Makin’ Bank In Brazil! The Business Of The 2014 FIFA World Cup… By The Numbers
Smeared with red, white, and blue face paint, American soccer fans thought they had it in the bag with a 2-1 lead on Portugal last Sunday. “USA, USA, USA!” they happily chanted — ’til Portugal scored a goal in the final seconds of the game. Ouch! A U.S. victory was snatched away by an equalizer — and a whopping 25 million viewers watched it all go down. It’s the most watched US game in history!
The World Cup has the whole planet on the edge of their seats, but underneath all the fanaticism, there’s a whirlwind of cash flowing into FIFA’s hands. This year’s wildly popular international soccer tournament is bringing in numbers you won’t believe. That being said, let’s get into the business of #WorldCup2014, shall we?
FIFA will reportedly make a jaw-dropping $4 billion in revenue. Subtract their expenditures and the soccer giant is projected to make $2.6 billion in profits this year — that’s up from $2.3 billion, 2010’s World Cup profits.
Where’s all the money comin’ from? Here’s the scoop, thanks to TSM Plug.
The Riches Behind Rights & Advertising
Tons of TV networks want a piece of the World Cup pie. I mean come on — a record-shattering 18.2 million watched the US vs. Portgual game on ESPN alone, so why wouldn’t they? For TV rights, FIFA has collected $1.7 billion from ESPN, ABC, and Univision. These three networks have secured World Cup broadcast rights since 2005 in a $425 million deal; it was called “the biggest TV deal in a single country in FIFA’s history,” according to Soccer Times.
When watching the World Cup just isn’t enough — and fans want to get in on the action — brands like EA Sports come into play. But not without forking over $900 million to FIFA. “Fútbol” enthusiasts love getting their hands on EA Sports’ FIFA video games and smartphone apps.
And of course, you have your sponsors — y’know, the guys behind the bright, ostentatious LED banners that surround soccer stadium? Adidas, Coca Cola, Visa, Hyundai, Sony, and many more have paid FIFA a whopping $1.4 billion to command viewer attention.
The Opulence Behind the Opening Ceremony
Mimicking Rio de Janeiro’s annual color-filled carnival, international superstars Jennifer Lopez and Pitbull lead the World Cup opening ceremony. FIFA shelled out $9 million for the “We Are One (Ole Ola)” performance — $4.5 million for J.Lo and $4.5 million for Pitbull. But many of the 2.8 million viewers complained about the ceremony’s sound quality:
Thieving the Tourists
Luckily, the World Cup Ceremony is the only stain on the itinerary so far for the 600,000 international tourists who traveled to Brazil. During the tournament’s first weekend, foreigners from 180 countries spent nearly $3 billion in Rio. Experts believe Brazil will collect almost $7 billion when the soccer craze is all over.
As of June 5th, three million World Cup tickets have been sold — 60 percent were purchased by natives and 40 percent were bought by the rest of the world. US fans have purchased the most tickets (196,838), followed by Argentina (61,021) and Germany (58778), according to FIFA.
The average U.S. flight to Rio will cost you between $1,400 and $4,200. A solo traveler should expect to spend $682 a day, according to HuffPo — this only includes hotel stay and food. Hotel rates, Mashable reports, have soared by 600 percent. And as for food, well — a pepperoni pizza in Rio costs $35! A cheeseburger? $17. Whew!
Brazil’s Investment in the World Cup
Brazil has spent about $11 billion to host the World Cup — it’s the most expensive price tag in the tournament’s 84-year history, according to CNBC. But not everyone is on board with the country’s major expense. Nearly 300 protesters rallied against the government two weeks ago; they argue that Brazil could have redirected all that money into urban infrastructure instead.
“We’re in a country where the money doesn’t go to the community, and meanwhile we see all these millions spent on stadiums,” said protester Tameres Mota. The protests have continued with 200 people marching along Copacabana beach before the match between Brazil and Cameroon. (Photo above.) Police make sure the activity doesn’t get too close to tourists.
“The games will generate only 0.4 per cent of additional gross domestic product for Brazil,” Financial Times says. “Because the duration of the “Brazil braced for World Cup amid rise in Rio violence World Cup is limited and also the investment is limited to certain cities and or states, the impact is not that large,” said Barbara Mattos, an analyst for Moody’s rating agency.
The World Cup will wraps on July 13th. Final match tickets will set you back an absurd $5,956, Daily Caller says.