Professor Huang Yu of the Department of Sports Science at National Tsing Hua University has joined hands with his students to plan an in-depth special report on the World Cup soccer tournament. Covering a wide range of dimensions, including the application of science and technology, foreign labor, stadium facilities, sports national strategy, business operations and environmental protection, the series aims to analyze the operation of this world-class tournament from multiple perspectives and to reveal its far-reaching social and economic impacts.
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In 2022, Qatar, located in West Asia, welcomes the highly anticipated World Cup soccer tournament. The soccer boom has ignited the passion of fans around the world, and FIFA predicts that more than 5 billion people will watch the tournament. The crowds are huge, the business opportunities are endless, and FIFA, as the organizer, has seen its fortunes rise with the tournament.
Since its founding in 1904, FIFA has achieved significant revenue growth in the 21st century.The 2006 financial report showed revenues of 3,238 million Swiss francs ($3 billion) between 2003 and 2006, and revenues have soared to $6.4 billion between 2019 and 2022, making FIFA second only to the IOC as the wealthiest of international sports organizations Giant.
This article will take an in-depth look at FIFA's finances in recent years, business planning for the World Cup, and related commercial activities, as well as an analysis of the commercial boom that has taken place since the tournament's opening two weeks.
According to FIFA's financial report, its revenue has doubled since the turn of the century. Among them, media broadcasting rights are its main source of income, accounting for 56% of the total, marketing royalty income is about 13%, and the rest of the income, including ticket sales and trademark licensing, accounts for about 29%.
In terms of expenditures, the most recent four-year cycle's expenditures were mainly for tournament organization funding, promotion and development, soccer governance system, administration and marketing and broadcasting.
Table 1 shows FIFA's revenue for the last 20 years:
particular year
Amount (US$ billion)
It is worth noting that the World Cup is usually a bumper year for FIFA, particularly in terms of televised royalties and marketing rights.The 2022 budget showed a surplus of up to $1.5 billion, and in the final period-end settlement, FIFA's total assets grew by 21% to $5.5 billion. Its statutory surplus reserve was reduced from US$2.7 billion in 2018 to US$1.8 billion in 2021 due to the new Crown Pneumonia outbreak.
Marketing rights are another major source of revenue for FIFA, amounting to $131 million last year. Most of this revenue ($93 million) came from FIFA's global partnership agreements and $30 million from World Cup sponsors.
In addition, FIFA received $5 million from regional sponsors, $2 million from women's soccer partners and $1 million from national sponsors. Last year, FIFA also had $320 million in "other income", which included a $60 million settlement from the U.S. Department of Justice (USDOJ) for the corruption of a former official, and $260 million from the Club World Cup, liquidated damages, property sales, FIFA Museum income, and income from copyrights. Table 2 lists FIFA's key revenues and expenses for 2022:
form
sports event
Amount (US$ billion)
incomes
Media broadcasting rights
marketing rights
VIP Discount Rights and Ticket Sales
trademark license
(sth. or sb) else
(grand) total
expenditures
Contests & Events
Development and education
Soccer governance
FIFA Management and Administration
Marketing & TV Broadcasting
(grand) total
Profit before tax
