Fifa
World soccer’s governing body Fifa receives its fair share of criticism, including from this author, for its choice of event hosts, how it handles the sale of media rights, and how it talked itself out of the single best licensing deal in the history of the sports industry with EA Sports.
So, it’s only fair that the organisation receives credit when credit is due. While no one is suggesting that splitting with EA was a masterstroke, recent esports partnerships with Sports Interactive’s Football Manager and Epic Games’ Rocket League are shrewd moves, while a deal with 2K Sports for a new Fifa-branded video game is believed to be in the works.
Meanwhile, national associations are now signing up to be part of its Roblox digital environment and the recently revamped Fifa Collect digital collectible platform.
Fifa’s digital strategy is becoming increasingly developed and multi-faceted. But it is the launch of the Fifa+ DTC streaming service that is arguably its single greatest achievement in recent years, providing a global platform for domestic leagues and national associations to stream matches in order to increase exposure and serve viewers in dark markets.
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More than 40,000 matches were streamed in its first year, with the Oceania Football Confederation (OFC) among those to stream its matches on Fifa+, which has also hosted live coverage of the Fifa Club World Cup in certain territories. Indeed, Fifa has also used the platform as a means to gain leverage in broadcast contract negotiations and has created a host of original content and highlights packages to complement its live output.
All in all, it’s been a qualified success, which helps explain why Fifa is now reportedly seeking fresh investment to expand the platform in exchange for a minority stake. Fair enough, more content and more users means Fifa can capture more data and generate more revenue that can be used to grow the sport across the world. An external partner would also be able to provide additional expertise and burden some of the risk involved with the project.
But it’s not the decision to enter the market that has raised eyebrows – it’s the US$1 billion to US$2 billion that Fifa is apparently seeking from prospective partners. When asked by my colleagues on last week’s SportsPro Podcast about what Fifa could possibly need this much cash for, I was at a loss.
Additional funding could be spent on marketing, new platform features, or new equipment for national associations, but that would only make a dent on Fifa’s new streaming treasure chest. The only possible thing I could think of is that Fifa wants to get in the business of buying broadcast rights itself or to help fund its plans for an expanded Fifa Club World Cup.
Fifa+ now includes original content, highlights, and fantasy games as part of a wider DTC push (Image credit: Fifa)
Fifa was reportedly hoping to raise US$4 billion from media rights sales for the tournament but, just a year out, has yet to find a willing suitor. Apple was reported to be interested in a US$1 billion deal but talks between the two parties have stalled, and Fifa could now try and engage broadcasters in individual markets – or of course stream the tournament on Fifa+.
No one’s suggesting Fifa would sell the rights to itself, but the fresh capital could be used to fund participation fees and prize money, as well as the necessary investments in infrastructure and marketing.
But even with the full power of the Fifa machine behind such a plan (which is purely hypothetical by the way), it would be incredibly ambitious.
The issue here is that although Fifa+ is a great service, it lacks the reach of a major streaming platform like Netflix or even Apple TV, never mind an established national broadcaster. Events like the Euros and World Cup have been able to grow because of easily accessible, blanket coverage, primarily on free-to-air (FTA) television. Indeed, one of the reasons Fifa hasn’t signed up any major commercial partners for the tournament is because they have no idea how fans are going to be able to watch the matches live.
Without that platform, commercial revenues will be suboptimal, and the Club World Cup is unlikely to ever become the money spinner Fifa wants – especially given there appears to be little demand for yet another competition from teams, players, fans and, seemingly, broadcasters.
Streaming is just one element of Fifa’s bid to build direct relationships with fans (Image credit: Fifa)
Of course, Fifa will argue that it has the costs of renting stadiums and paying participants, but just as I argued when it was seeking more money from European broadcasters ahead of the 2023 Women’s World Cup, it would be better off playing a long game rather than seeking immediate riches.
On this week’s StreamTime Sports podcast, my colleague Nick Meacham presented an alternative theory for Fifa’s reported fundraising – that despite the success of Fifa+, the organisation was saddled with unsustainable operating costs and needed additional funding to meet member associations’ financial expectations.
But with cash reserves of US$4 billion after the last men’s World Cup in Qatar, surely this would be a justifiable expense in the context of Fifa’s remit to promote soccer around the world?
Regardless of the motivation, there will be plenty of governing bodies with in-house DTC platforms that adhere to the Fifa+ blueprint taking notes on what Fifa does next.
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