In such a situation, the question arises that the way FIFA distributes the prize money among the teams, from where does the money come to this institution, while it is a non-profit organization. What is his business model and how does he make money.
When was FIFA formed
Football is a global sport. This is the reason that unlike other sports, when the World Cup is organized every four years, more than 30 teams participate in it. The number of teams has changed from time to time. FIFA, which regulates the game of football globally, was formed in the year 1904. FIFA has been a non-profit organization since its inception, whose objective has never been to earn money, but to make the game better with whatever review it receives.
What is the business model of FIFA?
When FIFA organizes the World Cup, it gives some prize money to all the participating teams. About 350 crores goes into the account of the winning team while the runner up team also gets 248 crores. On the other hand, the team that finishes third gets 223 crores and the team that finishes fourth gets 206 crores.
In such a situation, it is also important to know that what is the source of FIFA’s income. Actually FIFA raises money in four ways. Number one is television rights, second is marketing rights, third is licensing rights and fourth is ticket sales.
television rights Television rights are considered to be the biggest source of FIFA’s earnings. Major television companies bid for the rights to organize tournaments like the World Cup. During this, the highest bidder gets most of the broadcast. Sports 18 has got the television rights of the FIFA World Cup 2022 in India. At the same time, after television, now FIFA has started earning from digital rights as well.
Marketing rights Marketing rights are another source of income for FIFA. In this, FIFA would get revenue from sponsors, regional supports and national supporters. In tournaments like the World Cup, FIFA raises money by selling rights in these four ways.
licensing rightsApart from this, FIFA also earns revenue from royalty and brand licensing rights. This is also one of the biggest sources of FIFA’s earnings.
ticket sales- Apart from this, the organization also earns billions from the sale of tickets for matches held in countries where FIFA is hosted. The price of a ticket in the knockout of the Qatar FIFA World Cup has been kept above 15 lakhs.
Source: navbharattimes.indiatimes.com
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