England and U.S. World Cups best for FIFA revenue - study

ZURICH Tue Nov 30, 2010 7:05am GMT

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ZURICH (Reuters) - World Cups held in England and the United States would meet all of FIFA's projected revenue targets and deliver bigger profits to world soccer's governing body than any of their competitors, according to a confidential report seen by Reuters.

Both England, who are bidding for the 2018 finals, and the U.S., bidding for 2022, were given an unbeatable overall 100 percent rating by management consultants McKinsey.

McKinsey were commissioned by FIFA to analyse each bid across five key revenue streams: sponsorship, ticketing, hospitality, licensing and media rights.

The report, which does not reveal FIFA's projected target figure, just each country's potential to meet it, has been sent to the 22 FIFA members who will decide the destinations of the two World Cups on Thursday.

It will be discussed by the executive committee for the first time on Wednesday.

The report, entitled FIFA's World Cup Host Candidate Assessment, gave England an overall 100 percent rating for 2018, followed by Spain/Portugal with 91 percent, Netherlands/Belgium 87 percent and Russia 86 percent.

For 2022, it rated the United States top with an overall 100 percent evaluation, followed by Japan with 73 percent, South Korea 71 percent, Qatar 70 percent, and Australia on 68 percent.

HIGHEST REVENUE POTENTIAL

England scored 100 percent in all five of the revenue stream areas, while the United States scored 100 percent in four.

All the European candidates for 2018 scored 100 percent in media rights because McKinsey did not see a variation in revenue potential as all countries fall into the same European time zone for broadcasting matches.

The biggest difference in any 2018 revenue stream came in hospitality in which England again scored 100 percent and Russia 56 percent.

England also had the highest revenue potential in licensing and merchandising, likely to hit 100 percent of its target figure, while Netherlands/Belgium scored 73 percent.

The report comes as a huge boost to England's bid for 2018 in particular, following the BBC's Panorama TV programme screened on Monday evening in the United Kingdom which alleged corruption at the head of world soccer's governing body.

The McKinsey report comes after the publication of FIFA's Technical Evaluation reports following the visit of its inspectors in which England were also given the highest rating by the inspection team.

Andy Anson, the chief executive of England's bid campaign, told a media briefing on Monday that the team had been encouraged by the report, without going into the details, obtained by Reuters later.

"FIFA gave us a very strong technical evaluation. FIFA have now had an economic study and England comes out way ahead of its competitors in that study, and we clearly have the strongest bid for 2018 -- its the perfect foundation."

(Editing by Ossian Shine)

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