FIFA made $7.5 billion in four years from 2022 World Cup commercial deals in Qatar
The 2022 FIFA World Cup in Qatar generated 7.5 billion dollars in revenue over a four-year period, according to FIFA, the world’s governing body of football associations. FIFA revealed the revenue and financial information during a meeting with representatives from 211 national football associations that was held behind closed doors. According to reports, the addition of three more sponsors just hours before the start of the World Cup helped the international football federation break all previous financial records.
FIFA struck sponsorship agreements with the American internet video streaming behemoth YouTube, Visit Las Vegas, and UAE-based Fine Hygienic Holding. The three sponsors who finalized agreements at the eleventh hour fall into the third tier of local sponsors. Compared to the last commercial cycle for the 2018 World Cup in Russia, sponsorships from YouTube, Visit Las Vegas, and Fine Hygienic Holding brought in more than $1 billion more for FIFA.
Given that many businesses in the gas-rich nation are supported by the government itself, FIFA’s choice to hold the 2022 World Cup in Qatar has aided the federation in increasing its income through sponsorship and commercial deals. In addition to new third-tier sponsors, including Qatari bank QNB and telecom company Ooredoo, top-tier sponsor Qatar Energy has also joined. All gas and oil operations in the Middle East are run by Qatar Energy, a state-owned oil company with its headquarters in Doha.
In addition, FIFA agreed to second-tier sponsorship agreements with a blockchain supplier and the financial website crypto.com. first time in ten years that the federation is signing with an American sponsor. FIFA’s cash reserves will increase despite the COVID-19 outbreak to nearly $2.5 billion. When national team soccer and World Cup qualifying matches were essentially canceled in 2020, FIFA was prepared to spend that money to support its members during that uncertain time. When Sepp Blatter was the organization’s president in 2011, broadcast agreements for the World Cups of 2018 and 2022 were made.
The broadcasting deals include agreements with Fox in the United States of America and BeIN Sports from Qatar. Gianni Infantino, the current FIFA President, had pledged in 2016 that if he were chosen as the organization’s leader, cash payouts to member associations would increase. The worldwide governing body additionally declared in March 2022 that it would raise basic grants for members by 33 percent to a total of $8 million from 2023 to 2027. At a member association meeting held in Qatar, the announcement was made.