FIFA has successfully secured a nearly $1 billion deal with the London-based streaming service DAZN, just in time for the draw of the first-ever Club World Cup featuring 32 men's teams from around the world.
FIFA Lands $1 Billion Broadcast Deal with DAZN for Club World Cup
FIFA Lands $1 Billion Broadcast Deal with DAZN for Club World Cup
DAZN's agreement to broadcast FIFA's Club World Cup marks a significant milestone for the tournament's global reach.
The sporting world witnessed a pivotal moment on Wednesday as FIFA announced a long-awaited partnership that would pave the way for the inaugural Club World Cup to be broadcast in the U.S. next year. The deal with DAZN comes one day before FIFA president Gianni Infantino was scheduled to conduct the tournament's draw, an event many have eagerly anticipated.
While specific financial details of this agreement remain under wraps, sources indicate that DAZN is contributing close to $1 billion for the broadcasting rights, with options for future rights locked in as well. FIFA had initially projected revenues of around $800 million from television rights alone, part of a broader estimate of generating $2 billion from the tournament, a figure many industry experts find overly optimistic.
FIFA’s search for a broadcasting partner faced challenges after Apple withdrew from negotiations, citing the organization's demands as unfeasible. The streaming platform DAZN, which has steadily increased its investments in sports media, embarked on this deal under the leadership of billionaire Len Blavatnik. Despite sustaining significant financial losses since its inception in 2016, DAZN has secured broadcasting rights to various prestigious leagues and competitions.
In recent years, DAZN has recalibrated its business model, recently collaborating with Saudi Arabia, which has emerged as a major player in global sports investments. Speculation is rife that this partnership could lead to Saudi Arabia making direct investments in DAZN, aligning with its aspirations to create a comprehensive sports network. Notably, FIFA is set to announce the 2034 men's World Cup host country, with Saudi Arabia poised as the frontrunner as well.
While specific financial details of this agreement remain under wraps, sources indicate that DAZN is contributing close to $1 billion for the broadcasting rights, with options for future rights locked in as well. FIFA had initially projected revenues of around $800 million from television rights alone, part of a broader estimate of generating $2 billion from the tournament, a figure many industry experts find overly optimistic.
FIFA’s search for a broadcasting partner faced challenges after Apple withdrew from negotiations, citing the organization's demands as unfeasible. The streaming platform DAZN, which has steadily increased its investments in sports media, embarked on this deal under the leadership of billionaire Len Blavatnik. Despite sustaining significant financial losses since its inception in 2016, DAZN has secured broadcasting rights to various prestigious leagues and competitions.
In recent years, DAZN has recalibrated its business model, recently collaborating with Saudi Arabia, which has emerged as a major player in global sports investments. Speculation is rife that this partnership could lead to Saudi Arabia making direct investments in DAZN, aligning with its aspirations to create a comprehensive sports network. Notably, FIFA is set to announce the 2034 men's World Cup host country, with Saudi Arabia poised as the frontrunner as well.
