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The FIFA World Cup cash   
 
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25-Mar-2015  
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Sports in general and football in particular, has become a very lucrative business than what it was perceived to be in the past – a past time.



However, the proceeds seem to come the way of organised bodies, rather than the teams and sometimes, countries which deserve it more or need it most. At least, the latest release of FIFA, world’s football governing body’s financial report, says so.

FIFA has just released its 2014 financial report, which indicates that the organisation gained from the 2014 World Cup that cost the hosts, Brazil billions of dollars.

Revenues

FIFA revenues went past the US$2 billion mark last year, with US$337 million in total profits from 2011-2014.  In 2014 alone, US$91 million was added to its reserves, which now stands at US$1.52 billion. 

World Cup in Brazil

According to the report, the Mundial raked in US$4.8 billion in total revenue as against the US$2.2 billion it spent on the tournament, recording a profit of US$2.6 billion much more than what was earned at the 2010 World Cup in South Africa. Much of the earnings came from TV rights fees (US$2.4 billion); US$1.6 billion in sponsorships, and US$527 million in ticket sales.

For expenditure, much of FIFA's spending went to participating teams and confederations (US$476 million) and TV production costs (US$370 million), while the world organising body contributed US$453 million to the Local Organising Committee between 2011 and 2014. After the tournament, Brazil received US$100 million more as "legacy" payment.

Member associations, particularly in Europe may not be bothered about FIFA’s cash as they are not so dependent on it, though they always demand more transparency and accountability. For those in the developing countries however, it is good money. The assitance they get from FIFA no doubt help in their functioning.

Beneficiaries

The various confederations, including the Confederation of African Football (CAF) will also receive an amount.

Ghana’s participation in the 2014 World Cup, despite exiting at the group stage earned the Football Association $11million in addition to the over $200,000 each member association has received and the FIFA Assisted Projects (FAP) Fund which has helped set up the Ghanaman Centre of Soccer Excellence at Prampram.

At the club level, Aduana Football Club, also received their share meant for clubs for the services of goalkeeper Stephen Adams, the only local-based player who made it to the 2014 World Cup.

Ironically, the tournament cost Brazil an estimated amount of US$15 billion, spent on building and renovating the 12 stadia used for the Mundial. US$3.6 billion was spent on the renovations. 

Disappointingly, most of the stadia have been under-utilised or are already becoming white elephants. 

Demand

The turnover for FIFA, which seems to be improving with each World Cup, has also encouraged some stakeholders to ask for more for future FIFA-organised tournaments. 

Instead of the US$70 million they received for releasing their players for the tournament, clubs, led by the European Clubs Association which has a 214 membership, have succeeded in increasing the figure to $209 million per World Cup, if they release their players to the 2018 and 2022 World Cups.

 
 
Source: Daily Graphic
 
 

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