Biennial World Cups forecast to generate 4.4bn in additional revenue

Biennial World Cups would create an extra 4.4 billion US dollars (£3.3billion) in revenue every four years, associations from around the world have been told today.

FIFA is proposing cutting the gap between the World Cup from four years to two as part of wider changes to the international match calendar to start from 2024.

The plans have faced strong opposition in Europe, with UEFA, the European Club Association and the European Leagues group having all condemned them.

The PA news agency understands a feasibility study from consultancy agency Nielsen was presented to federation delegates at the virtual global summit hosted by FIFA on Monday.

Nielsen predicted that playing two World Cups in a four-year period would lift revenues from 7bn US dollars (£5.3bn) to 11.4bn US dollars (£8.6bn). The increased revenue would be made up of gate receipts, media rights and sponsorship, delegates were told.

Based on those figures, FIFA is understood to have told delegates that 3.5bn US dollars of the extra revenue generated in the first cycle of the new calendar would be put into a member association solidarity fund.

It concludes that on average each member association would benefit to the tune of an extra 16 million US dollars (just over £12m) every four years from the solidarity fund, with FIFA Forward funding also set to go up from six to nine million US dollars every four years.

FIFA’s member associations were also shown a study by Open Economics, which estimated the new calendar would have macroeconomic benefits of 180bn US dollars (almost £136bn) over 16 years, an increase of 80bn dollars (£60.4bn) compared to retaining the status quo.

The same study also said there was no negative correlation between an increase in international tournaments and the value of domestic club competitions.

Indeed, Open Economics claimed the percentage revenue growth of the top five European leagues was higher in seasons with a scheduled major international tournament compared to seasons where no such tournaments took place (42 per cent to 26 per cent).

The figures presented to delegates on Monday contrast starkly with those presented to UEFA member associations by strategic consultancy firm Oliver and Ohlbaum.

It forecast that in a four-year cycle with two World Cups and two Euros, member associations would lose up to 3bn euro combined (£2.6bn), made up of reduced UEFA distributions, matchday revenues and sponsorship.

FIFA is understood to have told delegates that any association which suffered a financial loss as a result of the calendar changes would be compensated out of the proposed solidarity fund.