The rights to broadcast football matches are among the most lucrative non-broadcast revenue streams for football clubs, national associations, and other sporting bodies. Broadcast rights deals usually involve the sale of media rights around a particular competition or team. These deals often have an impact on the finances of football clubs and can help them gain a financial advantage over their competitors.
Other Sources of Income for FIFA
The FIFA World Cup is the organization’s biggest source of revenue, but it is not the only one. The majority of the revenue comes from the sale of marketing rights and licensing and product sales. In 2018, the marketing rights and licensing, and product sales accounted for around $1.7 billion. This was an increase of $300 million from the previous year. The other major source of revenue for FIFA is the sale of Tv rights. These are expected to generate around $1.3 billion. This is an increase of $500 million from the previous year.
Importance of Tv rights for FIFA going forward
The TV rights deal for the next five-year cycle will be signed between now and 2023. The value of the deal will depend on the number of bids from different broadcasters. The revenue from the TV rights deal will account for around 40% of the total revenue for FIFA. This means that it is an important source of revenue for the organization. Broadcasting rights are expected to increase further, which is why broadcasters are expected to pay a premium for them. The value of the TV rights deal will also depend on which broadcasters want to bid for the rights. It is also important to note that no two cycles are the same. This is because broadcasters are always looking to expand their portfolio by acquiring new rights.
Why are Tv rights so important to FIFA?
The value of TV rights to FIFA is obvious—a good TV deal is a top priority for the organization, as it is a way of ensuring the vibrancy of their sport. More importantly, it is a significant source of revenue generation and is an essential component of the hosting selection process for the FIFA World Cup. The FIFA TV rights package is a six-year contract, which will be effective from 2021. The FIFA World Cup, FIFA Women’s World Cup, and FIFA U-20 World Cup will be broadcasted between the period of 2021-2025. The deal is expected to be worth $4.4 billion. The big difference between the last deal and the upcoming one is that the FIFA World Cup will be split across two broadcasters, instead of one.
How will FIFA benefit from the sale of broadcasting rights?
A good TV deal can help FIFA earn more money, which can then be reinvested into the game. The revenues from the TV rights deal will be put towards the operational and strategic costs of the Federation. The operational cost of the Federation includes the operational expenditure such as the salaries of employees, travel, and hospitality. The strategic cost of the Federation includes the investment for the development of the game, such as the investment in grassroots and development projects, sports science, and innovation. As for the host countries for the FIFA World Cups, 2023 is the first year when a decision needs to be made. The host countries for the next two editions will be selected in 2020 and 2021 respectively. A good TV rights deal can help FIFA secure the hosting rights with a higher bid. Also, the extra money received from the broadcasters can help FIFA with the development of the game in the host countries.
Impact of Broadcasting Rights Deal on Football Clubs
Football clubs can earn a significant amount of money through their broadcasting rights deal. The English Premier League, for instance, has a TV rights deal worth £3 billion per year. This massive amount of money accounts for around 70% of the clubs’ total revenue. The TV rights deal is one of the biggest sources of income for Premier League clubs. Therefore, it has a significant impact on the performance of these clubs. A good TV rights deal can help clubs generate more revenue and improve their financial health. More importantly, it can help clubs invest more on their squad and improve the quality of their team. A bad TV rights deal, on the other hand, can severely impact the performance of a football club. If the deal is worth less than the previous one, it can harm the financial health of the club and can even lead to the club shutting down.
The FIFA World Cup is the most important event in football. It is also one of the most lucrative events in the sports broadcasting world. TV rights deals are expected to increase over the coming years. This means that FIFA will earn more revenue from the event and have more to invest in other areas. This is why TV rights are so important to FIFA. They are a major source of revenue for the organization and are expected to grow as time goes on.