FIFA World Cup 2022 will be taking place in Qatar with the tournament starting on 21st November with the final to be played on 18th December 2022.
The European Leagues would be taking a break from their leagues for the first time.
This year’s World Cup would be different from any other World Cup that ever happened.
The tournament will be taking place in the winter as the host country Qatar would have the appropriate temperature at that time.
Check FIFA World Cup Qatar 2022 Prize Money Breakdown
This year, unlike the previous World Cups, FIFA has announced the total prize money for the World Cup with a massive increase of 29% from the previous year in 2018 in Russia.
The pool of money has increased substantially in recent years. It has raised by 80% since the World Cup in Brazil in 2014.
The teams in the tournament are the highest ever with more teams than any other World cup.
FIFA, however, has already announced a total prize money fund for FIFA World Cup with a massive increase of 29% taking the total to $1 billion.
We take a look at how the $1 billion prize money fund will be distributed by FIFA to not only qualified teams for the world cup but also as solidarity payments to federations that failed to qualify.
Why 29% Increase In Total Prize Money Fund?
Prize money fund is generated after FIFA signs TV broadcasting and sponsorship deals for the four-year cycle for different competitions in this case from 2019 to 2022.
Fifa signed extensive TV and online streaming rights for all their major competitions and that helped increase the revenue from TV/streaming broadcasting deals.
FIFA is expected to clear total revenue from the current four-year cycle. Where $3.5 billion comes from TV & media rights sales, $2.4 billion in sponsorship and other commercial activities and another $1.1 million from ticket sales & hospitality packages plus another $890 million from licensing fees making it a grand total of $7.89 billion.
From this $7.89billion, FIFA covers their many costs like $500 million as administration costs, around $520 million for TV coverage production costs, and another $450 million to be invested to help organize the world cup 2022.
Another $180 million was awarded to Qatar football federation.
The $1 billion Prize Money Fund Distribution System?
As the final prize money fund is announced, FIFA also revealed the breakdown of how this $1 billion will be distributed.
This $1 billion fund is divided into four pillars of payments to be made.
⦁ World Cup 2022 Prize Money
⦁ Preparation Payments
⦁ Club Benefit Programme
⦁ Club Protection and Insurance Fee
Therefore, The Final Prize Money Fund For the World Cup – $450 million will be awarded as among teams according to a two-pillar payment system.
A). Guaranteed Fee – This is a participation fee paid to every qualified nation.
B). Performance-Based Payments: Higher the team finish in the 2022 world cup more prize money they will be paid.
Below is the official breakdown of the prize money.
FOOTBALL & CREATIVE ARTS – REVENUE GENERATION
BLACK STARS PARTICIPATION
World Cup breakdown
The Black Stars featured in their first-ever World Cup tournament in 2006 with what was viewed as the golden generation.
Stephen Appiah, Michael Essien, Sulley Muntari and others made good accounts of themselves as the team managed to advance to the round of 16.
In the 2010 edition, the Black Stars did one better, qualifying for the quarter-finals.
It was a disaster four years later with the team crashing out of the group stages in 2014 and clouded by a lot of controversies before, during and after the tournament.
For the 2006 FIFA World Cup, it was revealed that $4 million was spent on the Black Stars. Four years later, the figure increased to $9 million.
In 2014, a budget of $9.6 million was approved by government.
BLACK STARS EARNINGS
Ghana earned about $8.5 million in 2006 for reaching the round of 16 and earned an impressive $14 million for reaching the quarter-finals in 2010.
In 2014, they earned $8 million for suffering a group stage knockout.
IMPORTANCE OF FOOTBALL
⦁ There is always an influx of mass people of all nationalities, officials and guests of both FIFA and CAF following the exploits of the teams.
Based on Ghana’s performance and our past achievements in the 2006 and 2010 world cups, most importantly the world media capture all scenes related to Ghana for a global audience.
This optimizes the exposure to be offered for the following activities:-
⦁ Showcasing Traditional Ghanaian Cuisine / Food, Cultural & Musical Expo
⦁ Tourism & Sports Tourism Potentials
⦁ Trade & Investment Exposition
⦁ Our drive to promote trade and investment in the country is boosted by through tournament participation
⦁ Football also helps in bonding and brings unity to all
⦁ Revenue generation, since football is now a big business
⦁ Also, all players in your national team are citizens of your home country, so that is a big deal.
