‘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, 70 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 2007 and 2010 witnessed USD 794 million - 22 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 1,713 million for the last four-year period.
The FIFA World Cup™ accounted for the lion’s share of this total at USD 1,298, with the outlay at South Africa 2010 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 415 million going towards the 23 other competitions staged during the 2007-2010 period.
FIFA also ensured that its stakeholders benefited by making an extraordinary payment of USD 144 million to its member associations and confederations. Club football also received additional funding from FIFA - USD 40 million was pledged in January 2011 to the 400 clubs represented at the 2010 FIFA World Cup South Africa.
The FIFA Executive Committee agreed to set aside provisions of USD 40 million for the 2010 FIFA World Cup South Africa and USD 70 million for the 2014 FIFA World Cup Brazil in order to recognise the important part clubs play in the success of FIFA World Cups. The payments following the 2010 FIFA World Cup were distributed via the Member Associations to the clubs of the 736 players who participated in the final competition.
FIFA, as befits an organisation of its size and scope, also has sizeable operating expenses, amounting to USD 707 million for the 2007-2010 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 202 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 92 million devoted to this and licensing between 2007 and 2010. 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.