By Samindra Kunti
February 3 – The Belgian FA, the KBVB, is suffering a financial hangover after posting a financial loss of €206,000 in 2014.
For the KBVB the 2014 World Cup was a highlight with the Belgian national team participating for the first time since 2002 at FIFA’s flagship event. The Red Devils progressed to the quarterfinals, where they faltered against Argentina. Gonzalo’s Higuain scored the only goal of the game.
At home the Red Devils caught the public’s imagination with merchandise sales achieving record numbers. The Red Devils’ games on Brazilian soil also drew the biggest TV audiences in history, and the KBVB made a profit of €1.4 million on their lucrative campaign in Brazil.
Last week local newspaper ‘Het Laatste Nieuws’ received an internal document disclosing the KBVB’s finances. It showed that the Belgian FA amassed a loss of €206,000 in 2014. An internal audit blamed the loss on financial mismanagement at the top of the federation. Last summer the Belgian FA forget to cancel the hotel where the players’ wives and girlfriends would stay during the World Cup, a mistake costing €300,000.
This turned out to be just the tip of the iceberg.
Some of the KBVB’s expenditure seem to indicate a conflict of interest. TV production house Bonka Circus, with Vincent Kompany as a main shareholder, invoiced the KBVB €250,000 to produce the show ‘Elke Dag Voetbal’, whereas the Belgian FA had originally budgeted €50,000 for the project. Coach Marc Wilmots received €80,000 on top of his salary for image rights and his participation in the TV show ‘Iedereen Rode Duivel.’
Other costs also raised eyebrows. The advertising agency Boondoggle billed the KBVB €600,000, but there was not a single trace of a contract. Personnel costs increased from €2 million to €22 million in total. In 2013 the wage bill had already increased by €4 million.
The report is damning for CEO Steven Martens, executive director of business Bob Madou and chairman François De Keersmaeker.
“Political games are being played,” reacted Martens in the local media. Top clubs Standard Liege and Club Brugge are not pleased that RSCA Anderlecht will play at the future national stadium at little cost. The stadium will be constructed in Brussels to host EURO2020.
“It’s all about power and jealousy,” said Martens. “It is very unfortunate that an internal note has been leaked like this. There is no mention of the revenue that was generated.”
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