Fifa, soccer’s world governing body, now expects to bring in a total of $4.5 billion in revenues for the four-year cycle ending with this year’s World Cup, which kicks off tonight with the opening match between Brazil and Croatia in Sao Paulo.
The figure compares with the conservative sum of $3.8 billion that Fifa had budgeted, and even surpasses the figures of between $4.2 billion and $4.3 billion for the tournament that Sportcal had estimated in its widely discussed Sportcal Insight magazine feature on the 2014 Fifa World Cup, ‘Carnival Time’: http://www.sportcal.com/magazine/insight2/.
The increase has been attributed to increased revenues from broadcast rights and sponsorship and the figure is set to rise, according to Fifa, to $5 billion, comprising $2.7 billion from broadcasting rights and $2.3 billion from marketing, in 2015-18.
Meanwhile, Markus Kattner, Fifa’s finance director, told the Fifa Congress yesterday that each of the 209 member associations would receive additional payments of $250,000 and each of the six regional confederations would get a bonus of $2.5 million after a successful financial year in 2013, with even higher payouts anticipated next year.
Kattner said: “If 2014 goes as planned, and we have no reason to doubt it won’t, each member will receive $500,000 and each confederation will receive $4.5 million."
Earlier this year, Fifa announced a surplus of $72 million for 2013, taking its reserves to $1.432 billion.
Fifa has once again defended itself from criticism that it is making money out of the World Cup at Brazil’s expense, telling Reuters that it has covered the entire $2-billion operational costs of the World Cup “with money from the sale of World Cup TV and marketing rights, and not a cent will be footed by Brazilian taxpayers.”
The tournament is set to cost Brazil R$25.8 billion ($11.5 billion) in stadia, airport, urban transport and infrastructure improvements, but Fifa pointed out that “it was Brazil's choice to build 12 stadiums instead of opting for eight or 10, and investments include infrastructure not directly linked to the World Cup that will benefit the country for years to come.”