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FIFA RESERVES SOAR TO $2.7B, REVENUE AT $6.4B
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.
Each member association can apply for up to $6 million over the 2019-22 cycle, while each of the six confederations receives $48 million. In addition, $62 million is available for zonal or regional associations if they organize at least five youth and women’s competitions per year.
News of the soaring FIFA reserves comes amid ongoing questions about the lack of parity for World Cup prize money between the men’s and women’s tournaments.
France earned $38 million from FIFA for winning the men’s World Cup last July but the women’s champion this July will earn $4 million. That is double the amount collected by the U.S. Soccer Federation in 2015, a rise in line with the overall prize money jumping to $30 million. The fund for the World Cup in Russia rose 12 percent to $400 million and that jumps to $440 million for the 2022 tournament in Qatar.
FIFA has acknowledged concerns of female players about the financial disparities while pointing to funding to grow the women’s game.
“The vast majority of women’s football players across the world are still amateur,” Sarai Bareman, FIFA’s chief women’s football officer, said when the prize money for France was agreed last year. “That’s the most important thing for us. If we want to build the whole ecosystem of the women’s game it has to start there.”
Infantino is costing FIFA less than his predecessor.
Infantino last year earned a salary of $1.9 million and a bonus of $550,000, according to one of the people with knowledge of the finances. Infantino earned $1.61 million in 2017 without a bonus.
Blatter’s basic salary of $3 million in 2015 was topped up by an $11 million contractual bonus for the 2010 World Cup and $12 million for the 2014 edition. His contract included a $12 million performance bonus he would have earned had he completed a 2015-19 presidential term.
Mamelodi Sundowns and Ulsan HD had targeted their Group F opener as their best chance to get a win on the board at the Club World Cup, with Brazil’s Fluminense and German side Borussia Dortmund expected to advance from Group F.
South Africa’s Sundowns took all three points with a 1-0 win over the South Koreans and went top of the group after Fluminense drew 0-0 with Dortmund.
WHY IT’S IMPORTANT
African and Asian teams are not expected to make much of an impact at the new-look 32-team Club World Cup so points are like gold dust for the likes of the Sundowns and Ulsan.
KEY QUOTES
Miguel Cardoso, Mamelodi Sundowns coach: “We prepared tactically and strategically very well, and then we found a commitment between everybody. I think it was clear we made a very wonderful first half. It was important that we could keep the pace and not stray from the game plan in the second half, so that we could score a second goal that for little details or little centimetres, we could not do.”
Kim Pan-gon, Ulsan HD head coach: “We had targeted this game to win because we understand the other two teams in the group, Fluminense and Borussia Dortmund, are favourites. Our players gave their best efforts in this game and we’re very proud of their efforts. Now we need to recover quickly for the next game.”
-Reuters
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With a year until Mexico makes history as the first three-time World Cup host, the dream of a spectacular showcase is colliding with the practical challenges of modernising the iconic Azteca Stadium for global soccer’s premier event.
Beneath the imposing silhouette of Mexico’s football cathedral – where Pele dazzled with Brazil in 1970 and Maradona’s ‘hand of God’ propelled Argentina to glory in 1986 – construction crews tackle the formidable task of bringing one of the sport’s most storied venues into the 21st century.
The stakes are magnified as the ‘Santa Ursula colossus’ will host the tournament’s opening match, a global spectacle that will focus the world’s attention on Mexico from day one.
Renovations will expand the stadium’s capacity from 87,000 to 90,000, with upgrades centred on meeting FIFA standards through new changing rooms, enhanced hospitality zones, revamped VIP areas and additional seating in spaces previously occupied by boxes and lounges.
While government officials and football administrators envisioned the project as a symbol of national pride, the renovation process has eroded trust between developers, local residents and other stakeholders.
Stadium administrators announced in February that they had secured a 2.1 billion peso ($110.19 million) credit line from local financial group Banorte – along with a controversial new name: Estadio Banorte.
FIFA regulations mean the stadium will be referred to as “Estadio Ciudad de Mexico” during the World Cup, yet the rebranding has sparked a fierce backlash from some fans, who view it as sacrificing football heritage for commercial interests.
HARSH REALITY
The backlash over the stadium’s new name represents only one facet of the mounting tensions. Box and suite holders – some with relationships spanning decades – have threatened legal action after FIFA announced it would commandeer their seats during the tournament, overriding established contracts.
One member of the Mexican Association of Box Holders has already filed a legal challenge to defend access rights.
Beyond the stadium walls, frustration runs equally deep. Residents of Santa Ursula and surrounding neighbourhoods fear that promised infrastructure improvements like pedestrian bridges and transit lines will fail to address fundamental issues including inadequate lighting, water shortages and persistent traffic congestion.
“We’re not the stadium’s backyard,” one local resident told Expansion Politica. “But we’re always treated that way.”
By contrast, Guadalajara and Monterrey, Mexico’s other two host cities, face fewer obstacles.
Guadalajara’s 48,000-seat stadium, opened in 2010, has already hosted major events including the 2011 Pan American Games, while Monterrey’s 53,500-capacity venue, inaugurated in 2015, needs only minor upgrades – primarily new turf and a pitch ventilation system.
“We’ll install a system to ventilate and oxygenate the pitch before replacing the grass,” said Alejandro Hutt, Monterrey’s Host City Manager. “That will be an important legacy from the World Cup and beyond.”
As construction continues, Javier Aguirre’s Mexico squad are building towards a crucial summer, with a Gold Cup title defence ahead and friendly matches against Turkey this week, followed by Japan and South Korea in September.
After failing to advance beyond the group stage at Qatar 2022 – their worst World Cup performance since 1978 – Mexican fans crave more than just a well organised tournament. They want to see Mexico break the ‘fifth-game‘ curse and reach the quarter-finals for the first time since 1986, the last time they were World Cup hosts.
-Reuters
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All contenders are now known for this year’s President Federation Cup grand finale, following Saturday’s elimination of Edo Queens and Ibom Angels in the women’s semi-finals.
Multiple-winners Rivers Angels saw off the stiff challenge of Ibom Angels of Uyo 1-0 in Aba, while Nasarawa Amazons bumped Edo Queens 2-0 in Ayingba.
Cup holders Rivers Angels, who have won the competition nine times, will have their hands full against 2005 and 2019 champions Nasarawa Amazons of Lafia.
In the men’s competition, Abakaliki FC of Ebonyi are getting set to tackle Kwara United FC in the final.
Results of Semi Finals (Women)
- Rivers Angels (Rivers) 1-0 Ibom Angels (Akwa Ibom)
- Edo Queens (Edo) 0-2 Nasarawa Amazons (Nasarawa)
Results of Semi-Finals (Men)
- Abakaliki FC (Ebonyi) 0-0 Ikorodu City (Lagos) – Abakaliki FC win 5-4 on penalties
- Kwara United (Kwara) 1-0 Rangers Int’l (Enugu)
WOMEN’S FINAL
- Rivers Angels vs Nasarawa Amazons
MEN’S FINAL
- Abakaliki FC VS Kwara United
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