FIFA has announced a landmark broadcasting agreement with DAZN worth nearly $1 billion, ahead of its inaugural Club World Cup featuring 32 teams from around the globe.
FIFA Signs $1 Billion Deal with DAZN for Club World Cup Broadcast
FIFA Signs $1 Billion Deal with DAZN for Club World Cup Broadcast
DAZN secures broadcasting rights amidst industry skepticism toward FIFA's financial expectations.
In a critical move to secure broadcasting for its inaugural Club World Cup, FIFA has finalized a near $1 billion deal with DAZN, a London-based streaming service. This agreement was announced just a day prior to the tournament's draw, as FIFA President Gianni Infantino prepares for this major event next year, which will showcase 32 men's teams from various international leagues.
While FIFA has not disclosed the details of the contract, it is confirmed that DAZN is paying close to $1 billion, according to insiders who prefer to remain anonymous due to the sensitivity surrounding the financial terms. This agreement provides DAZN with the potential for future rights associated with the event.
FIFA had earlier hoped to generate around $800 million from television rights, which was part of its ambitious goal of raising $2 billion from the tournament overall—a target that market analysts deemed overly optimistic. Initial discussions for a $1 billion global deal with tech giant Apple had faltered after the company withdrew, arguing that FIFA's requirements were still too high, despite being significantly reduced from earlier propositions.
DAZN, which has rapidly expanded its presence in soccer and other sports, is owned by billionaire Len Blavatnik. Since its inception in 2016, the company has invested over $5 billion and faced substantial financial challenges, resulting in multiple strategic revamps and leadership changes. Recently, DAZN has collaborated with Saudi Arabia, positioning itself as a vital player in the region's sports investment landscape, which adds a layer of intrigue given that FIFA announced Saudi Arabia would host the 2034 Men's World Cup.
As this partnership unfolds, it will be interesting to observe how accumulated revenues from the Club World Cup contribute to the financial viability of both FIFA and DAZN.
