This summer’s World Cup in Germany is on course for profits of an astonishing €1.1 billion ($1.4 billion), with the estimated €1-billion cost of staging the event far outweighed by revenues from the sale of media rights, sponsorship, merchandise and tickets, according to Sportcal.com’s newly-published World Cup 2006: The Commercial Report.
Fifa, soccer’s world governing body, told the authors of the report that the World Cup would generate €1.9 billion in marketing revenue, with the sale of television and new media rights raising €1.2 billion and the remaining €700 million deriving from other sources such as sponsorship and hospitality.
The sponsorship figure includes €60 million raised by the local organizing committee.
The ticketing operation, which is also being handled by the organizing committee, should bring in a further €200 million.
The figures are a feather in the cap of Fifa Marketing, the governing body’s commercial arm responsible for marketing sponsorship of Fifa and the World Cup, and of Infront Sports and Media, the Switzerland-based sports agency that marketed the media rights for the competition.
Fifa’s anticipated media rights revenues of €1.2 billion for the 2006 World Cup represent a 34-per-cent increase on the media rights revenues it realized at the 2002 World Cup, held in Japan and South Korea, a less favourable time zone than Germany’s for most of soccer’s top television markets.
The UK’s BBC and ITV are among the largest contributors to overall 2006 World Cup revenues, jointly paying £105 million for the rights for the event.
For the first time, sales of new media rights are set to make a significant contribution to overall revenues for this year’s World Cup. The report contains tables detailing deals with internet operators and mobile phone companies worldwide which, Fifa estimates, will bring in revenues of €120 million for the 2006 World Cup.
Meanwhile, sponsorship revenues for this year’s competition include payments of between €25 million and €40 million each from 15 ‘official partners,’ 11 of which had also sponsored the 2002 tournament.
These are joined by six local ‘suppliers,’ signed up by the organising committee, which are paying an average of €10 million each to be associated with the event.
About the report:
World Cup 2006: The Commercial Report contains detailed tables showing how the television rights are distributed to broadcasters in every major soccer television market worldwide, including the rights fees paid and a description of the rights acquired.
Similar tables give a breakdown, including fees paid, for major television rights deals already in place for the 2010 and 2014 tournaments. Sepp Blatter, Fifa’s president, said in July last year that television sales from the European market alone for the 2010 tournament would be worth €1 billion, more than double the fees paid by European broadcasters for this year’s World Cup.
World Cup 2006: The Commercial Report is divided into seven chapters: Organisation and financing; Television coverage; Television profits and future coverage; New media; Sponsorship and marketing of the 2006 World Cup; Ticketing, hospitality, licensing and merchandising; and Stadia, security and economic impact.
Combining the products of unique Sportcal.com research, rarely-revealed information from organisations such as Fifa Marketing and Infront Sports and Media, interviews with key partners including sponsors, broadcasters and new media groups and analysis by the authors, World Cup 2006: The Commercial Report provides a complete breakdown of the business of the World Cup, the greatest money-generating sports event on the planet.
The 92-page report, containing 33 tables, is available from Sportcal.com at a cost of £595, or for subscribers to one of Sportcal.com’s online services at £395, a saving of £200.
Click to view printer-friendly version of World Cup 2006: The Commercial Report summary of contents.
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For further details on the contents of this report contact Callum Murray, Editorial Director, or Mike Laflin, CEO, Sportcal.com
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