FIFA made a profit of $196 million (€145 million) in 2009 and
increased its reserves to more than $1 billion as football's
commercial appeal defied the global economic crisis.
In its annual financial report published Friday, football's
world governing body said it made its surplus on revenue of $1.059
billion (€780 million). FIFA president Sepp Blatter said he
was a "happy president" that revenue had topped 10 figures for the
first time.
"We are comfortable. I wouldn't say we are rich," Blatter
said after a two-day meeting of FIFA's ruling executive. "A good
result has been achieved."
Blatter said the financial report showed that awarding the
2010 World Cup to South Africa was a "good financial and commercial
decision."
In the report, Julio Grondona, the chairman of FIFA's finance
committee, said the first World Cup in Africa had posted marketing
revenues that surpassed the results of the previous two
tournaments, in Germany (2006) and South Korea and Japan (2002).
FIFA has focused on building its reserves in recent years to
sustain it in the event that a World Cup is canceled and commercial
partners have to be repaid. It originally had a target of $800
million (?591 million) to be set aside by the end of 2010, but has
exceeded that with its equity now totaling $1.061 billion
(€785 million).
FIFA said its financial health hinged almost entirely on the
successful staging of the World Cup and an equity of more than $1
billion would cover only the costs of the next 18 months.
"FIFA has thus far made it through the turbulence in the
financial markets and the global recession unscathed and has
emerged from the crisis in a stronger position," its report said.
In 2008 it made $184 million (€136 million) profit on
revenue of $957 million (€707 million) and its equity stood
at $902 million (€667 million).
Presenting the financial report, deputy secretary general
Markus Kattner said a $200 million (€148 million) surplus was
expected on revenue of $3.8 billion (€2.8 billion) for the
2011-14 cycle leading up to the 2014 World Cup in Brazil.
FIFA will distribute some of its extra cash - earned mostly
from better-than-expected television and marketing deals - to its
continental and national members.
Each continental confederation will get an extra $2.5 million
(€1.85 million), with a $200,000 payment (€148,000) to
each of FIFA's 208 national associations.
"It is a gift," Blatter said. "$56 million that we give back
to shareholders, if we can say this."
FIFA also has created football project funds for Haiti and
Chile which have suffered devastating earthquakes this year. Haiti
has a $3 million (€2.2 million) fund, and Chile - which has
qualified for the 2010 World Cup - got $1.2 million (€0.89
million).
Blatter said FIFA had benefited from losing its former
marketing partner ISL. The firm's collapse in 2001 initially
threatened the football body's financial stability and led to ISL
executives going on trial in a Swiss court.
"It was for us, I would say, a very positive moment," Blatter
said. "We are masters of our own rights and we do not need any
agency to work for FIFA. (Our partners) like the direct contact
with us."
In other decisions Friday:
- FIFA's 208 national members will be asked to expel the
Brunei Darussalam Football Association if it has not been
reinstated by the national government before a congress scheduled
June 9-10 in Johannesburg. The association was suspended last
September because of political interference. Blatter said FIFA has
previously expelled only one member, South Africa in 1976.
- Congress will be asked to keep existing player eligibility
rules for Olympic tournaments beyond the 2012 London Games. The
tournament is an under-23 event with teams allowed to select three
players older than 23.
Secretary general Jerome Valcke said agreement was reached
with European clubs who had feared losing their best players for
preseason training and Champions League qualifying matches.
- Players who reach the World Cup semifinals having received
a single yellow card in the tournament will have the punishment
deleted. The decision means players will not risk being suspended
for the final if they were booked in the semifinals.
- Azerbaijan was awarded hosting rights for the 2012 Under-17
Women's World Cup. The 2011 Beach Soccer World Cup was
provisionally awarded to Italy and Tahiti will host in 2013.
Thailand will host the 2012 Futsal World Cup.
