For one month this summer, 32 footballing nations and a global audience will focus their attention on Brazil for the 20th edition of the FIFA World Cup. With so many eyes and ears concentrated on one place for an extended period of time, the desire to cash in on the event is strong – but it will come at a cost.
FIFA is expected to generate $4 billion in revenue for the upcoming tournament, with $1.4 billion coming from sponsorship revenue from 22 companies ($2.6 billion will be generated by TV rights to the matches). Since the 2006 Word Cup, sponsorship revenue increased 33% for the 2010 World Cup in South Africa, and is expected to increase another 10% for the 2014 edition.
So is sponsoring the World Cup worth it? Will the tens to hundreds of millions of dollars spent by the sponsoring organizations be returned in sales growth? The answer is a bit complicated and requires a deeper look at the marketing affiliate structure within FIFA, as well as the uniqueness of each of the industries.