July 13, 1930: From Boat Fare to Billions

Nobody in Montevideo in 1930 was building a $7 billion media property. They were just trying to get thirteen teams to show up.On July 13, 1930, the first two matches in FIFA World Cup history were played simultaneously in Uruguay's capital city, with France defeating Mexico 4-1 and the United States defeating Belgium 3-0 in front of a crowd of 4,444 people. Most of Europe had declined to make the three-week sea voyage, and Uruguay had secured hosting rights by offering to pay every team's travel and accommodation costs, a commercial investment rather than generosity, timed to a country celebrating both a constitutional centenary and back-to-back Olympic gold medals in soccer. The commercial model FIFA stumbled into that summer, one event every four years with the winner taking everything, became one of the most powerful structures ever built around a sport, compounding through television rights and sponsorship deals until the tournament generated more than $7 billion per cycle. The governance failures followed the money, culminating in a 2015 U.S. Department of Justice indictment of 14 FIFA officials over a 24-year bribery scheme worth more than $150 million.From bsnsHistory, the daily podcast about the moments when business quietly reshaped the world.Written and hosted by Ron Trucks. Research and editing by Rodney Russ. Sound design by Angela Cahoy. Music by Cody Martin and Soundstripe.For more daily business stories, visit www.bsnsDAILYpodcasts.com