● From our sister site, TheSportsExaminer.com ●
On Tuesday, FIFA announced superb results for the 2019-22 quadrennial, ending with a record $7.568 billion in revenue, some 18% higher than the prior (2015-18) period and 17% higher than forecast.
The full, 362-page Annual Report contained fascinating data about FIFA’s projections for its future, which is projected to be much, much richer. Revenues are expected to increase to $11 billion for the 2023-26 period, when the FIFA World Cup will return to North America for the first time since 1994, with matches to be played in Canada, Mexico and the U.S. in an expanded, 48-team tournament.
About two-thirds of the way in, the details of how FIFA will grow its revenues by 45.3% were provided:
● $4.264 billion for television rights (up $964 million)
● $2.693 billion for sponsorships (up $927 million)
● $3.097 billion for tickets and hospitality (up $2.589 billion)
● $669 million for licensing royalties (up $66 million)
● $277 million for other income (up $14 million)
Some of this money has already been contracted:
● 43% of the television rights: $1.833.52 billion
● 26% of the sponsorships: $700.18 million
That’s $2.533.70 billion or 23.03% of the $11 billion total, so there’s a ways to go.
The startling increase in the tickets and hospitality numbers, from $949 million in 2019-22 to $3.097 billion for 2023-26 is relying on the expansion of the 2026 FIFA World Cup. With 48 teams, the tournament was expected to go from 64 matches to 80. But after the spectacular group-stage competition in Qatar, new formats are being discussed that could create a FIFA World Cup with as many as 104 matches and a revenue bonanza.
FIFA plans to spend $10.9 billion or 99% of the total:
● $5.618 billion on competitions
● $3.923 billion in development and education
● $850 million on administration and legal
● $342 million on marketing and broadcasting
● $167 million on governance
The 2026 FIFA World Cup is forecast to cost FIFA $3.839 billion to stage, or 35.2% of the total projected costs; FIFA is organizing the event itself. The 2023 FIFA Women’s World Cup in Australia and New Zealand is forecast at $435 million.
The FIFA Forward Programme is slated to cost $2.250 billion or 57.3% of the development and education budget. This includes $1.688 billion to be given to member federations, $360 million to the regional confederations, $65 million to smaller (zonal) associations and $137 million in travel and equipment support.
Asked at the end of the 2022 World Cup how realistic the $11 billion target is, FIFA chief Gianni Infantino (SUI) replied:
“Let me say, we are bullish on the power of football, so to say. About what we believe that the impact of football – or soccer, as it’s called where we are going to play the next World Cup, or at least in a part of the countries – we are more than bullish, we are convinced that the impact of the game will be massive.”
~ Rich Perelman
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