World Cup sponsorship revenue falls for first time

Big brands stay clear of Fifa and Russia
2018, but Chinese firms help weather the storm

One-Minute Read

According to Nielsen Sports’ research, Fifa sponsor revenue fell
from $1,629m (£1,214m) at the 2014 Brazil World Cup to $1,450m
(£1,085m) today.

The Global market research firm says the 2015-18 sponsorship
cycle had been “a
tougher sell” than for the previous two World Cups, with a
number of long-term Fifa backers, including Johnson & Johnson,
Castrol and Continental, ending their association with the
tournament.

Many experts point to apprehension about being associated with
Fifa, an organisation that until recently was a by-word for
corruption, and a tournament that looks set to be the most
controversial and political in decades.

It represents a worrying setback for football’s world governing
body, which has seen the value of World Cup sponsorship double over
the past two decades.

Last year, The New York Times warned Fifa was facing a
World Cup revenue shortfall. “The sport is more popular than ever”
said Tariq Penja, “what is different this time is Fifa’s
reputation”.

As recently as six months ago, the tournament’s roster of
sponsors remained noticeably undersubscribed — “a reflection of how
much the reputational damage from a much-publicised 2015 corruption
crisis continues to hurt Fifa’s bottom line”, says Penja.

However, there is a silver lining, with Nielsen revealing that
“a new crop of sponsors, including several from China, helped Fifa
weather the storm”.

China’s largest commercial property company, the Wanda Group, is
one of Fifa’s seven official partners, alongside Coca Cola, Adidas,
Gazprom, Qatar Airways, Visa and Hyundai/Kia, while three of
tournament’s five official sponsors are also Chinese. Asian
sponsors now account for over a third of all 2018 World Cup
revenue.

The
BBC says “football has boomed in China” in recent years, with
strong encouragement from the government.

President Xi Jinping is said to be a huge football fan, with
Beijing keen to host the World Cup as soon as possible.