Record World Cup Bonus Increases Risk

Player bonuses at the 2014 World Cup are expected to be at an all time high in Brazil, with total prize money totaling a record $358 million approximately.

World Cup Champions, crowned on July 13th in Rio will pick up a cheque for $35m, with the runners up walking away with $25m whilst the 3rd and 4th placed nations will collect $22m and $20m respectively.

This prize pot, up over $10m on 2010 in South Africa, will see the players prize pool soar to its highest yet.

Germany have confirmed that their players will receive €300,000 each for winning the World Cup and €100,000 if they reach the semi final as they did in 2010.

Managers will also expect to profit from the increased prize fund. In 2010 Jürgen Klinsmann was contracted to earn between $500,000 to $10m from bonuses alone based on the performance of his USA squad.

Iranian President Hassan Rowhani, whose team nearly pulled off a shock result against Argentina last week, confirmed that Iran’s players will receive a bonus if they can progress past the group stages.

With the biggest ever prize money and the complexity of team and individual bonus structures, national associations and sponsors are increasingly moving towards contractual bonus insurance to protect themselves against exposure to successful performance on the field.

Luke de Rougemount, Director at Hedgehog Risk Solutions, commented; “We have seen a big change in the way clubs, governing bodies and sponsors are managing their risk and the World Cup is no different.

“With large sums of money on offer in an increasingly competitive World Cup environment even some of the smaller associations are having to cover themselves for all eventualities – even the thought of winning the World Cup.

“UEFA’s Financial Fair Play regulations have brought risk management to the fore and it is something the governing bodies are also taking stock in.

“2014 in Brazil is potentially the most open and competitive World Cup of our time and with incentives at a peak that also means increased exposure to risk for all of those involved if not managed correctly.”

Hedgehog Risk Solutions are specialist insurance providers to the sports industry.

Founded in 2009 Hedgehog Risk Solutions provide contingency insurance solutions to cover the financial risks associated with the outcome of sporting results, weather, probability and skill based games.

For more information go to www.hedgehogrisk.com

For more information, imagery or interview opportunities contact:

Hedgehog Risk Solutions Media Centre

Ben Thompson
Account Director
Macesport
ben.thompson@macesport.co.uk
07932005305

or

Emma Hustwait
Account Manager
Macesport
emma.hustwait@macesport.co.uk
07528959140