The '14 FIFA World Cup "is the most valuable, lucrative and expensive in FIFA history," according to Graham Dunbar of the AP. Record numbers include a $35M prize to the "winning team's federation," $4B in commercial revenue for FIFA and a $14B bill for Brazil. With three million tickets "available to buy, the 64-match tournament is almost sold out." FIFA Secretary General Jerome Valcke said, "We have never sold so many tickets." The $14B total for Brazil "is the predicted spending on building and renovating 12 stadiums, upgrading federal, state and city infrastructure, plus security plans to welcome the 32 teams and around 600,000 expected visitors." FIFA forecasts that it will spend $2B on the tournament, "including the local organizing committee costs." Broadcasters and sponsors "pay most" of FIFA's $4B income. Financial reports from the past three years show that European TV networks "have paid the majority" of the nearly $1.7B, so far, in rights fees to FIFA. Six top-tier partners -- adidas, Coca-Cola, Emirates, Hyundai, Sony and Visa -- "pay a combined" $708.5M over four years. Eight second-tier sponsors -- Budweiser, Castrol, Continental, Johnson & Johnson, McDonald's, Moy Park, Oi and Yingli -- "collectively pay" $524M. About $120M "has been earned from Brazilian 'national sponsors.'" FIFA "has spent significantly in Brazil," as it already gave $221.6M to the "embattled organizing committee, and more should follow in last-minute wrangling over paying for essential services" (AP, 5/22).
BOTCHING IT IN BRAZIL? Brazil-based Itau Unibanco Holding SA CEO Roberto Setubal, whose company is sponsoring the World Cup, said that the country "botched preparations to host" the event. Setubal: "We haven't done a great job. The organization of the World Cup is far from being perfect. Brazil is much better than that." BLOOMBERG NEWS noted Itau, Brazil's "biggest bank by market value, is one of eight national sponsors for the World Cup" (BLOOMBERG NEWS, 5/22).
