What financial opportunities can present itself for the host country during the World Cup?
Every four years, we see the magno-event called the FIFA World Cup gather up the world´s attention.
During a month, the country hosting the event enjoys global projection, legions of visitors and impressive ticket sales.
But how much can this massive tournament generate economically? According to World Finance, since its 1994 study, it´s a lot:
- USA 1994 | Overall profits were estimated at $1.45bn against total costs of $5.6bn. Brands like Adidas and Coca-Cola jumped into the scene and helped boost a total profit of $620m to Los Angeles alone during the final – $440m more than the Super Bowl made in the same year.
- FRANCE 1998 | France organized the 16th tournament of FIFA, where the host crowned themselves as champions. The total revenue of the Cup was $365 million-dollars, as for broadcasting costs, they elevated over $120 million, marketing gathered over $245 million-dollars.
- KOREA-JAPAN 2002 | It was the first time the World Cup was hosted by two countries. For the tournament, FIFA promised each country $110 million-dollars for hosting the event and allowed them to keep all the revenue from ticket sales. At the end, the Cup had over three million live spectator tickets on offer and split $1.2 billion-dollars in revenue between both nations.
- GERMANY 2006 | The tournament conquered by Italy would be one of the most commercially successful ever seen by FIFA. It exceeded expectations among foreign visitors and long-term profit for the Bundesliga. The final between Italy and France gathered over 700-million viewers around the world, giving the Cup a total revenue of $3.2 billion-dollars.
- SOUTH AFRICA 2010 | This was the first time the Jules Rimet trophy visited Africa, which resulted in a never-before seen final between Spain and the Netherlands. According to World Finance, FIFA gathered $3.36 billion-dollars in revenue, however, the host did not see the event benefit the country as much as wanted, as the building of railroad, airport and stadiums alone exceeded the revenue collected by the end of the tournament. Forbes reports a broadcasting revenue of over $1 billion-dollars.
- BRAZIL 2014 | Things did not go as planned for Brazil, not in the field and not in the economic side of things. Corruption and last-minute constructions, as well as a poor planning in people organization and distribution, made the host loose a significant of revenue and clash with their civilians over inequalities in living standards. The 2014 tournament proved the event could also puts the host nation under economic strain and a merciless spotlight for years to come.
The Russia World Cup
In 2018 we will see the 21st edition of the tournament, scheduled from June 14 to July 15 of 2018. A total of 64 matches will be played in 12 venues located in 11 cities. The final will take place on July 15 in Moscow at the Luzhniki Stadium.
32 national teams will compete to steal the crown from reigning champions Germany, who beat Leo Messi and Argentina at Maracana Stadium.
According to Statista, this is the investment budget of the International Federation of Association Football (FIFA) for the 2018 FIFA tournament by segment.
A total investment budget of 1.9 billion U.S. dollars was assigned for the 2018 FIFA World Cup in Russia.