THE TOP TEN SPORTS PLAYED ALL OVER THE WORLD AND THE ECONOMICS OF FIFA WORLD CUP
SPORTS
The Top 10 Sports played all over the world and the population involved and locations are as follows
ECONOMICS OF FIFA WORLD CUP
REVENUE
There are several different streams of income for world football’s governing body as it seeks resources to touch the world, develop the game and build a better future.
FIFA enjoyed a great period of success in the four-year cycle between 2007 and 2010, with revenue rising to USD 4,189 million, up significantly from the figure of USD 2,634 million from the previous four-year cycle. While costs also rose, they remained firmly in control, enabling FIFA to make an extremely healthy result of USD 631 million.
Ninety-three per cent of FIFA’s income during this period was accounted for by event-related revenue. The biggest event of them all proved the biggest fundraiser: the 2010 FIFA World Cup South Africa™ made USD 2,408 million of FIFA’s USD 2,448 million through the sale of television rights, and USD 1,072 million of its USD 1,097 million via marketing rights. Overall, South Africa 2010 accounted for 87 per cent of FIFA’s total revenue.
FIFA also benefited from brand licensing. Through the organisation’s FIFA Branded Licensing Programme, companies pay for the license to use the FIFA Brand Marks in the advertising, marketing, promotion and sale of their licensed products or programmes. As well as contributing to FIFA Brand awareness and to the globalisation of the game of football, this generated USD 37 million for FIFA between 2007 and 2010.
FIFA also made USD 33 million from Quality Concept, with manufacturers paying the sport’s governing body for FIFA-approved and FIFA-inspected quality marks on outdoor, futsal and beach soccer balls.The governing body’s remaining income came through its conservative investment strategy and was primarily made up of interest income of USD 51 million and foreign currency gains of USD 64 million.
A key success of the 2007-10 period, during which FIFA’s balances rose to USD 2,145 million, was the boosting of reserves to a total of USD 1,280 million, as of 31 December 2010. The creation of reserves is one of FIFA’s statutory duties as it enables the organisation to ensure financial independence and prepare for unforeseen events that would seriously impact revenue streams. The world governing body can therefore be hugely satisfied by their success in this respect over the past few years, with the level of reserves more than doubling over the 2007-2010 period from its 2006 level of USD 617 million.
Governing bodies, rights holders, event organisers, government agencies, NGOs, sponsors, broadcasters and service providers will all find valuable data, analysis and insight within this 330-page report.
Event Hosting and Bidding
Analysis of the 2013-2016 Olympic cycle and trends in bidding and hosting suggest that nations in Europe will continue to see their overall share of events decline when compared to nations within other continents. North America is the emerging continent and has increased its share of events throughout the Olympic period. With an Olympic Games in 2024 or 2028 looking increasingly likely, in addition to an imminent Fifa World Cup bid, this trend looks set to continue.
Announced in April 2017, the Global Sports Nations and Cities Index is published in full exclusively in the report. Featuring 621 cities from 86 nations, the index analysed 730 events across 151 categories in 81 sports, including summer and winter Olympic sports and Olympic ‘recognised’ sports. USA was once again named number-one Global Sports Nation, while London, UK retained its place as number one Global Sports City.
This year’s report has also identified the top 25 most valuable events judged according to their holistic impact during the 2013-2016 cycle. The analysis has brought us closer to answering the age-old question: which major sports event produces the largest impact, after the Olympic Games and Fifa World Cup, and can therefore be considered the world’s ‘third largest sports event’?
Economic Impact
Across the 2013-2016 Olympic cycle, a staggering 54,392,673 spectators attended the 317 events analysed as part of the GSI scope of research. More than 16 million spectators attended events in 2016 alone.
A year-on-year attendance analysis of 56 of the leading annual sports properties, covering 13 sports, shows a minor decline in attendance of 0.27 per cent overall during the 2015-16/2016 season compared to the previous year. This decline comes despite event owners tweaking event formats to produce an additional 858 fixtures across the season for the analysed properties.
