FIFA World Cup Complete Information:

 FIFA World Cup Complete Information:

FIFA stands for Federation International de Football Association, which is the French world. In English, it translated to the Internation Federation of Association Football. It was founded in 1904 by Robert Guerin. The World Cup is the biggest sports tournament in the world. In 2018, World Cup held in Russia saw about 3.5 billion people reported by FIFA, either on TV or digital platform. Half of the people living on Earth watch a single sporting event.   

FIFA World Cup Complete Information:(asianews91)

First President of FIFA.

Robert Guerin brought the representative of seven member countries that met in Paris and signed the FIFA Foundation Act.  After its establishment, Robert Guerin was the first President of FIFA.

Robert Guerin was the first President of FIFA.

Confederation of FIFA.

FIFA teams do not necessarily represent countries. Few teams 0f FIFA represent certain territories of some nations, Such as Macao and the US Virgin Islands. They have a team in FIFA, but they aren’t independent countries. FIFA teams divided into six broader confederations. Each continent has a FIFA confederation. Namely, Africa, Europe, South America,  Oceania, North and Central America, and the Caribbean  grouped as one, and Asia and Australia grouped as one. Antarctica continent has doesn’t a confederation.

Confederation of FIFA.

FIFA is an NGO ( Non Government Organisation )

Even though FIFA makes billions of dollars, FIFA is an ANGO. It is a Non-Governmental Organisation. The purpose of its creation is to promote football all around the World. But similar to other NGOs involved in social work, FIFA runs social development programs. i.e: Education for All. Save the Planet. Protect Children.

FIFA Foundation.

In 2018, FIFA Foundation was established for purpose of mobilizing the positive power of football, to improve other lives of people. FIFA Council is the governing body of FIFA. There are 37 members of the FIFA Council. The President of the council is elected by the FIFA Congress, 8 Vice Presidents, and 28 other members.

Financial FIFA 4-Year Cycle.

Financially, FIFA operates on a 4-year cycle. Its cycles revolve around the World Cups. In the 2015-2018 cycle, in these four years, FIFA earned a revenue of $6.4 Billion. About 83% of the $6.4 Billion revenue was from the 2018 World Cup. In 2019-2022, FIFA earned record revenue of $7.5 billion.

In the next cycle, expected that revenue may reach $10 Billion . Showing nearly double growth in these cycles. What are the reasons for this? There are two main reasons.

1. Their new financial strategy for  Women’s Soccer. In 2023, FIFA Women’s World Cup scheduled be held in Australia & New Zealand has signed separate sponsor deals. Since the Women’s World Cup is acquired popularity, it is a new source of revenue for FIFA.
2. In 2026, FIFA World Cup will be large-scale. It will hosted by USA, Canada, and Mexico. There will be 48 participating teams in it instead of 32. There will be more football matches with more matches. Advertisers will have more opportunities to show their content, and attention of audiences will be engage for a long time during the World Cup.

FIFA World Cup Revenue.

FIFA World Cup is the most popular tournament in FIFA, 95% of FIFA’s revenue is generated from the FIFA World Cups. The exact revenue sheet of the FIFA World Cup is as follows.

1: Broadcasting Rights.

The largest source of revenue is Broadcasting Rights. FIFA World Cup telecasted in more than 140 different countries. And each country has its own TV channels. On which audience watch these football matches. These TV channels pay FIFA  to buy the rights broadcast, to see matches on their channels. For example: In India, Reliance-backed Viacom 18 bagged a deal at ₹4.5 billion rupees. That is why Indians can watch the FIFA matches on channel sports18 and Jio Cinema App.

2: Marketing Rights.

• The second source is Marketing Rights.FIFA earned about 1.31 billion from it. Various companies and brands pay FIFA to show their adverts during the matches. FIFA Partner Companies are At the Top. Qatar Airways, Hyundai Kia,  Adidas, Coca-Cola, Wanda Group,  Qatar Energy, and  Visa.
• And then come to the specific World Cup sponsors. Who pay to show their ads only during the World Cup. These include Vivo, McDonald’s, Budweiser, and Byju’s. Crypto.com.
• Then comes is regional supporters. Yadea, Boss, Fine Wipes, the official timekeeper of FIFA Hublot. These companies paid FIFA to show their ads. About 26% of revenue comes from here.                                                                             

3: Ticket Rights.

