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2010 World Cup Rights Sold for $3.4 Billion
Insurer to pay $1.625 million
for cancelled US football game
The commercial rights to the 2010 World Cup in South Africa were sold for $3.4 billion, which is 30 per cent
more than the last tournament in Germany three years ago, according to FIFA.
The sale was completed last November with an agreement
with Nigeria for the sale of the remaining television deal,
FIFA General Secretary Jerome Valcke told delegates at the
Soccerex conference in Johannesburg yesterday.
Sponsorship, television and mobile telephone rights were
included in the sale by the Zurich, Switzerland-based
organisation. Sponsors include Coca-Cola, McDonald’s and
Visa. The rights for the 2014 World Cup in Brazil will bring
in $3.7 billion, he added. The 2010 tournament will be the
first time the world’s most watched sports event is held on
African soil.
“There was not a single time a commercial partner asked for
a reduction,” said Valcke.
Most of FIFA’s World Cup revenue is made from the sales of
the global television rights. The organisation will make more
than $2 billion, said Niclas Ericson, who runs FIFA’s television
and new media operations.
While television access across Africa will be free, in other
countries it will be available through a mixture of free-to-air
and pay-television broadcasters.
“Of course we would rather have it on free TV,” Ericson stated.
“But it’s very hard to manage the revenue expectations for a
single broadcaster.”
Lexington Insurance Company, a subsidiary of AIG, will pay
the city of San Diego $1.625 million to settle a claim brought
by the city to recoup lost revenues from a National Football
League (gridiron) game that was cancelled due to the 2003
wildfires that swept across California.
According to the city attorney’s office, San Diego officials
determined the 27 October, 2003, Monday Night Football
game between the San Diego Chargers and Miami Dolphins
could not be played at Qualcomm Stadium because of ash
and smoke, so the game was moved to Tempe, Arizona. As
a result, the city lost out on about $500,000 from its cut of
stadium sales, taxes and other revenues.
City officials filed a claim with Lexington Insurance Co. in an
effort to recover some of the money. The claim was initially
denied so city officials sued the insurer in 2006.
Lexington Insurance recently said it would pay the $1.625
million to close the lawsuit.
While sporting events are a low priority in the times of natural
disasters, this cancellation of the game shows just how much
one sporting event can mean to a city as far as revenue.
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