Sport Tourism
It is estimated that, for the 70 major events analysed in 2016, participants and media alone generated more than 1.5 million bed nights in the host cities, creating a direct economic impact of $303 million before a single ticket was sold.
Spectator-related spend for the same 70 events is estimated at $2.9 billion, generating a total direct economic impact of $3.2 billion for the host cities and nations in 2016.
Analysis of the 2013-16 Olympic cycle shows that 231,029 athletes have participated in the 303 events analysed with a little over 91 per cent of these athletes travelling from outside the host nation in order to compete, highlighting the huge tourism benefits for cities hosting sports events from visiting athletes.
Sporting Impact
An average of 45 nations took part in the events analysed over the four-year period. By comparing the number of competing nations to governing bodies membership, the research shows that there are many nations that don’t send athletes to compete at the major world championships. These emerging countries clearly need more development support to compete at the global level.
Of the 231,029 athletes total, 41.3 per cent were women, signifying that there is still work to be done to ensure gender parity within sport. The IOC is, however, making progress, as the number of female athletes competing at the Olympic Games continued to rise at Rio 2016, with female athletes comprising 45 per cent of all participants at the games, a 0.8 per cent improvement on London 2012.
EXPENDITURE
The vast majority of FIFA’s income is invested in football and football development. Indeed, 72 per cent of the world governing body‘s expenditure is ploughed directly into football, with Corporate and Social Responsibility a central pillar - and development programmes a key area of investment. Indeed, the last cycle between 2011 and 2014 witnessed USD 1,052 million - 20 per cent of overall expenditure – spread across the organisation’s Financial Assistance Programme, Goal Programme and other development and social projects.
FIFA also ensured that its stakeholders benefited by making an extraordinary payment of USD 144 million to its member associations and confederations. Football clubs also received additional funding from FIFA - USD 70 million to the 396 clubs represented at the 2014 FIFA World Cup Brazil. To provide development for football to the host country of the FIFA World Cup™, FIFA approved the 2014 FIFA World Cup™ Legacy Fund of USD 100 million. With this legacy fund, Brazil will continue to benefit from the tournament for years to come.
After the conclusion of the FIFA Club Protection Programme for the 1 September 2012 to 31 December 2014 period, a total of EUR 39.4 million was paid out in compensation to clubs, including the anticipated payments until the injured players are able to resume playing. Given the resounding success of the programme, the FIFA Executive Committee has decided to extend the programme to cover the period of 1 January 2015 to 31 December 2018. The programme will now also cover clubs for women’s representative “A” team matches.
FIFA, as befits an organisation of its size and scope, also has sizeable operating expenses, amounting to USD 861 million for the 2011-2014 period. The role of football governance comes at a cost too, with the organisation of all committees and FIFA congresses, legal matters and football administration tallying at USD 232 million.
The need to fulfill contractual obligations in respect of exploiting marketing, TV and media rights, while ultimately yielding gains, requires an initial outlay, with USD 84 million devoted to this and licensing between 2011 and 2014. Foreign exchange costs also feature on FIFA’s expenditure sheet, although these losses have been more than offset by corresponding foreign exchange gains during the same period.
Financial reserves have been set aside to enable the organisation to react to unexpected events and secure its economic independence.
FIFA REVENUE FOR2015-16 AND EXPECTATION FOR 2017 & 2018
The Top 10 Sports played all over the world and the population involved and locations are as follows
ECONOMICS OF FIFA WORLD CUP
REVENUE
There are several different streams of income for world football’s governing body as it seeks resources to touch the world, develop the game and build a better future.
FIFA enjoyed a great period of success in the four-year cycle between 2007 and 2010, with revenue rising to USD 4,189 million, up significantly from the figure of USD 2,634 million from the previous four-year cycle. While costs also rose, they remained firmly in control, enabling FIFA to make an extremely healthy result of USD 631 million.
Ninety-three per cent of FIFA’s income during this period was accounted for by event-related revenue. The biggest event of them all proved the biggest fundraiser: the 2010 FIFA World Cup South Africa™ made USD 2,408 million of FIFA’s USD 2,448 million through the sale of television rights, and USD 1,072 million of its USD 1,097 million via marketing rights. Overall, South Africa 2010 accounted for 87 per cent of FIFA’s total revenue.
