FIFA recently unveiled its turnover, and the key outcome is that the football governing body is doing more than fine! According to Sport Business, FIFA made a profit of US$631 million over the last four years, with world football’s governing body revealing on Thursday that 87% of its $4.19 billion turnover was generated by the 2010 World Cup in South Africa.
FIFA’s financial report confirmed that expenditure was $3.56 billion, $105 million over budget due of additional investments in football development and a $31 million overspend on the 2010 World Cup. FIFA’s annual profits have grown steadily from $49 million in 2007 to $202 million in 2010, while the ruling body’s reserves have reached $1.28 billion.
“FIFA is financially strong and dependent on the World Cup,” said director of finance Markus Kattner. “This illustrates the necessity for FIFA to build up and have sufficient reserves to decrease its dependency on the World Cup.”
In his opening speech, Sepp Blatter said: “Thanks to the conservative and careful fi nancial policies that we followed in the 2007- 2010 period, we have been able to considerably increase our investment in football development programmes, and in 2010, we were able to give each member association a total extraordinary FAP payment of USD 550,000 and each confederation USD 5 million.
I am delighted that even before this cycle drew to a close, we were able to conclude longterm contracts with many existing as well as new partners. This proves that although we are in challenging financial times, multinational companies still seek to identify with football in general and with the FIFA World Cup™ in particular. All of this fi lls me with great optimism and confi dence for the period that lies ahead.”
Julio Grondona, Vice President of FIFA insits on the fact that revenue is being re-invested in football: “Thanks to its solid reserves, FIFA will increase its investment in football development programmes over the upcoming 2011-2014 period from the USD 691 million that was in the budget for 2007-2010 to USD 800 million. Furthermore, given the healthy state of FIFA’s fi nances, plans have been put in place to ensure that a signifi cant proportion of FIFA’s revenue is reinvested in football, which will generally lead to lower annual results than in previous years.”
Find the complete report here: In a nutshell, FIFA is financially doing great. As usual, your thoughts are welcome!