The economics behind Fifa World Cup
The total revenue budgeted for 2022 (World Cup year) is $4,666 million. The amount is made up of five main revenue categories. The sale of television broadcasting rights contributes the most with 56 percent of the total income and amounts to $2,640 million.
The 22nd edition of the Fifa World Cup takes place in Qatar from November 20th to December 18th. Despite breaking up the European football season and being clouded by controversy from the get-go, it will likely be a spectacle once again and followed by billions around the world.
Who sponsors the Fifa World Cup 2022?
Fifa has several sponsorship tiers. There are Fifa Partners, Fifa World Cup Sponsors and Regional Sponsors. The governing body is currently implementing a new format with four tiers. By unbundling the women's and esports branch from the men's branch, Fifa hopes to increase overall sponsorship income.
Fifa Partners
Currently, there are seven Fifa Partners, who have global rights and can use Fifa's branding during all tournaments and across all branches:
Adidas (sportswear)
Coca-Cola (beverage)
Wanda Group (conglomerate)
Hyundai/Kia Motors (automotive)
Qatar Airways (airline)
QatarEnergy (oil & gas)
Visa (financial services)
FIFA world Cup Sponsors
The second tier consists of World Cup Sponsors. These companies have global rights as well but are restricted to the World Cup tournament (in the build-up and during).
Fifa has seven World Cup Sponsors
Budweiser (alcoholic beverage and part of Anheuser-Busch InBev)
Byju's (educational technology)
Crypto.com (cryptocurrency platform)
Hisense (electronics & home appliances)
McDonald's (restaurants & real estate)
Mengniu Dairy (dairy products)
Vivo (consumer electronics)
In the current set-up, Fifa has six to eight slots for both Fifa Partners and World Cup Sponsors. In the future there is an extra tier between these two that gives rights to all tournaments in a certain branch (the men's, women's or esports).
$4,666 million of revenue budgeted for 2022 World Cup year
The Fifa World Cup is the governing body's flagship tournament that drives income. The total revenue budgeted for 2022 (World Cup year) is $4,666 million. The amount is made up of five main revenue categories. The sale of television broadcasting rights contributes the most with 56 percent of the total income and amounts to $2,640 million.
Sponsorship income (marketing rights) comes second with $1,353 million and contributes 29 percent. Hospitality rights and ticket sales, licensing rights and other revenue and income amount to $673 million.
The total investment, in other words, cost, budgeted for the 2022 Fifa World Cup Qatar is $1,696 million. A decrease compared to the $1,824 million in expenses incurred for the 2018 Fifa World Cup Russia.
Who sponsors the national teams?
Nine different kit brands sponsor the 32 World Cup teams. Nike supplies the most nations with 13. Followed by Adidas (seven nations), who are a Fifa Partner as well.
What is the prize money at the 2022 Fifa World Cup Qatar?
Fifa has set a total prize money purse of $440 million, with the tournament champions receiving $42 million.
Prize money of 2022 Fifa World Cup
Place Prize money
Winners $42 million
Runner-up $30 million
3rd place $27 million
4th place $25 million
5th – 8th place $17 million
9th – 16th place $13 million
17th – 32nd place $9 million
In addition to the $440 million prize money purse, there is $48 million ($1.5 million per participating nation) in preparation money available. So, each participating country will at least earn $10.5 million.
During the 2018 World Cup in Russia, the prize money purse was $400 million, with champions France receiving $38 million and runner-up Croatia earning $28 million.
The difference with the 2019 Fifa Women's World Cup, which had a total prize money purse of $30 million with the winner receiving $4 million, is substantial.
How will the 2022 Fifa World Cup impact Qatar?
Financial Analysts all across the World have estimated that Qatar's GDP will rise by 4.1% by the end of 2022. The country's GDP will grow by an average of 3.2% annually between 2022 and 2030. The tournament would contribute about $20 billion to the country's economy.
Total Spending in the Last five editions of the Fifa World Cup
Fifa World Cup 2018 Russia $11.6 billion
Fifa World Cup 2014 Brazil $15 billion
Fifa World Cup 2010 South Africa $3.6 billion
Fifa World Cup 2006 Germany $4.6 billion
Fifa World Cup 2002 South Korea/Japan $7 billion
The host nation Qatar has promised that it will be the most expensive World Cup as it will bring employment to the nation which will directly affect the country's economy. It will create more than 1.5 million jobs in key sectors like construction, real estate, and hospitality. The tourism industry will also be affected largely by this. The host nation is estimated to spend around $220 billion for the 2022 Fifa World Cup.