FIFA also benefited from brand licensing. Through the organisation’s FIFA Branded Licensing Programme, companies pay for the license to use the FIFA Brand Marks in the advertising, marketing, promotion and sale of their licensed products or programmes. As well as contributing to FIFA Brand awareness and to the globalisation of the game of football, this generated USD 37 million for FIFA between 2007 and 2010.
FIFA also made USD 33 million from Quality Concept, with manufacturers paying the sport’s governing body for FIFA-approved and FIFA-inspected quality marks on outdoor, futsal and beach soccer balls.The governing body’s remaining income came through its conservative investment strategy and was primarily made up of interest income of USD 51 million and foreign currency gains of USD 64 million.
A key success of the 2007-10 period, during which FIFA’s balances rose to USD 2,145 million, was the boosting of reserves to a total of USD 1,280 million, as of 31 December 2010. The creation of reserves is one of FIFA’s statutory duties as it enables the organisation to ensure financial independence and prepare for unforeseen events that would seriously impact revenue streams. The world governing body can therefore be hugely satisfied by their success in this respect over the past few years, with the level of reserves more than doubling over the 2007-2010 period from its 2006 level of USD 617 million.
2016 was an Olympic year and for many sports this represents the culmination of a four-year sporting programme.
The Global Sports Impact Report 2017 provides in-depth analysis of this four-year Olympic Cycle from 2013-2016. Key topics such as Event Hosting and Bidding, Economic Impact, Sport Tourism, Sporting Impact and Event Analysis are featured within the report.
The research also includes analysis of 70 multisport games, world and continental championships which took place during 2016.In addition, GSI Report 2017 has also analysed attendances of 70 of the world’s leading sports properties and provides an overview of the sporting impacts produced across a range of these world cups, leagues, series and tours.
Event Hosting and Bidding
Analysis of the 2013-2016 Olympic cycle and trends in bidding and hosting suggest that nations in Europe will continue to see their overall share of events decline when compared to nations within other continents. North America is the emerging continent and has increased its share of events throughout the Olympic period. With an Olympic Games in 2024 or 2028 looking increasingly likely, in addition to an imminent Fifa World Cup bid, this trend looks set to continue.
Announced in April 2017, the Global Sports Nations and Cities Index is published in full exclusively in the report. Featuring 621 cities from 86 nations, the index analysed 730 events across 151 categories in 81 sports, including summer and winter Olympic sports and Olympic ‘recognised’ sports. USA was once again named number-one Global Sports Nation, while London, UK retained its place as number one Global Sports City.
This year’s report has also identified the top 25 most valuable events judged according to their holistic impact during the 2013-2016 cycle. The analysis has brought us closer to answering the age-old question: which major sports event produces the largest impact, after the Olympic Games and Fifa World Cup, and can therefore be considered the world’s ‘third largest sports event’?
Economic Impact
Across the 2013-2016 Olympic cycle, a staggering 54,392,673 spectators attended the 317 events analysed as part of the GSI scope of research. More than 16 million spectators attended events in 2016 alone.
Sport Tourism
It is estimated that, for the 70 major events analysed in 2016, participants and media alone generated more than 1.5 million bed nights in the host cities, creating a direct economic impact of $303 million before a single ticket was sold.
Spectator-related spend for the same 70 events is estimated at $2.9 billion, generating a total direct economic impact of $3.2 billion for the host cities and nations in 2016.
Analysis of the 2013-16 Olympic cycle shows that 231,029 athletes have participated in the 303 events analysed with a little over 91 per cent of these athletes travelling from outside the host nation in order to compete, highlighting the huge tourism benefits for cities hosting sports events from visiting athletes.
Sporting Impact
An average of 45 nations took part in the events analysed over the four-year period. By comparing the number of competing nations to governing bodies membership, the research shows that there are many nations that don’t send athletes to compete at the major world championships. These emerging countries clearly need more development support to compete at the global level.
