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Record World Cup numbers game for FIFA and Brazil

By WTOP Staff

GRAHAM DUNBAR
AP Sports Writer

GENEVA (AP) — The 2014 World Cup is the most valuable, lucrative and expensive in FIFA history.

Record numbers include a $35 million prize to the winning team’s federation, $4 billion commercial revenue for FIFA and a $14 billion bill for Brazil.

With 3 million tickets available to buy, the 64-match tournament is almost sold out.

“The financial success — we have it, it is done,” FIFA secretary general Jerome Valcke has said. “The ticket sales success is there, we have never sold so many tickets.”

FIFA’s satisfaction is not shared across Brazil.

Taxpayers are picking up the biggest bill, with the country of 200 million people running up costs several times more than FIFA to stage the world’s most-watched sports event.

The $14 billion total is the predicted spending on building and renovating 12 stadiums, upgrading federal, state and city infrastructure, plus security plans to welcome the 32 teams and around 600,000 expected visitors.

The spending fueled unrest in Brazil, especially during the Confederations Cup last June, among those wanting better schools, hospitals and less government corruption.

“When Brazil bid for the World Cup they had the budget to do so,” Valcke said.

FIFA forecasts it will spend $2 billion on the 2014 tournament, including the local organizing committee costs.

Still, much of that bypasses Brazil. Even if the host nation does earn the winner’s check on July 13, the remaining $323 million in FIFA’s prize fund goes to the other 31 nations.

The federations also share $48 million from FIFA to prepare for the tournament, and $70 million goes to (mostly European) clubs whose players are selected.

The $35 million first prize is less than 1 percent of the governing body’s revenue banked directly from its marquee event over a four-year commercial cycle.

Broadcasters and sponsors pay most of FIFA’s $4 billion income.

European television networks have paid the majority of the nearly $1.7 billion, so far, in rights fees to FIFA, according to the past three years of financial reports.

Six top-tier partners — Adidas, Coca-Cola, Emirates, Hyundai, Sony, Visa — pay a combined $177.125 million annually. That totals $708.5 million over four years.

Eight second-tier sponsors — Budweiser, Castrol, Continental, Johnson & Johnson, McDonalds, Moy Park, Oi, Yingli — collectively pay $524 million. About $120 million has been earned from Brazilian ‘national sponsors,’ according to the 2011-13 financial reports.

FIFA also gets hundreds of millions from fans buying match tickets, plus agencies securing the rights to sell corporate hospitality seats, and licensed merchandise.

As street protesters in Brazil know, FIFA’s revenue is untaxed there. World Cup sponsors and media also receive exemptions for their operations as a condition of Brazil’s hosting bid in 2007.

FIFA, however, has spent significantly in Brazil.

FIFA already gave $221.6 million to the embattled organizing committee, and more should follow in last-minute wrangling over paying for essential services.

In February, FIFA settled a nearly $20 million bill for power generators needed for broadcast operations.

“We stepped in because it’s not a question just of money,” Valcke said then. “We were afraid that we would not be on time to deliver this energy. And without it, we cannot broadcast the World Cup.”

FIFA’s investments include tens of millions for TV production to deliver the biggest ratings this year.

In 2010, the Spain-Netherlands final was watched by 530.9 million people according to the reliable “average global in-home audience” measure. More than 900 million people watched at least one minute of the match at home, and the overall total likely topped 1 billion when public viewing places are added.

Spending by FIFA on ticketing, accommodation and IT services has also helped Brazil’s economy. Draw ceremonies for the qualifying groups in Rio de Janeiro in July 2011 and the finals tournament in Costa do Sauipe last December added several millions more.

The full World Cup financial picture will be clear only next March, when FIFA publishes its 2014 accounts.

Typically, its numbers peak in a World Cup year.

Its reserves are $1.4 billion, which are intended to keep the Zurich-based body operating and organizing its other tournaments — including the Women’s World Cup, under-17 and under-20 events, Summer Olympics, Club World Cup — if its main attraction is canceled.

FIFA reinvests about 75 percent of its income in soccer, including $250,000 annual grants to each of the 209 member federations. The six continental bodies get $2.5 million each, and $27 million was spent in 2013 on development projects, such as pitches and training centers.

That $27 million was exceeded by paying $36.3 million in executive bonuses, and the total personnel bill was $102 million for about 450 staff members.

FIFA can certainly afford the current and future expenses.

Booming sales for the next two World Cups to broadcasters Fox and Al-Jazeera, among others, and renewed deals with long-term commercial partners Adidas and Coca-Cola should ensure that $5 billion flows into FIFA for the 2018 tournament in Russia.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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