FIFA World Cup: ‘Sponsors were very pleased,’ professor says
NYU School of Professional Studies Academic Director and Professor Daniel Kelly joins Yahoo Finance Live to discuss how the World Cup fared for the event's sponsors in terms of revenue generated.
AKIKO FUJITA: Well, Lionel Messi and Argentina have won the 2022 FIFA World Cup by defeating France. Epic match if you missed it, while the country, along with its fans, celebrate the team. Some other winners emerged from the tournament, its sponsors from Adidas to McDonald's, and even the unused and unsold beers from Anheuser-Busch World Cup sponsor scored over the past few weeks.
Joining us now for more is Daniel Kelly, NYU School of Professional Studies academic director and professor. Professor, good to talk to you today. I guess you could sort of argue it was a big win for Qatar from a financial standpoint. Obviously, controversy follows. It wasn't necessarily about the money, but give me your assessment of where things stand now that everything is wrapped up.
DANIEL KELLY: With everything wrapped up with an amazing final between Argentina and France, Lionel Messi was presented with a beast by the emir, his excellency, Tamim Bin Hamad Al Thani, which is the highest honor that any athlete can get or any person can get from in the Arab world. And so this kind of favor goes along with all of the accolades that Gianni Infantino, who is the leader of FIFA, the president, spoke about.
Overall, since 2019 to yesterday, Qatar was able to earn $7.5 billion when it comes to the revenue share that was earned during the time for the matches. And so, overall, the games were fantastic. The sponsors were very pleased. And even Budweiser, with the unsold beer, will probably seek about $47 million in made good back from FIFA. But overall, I would say, very happy with the investment in Qatar.
RACHELLE AKUFFO: And they certainly got a shoutout from Messi. He said, happy to celebrate and bring home the birds to all the fans that supported us. So at least a good finish after sort of getting blindsided by Qatar about not being able to serve beer at the games. Talk about some of the other big corporate winners, including FIFA itself.
DANIEL KELLY: FIFA is about a billion dollars more than they made in Russia, so $6.5 billion in Russia, $7.5 billion in Qatar. The projection for 2026, when it moves over to the United States, to Canada, to Mexico, is that they're on pace for $11 billion. So you're seeing the overall growth of the game and the overall growth of FIFA. Adidas itself expects the World Cup sales to, around the world, to top off at about 400 million euros to $421 million. McDonald's launched its largest global marketing campaign ever.
And so what we're seeing is that the sponsors were investing. FIFA was strategic with the different grouping of sponsors, but the FIFA sponsors and the FIFA partners, like Coca-Cola, Adidas, Visa, Qatar Airways, Qatar Energy, and Hyundai, and then, of course, their World Cup sponsors, including Budweiser, McDonald's, Mengniu Dairy, and Hisense. And so overall, just structuring their plan appropriately, but more importantly, making sure that they came through with the promises of a fantastic World Cup, which Argentina and France and Leo Messi and Kylian Mbappé definitely delivered.
AKIKO FUJITA: Yeah, Qatar certainly very happy with those results there, given the bribery scandal that preceded what actually came through on the pitch there. But Daniel Kelly, good to talk to you today. Daniel Kelly, NYU School of Professional Studies academic director and professor, thanks so much for joining us today.