It is uniting all of the best players from your country and they are playing as a team. You get to watch them play for your country, and when they succeed, you know they are representing you and your country.
⦁ Investing in football reduces crimes and other forms of social vices
THE CREATIVE ART INDUSTRY
The term ‘creative industries’ describes businesses with creativity at their heart – for example, design, music, publishing, architecture, film and video, crafts, visual arts, fashion, TV and radio, advertising, literature, computer games and the performing arts.
It is an industry that is based on work in which original ideas are important.
⦁ In the United States alone, the Creative Arts industry employs 4.9 million people who earn a combined salary of $370 billion (United States Bureau of Economic Analysis and the National Endowment for the Arts, 2019). It also contributes 4.2 percent of the gross domestic product of the country, representing $763.3 billion.
⦁ In the United Kingdom, the industry contributed more than £85 billion in 2015, representing 5 percent of the UK economy’s gross (Department for Digital, Media, Culture and Sport). Do we know the figures from Ghana?
The value of a well-regulated Creative Arts Industry cannot be underestimated. It ensures that other economic sectors benefit directly or indirectly.
Sectors such as tourism, hospitality and transport benefit immensely from Creative Arts Industry.
As the creative economy of Nigeria soared higher, it was not surprising that Nigeria was the only West African country in the top 10 list of World Tourism rankings in Africa in 2016 and 2017.
In West Africa, Nigeria’s film industry, which was then third in the world and worth $250 million a year and a direct employer of nearly half a million people was a significant contributor to the Nigerian economy.
According to UK Music, four million people from around the world attended the Glastonbury festival in 2017, with each person spending nearly £400.
Coachella’s gross revenues reached a historic high in 2017 at $114 million.
In Morocco, the annual Mwazine music festival brings in a total of 3,000 direct and indirect jobs.
When a vibrant, well-regulated Creative Industry is developed with a clear strategy, the benefits trickle down to other industries in the value chain as well, but can this be said in Ghana?
Though international collaborations by the big artists in Ghana help in trade, investment and tourism potential how often do you see these collaborations from Shatta Wale, Sarkodie & Stone Bwoy who are believed to be the big guys in Ghana so far as the creative industry is concerned.
The country’s tourism Potential through international collaborations
A typical example in football; is Thomas Partey, who joined Arsenal from Atletico Madrid for 50 million euros.
Wilfred ‘Palmer’ Osei’s Tema Youth SC, which is a division one club and Revelation FC, a colts club in the Ashaiman area which falls under the Greater Accra Regional FA, were the beneficiaries.
Revelation FC received a notification for €750,000, while Tema Youth has also received in excess of €500,000 for a developmental fee.
Why Africa wants the World Cup every two years
The leaders of football in Africa believe that a tournament every two years would accelerate development.
When Emmanuel Amuneke received an invitation to be a part of the FIFA Technical Study Group to discuss the future of football and its proposal of holding the World Cup every two years, it was not difficult to accept.
The former Tanzania national team coach had always respected Arsene Wenger, the legendary former Arsenal manager and now FIFA’s chief of global football development.
The idea of a biennial World Cup of 48 teams “to give every talent a chance,” as promoted by Wenger, impressed him.
The former Barcelona and Nigeria winger played in his sole World Cup in 1994 but was injured when the Super Eagles returned to the tournament four years later.
“If all the factors can be accommodated, then I don’t see why we cannot have the World Cup every two years.”
An African push for a biennial World Cup
Africa, a continent just as passionate about football as any other, has pitched its support behind FIFA president Gianni Infantino, who has already achieved his desire to see a bigger tournament of 48 teams from 2026 when the USA, Canada and Mexico will host.
In the almost 100-year history of the World Cup, just 13 of Africa’s 54 countries have ever played at the tournament, compared to 33 of Europe’s 55 teams.
Of the 47 Asian nations, only 12 have ever featured, leaving countries with a huge populations like India, Indonesia, Pakistan and Bangladesh away from the top table.
