Despite some unforeseen expenses, FIFA started the 2007-2010 World Cup cycle with favourable financial results. The accounts for 2007, drawn up in accordance with International Financial Reporting Standards (IFRS), reveal that world football's governing body recorded income of USD 882 million and expenses of USD 833 million, leading to an overall surplus of USD 49 million. The full report is available on FIFA.com.
The results confirm that FIFA is continuing to enjoy robust
growth. In comparison with previous years, FIFA's revenue
increased again in 2007. At the same time, the increase in
expenditure for the period covered by the report reflects the
higher budget overall for the 2007-2010 World Cup cycle relating to
various development projects such as the Goal Programme or the Win
in Africa with Africa initiative. FIFA is well on course towards
strengthening its equity, which amounted to USD 643 million as at
the end of 2007. FIFA is aiming at reserve capital of over USD 800
million by the end of 2010. The balance sheet showed total assets
of USD 1,159 billion.
The balance sheet and income statement were examined and approved by the FIFA Internal Audit Committee (IAC). The Internal Audit Committee was created following a decision passed by the 2002 FIFA Congress in Seoul. Since then, it has been working as an independent body in a supervisory capacity for financial matters.
FIFA President Blatter expressed great satisfaction at the positive outcome.
"We have shown that our long-term strategy is producing steady growth and that our equity basis can be strengthened even further. We also managed to end the contractual dispute with MasterCard, thus opening the doors to partnership with Visa and completing our pool of Partners."
The contractual dispute with MasterCard, with which FIFA had been burdened for more than a year, was settled out of court in June 2007 at a cost of more than USD 90 million (including the cost of the legal proceedings regarding the use of the logo). FIFA deliberately chose this course so as to avoid lengthy legal proceedings.
The change of reporting currency from Swiss francs to US dollars in accordance with IFRS guidelines, which require balance sheets to be drafted in the currency in which an entity primarily conducts its business, was completed without a hitch. Despite the continuing turmoil surrounding the dollar, FIFA can look to the future with confidence, having already made the necessary hedging arrangements. Another plus has been the conclusion of a contract with the Indian consultancy and IT company, Satyam - the first company on the subcontinent to sign as a sponsor for the FIFA World Cup™.
Under the management of the new General Secretary, Jérôme Valcke, FIFA has instituted an even more modern and efficient administration so as to be in a position to tackle any new challenges that may lie ahead.
To ensure that there are adequate structures and procedures in place to deal with ever increasing responsibility, the Internal Organisation Regulations were, at the same time, revised and risk management was adapted.