The World Cup is not only an eye-catching sports event but also a lucrative business.
The World Cup is not only an eye-catching sports event but also a lucrative business. FIFA is expected to rake in revenues of over US$8 billion from TV rights, advertising and product sales for the event in Russia. China Central Television, the Chinese State broadcaster, has sold its first round of advertisements at a price of 3.56 billion yuan (US$555m). In Russia, seven Chinese enterprises are sponsors of the World Cup, paying to the tune of US$300 million, to try to extend the global reach of their international brands. In recent years, a growing number of Chinese elements and enterprises have appeared in first-class sports arenas, signifying China’s overall economic strength and its soft power. Insiders argue that the World Cup has become an amplifier of brands, but enterprises should realize that it will take effect only if their products are good. Otherwise, it will damage their brands.