FIFA Opening Up Club World Cup Broadcast Bidding After Apple Refused to Pay $4 Billion for Rights
FIFA Opening Up Club World Cup Broadcast Bidding After Apple Refused to Pay $4 Billion for Rights
Sports media rights are big business, but many in the industry believe that they are getting too big. With the NBA on the verge of signing new deals worth $7.6 billion annually and the NFL already contemplating an early exit from its current contracts in order to get more than its $10 billion per season, the amount of money being thrown around is increasing exponentially. However, as media companies are trying to get their spending under control, there are some sports organizations that aren’t getting nearly the types of offers that they had once hoped for. One of the biggest current examples of that is FIFA and its soon-to-be-expanded Club World Cup. While soccer’s international governing body had hoped to secure $4 billion for its new high-profile event — taking it from seven teams in most previous incarnations to 32 in 2025 and then 64 in 2029 — negotiations with Apple have fallen apart as the tech company was only offering $1 billion for the tournament’s global rights.
Key Details:
- FIFA has been looking to secure $4 billion in rights fees for the 2025 Club World Cup.
- Apple had been willing to pay $1 billion for the global rights for the tournament, but talks have reportedly broken down.
- The soccer governing body is now expanding its options to try and land media partners.
In the spring, reports indicated that Apple and FIFA appeared to be close to signing an exclusive, international rights deal for the tournament. However, FIFA has a history of mismanaging its events, from accepting bribes to poor event planning, and all sorts of other types of corruption. For example, despite the fact that the tournament is scheduled to begin in less than 11 months, the organization has still not found anyone willing to pay more than a quarter of its broadcast asking price, as negotiations between Apple and FIFA have reportedly ceased.
As evidenced by the recent successes of UEFA’s Euro 2024 and CONCACAF’s Copa América, demand for high-level international soccer tournaments is high, so in most situations, the Club World Cup should drive a substantial amount of interest. The event already has top clubs from around the world set to take to the field in the United States beginning on June 13, 2025.
Reigning champion Manchester City will look to defend its title against the likes of Bayern Munich, Borussia Dortmund, Chelsea, Inter Milan, Juventus, León, Monterrey, Pachuca, Paris Saint-Germain F.C., Real Madrid, and the MLS’s Seattle Sounders FC, as well as one other American team to be announced.
With a potential, international Apple deal looking less and less likely to happen, according to the Sports Business Journal, FIFA is now accepting bids for the 2025 tournament as well as bids that would combine the media rights for 2025 and 2029. The organization is currently in the process of soliciting offers in the Americas, Asia (outside of China), and the Middle East and North Africa. Those bids are due to the governing body by Tuesday, Aug. 20. From there, FIFA will eventually open up bidding in Europe, China, and sub-Saharan Africa. However, FIFA’s inability to solidify its tournament plans continues to make it difficult for broadcasters to comfortably bid on rights.
Currently, the U.S. venues that will play host to the tournament’s 2025 matches have not yet been announced, and the 2029 host country has not yet been finalized either. SBJ reports that the majority of venues for next year’s Club World Cup are expected to be in East Coast stadiums, which at least makes it easier for primetime viewing across the United States. However, when contemplating 2029, it is difficult for broadcasters to bid on rights if they don’t even know what continent, let alone time zone, the games will be played in.
The Streamable’s Take
This lack of planning is why Apple TV would have been a perfect solution for FIFA. As a company with a global reach and platform, what countries and time zones games are played in doesn’t matter nearly as much for Apple as it does for regional broadcasters. Additionally, the tech company has already invested heavily in soccer as it is the home of MLS Season Pass, which will stream every [Major League Soccer] game for a decade. But, with Apple’s international scope, it could have been a one-stop option for FIFA, eliminating the need to secure rights in every major region. However, since that opportunity appears to have been thoroughly bungled, the soccer governing body will have to piecemeal its 2025 rights and perhaps do it again for 2029 as well.
Of course, there is the possibility that after soliciting bids, FIFA will realize that it will never even approach its $4 billion asking price and will return to the bargaining table with Apple, realizing that its $1 billion offer is as good as it gets. At this point, the only viable option for FIFA to significantly up that number would be to get global streaming powers Netflix and Prime Video — both of which are open for live sports business — to help bid up the price. However, for a tournament that is unproven as a ratings draw, and seems to be thoroughly unorganized less than a year out, that seems highly unlikely.
Apple TV+
Apple TV+ is a subscription video streaming service for $9.99 a month that includes high-quality original shows and movies including Best Picture winner “CODA,” popular sitcom “Ted Lasso,” and dramas like “The Morning Show” and “Severance.” Apple TV+ is also home to MLB baseball games on Friday nights and MLS Season Pass. Apple TV+ can be added as a channel on Prime Video.