World Cup sponsorship revenues have decreased by 16 percent between 2014 and 2022, according to a new report from data analytics firm GlobalData.
The report states that sponsorship revenue for the 2014 World Cup in Brazil totaled $1.35 billion, compared with $1.1 billion for the 2022 World Cup, which kicks off in Qatar next month.
According to GlobalData, part of the reason behind the drop is the controversy surrounding Qatar hosting the event. The country has come under fire for its treatment of migrant workers, women and the LGBT community, among others.
“The World Cup has come under scrutiny, and all of the organizations associated with the competition may face backlash from the public. Of those that are still sponsoring, only four have explicitly addressed the migrant worker story,” said George Trotter, associate analyst in the Thematic Intelligence team at GlobalData.
In 2014, Sony ended a $280 million sponsorship agreement with FIFA, while Emirates airline also ended its FIFA partnership the same year.
Companies that are still a part of the World Cup have faced public pressure to comment on some of the controversies surrounding Qatar.
Denmark’s kit manufacturer Hummel last month announced the release of a toned-down kit for the Danes to wear at the World Cup, serving as “a protest against Qatar and its human rights record.”
Trotter said that other companies would likely follow suit as the tournament approaches.
“Hummel’s move was relatively small, and one that involved little cost and risk to its business,” Trotter said. “However, it led to a massive PR story, increasing awareness in both the company and the issues surrounding the tournament.
“Other sponsors may be reluctant to make a stance against FIFA, but public pressure could yet oblige these sponsors to make a stand. If the major sponsors avoid action, despite the public pressure, they risk real commercial damage.”
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