The Business of the FIFA World Cup

Simon Chadwick, Paul Widdop, Christos Anagnostopoulos, Daniel Parnell, Simon Chadwick, Paul Widdop, Christos Anagnostopoulos, Daniel Parnell

• Editorial: Routledge
• Año: 2022
• ISBN:
  9781000575040
• Edición: 1
• Categoría: Negocios y empresa
• Categoría: Ciencias del deporte y del ejercicio

The FIFA World Cup is arguably the biggest sporting event on earth. This book is the first to focus on the business and management of the World Cup, taking the reader from the initial stages of bidding and hosting decisions, through planning and organisation, to the eventual legacies of the competition.

The book introduces the global context in which the World Cup takes place, surveying the history and evolution of the tournament and the geopolitical background against which bidding and hosting decisions take place. It examines all the key issues and debates which surround the tournament, from governance and corruption to security and the media, and looks closely at the technical processes that create the event, from planning and finance to marketing and fan engagement. Analysis of the Women's World Cup is also embedded in every chapter, and the book also considers the significance of World Cup tournaments at age-group level.

No sport business or management course is complete without some discussion of the FIFA World Cup, so this book is essential reading for any student, researcher or sport business professional looking to fully understand global sport business today.

1 Introduction

Simon Chadwick, Paul Widdop, Christos Anagnostopoulos, and Daniel Parnell

DOI: 10.4324/9781003121794-1

The FIFA World Cup is one of the world's biggest mega-events and, on this basis alone, is worthy of analysis. However, nearly 100 years since the tournament's first edition took place, in 1930 in Uruguay, understanding how and why World Cup tournaments are planned, organised, staged and evaluated has never been more imperative. What started as a football competition between nations has now grown into something that is of immense economic, political and sporting significance.

Radio and television coverage may initially have captured the attention of football fans and non-fans alike, but the digital era has propelled the competition to a position of global prominence. Social media, Over-the-Top broadcasting and mobile technology are now pervasive influences on the World Cup and the way that people engage with it. At the same time, industrial and commercial influences mean that the World Cup is now an opportunity to build business, create products and sell brands. Furthermore, globalisation has led to nations such as Qatar and China becoming important constituents of world football's eco-system. At the same time, socio-cultural change over the past century means that women's football is now gaining parity with men's football, fans are increasingly seeking tournament experiences rather than just 90-minute matches, whilst concerns about preserving the natural environment are challenging everyone. All the while, despite widespread protestations that football and politics do not mix, staging World Cup tournaments has always been an inherently political process. In tandem, countries are increasingly staging tournaments for political reasons, whether it be to project soft power or to build a nation's brand.

At the time of writing, the global pandemic was still a problem and therefore a significant challenge for in staging FIFA World Cups – whether qualifying games, or the various tournaments themselves. Looking ahead, unless there is an instantaneous or miraculous eradication of the virus, then COVID-19 will loom on the event's landscape for some time to come. The 2022 World Cup in Qatar will be the first held in the Middle East; in 2023 (Australia and New Zealand) and 2026 (Canada, Mexico and the United States) competitions will be held with an increased number of competing teams; and then in 2030, speculation is rife that China will seek to secure hosting rights. It therefore seems likely that the World Cup will retain its place as one of the world's most important sport events; indeed, it seems likely to grow in stature albeit in a way that brings further challenges and complexity. At the same time, the world is in a state of flux and perhaps encountering one of the most dynamic periods in human history. Bidding for and staging a football World Cup must therefore be viewed against this backdrop.

Thus, this book has been compiled with the specific purpose being to provide an analysis of how to plan, organise and deliver successful World Cup tournaments. The book is firmly rooted in the fields of leadership and management, drawing from other disciplines including politics and technology. It will provide readers with an understanding of fields ranging from fan engagement to managing environmental impacts. The chapters take you from the start of the bidding process, right through to establishing and managing the legacies of World Cup events. It is also important to note that the book focuses on both male and female tournaments, and should be read in the context of both. The book is not specifically or exclusively about what happens on the field of play, or does its analyses extend to, for example, matters such as the management of injuries or national team performance. Furthermore, the book does not seek to judge but rather to inform, adopting a balanced and analytical approach that is not intended either to support or condemn one host or another, or FIFA itself. Indeed, the essence of the chapter collection presented herewith is one based on promoting understanding and identifying lessons for improved leadership and management.

In broad terms, the book's structure is based on the notions of where the World Cup has come from, where it is now, and where it is heading. The book starts by examining the World Cup's business history (Chapter 2), something which the editors believe has never been undertaken before. This is remiss of the writers in the field, as the tournament's commercial background reveals a great deal about both its current and past incarnations. Thereafter, the book moves onto examine bidding, covering what is involved in this process, why countries bid and how FIFA members vote for a particular nation to host the competition (Chapter 3). Often, such decisions are based on the internal politics of the continental associations, and of the global geopolitical situation in which bids are made. Equally, it is important to note that countries often bid for tournament hosting rights for political reasons, which are often linked to matters pertaining to international relations, diplomacy and soft power (all of which are covered in Chapters 4 and 5).

A crucial, though often ignored, part of World Cup tournaments is how they are designed as competitions (Chapter 6). In Uruguay in 1930, 13 nations competed (7 from South America, 4 from Europe and 2 from North America). By the time we get to 2026, there will be 48 teams competing in the men's edition, with 30 teams being present in Australia and New Zealand during 2023. How to design a qualifying competition as well as the tournament itself are key issues. In making such decisions, as well as those linked to hosting decisions, good governance is vital. This is an area in which FIFA and World Cup have sometimes struggled; indeed, despite recent changes to processes and procedures, some observers remain cynical about and critical of issues of governance, ethics and corruption. In Chapter 7, we consider the issues, challenges and developments in these areas. Perhaps, the biggest issue of all that is facing the various World Cups is environmental change. The carbon footprint of tournaments, the rubbish that fans generate, the pollution caused by air travel and their consequences (such as erratic and extreme weather patterns) are a major concern and must be addressed (an examination of which appears in Chapter 8).

