FOOTBALL WORLD CUP 2022 A FINANCE PROFESSIONALS PERSPECTIVE
Football World Cup 2022-A Finance Professional’s Perspective
The leadership in Qatar appears to have followed Swami Vivekananda’s words when they bid for the World Cup 2022 –“You shall be nearer to God through Football than through study of Gita”. Meaning thereby it’s through inclusivity alone would salvation be delivered to all.
Qatar with sparse infrastructure but with large funds, won the bid against all odds and sceptics were silenced forever and in fact astounded by the sheer opulence and grandeur of USD 220 Billion spend (as against of USD 11.6 Billion in Russia 2018). It got together millions under one umbrella, one event and perhaps even a stronger impact than any UN Event.
The essence of this stupendous leap of faith is embedded in the theme HAYYA HAYYA (BETTER TOGETHER)
A Finance Professional’s Perspective:
For Host Nation
Qatar the host nation made a huge gamble by spending USD 220 Billion to build infrastructure 7 stadiums, Metro, Hotels, hospitals, airport, malls and other amenities to extend their hospitality to the international guests of about 1.2 million visitors.
Bloomberg estimates about USD 5.4 Billion revenue to Qatar from the event while another firm estimates about USD 10 Billion.
However, the long term or the Capital Expenditure would have to be recovered over a period of 10 years or so.
It certainly shows the farsightedness of the Qatari leadership to do a reality check, as to when the fossil fuel runs dry in their country. Just like Dubai, Qatar too, could be a trading or business hub, due to its vantage location.
For FIFA
This body is the most powerful sports body, even more than Olympics, in terms of number of countries participating, with 95% of all sports fans globally being aware of the event, spread over 200 nations.
Total Tickets sold is about 2.9 million as against 3.03 million (2018)
For Partners/ Sponsors
Adidas Coca Cola, Hyundai-Kia, Qatar Airways, Visa are the main partners.
The main sponsors being Biju’s/Budweiser/Crypto.com/McDonald/Vivo
Regional Sponsors mainly are GWC/Ooredoo/Qnb Group/Nubank, Claro
The total revenue budget is amounting to USD 4666 m.
For Winners
The winners of world cup will receive USD 44 M out of USD 440 M total prize money.
For all the stakeholders, the Finance Professional play as a central character by playing a very key role, in evaluating the scenario.
Undoubtedly, the Finance Professional being the custodian of values, will draw a Balance sheet, as soon as the final whistle is blown for the World Cup, reflecting the results, other than what transpired between the goal posts!
Whoever takes home the World Cup is certainly the Winner of the Football Skills as a Team, representing a country. However, the true winners would be the world collectively, having come together for an event that is Better Together, as against world divided by war, illness and devastation due to climate change.
It most certainly signals hope for humanity and that peace and wellness shall finally prevail.
If one wealthy nation can raise USD 220 Billion for a sporting event, then collectively all the nation can contribute sufficiently to save the world, with the Finance Professional, leading the way for all the stakeholders !
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This article was written by " SriKumar Gopinath, Formerly Director with JRSCA Consulting & Advisory Pvt Ltd ,Independent Director (IICA)and managerial roles with Volvo /Tata Motors and many more “