Broadcasting and marketing revenues at this summer’s World Cup in South Africa are expected to generate a record £2.2 billion. This includes a record £690 million in sponsorship secured by the sport’s governing body, Fifa – representing a 80 percent increase compared to the last tournament in Germany in 2006.
According to market analyst Sportcal, one of the main reasons for the boost in sponsorship income is that Fifa has cut the list to of main sponsors to six from 15. Coca-Cola, Emirates, Sony, Visa, Adidas and Hyundai are each now paying more for the privilege of exposure, despite the global downturn.
New sponsors such as Chinese renewable energy provider Yingli Solar, Brazilian foodmaker Seara and Indian IT company Mahindra Satyam are hoping that the tournament will help transform them into globally recognised brands, as well as win new markets and profits long after the tournament ends.
China Central Television won the rights to broadcast free-to-air all 64 matches. The station reaches up to 97 percent of China’s population of 1.3 billion.
The official China Daily said the station paid two billion yuan (US$292 million) for the rights.
India is another huge emerging market. All matches are being shown live on the pan-Asian ESPN-Star network, which bid US$40 million to secure the rights for South Asia.
Free-to-air station SBS has the television, online and radio rights in Australia and is believed to have already attracted its biggest crop of advertising dollars in its 30-year history for the programming.
The deals are commercial in confidence, but The Australian newspaper reported sponsorship amounted to an estimated at US$16 million.
In China, Sichuan-based alcohol producer Langjiu Group is reportedly forking out 4.88 million dollars for the exclusive titling rights to the World Cup’s top scoring list.
Other brand advertisers splurging billions of yuan for air-time include China Mobile, Nike, sportswear maker Deerway and Tsingtao Beer, state media said.
In Japan, the Japan Consortium, a syndicate including pubic broadcaster NHK and private Japanese networks, hold the rights.
WORLD SPORT DESTINATION EXPO – THE GLOBAL MARKET PLACE FOR SPORT TOURISM
Uniquely co-located alongside the 2010 FIFA World Cup in South Africa, World Sport Destination Expo (WSDE) is the world’s first exhibition and conference dedicated to showcasing the $600 billion a year sports tourism industry.
Fully endorsed by the leading authorities in travel and tourism, WSDE will present a momentous first opportunity national tourist boards, host nations and cities, and sporting resorts and hotels to conduct business, source new contacts and markets, gain top-level insights and showcase their brand capabilities on a global stage.
World Sport Destination Expo takes place at the SCC, Johannesburg, 5-9 July 2010