The Football World Cup is the prime sporting event of 2006, watched by up to a quarter of the world’s population. Since the 1998 World Cup, the “business” of football has taken off and licensed merchandise now represents billions of Euros. In 1998, the World Cup spun off 300 licensees and 450 licensed products, generating $1.2Bn in retail sales. The figures for 2002 were similar (280 licensees, 500 products and $1.5Bn in sales). This year should follow a similar pattern.
FIFA announced that for the 2006 Cup, it expects to generate turnover of €1.7Bn with TV rights alone representing €1.2Bn. The remaining €500m is expected from the 15 fifteen official partners. These figures do not take into account revenue generated by the 6 official suppliers, nor the various licenses.
FIFA estimates that the 2006 World Cup should be the most profitable yet, largely as a result of TV rights and licensing. It expects to net some €110m in profits.
The World Cup is expected to raise consumer demand for football in general so that numerous licenses are being set up outside the FIFA orbit. Football is likely to figure prominently in TV shows for children while other licensees are focusing on branding specific players. Beyond the World Cup, French interest in football is fed by national games (French Championships, French Cup, League’s Cup) and by European football games (Champions’ League, UEFA Cup).
Address: IBT Partners - 17 rue du Colisée - 75008 Paris - France
The Football World Cup is the prime sporting event of 2006, watched by up to a quarter of the world’s population. Since the 1998 World Cup, the “business” of football has taken off and licensed merchandise now represents billions of Euros. In 1998, the World Cup spun off 300 licensees and 450 licensed products, generating $1.2Bn in retail sales. The figures for 2002 were similar (280 licensees, 500 products and $1.5Bn in sales). This year should follow a similar pattern.