FIFA expects that the World Cup in Saudi Arabia in 2034 will witness “strong revenues”, in exchange for lower costs compared to previous editions.

The Federation reported that it “conducted a comprehensive assessment of the potential organizational costs related to the file,” referring to the potential budget for the tournament.

He pointed out that this analysis was drawn by using basic numbers from previous editions of the World Cup, while adapting them to the formula of 104 matches that the competition will witness, in addition to the concept of 14 stadiums that will host them.

This basis was then adjusted to take into account inflation, given the approximate preparation time of 10 years, while some cost items considered more sensitive to local conditions were adjusted using the comparative price level index.

Organizational cost estimates

The total organization costs were calculated to be less than the baseline (about $450 million), with Saudi Arabia hosting the tournament, according to FIFA.

Major cost drivers include television operations ($378.4 million), workforce management ($273.8 million), transportation ($124 million), team services ($111.1 million) and ICT ($99.5 million).

When comparing the profile, the theoretical estimate appears to be driven by competitive pricing levels and has a positive impact on areas such as technical services ($133 million below baseline), safety and security ($58.9 million below baseline) and information and communications technology ($43.3 million). Below the baseline), according to the assessment, with almost all cost components likely to be below the baseline.

Revenue

In addition to the expected costs, FIFA assessed the potential revenues associated with the tournament, developing benchmarks against which the individual revenue components were evaluated.

All of these revenue components, with the exception of Media and Marketing Rights, which were developed in collaboration with Nielsen Sport, were developed directly or were estimated based on revenue figures from previous World Cups.

In line with estimates of the expected costs of the file, revenue projections based on the World Cup editions were adjusted to 48 teams and 104 matches, not to mention taking inflation into account.

The evaluation included sponsorship revenues and media rights, and it is likely that the file will lead to a growth in the audience following the tournament via live television broadcast globally, by about 10% when compared to the next edition.

He noted that the value of media and marketing rights benefited from a relatively favorable time zone, including very strong viewing potential in the Middle East and North Africa.

“Strong business position”

In assessing the total revenues of tickets and hospitality, FIFA is likely to exceed the estimated baseline by approximately 32% (equivalent to more than $240 million).

The Saudi file is expected to slightly exceed the baseline (by about $7 million) in licensing and retail revenues, due to the expected positive results.

FIFA’s evaluation concluded that the bid will present “a strong performance, especially driven by high-quality venues with major distinguished offers.”

He continued: “Combined with the tournament’s budget, which was assessed as being well below the baseline, FIFA believes that the file presents a strong commercial situation.”

The International Federation stressed the “low” risk assessment in this regard, as “the file presents a strong commercial situation in general, with strong revenues and a strong balance in hospitality in particular.” He added that "the costs of the organization were estimated to be much lower than the baseline."