Of the 231,029 athletes total, 41.3 per cent were women, signifying that there is still work to be done to ensure gender parity within sport. The IOC is, however, making progress, as the number of female athletes competing at the Olympic Games continued to rise at Rio 2016, with female athletes comprising 45 per cent of all participants at the games, a 0.8 per cent improvement on London 2012.
Event Analysis
All 70 multisport games, world and continental championships analysed in 2016 feature in a standardised format within the Event Analysis chapter.
Each event analysis contains up to 40 data indicators covering the Economic, Sporting, Media and Social impact pillars, as well as key event details and hosting patterns.
These pages allow a like-for-like comparison between events, and between multiple editions of the same event. This information is invaluable to potential host cities and nations looking to attract major sporting events. It also helps event owners and organisers understand more about the holistic impact of their events and compare how their events are performing against others, and how they might improve their performance in the future.
All 70 multisport games, world and continental championships analysed in 2016 feature in a standardised format within the Event Analysis chapter.
Each event analysis contains up to 40 data indicators covering the Economic, Sporting, Media and Social impact pillars, as well as key event details and hosting patterns.
These pages allow a like-for-like comparison between events, and between multiple editions of the same event. This information is invaluable to potential host cities and nations looking to attract major sporting events. It also helps event owners and organisers understand more about the holistic impact of their events and compare how their events are performing against others, and how they might improve their performance in the future.
EXPENDITURE
The vast majority of FIFA’s income is invested in football and football development. Indeed, 72 per cent of the world governing body‘s expenditure is ploughed directly into football, with Corporate and Social Responsibility a central pillar - and development programmes a key area of investment. Indeed, the last cycle between 2011 and 2014 witnessed USD 1,052 million - 20 per cent of overall expenditure – spread across the organisation’s Financial Assistance Programme, Goal Programme and other development and social projects.
Tournaments also play a crucial part in developing football, its participants and hosts, as well as bringing joy and entertainment to the watching world. Accordingly, FIFA Competitions represent the organisation’s greatest single area of expense, with event-related expenditure coming in at USD 2,817 million for the last four-year period.
The FIFA World Cup™ accounted for the lion’s share of this total at USD 2,224 million, with the outlay of Brazil 2014 dominated by prize money, contributions to the Local Organising Committee and TV production costs. Yet FIFA has also displayed a strong commitment to the plethora of less-heralded tournaments that play such a key role in developing and enhancing the game, with USD 505 million going towards the 24 other competitions staged during the 2011-2014 period. FIFA also ensured that its stakeholders benefited by making an extraordinary payment of USD 144 million to its member associations and confederations. Football clubs also received additional funding from FIFA - USD 70 million to the 396 clubs represented at the 2014 FIFA World Cup Brazil. To provide development for football to the host country of the FIFA World Cup™, FIFA approved the 2014 FIFA World Cup™ Legacy Fund of USD 100 million. With this legacy fund, Brazil will continue to benefit from the tournament for years to come.
After the conclusion of the FIFA Club Protection Programme for the 1 September 2012 to 31 December 2014 period, a total of EUR 39.4 million was paid out in compensation to clubs, including the anticipated payments until the injured players are able to resume playing. Given the resounding success of the programme, the FIFA Executive Committee has decided to extend the programme to cover the period of 1 January 2015 to 31 December 2018. The programme will now also cover clubs for women’s representative “A” team matches.
FIFA, as befits an organisation of its size and scope, also has sizeable operating expenses, amounting to USD 861 million for the 2011-2014 period. The role of football governance comes at a cost too, with the organisation of all committees and FIFA congresses, legal matters and football administration tallying at USD 232 million.
The need to fulfill contractual obligations in respect of exploiting marketing, TV and media rights, while ultimately yielding gains, requires an initial outlay, with USD 84 million devoted to this and licensing between 2011 and 2014. Foreign exchange costs also feature on FIFA’s expenditure sheet, although these losses have been more than offset by corresponding foreign exchange gains during the same period.
Financial reserves have been set aside to enable the organisation to react to unexpected events and secure its economic independence.
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