Ashraf Ali Siddiqui looks at a financially rewarding sports event
Prize money for Qatar Football World Cup is the biggest tournament yet to take place in respect of football that is being hosted in 8 stadiums located in 5 cities all of which have been specially constructed for the event. A total number of 32 teams and 5 confederations are taking part in this gala event.
FIFA has announced total prize money fund for World Cup 2022 with a massive increase of 29% taking total to $1 billion of which $440 million will be distributed between 32 teams according to how they finish in the world Cup. Rest of $660 million will be used as solidarity payments for less developed federations, clubs benefit and club insurance/player protection plans. The actual prize money available for the final tournament is $40m more then compared to 2018 world cup where finals prize money was $400 million. The biggest increase in this world cup payment and distribution pyramid comes in the money to be distributed as solidarity payments and insurance payments to clubs whose players will be playing the world cup or the ones who get injured.
Prize money fund is generated after FIFA signed TV broadcasting and sponsorship deals for the 4-year cycle for different competitions, in this case from 2019 to 2022. FIFA signed extensive TV and online streaming rights for all their major competitions and that helped increase the revenue from TV/streaming broadcasting deals. FIFA is expected to clear over $7.89 billion in total revenues from the current 4-year cycle. Out of this amount, $3.5 billion comes from TV & media rights sale, $2.4 billion in sponsorship and other commercial activities and another $1.1 million from ticket sales and hospitality packages plus another $890 million from licensing fee.
From this $7.89 billion, FIFA cover their many costs like $500 million as administration costs, around $520 million for TV coverage production costs, another $450 million to be invested to help organize the world cup 2022. Another $180 million was awarded to Qatar football federation for organizing next tournament other than that the yearly payments to different federations to help develop football in countries which lack infrastructure.
This prize money will be distributed among all the participant teams with each team receiving $2 million to prepare for the tournament. They will get paid $10 million to take part in the group stage. The more teams progress in the competition, more money they will earn. The winner of the World Cup will receive $42 million so overall the world champions will earn $60 million only in pure prize money. This amount is an uplift of $4 million compared to the previous tournament in Russia in 2018.
The prize money figure continues a trend that has seen the amount increase over the last many decades. Two decades before in 2002 the champions Brazil received less than $10 million and way back in 1982 the Italians received just $2.2 million after lifting the cup. In this World Cup the champions will receive $42 million with the runners-up getting $30 million. Team coming in the third place will get $27 million and the fourth will earn $25 million. Teams qualifying for quarter finals will earn $17 million with last 16 getting $13 million and teams at the group stage will get $9 million. In merely qualifying for this competition players will have earned their respective country’s money. Qualification for the 2022 World Cup sees each team paid $1.5 million participation fee. TW