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FIFA REPORTS A PROFIT OF CHF 303 MILLION

FIFA said its “exceptional year” can be attributed to the FIFA World Cup™ in Germany, the successful conclusion of the securitisation of marketing income launched in 2001, FIFA’s conservative expenditure policy and various other factors. Thanks to this surplus, by the end of 2006 FIFA had increased its equity to CHF 752 million.

“FIFA is still not rich, but we have now created a comfortable position for ourselves,” said FIFA President Joseph S. Blatter. “Only a few years ago, FIFA was being criticised for its financial situation. Today, we have proved that the facts are somewhat different.”

By means of securitisation, in 2001 FIFA pre-financed a portion of future marketing revenue for the 2003-2006 period on the capital market. As a result, the governing body was able to enhance its liquidity and ensure that it was always in a position to fulfil all of its commitments to its member associations. As the transaction was based on conservative projected figures, only part of the anticipated revenue was securitised and FIFA used the funds received in advance with circumspection and restraint. FIFA was then able to conclude all outstanding sponsorship deals for the 2003-2006 period with the help of the newly formed FIFA Marketing AG.

FIFA General Secretary Urs Linsi stressed the importance of equity: “With the equity we now have at our disposal, we have taken our first step in the right direction. Having sufficient equity is vital because FIFA virtually finances its many activities from the World Cup alone, and we have to be able to react to any unforeseen circumstances that may arise.”