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FIFA’s recipes – Analysis

Gianni Infantino has been FIFA president since February 2016 – Harold Cunningham / FIFA

FIFA announced this week that this four-year cycle (2019-2022) will end at the end of the Qatar World Cup. earned him $7.5 billion🇧🇷 The amount comes from the tournament’s media rights, sponsorships (global and regional), tickets, hospitality and licensing, among others.

The announced value surpassed by US$ 1 billion what had been projected by football’s highest entity. And because it is a non-profit institution, all this difference will be applied to the development of football in parts of the world where there is a greater need for this type of investment.

A large part of this value obviously refers to the World Cup, which is precisely the product of the package that closes the cycle. However, FIFA packages its products and makes broadcasters and media platforms that want to broadcast World Cup matches also agree to show matches from other tournaments organized by the entity. It is because of these agreements that the U-17 and U-20 World Cups, in addition to the Women’s World Cup, gain visibility in the interval between one Cup and another.

Just making a brief parenthesis, I would like to share an episode that happened to me precisely at the “beginning of my career” as a rights buyer. In early 2005, I got in touch with the agency that commercialized the FIFA rights, as I wanted to understand the values ​​and business model that the agency would be willing to work with for a deal for the rights to the Confederations Cup that would take place in Germany in a few years. months. It was after this naive and unassuming contact that we ended up discovering that the rights for the 2006 World Cup were also available. We closed, and the World Cup in Germany ended up becoming the first major event shown on the BandSports channel.

Returning to FIFA’s universe of revenues, the entity recently gave a “public scolding” at its media partners, as it, as the main promoter of football events, is committed to making women’s football grow, but has not been finding support from these partners. who claim to be interested in exhibiting the events, but who are not willing to make the necessary financial investment for women’s football events to have increased revenues and, thus, to create a virtuous circle for the development of the sport. That is, currently, women’s football events still cannot “pay for themselves” and, unfortunately, continue to depend on revenues from other events promoted by FIFA.

Unlike some leagues/federations that have a very large concentration of their revenue precisely in television quotas, Fifa manages to distribute its revenues a little better and only 50% of them refer to TV rights. Sponsorship/marketing accounts for 28%, hospitality and tickets 8%, Licensing 9%, and the remaining 4% comes from smaller revenue lines.

Football continues to be the sport of greatest interest in the world, with billionaire revenues. But the next cycle promises even more with a World Cup in the largest consumer market on the planet and an audience that has been discovering and enchanting the sport in recent years.

The numbers tend to grow even more. The 2026 World Cup, with 48 teams, is just around the corner.

Evandro Figueira is vice president of IMG Media in Brazil and writes monthly in Sport Machine

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