FIFA World Cup is one of the most prestigious and popular sporting events in the world. Most World Cup matches are watched by hundreds of thousands of fans from across the globe. Apart from the fan following and loads of fun and excitement, World Cup also generates truckloads of moolah. It is essentially a cash printing machine if we look at it from a business perspective. It makes us wonder who all makes money at FIFA World Cup and how much. Here are some facts and insights to understand who all benefits financially from FIFA World Cup.
Team earnings - Participating teams at FIFA World Cup are handsomely rewarded for their efforts and skills. There is a fixed amount that is paid out to every team. Irrespective of match outcomes, every team in 2022 FIFA World Cup will be getting $1.5 million. This is for getting into the group stages. It essentially covers the cost that teams have to incur in preparing for the World Cup. All teams also get an additional $9 million just for participating in the World Cup.
Teams are also rewarded according to their performance in World Cup. Teams that finish between 9th to 16th spots in overall ranking get $13 million each. Those ranked from 5th to 8th spot are awarded $17 million each. Team ranked fourth gets $25 million, whereas the team at 3rd position gets $27 million. Runner-up team at FIFA 2022 World Cup will take home $30 million, whereas the winning team will bag a whopping $42 million. Teams and players are further rewarded by respective countries, which further boosts their overall earnings at World cup.
Host country - Host countries also make money from FIFA World Cup. It comes from sources such as merchandise sales, tourism, hotel and restaurant sales, indirect taxes, etc. However, the overall cost of organizing FIFA World Cup usually works out more than the earnings made by the host country. Billions of dollars have to be invested in building the necessary infrastructure, which includes roads, rail networks, hotels, stadiums, etc. There are also tons of operational expenses.
In 2022 FIFA World Cup, host country Qatar is estimated to have spent more than $200 billion. It is unlikely that earnings from the World Cup will be able to recover the overall investments. However, host countries benefit in the long run, as World Cup is one of the best platforms to advertise a nation's capabilities. It helps the host country to present itself as a soft power. It can also help boost investments in the country.
FIFA - FIFA is one entity that benefits the most from World Cup. And it is justifiable, as it is a decently sized organization. It has salaries to pay to employees and manage expenses, just like other organizations. In 2022 World Cup, FIFA earnings are estimated to be around $7.5 billion. This is around $1 billion higher in comparison to 2018 World Cup held in Russia. FIFA has multiple revenue sources such as television rights, licensing rights, marketing rights and sponsorships.
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