“It is not only Africa that’s excited about the idea of a biennial World Cup; Asia and Oceania also want it,” Amaju Pinnick, president of the Nigeria Football Federation, told DW.
“It is a win-win situation for all the Confederations. If the World Cup were to be played biennially, it would bring about rapid development to our football,” he said, referring to the increase in funds that would be accessible from FIFA’s coffers to deepen grassroots projects around the world.
A combative voice, Morocco’s Faouzi Lekjaa has accused opponents of denying equal opportunities to others.
“The ones who are against the World Cup every two years are in fact egotists because they are discriminating against millions of people just to protect their commercial interests,” Lekjaa told Moroccan outlet LeSport360.
“They should support the possibility to give hope to hundreds of millions of people of our continent.”
However, Dr Patrice Motsepe, the president of the Confederation of African Football (CAF), the continent’s governing body, has taken a more diplomatic approach urging “discussions and deliberations to continue taking place.”
One of the European voices in support has come out of France, the reigning world champions. Noel Le Graet, president of the French Football Federation (FFF), said he is open to considering the idea.
“I have no opposition to a World Cup every two years, even if I want to take a closer look,” Le Graet told French football newspaper L’Equipe, an indication that there could be more support in Europe than first thought.
“Currently African, Asian and South American players do more of the long-distance travelling than Europeans. A common calendar can help to create a comfortable zone for everyone,” he said.
Officials can argue about player wellbeing, youth development or global discrimination as much as they like but, whether the Nations League, the new UEFA Conference League, an expanded Champions League or indeed a biennial World Cup, the elephant in the room is money.
Simply put, more and bigger tournaments mean more opportunities to earn money from broadcast rights, sponsorships and fans.
For many on the continent, the belief is that Europe continues to get the biggest economic benefits from the football industry. The best African players are based in European clubs, in what is a one-way street.
A World Cup every two years would spread more money to them.
However, former Nigerian winger Amuneke believes that Africa needs to continue to build a favourable environment to ensure its football industry is competitive, even if it doesn’t get its way on this matter:
“If we have very solid structures, it will help the upcoming generations. We cannot shy away from it.”
IN 2010 WHEN SOUTH AFRICA HOSTED THE WORLD CUP THIS IS WHAT HAPPENED
What FIFA did report in its 2010 financials is that the World Cup had brought in $3.9-billion in revenue – 60% of which was generated by awarding television rights for the event.
FIFA reported a $631-billion surplus for the four years spanning 2007 to 2010.
In this report, FIFA noted that in 2010 it was able to give its 209 members an extraordinary payment of $550 000 each; its six confederations got $5-million each.
A further $100-million was donated by FIFA to the World Cup Legacy Trust to develop football in South Africa.
Government investment
In South Africa, the national government invested more than R30-billion in preparing to host the event.
An estimated R10-billion (according to Grant Thornton) more was spent at the provincial and municipal levels.
The bulk of South Africa’s World Cup spending went into upgrading and building stadiums across the country, which the competition authorities later found to have been subject to collusion and bid-rigging.
The energy department was tasked with providing a sufficient power supply during the tournament.
This was achieved by strengthening the grids in all the host cities and even leasing generators where necessary.
The 2010 FIFA World Cup Legacy Trust was also formed following the World Cup to support a variety of charitable initiatives in South Africa.
FIFA contributed $100-million to the trust, $80-million of which was meant to be invested directly in social community projects.
The remaining $20-million was paid to the South African Football Association before the tournament to cover World Cup preparations and the construction of the association’s headquarters.
For the first project financed by the trust, FIFA purchased 35 team buses and 52 vehicles, which were handed over to SAFA on December 13, 2010, for its regional teams.
The 2010 FIFA World Cup Country Report, published by the department of sport and recreation and released in 2013, said the government had initially set aside R8.4-billion for stadium construction.
However, due to cost escalations, this amount was readjusted to R13.5-billion.
The host cities, together with their respective provinces, also made financial contributions totalling R2.1-billion towards the stadium construction,” the report said.
For South Africa’s economy, a direct benefit of hosting the tournament was that it added 0.4% to national economic growth, translating into R38-billion that year, as estimated by the finance minister, Pravin Gordhan.
