How FIFA raised R$40 billion from the World Cup

FIFA announced, at the beginning of the week, that it collected US$ 7.5 billion (R$ 40.4 billion, in today’s quotation) in the 4-year cycle of this World Cup, which takes place in Qatar.

The entity also revealed that the revenue is US$ 1 billion greater than the revenue recorded in the last Cup, played in 2018, in Russia.

But how did FIFA, even in times of crisis caused by the covid-19 pandemic and the war in Ukraine, manage to increase the revenue achieved in the previous period?

New channels and more sponsors. According to a recent report by BTG Pactual, broadcasting rights account for most of the international federation’s revenue – in the cycle of the Russian Cup, in 2018, this amount reached 49% of the total (about (US$ 3.1 billion) .

But, in addition to the expansion of means of transmission, such as the recent arrival of streaming platforms in the world of football, it is the commercial agreements signed by FIFA that have positively affected the business pointer of this edition of the World Cup in relation to the period between 2015-2018.

Between 2015 and 2018, the last World Cup cycle, marketing revenue was US$ 1.7 billion (which is equivalent to 26% of FIFA’s revenue in the period).

According to Gianni Infantino himself, president of the international football federation, the record in revenue was due to the negotiation of all sponsorship quotas placed on the market – the amounts of the agreements were not revealed.

Currently, FIFA divides the brands with which it has contracts into 3 lines: partners, tournament sponsors and supporters (which can be national or regional). For this World Cup, FIFA has an agreement with almost 30 companies.

The last three sponsors, for example, were announced just moments before the opening game: YouTube, Visit Las Vegas and Fine Hygienic Holding, all in the category of regional sponsors.

Who are the sponsors of the Cup? In total, the brands are divided as follows:

🇧🇷 partners (they have permanent contracts and can talk about all federation tournaments):

  • Adidas (sports brand),
  • Coca-Cola (beverages),
  • Grupo Wanda (real estate company),
  • Hyundai-Kia (cars),
  • Qatar Airways (airline),
  • QatarEnergy (energy company) and
  • Visa (financial services);

– sponsors (have restricted rights to the World Cup):

  • Budweiser (alcoholic beverages),
  • Byju’s (Indian educational technology company),
  • Crypto.com (cryptocurrency company),
  • Hisense (Chinese appliance and electronics manufacturer),
  • McDonald’s (fast food chain),
  • Mengniu Dairy (Chinese dairy product manufacturer) and
  • Vivo (Chinese technology multinational);

– supporters (have the same rights, but restricted by country or region):

Africa, Asia and the Middle East:

  • GWC (Qatar logistics and supply chain solutions provider),
  • Ooredoo (multinational telecommunications company),
  • Yadea (manufacturer of electric motorcycles and bicycles),
  • Boss Zhipin (Chinese recruitment company),
  • QNB Group (Multinational Commercial Bank) and
  • Fine Hygienic Holding (wellness company)

North America, Central America and Europe:

  • The Look Company (provider of visual engagement solutions and support services),
  • Frito-Lay (manufacture and sale of snacks),
  • YouTube (streaming),
  • Visit Las Vegas (tourism) and
  • Algorand (blockchain)

South America:

  • Sure (telecommunications),
  • Nubank (digital bank),
  • Inter Rapidísimo (Colombian delivery app) and
  • UPL (a company focused on agribusiness).

Damage with prohibition? On the other hand, FIFA may have a small loss with the ban on the sale of alcoholic beverages around the stadiums, announced on the eve of the tournament.

giani - REUTERS/Matthew Childs - REUTERS/Matthew Childs

FIFA President Gianni Infantino during a press conference

Image: REUTERS/Matthew Childs

According to the British newspaper ‘The Sun’, Budweiser may demand that FIFA “compensate” for the sudden decision by reducing the agreement closed with the brand for the next Cup by around R$ 255 million.

According to the publication, Budweiser and FIFA have a contract worth BRL 606 million for the partnership in the 2026 World Cup, which would be reduced to BRL 351 million with the requirement due to the turnaround in Qatar.

Sight increase. Even so, FIFA expects even greater success in the next cycle: revenues are expected to approach US$ 10 billion over the next four years, thanks to the expansion of the 2026 World Cup.

The next edition of the World Cup will have two big news: it will be played in 3 countries (United States, Canada and Mexico) and will have the participation of 48 teams, instead of the traditional 32 teams – that is, more markets for new advertisers, in addition to of, probably, a larger audience to follow the matches through the screens, either from TVs or cell phones.

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