The Tickets being sold at stadiums, the revenue generated from the audience at the stadiums. In 2022, FIFA earned $47 million from ticket sales, hospitality, and accommodation rights. During the 2022 FIFA World Cup. About 6% of the total revenue was from this category

4: licensing Rights.

Licensing rights or FIFA’s brand logo are also sources of income. For example, in a digital football game or a video game that puts FIFA’s logo on it, these rights have to be bought from FIFA. That is also a source of revenue. In 2022, $160 million was generated from this source.

5: Minor Sources.

The fifth and last source is the addition of the remaining minor sources. Such as FIFA Club World Cup, FIFA Quality Program, and renting out real estate. Penalties and Appeals during the game. FIFA World Foot ball Museum, video rights & Selling Film. These are the minor sources compared to the total amount, to an aggregate of 119 million.

Expensis of FIFA World Cup.

FIFA hardly has to spend any money. They have next to no expenses. The cost of organizing the matches is borne by the host country. The government of the hosting country is responsible to pay of organizing matches. In terms of taxes, FIFA doesn’t have to pay any taxes. The only cost of the Prize Money is awarded to the winning team by FIFA. That is the only major component of the cost born by FIFA. For2022 World Cup, The total prize is $440 million. The winning team will get $42 million. The runner-up team will get $32 million. And then there’s distribution among the remaining teams in decreasing order ranging from $27 million to $9 million.

Organising Cost of FIFA. 

How much is the cost of organizing the game for the host country? For Example, for the 2022 World Cup, multiple mainstream media reports estimated, Such as Forbes and Bloomberg, Qatar has spent $200 Billion to organize the World Cup. That number of $200 Billion is a bit misleading. Because hosting this World Cup Qatar is seen as a part of Qatar National Vision 2030. A portion of this expenditure was for a greater purpose than World Cup. It will be utilized after the World Cup as well. Despite that, the expense of hosting the World Cup for Qatar will be billions of dollars.

• For this World Cup, Qatar made a modern metro system. It will be used later by Qatar residents there. 
• Qatar expanded the airport, built new hotels.
• Built new districts in their capital city, Doha.

Stadiums of FIFA 2022 World Cup.

Matches were host on 8 venues in Qatar. Of them, 7 were builts for this World Cup. The Qatar government claims that, the cost of building stadiums was $6.5 Billion.

 Guarantees & Declarations.

FIFA required seven guarantees and declarations from the government of the hosting country hosting of World Cup. These guarantees are related to several issues. Such as

1.  Visas, Permits, and immigration issues.
2. Work permits and labor law exemptions.
3. Safety and Security.
4. Protection and exploitation of commercial rights.
5. Telecommunications.
6. Waiver indemnifications and other legal issues.
7. Tex examptions Guarantees & Declarations.

Aventages:

• If a country organise a World Cup, people from all around the world would come, bringing with them foreign currency, and driving an increase in tourism in the country. It Boost up the GDP.
• Increase in the Development of the infrastructure of the hosting country.

Disadvantages:

• In developing countries, the existing infrastructure gets heavily stained pages.
• Thousands of peoples, were removed from their homes to build wider roads, large parking lots and stadiums for the beautification of cities.
• In developing countries like Brazile, the money that could have been spent on the prosperity of the citizen, were spent on making the stadiums. The stadiums often not useful after World Cup.

Conclusion.

FIFA World Cup may be good or bad for the hosting country's economy. The thing is that, if a country hosts the World Cup, they will have their calculations and see that if they host the World Cup in the country, the area where they will benefit, the areas where they will incur losses & overall impact will be positive or negative. Then they should decide if they want to host the World Cup.   In developing countries such as Brazil and Srilanka, it isn’t beneficial as it can be to a developed country. What do you think? Comment below.