This occurred at a time when the rest of the world had fallen into recession.
The sports department’s report claims the investment in 10 “excellent stadiums” alone created 66 000 new construction jobs, generating R7.4-billion in wages, with R2.2-billion going to low-income households and therefore helping reduce poverty.
The second-largest spend went to transport infrastructures – such as the upgrading of roads and the building of the Gautrain – and R1.5-billion was budgeted for event broadcasting and telecommunications.
The two minutes a game spent promoting South Africa amounted to an estimated R1.5-million worth of advertising.
The sports department reported that 3.1-million spectators attended the 64 matches during the tournament.
The reason why footballers are paid so much depends on the economic theory of demand & supply.
In this case, supply is the number of players talented enough to play in the top leagues such as the Premier League. Demand is the number of teams who want to buy the players.
The demand for talented football players is high as they increase the team’s chances of winning titles. Successful teams make more money from broadcasting rights,
merchandise and ticket sales. Clubs have to compete for the best players by offering the highest wages. If a particular club was to offer lower wages, other clubs would simply outbid them.
Players are being paid increasingly high wages because the clubs are making more money than ever. As a result of globalization and technological advances such as the pay-TV market, football has become more popular and so more profitable.
The rights for the first seasons of the Premier League in 1992-97 sold for less than £200 million. The TV rights for 2016-19 are in comparison worth more than £5 billion.
Sports is an important sector of economic activity and spans medical treatment and rehabilitation, research and development, sports tourism, sales and trade of sports products, construction and maintenance of sports venues, organisation of sports events, and marketing and advertising.
It also creates various job and business opportunities (e.g. engineers and developers, coaches and sports doctors, sports journalists and commentators, retailers of sports goods and equipment, etc.).
It is also part of the increasingly important leisure industry and as such, has broader benefits such as boosting productivity, individual and community development as well as reducing the burden of ill health on society.
Additionally, it has far-reaching implications on the global economy due to its close association with other sectors including education, real estate and tourism. Sports are ranked among the top mainstream activities in the economy.
A country-by-country breakdown finds that the sports industry is growing faster than GDP in fast-growing economies, such as the booming BRIC nations (Brazil, Russia, India and China); and also, it is growing faster than the GDP in more mature markets in Europe and North America.
Value of the sports industry globally
Using economic impact methodology, which is largely developed around the estimated number of spectators visiting an event from outside the local region, and the amount those visitors spend on accommodation, food and entertainment etc; the estimated size of the global sports industry was US$1.3 trillion in 2015 according to Plunkett Research Ltd.
A study in 2014 by A.T. Kearney, found that the market for sports events (i.e. revenues for tickets, media rights and sponsorship) is worth close to US$80 billion. Between 2009 and 2013 there was an annual growth of 7 per cent, faster than the GDP of most countries.
Moreover, the sports industry generates as much as US$700 billion annually or 1 per cent of global GDP when sporting goods, apparel, equipment, and health and fitness spending are included.
THE JAMAICAN WAY
Native island of Bob Marley, Jamaica is also well-known for its Olympic medals and its famous sprinter Usain Bolt.
The numerous titles won by athletes give the island an international outreach it could definitely benefit from.
The island state enjoys more victory per inhabitant in athletics than any other country in the world.
In the future, all of these successes could become a source of national wealth. Moreover, it could allow the island to dispense with using subsidies from international institutions such as the IMF (International Monetary Fund).
Jamaica, far from being a haven of peace, holds one of the world’s highest crime rates, with 40.9 homicides for 100,000 inhabitants in 2011, according to the United Nations Office on Drugs and Crime.
This situation slows down national growth as well as tourism which is one of the island’s main financial resources.
In order to solve this problem, several leading figures such as PJ Patterson -former Prime Minister- chose to set up sports practice as a significant step for Jamaican economic development.
Today, sport contributes to 2% of the Jamaican GDP. It constitutes a precious resource that needs to be developed by the state, according to the report of the National Development Plan untitled “Vision 2030” and published in 2009 by the Planning Institute of Jamaica.
