‘For the Game, for the World’ is FIFA’s motto, and that principle is evident in the expenditure of world football’s governing body.
The vast majority of FIFA’s income is invested in football and football development. Indeed, 72 per cent of the world governing body‘s expenditure is ploughed directly into football, with Corporate and Social Responsibility a central pillar - and development programmes a key area of investment. Indeed, the last cycle between 2011 and 2014 witnessed USD 1,052 million - 20 per cent of overall expenditure – spread across the organisation’s Financial Assistance Programme, Goal Programme and other development and social projects.
Tournaments also play a crucial part in developing football, its participants and hosts, as well as bringing joy and entertainment to the watching world. Accordingly, FIFA Competitions represent the organisation’s greatest single area of expense, with event-related expenditure coming in at USD 2,817 million for the last four-year period.
The FIFA World Cup™ accounted for the lion’s share of this total at USD 2,224 million, with the outlay of Brazil 2014 dominated by prize money, contributions to the Local Organising Committee and TV production costs. Yet FIFA has also displayed a strong commitment to the plethora of less-heralded tournaments that play such a key role in developing and enhancing the game, with USD 505 million going towards the 24 other competitions staged during the 2011-2014 period.
FIFA also ensured that its stakeholders benefited by making an extraordinary payment of USD 144 million to its member associations and confederations. Football clubs also received additional funding from FIFA - USD 70 million to the 396 clubs represented at the 2014 FIFA World Cup Brazil. To provide development for football to the host country of the FIFA World Cup™, FIFA approved the 2014 FIFA World Cup™ Legacy Fund of USD 100 million. With this legacy fund, Brazil will continue to benefit from the tournament for years to come.
After the conclusion of the FIFA Club Protection Programme for the 1 September 2012 to 31 December 2014 period, a total of EUR 39.4 million was paid out in compensation to clubs, including the anticipated payments until the injured players are able to resume playing. Given the resounding success of the programme, the FIFA Executive Committee has decided to extend the programme to cover the period of 1 January 2015 to 31 December 2018. The programme will now also cover clubs for women’s representative “A” team matches.
FIFA, as befits an organisation of its size and scope, also has sizeable operating expenses, amounting to USD 861 million for the 2011-2014 period. The role of football governance comes at a cost too, with the organisation of all committees and FIFA congresses, legal matters and football administration tallying at USD 232 million.
The need to fulfill contractual obligations in respect of exploiting marketing, TV and media rights, while ultimately yielding gains, requires an initial outlay, with USD 84 million devoted to this and licensing between 2011 and 2014. Foreign exchange costs also feature on FIFA’s expenditure sheet, although these losses have been more than offset by corresponding foreign exchange gains during the same period.
Financial reserves have been set aside to enable the organisation to react to unexpected events and secure its economic independence.