According to the leading sports market intelligence agency Sportcal, the FIFA World Cup 2014 is expected to generate a staggering $4.28 billion in revenue. This sum is more than the $3.66 billion generated during the 2010 FIFA World Cup in South Africa, and the $2.35 billion generated from the 2006 World Cup in Germany.
Sportcal’s estimate is significantly higher than the $3.8 billion FIFA had projected earlier. Jerome Valcke, FIFA’s Secretary General had earlier said that 60% to 65% of the funds generated would be from broadcasting rights while the remaining 35% to 40% would come from ticket and merchandising sales, as well as advertising.
The eye-watering figures represent the continuing desire of mega-brands and global broadcasting networks to be associated with the most-watched sporting event in the World attracting mass-audiences from around the globe. And as anybody who works in the media industry can tell you, if the viewership is there the advertising dollars will follow.
With the global competition of the World’s most popular sport occurring only once every four years, it comes as no surprise that ticket sales have also gone through the roof. What’s more, FIFA has also vamped up its sponsorship structure for the upcoming World Cup competitions in 2018 and 2022, slated to be held in Russia and Qatar respectively.
But many have asked what of the host country itself? FIFA had earlier said that the World football governing body was paying the entire $2 billion operational costs so that the Brazilian taxpayer wouldn’t have to foot the bill.
But critics have been quick to point out that of the $11 billion dollars invested by Brazil in stadiums and related infrastructure; it is unlikely the country will be able to recoup most of it.
In response, Valcke re-iterated a sentiment expressed earlier by Brazilian President Dilma Rousseff saying, “FIFA is not asking for any financial support from the Brazilian authorities and whatever is spent by the cities and by the government will remain within the country.”