The sports sector will become a commercial activity directly linked to tourism. In order to reach this goal, this commission proposed several solutions such as professionalizing sports associations or linking industry to sports, for instance, by creating a Jamaican brand, etc.
Nowadays, the 3 most popular sports in Jamaica are cricket -inherited from the settlers and popular in the whole society-, football – with the national team called the “Reggae Boyz” revealed to the world during the 1998 World Cup, and last but not least, athletics which counts with current leading figures or former ones such as Merlene Ottey who was the athlete who won the most medals.
Jamaican children start doing sports as an everyday activity at school at a very young age. The classes are totally free and the activity was developed through interschool competitions across the whole island.
In 2009, up to 16.5 % of its population lived below the poverty line; therefore, getting a sports scholarship is a real chance to go to university and escape poverty and criminalization for most children.
With 81% of the children going to school, this institution seems to be satisfyingly developed in Jamaica. Thereby, young children tried to be selected by the best high schools since primary school.
These pupils are competing during the Boys and Girls Athletics Championship –known as «Champs »- which was created in 1910 and takes place each year.
The competition, followed by 30,000 people, gathers the best Athletics teams of Jamaican high schools.
The Champs used to be invaded by American supervisors willing to find the gems and bring them back to the United States.
Today, young people prefer to follow Usain Bolt’s example and stay in Jamaica, fitting in with the government’s goal to promote the training of talented young people at home.
The number of IAAF (International Association of Athletics Federations) certified trainers doubled in fifteen years, increasing from one hundred and fifty to three hundred, allowing a professionalization of the athletes.
In 2002, a new public-private partnership was set up. The Puma brand became the official supplier of the JAAA (Jamaica Athletics Administrative Association) and it has sponsored the Champs as well as athletics programs in seven different high schools ever since.
The development of clothes and sports equipment brands, the multiplication of media able to broadcast the Champs on a financial basis, the signature of partnerships, the construction of infrastructures and the formation of sports experts, such as psychologists, doctors or managers are a way to promote sport as the developing agent of Jamaica, said former Prime Minister, E. Seaga.
According to D. Chung, author of “Charting Jamaica’s Economic and Social Development: A Much Needed Paradigm Shift”, the sport will also impact on crime rate among the youngest population, through the teaching of values such as being fair play for instance.
From colonial cricket to the development of athletics, sport really belongs to both the culture and the history of the country.
First influenced by the British power, Jamaica forms today many athletes, some of them known worldwide.
The Prime Minister asked for this discipline to get private funds in order to make it a significant source of wealth for the state.
THE STORY IN KENYA
After the attainment of independence from colonial rule in 1963, the priority issues on which the post-colonial Kenya Government focused its attention were eradication of poverty, improvement of healthcare facilities and expansion of education.
National development plans in the first decade, therefore, addressed these three main issues.
At that time, the sport did not feature as a facet of development.
Though people participated in sports, this was to a less extent and was generally regarded as a pastime activity.
In addition, sports were regarded as an activity for children in schools. In the 1960s, some athletes who excelled in major international competitions provided the impetus for increased interest and participation in sports by Kenyans from all walks of life.
Consequently, many sports federations and organisations to manage and administer various sports disciplines were formed and registered by the Government.
At this moment in the history of Kenya, there has been a tremendous development in sports. Its popularity has stemmed from the understanding of the Government and the people of Kenya of the role of sports as a vehicle for national development.
Indeed, the contribution of sports to the social, economic, cultural and political development of Kenya has been immense.
There is no doubt that sport has contributed immensely to the economic development of Kenya. The fact that sport is one of the biggest economic industries in the country is not a subject of debate.
Like other commodities, the sport has been a commodity that is produced, marketed and sold to the public. Due to the popularity of the sport in Kenya, many commercial organizations in the country have been keen on advertising their goods and services through sporting activities.
The commercial organisations spent millions of shillings through advertisements and sponsorships of sports events, thereby enabling them to maximise profits through increased sales of their products and services.
Kenya is renowned for producing some of the world’s top track stars. Just recently at the World Championships in South Korea, they finished third behind the mighty Americans and Russia.
At the Boston Marathon, for example, Kenyan athletes are so dominant that the race is now jokingly referred to as the “Kenyan Intramural Championships.”
