By David Gold
March 22 – FIFA has revealed a record $631 million ($378 million) surplus over the last four years, with total revenue topping $4 billion (£2.4 billion), representing a 59 per cent increase on the previous four-year period.
The results leave world football’s governing body in good financial shape ahead of the Presidential elections being held later this year, in which President Sepp Blatter is up against Qatari Mohamed Bin Hammam.
FIFA remain heavily reliant on the World Cup, which accounts for more than 90 per cent of its revenue.
Blatter said: “Football has continued to grow in popularity.
“The World Cup remains the biggest attraction for fans and I am delighted to present this successful financial result.”
FIFA paid out $65 million (£39 million) to employees, which means that between 387 staff, the average wage is in excess of $150,000 (£90,000).
Figures revealed that $3.7 billion (£2.2 billion) was made from last summer’s World Cup, held in South Africa, with $2.4 billion (£1.4 billion) of this from the sale of TV rights, boosted by the fact that the organisation does not pay tax on its revenue from the tournament.
Markus Kattner, FIFA director of finance, said: “FIFA is financially strong.
“But [the figures] illustrate the necessity to build up reserves to decrease its dependency on the World Cup.”
Those reserves have swelled to $1.2 billion (£719 million) from just $76 million (£45.5 million) eight years ago.
Franco Carraro, a member of the FIFA World Cup Organising Committee, added: “In contrast to the previous four-year period, FIFA did not need to borrow any money at all during the period that has just ended.”
Having embarked on this huge increase in its reserves, FIFA will be promising to plough “even more of its revenue into football” in the next cycle as they have less need to put money aside.
“The main beneficiary of this financial success will be football itself,” say FIFA.
“The greater the funds available, the better FIFA can help protect and develop the game.”
FIFA has also put $794 million (£476 million) into football development during the 2007-2011 period, with the Goal Development programme, introduced by Blatter after his election in 1998, paying out cash to most of FIFA’s members since.
Blatter said that “playing its part in building a better future through football” is a prime aim of FIFA.
Though he will be facing a stern challenge to hold onto his place as FIFA President, the 75-year old can at least point to a healthy cashflow ahead of June’s election.
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