Article by Nadia Bartlewska
The 2022 FIFA World Cup in Qatar was a huge success for the governing body, as it generated a record-breaking broadcast income of $2.96bn (€2.77bn). This immense figure, which represents just over half of the organisation’s annual revenue, is evidence of football’s ongoing global popularity. The World Cup’s impact on FIFA’s broadcast revenue, the factors that contributed to its success, and the economic significance of this achievement will be examined in this article, and it will provide an explanation for the financial success of the 2022 FIFA World Cup.
It was anticipated that Qatar’s hosting of the FIFA World Cup in 2022 would significantly affect FIFA’s broadcast revenue. In his article in the North-western Journal of International Law & Business, K Youd states that the 2022 event was expected to bring in the most money from television advertising of any FIFA World Cup to date. According to Youd (2014), it was anticipated that the hosting of the event in Qatar would generate broadcast revenue for FIFA totalling more than $4 billion. This is more than double the revenue generated by the 2018 event in Russia. This is largely because Qatar pledged to make significant investments in the event’s broadcast rights; including a greater usage of technology to give fans all over the world a more immersive viewing experience. Additionally, the nation pledged to make an investment in the event’s broadcasting infrastructure, which will make it possible to produce and distribute the event’s broadcast rights in a manner that is both more effective and less expensive. Therefore, FIFA’s broadcast revenue from the 2022 FIFA World Cup was anticipated to significantly increase as a result of these investments (Youd, 2014).
In 2018, researchers ND Pifer, Y Wang, G Scremin, and BG Pitts examined the factors that contributed to FIFA’s record-breaking broadcast income in a study on the Global Football Market. The researchers discovered that the market had expanded significantly since the 1990s, primarily as a result of increased competition. As a direct consequence of this, broadcasters began to make significant investments in the rights to broadcast major sporting events like the FIFA World Cup and other football leagues and tournaments. FIFA also made more money because of higher prices and increased demand for broadcasting rights. The researchers noted that FIFA’s broadcasting income was largely dependent on the growing popularity of football and the growing number of fans worldwide. They also argued that the introduction of new technologies like 3D broadcasting and high-definition television had made it possible for broadcasters to reach a larger audience and made them more willing to pay for the rights to broadcast.
As a result, the combination of these elements contributed to FIFA’s record-breaking 2018 broadcasting revenue. Pitts, Wang, Scremin, Pifer, and others, S Mansour, M Alahmadi, and A Abulibdeh (2022) evaluate the significance of FIFA’s record broadcast income in 2022 for the economy in their study. For the purpose of analysing the sources of broadcast income and the effects it has on the economy, the authors conducted a comprehensive literature review. They discovered that broadcasting rights revenue was substantial and is anticipated to rise significantly by 2022. In addition, the authors assert that revenue from broadcast rights may benefit the economy as a whole. They argue that it can increase income and employment, and stimulate economic activity. The authors also point out that the revenue from broadcast rights can be used to build infrastructure and fund other projects, like sports clubs and other groups. Thus, the creators reason that the transmission pay can essentially affect the economy, and the pay produced by 2022 will assume a critical part in the improvement of the economy.
The favourable outcome of the 2022 World Cup was reflected not only in FIFA’s broadcast income but also in the revenue generated from other sources, such as sponsorships, ticket sales, and merchandise. In total, FIFA’s revenue for the year was $5.4bn (€5.07bn), an increase of 10% in comparison to the previous year. FIFA has faced a number of difficulties last year, despite the 2022 World Cup success. A string of corruption scandals have rocked the organisation, resulting in the detention and conviction of numerous high-ranking officials. FIFA has responded by implementing a number of reforms aimed at increasing accountability and transparency within the organisation. FIFA continues to be one of the most powerful and influential organisations in international sports in spite of these obstacles. Its ability to make a vast amount of money from broadcast deals is proof that football is still popular and that events like the World Cup are popular all over the world. It seems likely that FIFA’s broadcast revenue will only continue to rise in the years to come as the sport continues to gain popularity worldwide.