The FIFA world cup is being organized in Qatar, and the winning team will be rewarded $44m out of the total prize value of $440m set by FIFA.
But how does FIFA earn such big money and distribute big prizes? Well, you might also be wondering how FIFA makes money and runs such a leading sports event recognized all over the world.
I was also curious to know the revenue streams of FIFA, Football’s world governing body. So, I researched and found major income sources for this governing body of Football.
FIFA’s Income Highlight
FIFA’s 2018 World Cup event hosted in Russia helped it generate total revenue of over $4.6 billion. It pays for host countries of the FIFA World Cup, prize money, and other facilities provided to football teams. It also provides some financial support to the host country after the completion of the Football World Cup event.
The FIFA World Cup is organized in a cycle every four years. Last year, this governing body earned $766m.
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Now let’s understand some major income sources of FIFA.
1. Selling TV Rights
FIFA’s income comes from selling TV broadcasting rights for the Football World Cup event organized by this governing body. It also sells some other international tournaments broadcasting rights. As per the latest sources, its last revenue cycle was generated from selling TV rights only.
2. Marketing Rights
Many leading brands pay FIFA to advertise their brand during the world cup. They partner with FIFA to support development, facilitate social responsibility for non-profit purposes, and invest in football sports at various levels. FIFA’s World Cup alone has over a five billion audience base to reach. Therefore, most brands prefer promoting their brand on a large scale. In 2021, FIFA made $131 million in revenue from selling its marketing rights.
3. Ticket Selling
Ticket selling is another prominent source of income for FIFA. However, the complete amount earned by selling tickets goes to FIFA’s subsidiary company. In the cycle of 2015–18, it generated revenue of $712 million. Last year, when the Arab Cup was organized, about 600,000 people attended this sporting event, where FIFA earned $12 million in revenue just from selling tickets. The ticket price for the FIFA World Cup ranges from $100-$1,100.
4. Licensing & Branding
FIFA also generates significant income from its licensing. Electronics Arts’s series is one of its popular licensing products, which generated revenue of $20 billion for EA, and it has 20 years of partnership with FIFA. The game manufacturer pays $150 million annually in exchange for using FIFA’s name. In 2021, this Football governing body made $180 million from licensing its brands.
Wrapping up
So, these are some major sources from where FIFA makes money. I hope you have a brief idea of how FIFA makes money from organizing a Football event.
If you also want to make money online, I recommend checking out my other articles.
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