March 24 – FIFA’s 2013 annual financial report has been released showing the governing body managed a surplus of $72 million on revenue of $1.386 million. 2013 was a record year for FIFA with income of $1.386 billion in the third year of a four-year commercial cycle linked to the 2014 World Cup.
The importance of the World Cup for the financing of FIFA’s global activities was again made clear with income from the TV rights sales hitting $601 million and from sponsorship and marketing sales coming to $404 million. In the four year World Cup cycle, FIFA’s revenue generally peaks in the fourth year, meaning 2014 is likely to boost the top line figures further.
In the expenditure column FIFA spent $183 million on football development projects. The largest expenditure went on FIFA’s seven tournaments in 2013 which cost $717 million in event-related expenses. $216 million was allocated as other operating expenses and $17 million as tax payments. FIFA’s staff head count rose by 40 during the year to 452.
At the end of 2013 FIFA’s balance sheet totalled $3,165 million, with reserves of S1,432 million. FIFA says the reserve fund is of “major strategic importance”. Because is financially dependent on the World Cup for its income the reserve fund is in place should, for example, the World Cup have to be cancelled. FIFA said that “it is difficult to fully insure an event of such magnitude.”
In comparison the International Olympic Committee has a reserve of $932 million.
The financial future does look strong for FIFA. “We will make more money for Russia and we will make more money for Qatar,” said secretary general Jerome Valcke. “And if it is as it is, we will make more money for the World Cup ’26.”
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