Saudi Arabia is experiencing a unique socioeconomic transformation in which sports take center stage
The Saudi Vision 2030 upholds Saudi Arabia’s plan to diversify its economy and address the challenges brought by low global energy prices.
Vision 2030 also aims to create a vibrant society by promoting a healthy lifestyle and well-being — physical and social.
The Quality of Life Program was launched in May 2018 to deliver on this objective. Sport is central to this program, with several initiatives aiming at encouraging mass participation, improving Saudi Arabia’s athletes’ performance in international competitions and growing the sports economy.
In a short time, Saudi Arabia has leapt to the forefront of becoming a new breeding ground for a flourishing sports events ecosystem by playing host to some of the biggest and most renowned sporting events globally.
A thriving sports sector prompts positive spillover and ripple effects in other sectors of the economy such as tourism, national identity and culture, public health and, most notably, youth and social empowerment.
Specifically, hosting major sporting events displays Saudi Arabia’s value-driven diversity and inclusiveness, high economic potential and cultural attractiveness to the wider international arena, thereby increasing the inflow of foreign direct investments (FDI).
It also enhances the attractiveness and visibility of the nation’s tourism sector.
The government of Saudi Arabia aims to encourage widespread participation in sports activities, diversify the economy and boost the sector’s contribution to GDP.
Sports’ contribution to GDP has already grown from US$2.4b in 2016 to US$6.9b in 2019.
This growth offers significant development opportunities to Saudi Arabian companies involved in the sports ecosystem, ranging from event organisers, and sports facilities providers, to sports services such as gyms.
While an impressive start, there is still massive growth potential in terms of GDP growth, FDI and employment, as well as indirect benefits such as stimulating tourism and improving the overall image of the country.
Large-scale, internationally recognised events in the Kingdom present massive partnership, investment and sponsorship opportunities in every part of the sports value chain — venues or facilities, sports leagues or clubs, sports professionals, equipment, merchandising, etc.
The development of the sports industry in Saudi Arabia will help promote the country as a prime tourist destination.
It will also offer attractive employment opportunities, in competitive sports as well as in the business of sport. Over two-thirds of Saudi Arabia’s population are under the age of 35 with a growing appetite for sport, driving both event participation and attendance.
While appreciating and encouraging sports culture in the country, the history, customs, traditions and culture of the country will be portrayed through a positive lens globally, creating a desire to know more.
It helps to improve the image of the nation and build trust. Sports events have the capability to uplift the economic, social, lifestyle and health aspects of Saudi Arabia.
Historically, Saudi Arabia has not captured its fair share of global sporting events.
Today, the Kingdom is ambitiously expanding the line-up of sporting events it is hosting — including major international events, elite events, regular national competitions, as well as numerous smaller and mass participation events.
The number of internationally recognized events doubled from 9 in 2018 to 19 in 2019.
The events held so far include the WWE Super Showdown, the Saudi Pro-Golf Championship, Battle of the Champions, Formula E, E-Prix, International Handball Federation Super Globe and Saudi International Meeting for Disabilities Sport.
In 2020, all major sporting events planned during the year were disrupted by the COVID-19 pandemic.
However, it has once again picked momentum and is in line with the country’s vision and objectives, with multiple large-scale events being planned.
The sports events industry is nascent in Saudi Arabia, with revenues of US$2.8b in 2019, representing only 0.9% of the global sports events industry.
The market is expected to acknowledge substantial growth in the next five years, with a growth rate of 8% per annum.
Why Saudi Arabia has prioritised hosting of sports events
⦁ Delivering direct economic impact, from spectator revenues (ticketing, food and beverage (F&B), accommodation), an athlete spends (accommodation, sports services such as training facilities) and sponsorships.
⦁ Stimulating interest in the sport in Saudi Arabia by encouraging both mass participation in sports events and creating interest in pursuing a career in high-performance sports.
⦁ Developing tourism, as a flagship event will encourage spectators to combine sports viewership with tourism opportunities
⦁ Improving the image of Saudi Arabia, as a modern nation with a thriving social and entertainment scene
⦁ Promoting a sense of pride and unity among Saudi nationals
