2014 Brazil WC most financially lucrative tournament ever
Friday, 20 June 2014
The 2014 World Cup is the most valuable, lucrative and expensive in FIFA history, according to news.com.au.
Record numbers include a $35 million prize to the winning team's federation, $4 billion commercial revenue for FIFA and a $14 billion bill for Brazil.
With three million tickets available to buy, the 64-match tournament is almost sold out.
"The financial success - we have it, it is done," FIFA secretary-general Jerome Valcke has said. "The ticket sales success is there, we have never sold so many tickets",he said.
FIFA's satisfaction is not shared across Brazil. Taxpayers are picking up the biggest bill, with the country of 200 million people running up costs several times more than FIFA to stage the world's most-watched sports event.
The $14 billion total is the predicted spending on building and renovating 12 stadiums, upgrading federal, state and city infrastructure, plus security plans to welcome the 32 teams and around 600,000 expected visitors.
The spending fuelled unrest in Brazil, especially during the Confederations Cup last June, among those wanting better schools, hospitals and less government corruption.
FIFA forecasts it will spend $2 billion on the 2014 tournament, including the local organising committee costs.
Still, much of that bypasses Brazil. Even if the host nation does earn the winner's check on July 13, the remaining $323 million in FIFA's prize fund goes to the other 31 nations.
The federations also share $48 million from FIFA to prepare for the tournament, and $70 million goes to (mostly European) clubs whose players are selected.
The $35 million first prize is less than 1 per cent of the governing body's revenue banked directly from its marquee event over a four-year commercial cycle.
Broadcasters and sponsors pay most of FIFA's $4 billion income.
European television networks have paid the majority of the nearly $1.7 billion, so far, in rights fees to FIFA, according to the past three years of financial reports.
FIFA gets hundreds of millions from fans buying match tickets, plus agencies securing the rights to sell corporate hospitality seats, and licensed merchandise.
As street protesters in Brazil know, FIFA's revenue is untaxed there. World Cup sponsors and media also receive exemptions for their operations as a condition of Brazil's hosting bid in 2007.
FIFA, however, has spent significantly in Brazil.
FIFA already gave $221.6 million to the embattled organising committee, and more should follow in last-minute wrangling over paying for essential services.
The full World Cup financial picture will be clear only next March, when FIFA publishes its 2014 accounts.