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Copa America 2024: Powerplay of the Americas

July 6, 2024

Copa America 2024: Powerplay of the Americas - SBI Barcelona

After a rather impressive beginning, the Copa America 2024 enters knockout phase. The 48th edition of the tournament is unique for a few reasons. One, it’s a jointly held tournament with CONCACAF and CONMEBOL sharing the responsibility and two, it is hosted by USA who is scheduled to host the FIFA World Cup 2026 and can be seen as its precursor

In this series, we take a behind the scenes look at business of Copa America and delve into the challenges seemingly faced by the hosts in preparation for the FIFA World Cup ahead

The Financial Rewards

Copa America 2024 is buoyed by the prize money windfall which has almost tripled to $72mn from the 2021 edition held in Brazil where the total payout was $19.5mn. A significant change is the addition of $2mn for being a part of the tournament

The podium winners get an increased $4mn for the fourth placed team, $5mn for the third place team and the losing finalist receives $7 million. The winning team gets a substantial sum of $16mn

Copa America 2024: Powerplay of the Americas - SBI Barcelona

For the Hosts?

Before that, here’s the interesting bit about why US is hosting Copa America despite it being a South American CONMEBOL tournament and US not being a part of it. In January 2023, CONMEBOL and CONCACAF announced a new strategic partnership aiming to strengthen and develop football in both regions. As part of the agreement, USA were announced as hosts of the 2024 Copa America, with the tournament expanded to 16 teams once again. The 10 South American sides will compete, while six from North and Central America qualified, too.

Coming to the question of what’s in it for the hosts. According to projections, U.S. Soccer is set to rake in a cool $20-25mn from hosting the Copa America 2024.

Keeping aside the participation fee of $2mn and any additional prize money based on tournament progression, U.S. Soccer will pocket a tidy $10mn just for hosting the tournament. It can be seen as a sort of gift from CONMEBOL for putting on the show

Another financial incentive to host the tournament is getting a fee on ticket sales. U.S. Soccer will earn a 5% “sanctioning fee” on ticket sales, estimated to bring in an additional $10-15mn thus making a total of $20-25mn

Copa America 2024: Powerplay of the Americas - SBI Barcelona

Sponsors

The last minute signing of Coca-Cola takes the number of global sponsors to seven. There are three levels of sponsorship within the Copa America 2024 gamut

  • Global sponsors – 7: Betano, Mastercard, Mercado Libre, Coca-Cola, Latam Airlines Delta, Michelob ULTRA, Unilever
  • Official Partners – 2: Absolut Sport, Puma
  • Partners – 3: TCL, BYD, Lowe’s

As far as the kit sponsorship range, five different sports apparel brands sponsor the 16 nations competing at the Copa América 2024. Adidas leads the table with sponsoring 8 countries followed by Nike at 4. In 2021 too, five different brands were seen but that time the number of countries competing were 10

Copa America 2024: Powerplay of the Americas - SBI Barcelona

The Economic Impact

While exact figures have not been made official or been estimated, it is not difficult to expect the overall economic impact of hosting Copa America 2024 to be substantial. CONMEBOL claims one million tickets sold by the close of group stage and are confident of overtaking the previous best of 1.6mn tickets set in 2016. With the horde of fans traveling, eating, shopping, and experiencing the 14 venues in 13 host cities of America it’ll be nothing short of economic boost wrapped in a soccer tournament!

Key sectors expected to reap the benefits – Hospitality, merchandise, travel & transportation. Another factor which can’t be ignored is the rise in betting. The Copa America 2024 is set to ignite a firestorm of activity in the sports betting world which will further add to the taxes at local levels

Conclusion

As the countdown to Copa America 2024 finale approaches, it’s clear that the tournament has more facets than just football. The event signifies a strong collaboration between the two federation with far-reaching impacts.

Even for the host country, apart from a significant economic impact, this event also gives the opportunity to do a reality check on the preparedness to host the next big event, the FIFA World Cup

Image source: Copa America Twitter

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