup. Teams ranked 9th through 16th overall will receive $13 million each. Those from 5th to 8th place are awarded 17 million dollars. The fourth-place team receives $25 million, while the third-place team receives $27 million. The runner-up team in the FIFA 2022 World Cup will take home $30 million, while the winning team will receive $42 million. Teams and players are further rewarded by their respective countries, which further increases their overall earnings at the World Cup.
host country – The host countries also earn money from the FIFA World Cup. It comes from sources like product sales, tourism, hotel and restaurant sales, indirect taxes, etc. However, the overall cost of hosting the FIFA World Cup usually exceeds the revenue of the host country. Billions of dollars have to be invested in building the necessary infrastructure, including roads, rail networks, hotels, stadiums, etc. There are also huge operating costs.
On the 2022 FIFA World Cup, host country Qatar is estimated to have spent over $200 billion. It is unlikely that revenue from the World Cup will be able to recover the overall investment. However, the host countries benefit in the long run, as the World Cup is one of the best platforms to advertise a country’s capabilities. It helps the host country present itself as a soft power. It can also help increase investment in the country.
fifa – FIFA is the organization that benefits the most from the World Cup. And it’s justified, because it’s a decent-sized company. Like other organizations it has payroll to pay employees and manage expenses. By the 2022 World Cup, FIFA’s revenue is estimated to be around $7.5 billion. That’s nearly $1 billion more than the 2018 World Cup in Russia. FIFA has multiple sources of income such as television rights, licensing rights, marketing rights and sponsorships.
[ad_2]
Source link