By David Owen
March 22 – FIFA has secured insurance for the Qatar 2022 World Cup. The disclosure comes in the small print of the governing body’s newly-published 2020 financial statements. FIFA said the “maximum insurance volume” was $900 million.
FIFA’s business model remains heavily dependent on the quadrennial tournament, which will be staged for the first time in 2022 in the northern-hemisphere winter. According to the financial statements, “FIFA’s financial position depends on the successful staging of the FIFA World Cup because almost all contracts with its commercial affiliates are related to this event. In the event of cancellation, curtailment or abandonment of the FIFA World Cup, FIFA would run the risk of potentially being exposed to legal claims.”
FIFA is currently budgeting for total revenue of $4.67 billion in 2022. More than half – $2.64 billion – of this would come from broadcasting rights, with a further $1.35 billion from marketing rights and $500 million from hospitality rights and ticket sales.
The governing body plans to invest just under $1.7 billion in the competition.
FIFA said it took out the insurance in 2019, so in advance of the global spread of the covid-19 pandemic, which continues to affect top-level sport and has forced international spectators to be barred from the rescheduled Tokyo 2020 Olympics later this year.
The full statement regarding insurance reads as follows: “In 2019, FIFA concluded an insurance policy for the FIFA World Cup 2022. The maximum insurance volume is $900 million, which covers FIFA’s additional costs in case of cancellation, postponement and/or relocation of the event. The risks covered include natural disasters, accidents, turmoil, war, acts of terrorism and communicable diseases.”
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