adidas jamaica 2014 World Cup most lucrative and expensive in FIFA history
financial success we have it, it is done, FIFA secretary general Jerome Valcke has said. ticket sales success is there, we have never sold so many tickets. 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 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 fueled unrest in Brazil, especially during the Confederations Cup last June, among those wanting better schools, hospitals and less government corruption.
Brazil bid for the World Cup they had the budget to do so, Valcke said.
FIFA forecasts it will spend $2 billion on the 2014 tournament, including the local organizing committee costs.
Still, much of that bypasses Brazil. Even if the host nation does earn the winner check on July 13, the remaining $323 million in FIFA prize fund goes to the other 31 nations.
Graphic News/ Brazil and the World Cup
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 revenue banked directly from its marquee event over a four year commercial cycle.
Broadcasters and sponsors pay most of FIFA $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.
Six top tier partners Adidas, Coca Cola, Emirates, Hyundai, Sony,
Visa pay a combined $177.125 million annually. That totals $708.5 million over four years.
Eight second tier sponsors Budweiser, Castrol, Continental, Johnson Johnson, McDonalds, Moy Park, Oi, Yingli collectively pay $524 million. About $120 million has been earned from Brazilian sponsors, according to the 2011 13 financial reports.
epa04185836 Demonstrators protest against the 2014 FIFA World Cup Brazil in the streets of Sao Paulo, Brazil, 29 April 2014. Hundreds of people protested against the government for sponsoring the upcoming FIFA soccer event scheduled to start on 12 June 2014. EPA/SEBASTIAO MOREIRA ORG XMIT: BRA80FIFA also 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 revenue is untaxed there. World Cup sponsors and media also receive exemptions for their operations as a condition of Brazil hosting bid in 2007.
FIFA, however, has spent significantly in Brazil.
FIFA already gave $221.6 million to the embattled organizing committee, and more should follow in last minute wrangling over paying for essential services.
In February, FIFA settled a nearly $20 million bill for power generators needed for broadcast operations.
stepped in because it not a question just of money, Valcke said then. were afraid that we would not be on time to deliver this energy. And without it, we cannot broadcast the World Cup. investments include tens of millions for TV production to deliver the biggest ratings this year.
In 2010, the Spain Netherlands final was watched by 530.9 million people according to the reliable global in home audience measure. More than 900 million people watched at least one minute of the match at home, and the overall total likely topped 1 billion when public viewing places are added.
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Spending by FIFA on ticketing, accommodation and IT services has also helped Brazil economy. Draw ceremonies for the qualifying groups in Rio de Janeiro in July 2011 and the finals tournament in Costa do Sauipe last December added several millions more.
The full World Cup financial picture will be clear only next March,
when FIFA publishes its 2014 accounts.