Aramco, the leading Saudi international energy and chemical company, has signed a four-year partnership with FIFA, becoming the main partner of the governing body of world football and of multiple events including the men’s World Cup until 2027 of 2026 and the women’s one of 2027. The agreement – we read in a note – is based on a «shared commitment to innovation, development and the creation of social initiatives of great impact, in line with FIFA’s mission to make football truly global.” Aramco, in particular, intends to collaborate with FIFA to promote innovation, identifying opportunities to employ the company’s expertise and technologies in the delivery of football events globally. The amount paid by Aramco has not been made official, but the price of FIFA sponsorships under the aegis of the Chief Business Officer, Romy Gai, have doubled compared to the Qatar 2022 World Cup and according to rumors circulating in recent months it could be a overall agreement of around 350 million (around 90 million per season).
The reactions
«This partnership – underlined Gianni Infantino, president of FIFA – will help us to successfully organize the flagship tournaments in the next four years and, as in the case of all our commercial agreements, will allow us to provide greater support to our 211 federations affiliates. Aramco has a strong track record of supporting world-class events, but also focuses on developing grassroots sports initiatives. We look forward to collaborating with them on a number of initiatives over the coming years.”
According to Aramco President and CEO Amin H. Nasser, «through this partnership with FIFA we aim to contribute to the development of football and harness the power of sport to make an impact around the world. It reflects our ambition to create vibrant communities and extends our support for sport as a platform for growth. Our existing relationship with the Saudi football club Al-Qadsiah, our support of women’s golf through the Aramco Team Series and our support for the development of F1 demonstrate the potential for such partnerships to create pathways of opportunity, have a positive impact on society.”
Aramco’s turnover
In 2023 Aramco reported net profit of $121.3 billion, compared to $161.1 billion in 2022. A level that represents the second highest net profit ever. The year-over-year decrease was driven by declines in crude oil prices and volumes sold, as well as reduced refining and chemical margins, partially offset by a decrease in production royalties during the year and lower taxes. Saudi Arabia, the largest exporter of crude oil in the world, is banking on Aramco’s revenues to finance the ambitious “Vision 2030” reform program wanted by the prince and heir to the throne Mohammed bin Salman, which aims to transform the kingdom into a a center of business, tourism and sports, while laying the foundations for a post-conservative country. Currently the state’s share in Aramco, which in this period maintains an oil production capacity of 12 million barrels per day, amounts to 82%, while 16% belongs to the PIF sovereign fund.
The agreement with Formula 1
In 2020 Aramco signed a global partnership agreement for 10 years with Formula 1. Also in this case the value was not communicated but according to rumors it would be around 45 million dollars per year. The agreement includes the presence of the Aramco brand on F1 circuits in various races, on digital platforms and in race broadcasts and aims to promote sustainability and drive technological advances in the motorsports sector.
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2024-04-26 03:54:08