FIFA – The business world is rarely this straightforward. If you make a product that everyone wants to buy but that doesn’t cost you very much to produce, you are going to accumulate a lot of money very quickly. This is because everybody wants to buy the product.

In a short, this is how FIFA, the organization that oversees football on a global level, gets money.

More than $4.6 billion was brought in by the organization as revenue in the year 2018, the year that the World Cup was held in Russia.

FIFA is responsible for paying the organising committees of the World Cup host countries, as well as providing prize money, travel and accommodation for teams and support staff, and a legacy fund to assist in the development of the sport in the host country after the World Cup circus has moved on.

The champions of the World Cup in Qatar will split $44 million of the total prize pool of $440 million that will be paid out.

Around the time of each World Cup, FIFA organizes its financial reporting into four-year cycles. According to the most recent financial report for the period of 2015-2018, FIFA raked in $6.4 billion. One year without a World Cup brought approximately $766 million in revenue for FIFA.

TV syndication rights

The majority of revenue comes from the sale of television broadcast rights for various international competitions, including the World Cup.

The previous cycle brought in a total of $6.4 billion, with $4.6 billion coming from the sale of TV rights.

Marketing rights

There is a fee that must be paid to FIFA in order to promote at any of the organization’s events. The most well-known companies are given the opportunity to collaborate with FIFA on its development and social responsibility plans. This gives these companies access to FIFA’s non-profit arm, allowing them to make financial contributions to the game of football at the international, national, and grassroots levels.

The next largest brands are allowed to run advertisements during the World Cup, which is the broadcast event with the highest number of viewers anywhere in the world. This year’s tournament is anticipated to be watched by over five billion people, which is greater than half of the total population of the Earth. That is a sizable market to which one could try to sell one’s wares.

In the cycle leading up to the 2018 World Cup, FIFA made $1.66 billion in revenue from the sale of marketing rights. Even in the year 2021, the sale of marketing rights brought in a healthy $131 million in revenue for the company.

The selling of tickets and providing hospitality

Gate revenue is another lucrative source of income for FIFA. An affiliate business that is entirely owned by FIFA receives one hundred percent of all profits from ticketing rights. During the period of 2015-2018, this generated a total of $712 million.

It is projected that $12 million was produced in 2021 from ticket sales for the Arab Cup, which was attended by around 600,000 individuals. There have been approximately three million people who have purchased tickets for Qatar 2022. And with costs ranging from $100 to $1,100, we may anticipate yet another successful year in this industry.

The branding and licensing industries

In addition to this source of revenue, FIFA also makes money off of the licensing of its brand. The most well-known of them is the FIFA football game series published by Electronic Arts. It is estimated that these games have generated sales of $20 billion for EA over the course of its 20-year association with FIFA.

It is believed that the video game producer pays the organization somewhere in the neighborhood of $150 million annually for the license to use the FIFA name in their products.

The licensing of the FIFA brand for use in products, retail, and gaming brought approximately $180 million for FIFA in 2021. Following the indictment of dozens of top executives in 2015, the International Football Association Board was granted a compensation payment of $201 million by the United States Department of Justice in the same year.

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