Monday, July 12, 2010

Who did win the World Cup

The 2010 South Africa World Cup now has a winner, Spain, but just who really won the cup? SOYMB reads about the profits generating by this "sporting" event.

What they paid: ESPN paid $100 million for broadcast rights; Univision paid more than three times that amount - $325 million - for the same coverage.
What they get: The advertising dollars that accompany an average of 125 million viewers worldwide per match, and the almost 1 billion people who will watch the final on July 11. 715 million people watched the 2006 championship game and in light of increased viewership this tournament, that number is supposed to be well-surpassed with forecasts that the match will "draw the biggest audience of any sporting final in history."
What it cost them: Adidas signed a whopping $351 million deal with FIFA in 2005.
What they get: Adidas predicts sales of their World Cup-related merchandise to top $1.89 billion; they've already had record sales of $1.9 billion in their soccer category (a 15% increase from soccer-related sales in 2008 and a 26% increase from the 2006 World Cup) and they reported a 26 percent increase in soccer product sales in the first quarter of 2010.
What it cost them: Visa signed a $200 million sponsorship deal with FIFA in 2006.
What they got: No MasterCard allowed! Spending on Visa cards by visitors to South Africa was up by 65 per cent in the first three and half weeks of June, compared with the same period last year. The head of Visa sponsorships worldwide said, “In some markets, it might take a year for us to feel a difference. Inside SA card turnover by foreign visitors has risen 50% already." Leading up to the tournament, Visa registered more than 14,000 independent merchants across 186 malls and street precincts around South Africa.
What it cost them: Coca Cola paid $500m (£290m), for the period from 2007 to 2012.
What they get: Unit case volume up 3% this quarter.
What it cost them: Emirates Airlines were in a $195 million sponsorship deal
What they get: According to the Financial Times, Emirates estimated that its sponsorship deal would allow it to reach 2 billion people. “To get the same kind of exposure online that we get from the World Cup sponsorship... would cost about $3bn,” an Emirates spokesman told Business Day a Johannesburg daily.
What it cost them: $305 million was the price for Sony to sponsor soccer events including the 2010 and 2014 World Cups.
What they get: Sony has been able to preview its new 3D technology in fan parks and shopping malls throughout the country, also taking over the centre of Sandton’s Mandela Square, 'where fans can “live” the experience of watching football through its impressive technology.'
What it cost them: Budweiser spent between $10 - 25 million in annual fees for 2007 - 2010
What they get: Official World Cup beer and the only one sold at stadiums and official fan sites. Nielsen data showed Budweiser had a 25 percent jump in online searches in the week ending June 19th, and this number has been increasing weekly. Nielsen also found four main World Cup sponsors, including Budweiser, generated a 55% higher "net likeability" than commercials from other non-official World Cup advertisers, and they also scored 16% higher on brand recall.
What it cost them: Between $10 - $25 million was McDonalds outlay for being sponsors
What they get: McDonald's South African branch expects a revenue growth of 20%, thanks to the World cup publicity. Last month, McDonald's noted a 4.8% increase of sales worldwide.
What it cost them: FIFA costs were $1.2 billion
What they get: The federation predicts revenue of $3.2 billion leading to a “surplus” of a sweet $2 billion for the 2010 World Cup

And for the football teams - What they get: Spain , the winners of the 2010 World Cup will pocket $30 million, and the Dutch runners-up get a check for $24 million. Every team who played in the World Cup finals will receive at least $9 million: $1 million as a contribution to preparation costs, and $8 million even if they're eliminated at the group stage. Total prize money amounts to $420 million - a 60 per cent increase from 2006’s $261 million prize pool, and almost three times as much as the $154 million in 2002.

And finally for the South African people, SOYMB leaves the final words to the Landless People's Movement
"Billions of rands have been spent on stadiums and other costs for this World Cup yet we remain in shacks and without electricity. They said 'Feel it, it is here' but we have not felt anything other than the pain of poverty worsened with the pain of repression. The money that should have been spent on upgrading our communities has been wasted. The tournament will be over on Sunday and we will still be poor."

It didn't take a result predicting octopus to realise that !

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