This special report is produced by Mr. Huang Yu of the Department of Exercise Science at National Tsing Hua University, together with students studying sports management and sports facilities, to produce a series of special reports on the World Cup Soccer Tournament. This series of special reports includes topics such as science and technology, migrant workers, facilities, sports as a nation, business, and environmental sustainability, in the hope of observing the handling of the tournament from different perspectives, and to further elaborate the impacts of the World Cup Soccer Tournament, which is one of the largest tournaments in the world.
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Located in the West Asia Carda for the 2022 world-class soccer tournament has recently begun, this soccer fever will ignite the soul of soccer fans around the world, according to the International Federation of Association Football (hereinafter referred to as FIFA) estimated that this year's population of the world football tournament should be more than 5 billion people, the so-called people is a business opportunity, the world football tournament hosting unit of the FIFA can be used to describe the family's wealth.
Founded in 1904, FIFA has opened up a wide range of financial resources in this century. In its 2006 accounting report, it showed that its revenue from 2003 to 2006 was 3.238 billion Swiss francs (about 3 billion US dollars), and its financial report for the period of 2019-2022 has already reached as high as 6.4 billion US dollars, which is second only to the International Olympic Committee as an international sports organization. In this article, we will discuss the financial situation of FIFA in recent years, the business plan of the World Cup and related commercial activities, and also explain some of the business frenzies two weeks after the kick-off.
According to the financial report of FIFA in recent years, its income has doubled since the beginning of this century. Table 1 lists the growth of FIFA's income since the beginning of this century, among which, the media broadcasting right is the golden hen mother of FIFA, with the income accounting for 56% of the whole, while the income from marketing royalties accounts for about 13%, and the rest includes the income from the tickets (including the box office), the royalties from the trademarks, and so on, which accounts for about 29% of the income.
On the expenditure side, the most recent four-year cycle included about $1.7 billion for tournament handling, about $1.7 billion for promotion and development, the soccer governance system, administration and marketing and broadcasting.
Table 1 FIFA's revenue in the last 20 years (in billion dollars)
particular year
sum of money
Source: Organized by the team
It's worth noting that WFC years are as usual bumper years, especially for TV broadcasting royalties as well as marketing rights, with a surplus of as much as $1.5 on the 2022 budget, and FIFA's total assets growing by 21% to $5.5 billion in the final period-end settlement. Its statutory surplus reserve, on the other hand, has been affected by the new Crown Pneumonia, falling from US$2.7 billion in 2018 to US$1.8 billion in 2021.
Marketing rights are another major source of revenue, amounting to $131 million last year. Most of this revenue ($93 million) came from FIFA's global partnership agreements, while $30 million came from World Cup sponsors.
In addition, FIFA separately from regional sponsors,
women's soccer
Partners and national sponsors received $5 million, $2 million and $1 million respectively. FIFA also had $320 million in "other income" last year, including a $60 million settlement from the U.S. Department of Justice (USDOJ) for the corruption of former officials. The remaining $260 million comes from club World Cups, liquidated damages related to canceled contracts, property sales, FIFA museum income and copyright income. Table 2 presents information on key revenues and expenses for 2022.
Table 2 FIFA 2022 key revenues and expenses (in USD billion)
form
sports event
sum of money
Media broadcasting rights
marketing authority
VIP Discount Rights and Ticket Sales
trademark license
(sth. or sb) else
incomes
Contests & Events
Development and education
Soccer governance
FIFA Management and Administration
Marketing & Telecasting
expenditures
Profit before tax
