Friday 13, April 2018 ww.businessdayonline.com facebook.com/businessdayonline @businessDayNG C002D5556 BUSINESS DAY 7 ANALYSIS BREAKING DOWN RUSSIA 2018 FIFA WORLD CUP PRIZE MONEY .....records 40% increase The Prize money for the 2018 FIFA World Cup has been announced for all 32 teams competing in Russia. FIFA has announced the 2018 FIFA World Cup prize money pool where they have allocated record $791 million for prize money, payments to clubs and player insurance fee. $400 million will be purely awarded to 32 national federations according to how they finish in the tournament where eventual FIFA World Cup 2018 winners will pocket $38 million. Below is the entire breakdown of Prize money pool for 2018 World Cup. FIFA has announced the prize money pool for 2018 FIFA World Cup which is set to take place in Russia. $791 million funds are allocated for total contribution to the participants of the tournament. Thats 40% increase in the total contribution compared to 2014 World Cup where total contribution was $564 million. Out of 791 million allocated for 2018 World Cup $400 million will be used as prize money pool to be awarded to 32 teams according to how they finish in the tournament. $209 million will be used for Club Benefit Programme;(for clubs who release their players for world cup). The remaining $134 million will be insurance fee for clubs who players get injured during world cup. A total prize money pool for 2018 FIFA World Cup where $400 million will be distributed among 32 federations how they finish in the tournament. $1.5 million will be awarded to every 32 teams as participation bonus. Teams eliminated from the group stage will pocket $8 million each. First knockout stage losing teams will get $12 million each while quarterfinal losers get $16 million. Fourth Placed team gets $22 million, third place $24 million, losing finalists pocket $28 million and the winners will take home as much as $38 million. FIFA World Cup Prize Money History: Over the last 5 world cups FIFA has increased the prize money with every tournament. Back in 2002 total prize money pool for World Cup was $154 followed by $262 million in 2006 World Cup. $420 million in world cup 2010 followed by biggest increase in 2014 world cup when FIFA handed out $564 million in prize money, insurance and payments to clubs. World Cup is fifa’s flagship event and 85% of orgnizations revenue comes from World Cup taking place every four years. FIFA announced that depending on the revenues, they expect to increase prize money pool for each of the next 4 world cups and here is why. FIFA Revenue details: FIFA made $4.8 billion during the 2014 world cup while the total expenses were around $2.7 billion resulting in $2.1 billion profit for FIFA. FIFA World cup 2014 total revenue included $2.4 billion in TV rights, $1.5 billion in sponsorship and commercial activities around 2014 world cup while ticket sales generated another $550 for fifa. While costs included that $576 million in prize money & insurance payments for clubs, another $370 million in tv production, $470 million was invested to help organize the 2014 world cup and another $100 million was handed to Brazilian FA as “Legacy” payment. Large portion of the remaining profit will be invested around the world to develop football and FIFA itself will only keep $338 million in profit. So its easy to see why FIFA keep hiking the prize money for world cup, it is by far the biggest sports event in the world on almost every possible scale so FIFA need to match the prize money with world cup glory. The table shows the difference between expected prize money payouts in FIFA World Cup 2018 and what was paid in 2014 world cup in Brazil.