Fédération Internationale de Football Association (FIFA) ultimately bowed to China.
The Associated Press reported on the 16th (Korea time) that "FIFA finalized a domestic broadcasting rights agreement in China just 27 days before the next World Cup opening match," and that "the reported contract amount was far lower than the sum FIFA originally demanded."
FIFA also announced in an official statement that "it has signed a broadcast rights package agreement with China Media Group (CMG) for four men's and women's World Cups through 2031."
This contract includes the 2026 FIFA North, Central America and Caribbean (North American) World Cup, which will be held from June 11 in the United States, Canada and Mexico. The tournament is the largest in World Cup history, with an expanded field of 48 teams playing a total of 104 matches.
Chinese media reported that the domestic broadcasting rights price for this North American World Cup was set at $60 million (about 90 billion won). But Chinese local media had reported until recently that FIFA's originally insisted price was $300 million (about 450 billion won).
FIFA lowered the price from $300 million to $150 million (about 225 billion won), but when China showed little interest, it reduced the price to $120 million (about 180 billion won). Seeing the contract still seemed unlikely, it cut the price further to $60 million.
In the end, FIFA had to bow to a "bargain bomb sale" that slashed as much as 80% off the value it had sought. Moreover, the broadcast rights agreement with another huge market, India, has not yet been finalized.
That FIFA struck such a humiliating deal in the Chinese market, which boasts the world's strongest ticket power, is also due to performance. China thoroughly failed to qualify for the finals even under the expanded 48-team format, so Chinese broadcasters had no reason to make a large investment.
Time difference issues also held FIFA back. The time difference between the 16 host cities in the United States, Canada and Mexico and Beijing, China, can be as much as 15 hours.
Major big matches inevitably had to be scheduled in China at the early dawn or weekday morning hours, making it difficult for broadcasters to maximize advertising revenue.
Nevertheless, FIFA secretary general Matias Grafström personally visited China this week and held a series of meetings with officials from the Chinese Football Association (CFA) to defuse the situation. In an official written statement, Secretary General Grafström said he was "truly pleased to have reached an agreement with CMG."
Ironically, although broadcasting rights fees plunged to less than half, a significant portion of FIFA's total revenue target of $11 billion (about 16.5 trillion won) to be earned from this North American World Cup has already been filled by capital from Chinese corporations.
Currently one of FIFA's eight top-tier sponsor partners is China's global IT corporation Lenovo. Dairy company Mengniu and electronics manufacturer Hisense have also joined, pouring in massive sponsorship funds.
Meanwhile, the detailed TV broadcast rights value for the 2030 World Cup included in this contract was not disclosed. The 2030 tournament will be jointly hosted by Spain, Portugal and Morocco, and to commemorate the 100th anniversary of the World Cup, Argentina, Paraguay and Uruguay, the host of the first World Cup in 1930, will each host a single match.
Also, the 2027 women's World Cup will be in Brazil, and the 2031 tournament is a sole bid by the United States, Mexico, Costa Rica and Jamaica as joint host candidates, awaiting final approval from FIFA member associations in November.
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