If the goods that everyone wants to buy can be produced and sold at a low price, then the business can be quick and more profitable.
This is exactly the business model of the International Football Federation (FIFA).
FIFA pays the host nation. Prizes for the players and winners, travel expenses, lodging and meals are provided and each player is given $370,000.
In addition, FIFA also supports 461 clubs from 63 countries to send players from clubs to play in the World Cup. FIFA has set aside $200 million to distribute to clubs.
FIFA also gives money to all 32 participating nations. Despite the huge expenses, FIFA earns a decent profit.
In 2018, FIFA hosted the World Cup in Russia. From there FIFA earned 6.4 billion dollars.
FIFA receives the most money from the World Cup broadcasting license. More than $4.6 billion of the money earned by FIFA came from the sale of broadcast rights.
The FIFA World Cup is estimated to be watched by 5 billion people on television. Brands have to pay FIFA to advertise in this game.
FIFA earned $1.66 billion from advertising in the 2018 edition. FIFA also earns money from tickets.
In 2018, FIFA earned $700 million from tickets.
FIFA also makes money by licensing brands to use its name. It earns more than 150 million annually from companies that produce games using the FIFA name.
