FIFA Reports $36 Million profit

Hi everyone,
World football’s governing body released its financial report on Friday, with 2011 marking the first year in a new World Cup cycle, when revenues are traditionally weaker.

FIFA accounts revealed revenues of $1.07 billion and expenditure of $1.034 billion last year, allowing savings of an additional $13 million in its reserve fund, which grew to $1.293 billion.

FIFA’s 2011 figures compare to revenues of $1.291 billion in 2010 and expenditure of $1.089 billion. FIFA made a $202 million profit in 2010, with this figure decreasing to $196 million and $184 million in 2009 and 2008 respectively. “I am delighted to note that, financially, FIFA stands on rock-solid foundations,” said FIFA president Sepp Blatter in the report.

In other developments from last week’s Executive Committee meeting, FIFA has fully supported the introduction of worldwide player insurance in what it calls a “major innovation”. Insurance has proved a thorny subject of late and UEFA last month announced it would establish its own scheme covering players on international duty, pending FIFA’s takeover of such a package on a worldwide level.

Clubs have long asked for such an initiative, a campaign that intensified after Bayern Munich lost forward Arjen Robben for six months when the Netherlands winger returned injured from the 2010 FIFA World Cup.

Starting in August, FIFA will insure all players involved in all senior national team games. The provisional budget for the project amounts to $100 million and it will be submitted for approval at the upcoming FIFA Congress. [Source: Sports Business]

Thoughts guys?

Karl Lusbec