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Fifa's cash reserves soar to $2.7 bn; revenues at $6.4 bn

Fifas cash reserves soar to $2.7 bn; revenues at $6.4 bn

London: FIFA's cash reserves soared to a record $2.74 billion and revenue climbed to $6.4 billion in the four-year period covering the 2018 World Cup, The Associated Press has learned. The robust financial results suggest FIFA has weathered the deepest crisis in its history, which erupted in 2015 when a United States-led criminal investigation led to the arrests and later convictions of high-ranking officials on corruption charges.

FIFA President Sepp Blatter also was deposed as FIFA president in a financial misconduct case that left the governing body's reputation in tatters and caused a backlash from sponsors. After being elected as Blatter's successor in 2016, Gianni Infantino said that "FIFA was clinically dead as an organization."

Although Infantino's leadership has come under criticism from within European governing body UEFA, Infantino will be able to show the budget is in a healthy state, and he is due to be re-elected unopposed in June for a four-year term.

The 2015-18 finances obtained by the AP exceed the forecasts presented to the FIFA Congress last June. While FIFA projected cash reserves to increase to $1.653 billion in the 2018 World Cup cycle, they had grown to $2.74 billion at the end of 2018, according to people with knowledge of the finances.

The people spoke on condition of anonymity because the financial results remain confidential. FIFA's reserves at the end of the 2014 World Cup cycle were $1.523 billion after generating $5.718 billion after the tournament in Brazil.

Amid of corruption crisis of 2015, FIFA modestly targeted raising $5 billion by the end of the Russia World Cup, a projection later raised to $6.1 billion. Those expectations were eclipsed when the four-year cycle ended with revenues of $6.4 billion, according to the people with knowledge of the financial report, which shows profit of around $1 billion.

The record revenue was achieved despite FIFA not filling its full slate of sponsors for the 2018 World Cup. Several sponsors did not renew after the 2014 tournament in Brazil. Sheikh Salman Bin Ibrahim Al-Khalifa, an opponent of Infantino in the 2016 vote, had warned Infantino's plan to increase payouts to member associations would "bankrupt" FIFA, but that has not transpired.

In the 2011-14 World Cup cycle, FIFA's accounts showed just over $1 billion was spent overall on development projects with $538 million going to the Financial Assistance Programme for national associations and confederations.

In the 2015-18 cycle, investment dedicated to FIFA's new Forward development program was $1.079 billion of which $832 million had been approved and committed to member associations, confederations or regions by the end of last year, according to a financial document seen by the AP.

Between May 2016 and December 2018, 941 specific projects were funded in 179 of the 211 member associations at a cost of $270.3 million. There are a range of handouts: from $30,769 to train female football administrators in South Africa to $2.25 million on youth development in Peru.

FIFA proclaims it has far more rigorous system of financial controls designed to guard against further corruption scandals. FIFA rejected 201 of the 1,978 funding applications received in the four-year cycle. FIFA is also trying to secure backing to expand the Club World Cup and develop a Global Nations League, a mini-World Cup for national teams, to further boost revenue.

But Infantino's hopes of obtaining $25 billion in guaranteed finances from backers, including Japan's SoftBank, have stalled over European opposition to the formats and funding. Even without that additional income, FIFA said in its financial report that

the success of the 2018 World Cup has provided "strong financial resources" to enable

it to raise Forward funds by $667 million to $1.746 billion in the 2019-22 cycle.

Agencies

Agencies

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