There are several different streams of income for world football’s governing body as it seeks resources to touch the world, develop the game and build a better future.
FIFA enjoyed a great period of success in the four-year cycle between 2007 and 2010, with revenue rising to USD 4,189 million, up significantly from the figure of USD 2,634 million from the previous four-year cycle. While costs also rose, they remained firmly in control, enabling FIFA to make an extremely healthy result of USD 631 million.
Ninety-three per cent of FIFA’s income during this period was accounted for by event-related revenue. The biggest event of them all proved the biggest fundraiser: the 2010 FIFA World Cup South Africa™ made USD 2,408 million of FIFA’s USD 2,448 million through the sale of television rights, and USD 1,072 million of its USD 1,097 million via marketing rights. Overall, South Africa 2010 accounted for 87 per cent of FIFA’s total revenue.
FIFA also benefited from brand licensing. Through the organisation’s FIFA Branded Licensing Programme, companies pay for the license to use the FIFA Brand Marks in the advertising, marketing, promotion and sale of their licensed products or programmes. As well as contributing to FIFA Brand awareness and to the globalisation of the game of football, this generated USD 37 million for FIFA between 2007 and 2010.
FIFA also made USD 33 million from Quality Concept, with manufacturers paying the sport’s governing body for FIFA-approved and FIFA-inspected quality marks on outdoor, futsal and beach soccer balls.The governing body’s remaining income came through its conservative investment strategy and was primarily made up of interest income of USD 51 million and foreign currency gains of USD 64 million.
A key success of the 2007-10 period, during which FIFA’s balances rose to USD 2,145 million, was the boosting of reserves to a total of USD 1,280 million, as of 31 December 2010. The creation of reserves is one of FIFA’s statutory duties as it enables the organisation to ensure financial independence and prepare for unforeseen events that would seriously impact revenue streams. The world governing body can therefore be hugely satisfied by their success in this respect over the past few years, with the level of reserves more than doubling over the 2007-2010 period from its 2006 level of USD 617 million.