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FIFA World Cup 2018 Prize Money (Record 22% Increase)

FIFA World Cup Prize Money
FIFA is going to hike total prize money pool for 2018 FIFA World Cup set to take place in Russia just over 2 years from now. Back in 2014 World Cup in brazil the total prize money pool was around $576 million which was distributed among 32 participant teams also included $100 player insurance plus $70 million payments made to clubs whos players participated in the competition. The winners of 2014 World Cup, Germany took home $35 million while runnersup Argentina pocketed $25 million.

FIFA World Cup 2018 Total Prize Money & Payments Pool$700 Million

As for the 2018 world cup is concerned FIFA is likely to increase the prize money pool by 22% which will take the final payments for 2018 world cup to be around $700 million. That pretty much sets up $50 million payment for winner of 2018 world cup in russia. This was planned at the start of 2010-2014 FIFA financial cycle and after the huge success of world cup 2014 FIFA are well on their way to meet the financial goals even with all the chaos of corruption around sports biggest governing body.

World Cup is fifa’s flagship event and 85% of orgnizations revenue comes from World Cup taking place every four years. FIFA announced that depending on the revenues, they expect to increase prize money pool for each of the next 4 world cups and here is why.

FIFA Revenue details: FIFA made $4.8 billion during the 2014 world cup while the total expenses were around $2.7 billion resulting in $2.1 billion profit for FIFA.

FIFA World cup 2014 total revenue included $2.4 billion in TV rights, $1.5 billion in sponsorship and commercial activities around 2014 world cup while ticket sales generated another $550 for fifa. While costs included that $576 million in prize money & insurance payments for clubs, another $370 million in tv production, $470 million was invested to help organize the 2014 world cup and another $100 million was handed to Brazilian FA as “Legacy” payment. Large portion of the remaining profit will be invested around the world to develop football and FIFA itself will only keep $338 million in profit.

So its easy to see why FIFA keep hiking the prize money for world cup, it is by far the biggest sports event in the world on almost every possible scale so FIFA need to match the prize money with world cup glory.

Below table shows the difference between expected prize money payouts in FIFA World Cup 2018 and what was paid in 2014 world cup in Brazil.

Preparation Fee for 32 qualified teams $2 million each $1.5 million each
Group Stage (16 eliminated teams) $10 million each $8 million each
Round of 16 (8 eliminated teams) $12 million each $9 million each
Quarterfinal (4 losing sides) $18 million each $14 million each
Fourth Place Team $25 million $18 million
Third Place Team $30 million $20 million
Runners-up $40 million $25 million
Winners $50 million $35 million
Player Insurance fee TBA $100 million
player by player payments to parent clubs  TBA $70 million

table seperater
When the final prize money pool is announced by FIFA ? around 6 months before every world cup FIFA announce the confirmed prize money distribution and payments to be made to clubs. So right now there are only speculations as FIFA will only commit to such financial details once the get hold of the tv rights deal and large portion sponsorship opportunities are sold ahead of the big event.

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