FIFA is not a business, and it is reliant on irregular revenue streams (which are dictated by when tournaments take place). The organisation therefore has to address how it ensures financial sustainability whilst at the same time generating revenues that are of benefit to world football. Similarly, host nations must ensure that they have the financing in place to successfully deliver tournaments and are not left with debts and white elephant facilities (see Chapter 9). Financial decisions are part of planning and organisational processes that extend to a multitude of issues that require good management and leadership. How many venues there will be, whether some of these venues will need to be newly constructed, where training facilities are available, how many hotels are needed, whether civic infrastructure is adequate and so forth, are all important considerations for FIFA and its World Cup host nations (Chapter 10). In addressing such matters, sourcing and managing resources is crucial when planning and organising the World Cup (Chapter 11). Issues of how many volunteers will be needed, how water supplies can be secured, and where space for fan zones can be allocated, are all part of a complex decision-making landscape.

The latter example, pertaining to fans, is an especially salient one. Fans are the lifeblood of any World Cup – co-producers of the excitement, tension and drama; a source of ticket, merchandise and other revenues; and one of the reasons why sponsors and broadcasters pay so much money to be associated with the tournament. The book considers fans in Chapter 12, then in Chapter 13 explores issues related to risk and security, which are clearly of direct relevance to those who attend matches. Risk and security are also important in terms of protecting not only the infrastructure and amenities being used by the World Cup, but also the revenue streams and operating models that underpin the tournament's staging. Thereafter, the book moves onto examine marketing, sponsorship and merchandising (Chapter 14), broadcasting and the media (Chapter 15), and digital and social media (Chapter 16). Each of these is important as a means through which to engage fans, though they are also important in terms of working with sponsors, commercial partners, media outlets, and digital corporations. Whilst FIFA looks towards generating revenues and providing football fans with a compelling tournament experience, companies associated with the event will want to achieve a return on the investments they make into the competition. The notion of event returns on investment are something that host nations pay attention to and are typically labelled as being a tournament legacy. Chapter 17 examines the notions of legacy and legacy management, whilst highlighting the role that tourism plays both during and subsequent to a country hosting the World Cup.

Given the scale of World Cup events and their associated qualifying campaigns, a text of this nature can never be completely exhaustive. If one considers the impact of local cultures and business practices upon competing teams and the tournament at various levels, the complexity of planning and staging the tournament becomes apparent. For instance, one continental association's winter is another's summer; and playing qualifying matches in Africa or Asia is a very different proposition to staging them in Europe. The editors of this book nevertheless hope that it provides a strong introduction to the business of the FIFA World Cup, by offering structured insights, informed analysis and relevant examples. As such, we hope that readers will find the text engaging and inspiring. For students, it is important that you go beyond the headlines to understand the mechanics of running a tournament. For academics and researchers, the book is intended to prompt further, much needed analysis. As for practitioners, our intention has been to deliver new perspectives on the issues and challenges you face. We invite you to read and enjoy this ground-breaking text.

2 A Brief History of the FIFA World Cup as a Business

Kevin D. Tennent and Alex Gillett

DOI: 10.4324/9781003121794-2

Introduction

This chapter provides an overview of the historic development of the FIFA World Cup as a business entity while recognising the broader cultural, political, economic and social context to the event. This broader context has meant that the event has become internationally prestigious and therefore it has taken on a level of scholarly significance, perhaps outweighing its economic contribution (Gillett and Tennent, forthcoming). The development of the World Cup tournament has been one of remarkable institutional continuity supported by a system of increasingly powerful monopolies. These monopolies have worked with forces of global political and economic change to shape the evolution of the FIFA World Cup. From the very first iterations of the tournament through to its most recent staging, this chapter highlights key events, patterns and trends in the business and management of the World Cup. Important elements that we consider are the early history of the tournament, which is often overlooked in terms of relative importance, through to the more recent themes of the introduction of sponsorship, broadcasting and other media developments, the proliferation of other tournaments using the FIFA World Cup identity, and various corruption scandals. Space here precludes us from offering a tournament by tournament narrative, but we aim to deal with some of the more important aspects while continuing to pay attention to historical context.

The World Cup in Historical Perspective

Increasing scholarly attempts have been made to understand the evolution of the FIFA World Cup and similar sporting mega-events of scale such as the summer and winter Olympic Games, yet, because of its episodic quadrennial nature a satisfying discussion of its essential character as a business remains elusive. Fett (2020) draws our attention to the need for an overall approach to the historic narration of FIFA World Cups, comparing the “dimensions” of visitor attractiveness, broadcasting rights, organisation, stadiums, transformation and inheritance (or legacy), while expressing concern at the episodic nature of many previous studies (Baade and Matheson, 2004; Gillett and Tennent, 2017; Kassens-Noor et al., 2015; Maharaj, 2011; Müller and Gaffney, 2018; Schausteck de Almeida et al., 2015; Tennent and Gillett, 2018; Wong and Chadwick, 2017). Fett perpetuates the teleological angle of this literature by pointing to the increasing trend of gigantism as each World Cup appears to get bigger and better as innovation is added over time. We argue, however, that while the dollar value of and opportunities for comme...