FIFA announces $36 million profit in 2011 accounts


Boosted by the World Cup’s enduring appeal, FIFA reported a profit of $36 million on Friday from its billion-dollar income in 2011 and increased its reserves to $1.293 billion.

FIFA accounts showed it had $1.07 billion revenue and spent $1.034 billion last year, allowing football’s world governing body to save an additional $13 million in its reserve fund.

“I am delighted to note that, financially, FIFA stands on rock-solid foundations,” FIFA President Sepp Blatter wrote in the financial report. Blatter, and other FIFA leaders and executives who were not identified, shared in bonus payments totalling $29.5 million.

The figures cover the first year in a four-year cycle of commercial deals tied to the 2014 World Cup in Brazil.

FIFA said the tournament earned $910 million in 2011, and $550 million was banked from broadcasting deals.

Nearly all broadcasters and sponsors are signed to two-tournament packages that began with the 2010 tournament in South Africa.

FIFA’s financial prospects look even brighter for the subsequent two-tournament deals covering the 2018 and 2022 events being played in Russia and Qatar, respectively.

On Friday, FIFA announced it completed a 37-nation rights deal with the European Broadcasting Union, plus a standalone deal with Scandinavian network SVT, covering both tournaments. German broadcasters ARD and ZDF also bought 2018 rights.

FIFA did not give the value of the deals, though previous contracts for 2018-2022 worth more than $3 billion combined have been clinched with broadcasters including Al-Jazeera in the Middle East and Fox, which has English language rights in the United States.

FIFA pays no income tax because of its status as a not-for-profit association in Swiss law which invests its revenues in football development. It also gets tax exemptions granted by tournament host nations.

Accounts published Friday showed that FIFA subsidiaries paid almost $4.9 million in tax and duties to Swiss authorities last year.

FIFA’s salary bill in 2011 was $67.3 million for 390 employees, at an average of $172,677. Other employee benefit costs tallied more than $21 million.

In the World Cup year of 2010, FIFA’s wage bill was $65.3 million for 387 employees, at an average of $168,700.

Blatter’s remuneration package was not detailed.

Bonuses totaling $29.5 million were paid to “key management personnel” - defined as members of the 24-man executive committee, financial committee and departmental bosses. In 2010, they were paid $32.6 million.

Blatter and finance director Markus Kattner declined questions at a news conference requesting details of how the 29.5 million was allocated.