World cup prize money, sponsors, and more!
The 2022 FIFA world cup is heating up as we head toward the final group stages in early December. The games, hosted in Qatar, have already seen their fair share of dramatic victories and upsets on the pitch, attracting billions of eyeballs on various platforms.
The games also represent a huge investment by many companies, teams, and countries; host nation Qatar has invested an incredible $200 billion in the world cup.
That’s a staggering amount when you consider that Russia, the previous host of the global soccer tournament, only spent $11 billion back in 2018.
As the football action continues to intensify, we take a look at the business behind the World Cup, the many sponsors, and the mind-boggling investment that goes into hosting the games.
Who sponsors the Fifa World Cup 2022?
The Fifa World Cup is the world’s biggest sporting event and naturally, companies are eager to associate their brands with such a global competition. Fifa uses sponsorship tiers for brands – Fifa Partners, Fifa World Cup Sponsors, and Regional Sponsors.
In the future, we’ll see a new format with four tiers by unbundling the women’s and eSports branches from the men’s branches. The new system will increase overall sponsorship income as it attracts an even wider audience.
These companies have global rights and can use Fifa’s branding during the entire tournament (i.e every game played will feature these brands). This presents a staggering amount of brand awareness unmatched by other sporting events. Naturally, the host nation has its own companies featured such as Qatar Airways and Qatar Energy.
There are seven primary Fifa Partners:
Wanda Group (conglomerate)
Hyundai/Kia Motors (automotive)
Qatar Airways (airline)
Qatar Energy (oil & gas)
Visa (financial services)
FIFA World Cup sponsors
The second tier of sponsorship comprises also global rights but has certain restrictions placed on them. The mix of second-tier sponsors includes the likes of Crypto.com and McDonalds. It’s a major step towards the legitimacy of Cryptocurrency to be featured so prominently in a global sporting event.
FIFA 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)
How much revenue will be generated?
The World Cup is a huge driver of income for Fifa and its sponsors. Though not anywhere near traditional sales, the world cup represents a unique windfall for companies. According to Fifa, the total revenue predicted for the 2022 World Cup is $4.6 billion, comprised of five primary revenue streams.
The sale of television broadcasting rights contributes 56% of the total income at $2.6bn, followed by
sponsorship income (marketing rights) at $1.3 billion (29%) and hospitality rights including ticket sales, licensing rights, and other revenue amounting to $673 million.
By comparison, the total investment for Fifa for the 2022 Qatar World Cup is $1.6 billion. This represents a decrease compared to the $1.8 billion in expenses incurred for the 2018 Russian World Cup.
National team sponsors
What international sporting brand wouldn’t want to see their product worn by some of the world’s top soccer players? The tournament features nine different kit sponsors of the 32 World Cup teams. Nike supplies the majority of nations with 13 team hits. They are followed by Adidas, which sponsors seven nations.
The deals will also result in lucrative opportunities as supported purchase world-cup memorabilia including authentic kits.
Nearly half a billion in prize money
Apart from their salary deals, teams will also receive millions depending on their performance in the tournament. Fifa has set total prize money at $440 million, with tournament champions set to take home a victory purse of $42 million.
2022 Fifa World Cup 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 $440 million prize money, Fifa has set aside a substantial $48 million ($1.5 million per participating country). This means that each participating nation will earn at least $10.5 million.
For comparison, the 2018 Russian World Cup featured an overall prize pot of $400 million.
World Cup to boost GCC economies
The world cup will also benefit neighboring middle east nations.
The Gulf Cooperation Council (GCC) economies are predicting a boost from the Qatar event, reports Standard and Poor’s (S&P) Global Ratings report.
In a report, the S&P said: “We also foresee a post-World Cup slowdown in economic activity in Qatar. Oversupply in the hospitality and real estate sectors could somewhat moderate their performance, although we don’t expect this to materially affect banking sector asset quality.
“We estimate real GDP growth of 4.8% in 2022, a sharp increase on 2021 (1.5 percent), partly due to the additional economic activity associated with the World Cup, but also reflecting the ongoing recovery following the removal of COVID-19-related restrictions. We estimate non-oil GDP growth in 2022 at 8 percent, compared with close to 3 % in 2021.”
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|SEC.SA||Saudi Electricity Company SJSC||100|
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|ALRAHJI.SA||Al Rajhi Banking & Investment Corp SJSC||100|
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