May 25 – FIFA’s members have passed a projected budget based on $4.666 billion of revenue for 2022, the first year of a new four year cycle that has the financially underpinning World Cup in Qatar – albeit at the end of the year.
Out of that revenue FIFA said it will spend $2.696 billion on ‘investments in football’ while its administrative expenses will hit $442 million. That will leave a profit before tax of $1,526 billion.
FIFA expenses breakdown to $251 million being spent on ‘governance and administration’ and $191 million being spent on marketing and TV broadcasting. A further $44 million will be spent on ‘football governance’ – essentially ensuring members are following regulations.
Looking at the projected revenue breakdown, a massive $2.64 billion will be generated by broadcast rights, with $1.353 billion generated from sponsorships.
A year fed by its reserves
The 2021 budget was passed at FIFA’s 71stAnnual Congress held virtually last Friday. The Congress also approved its financial statements for 2020 which saw just $252 million of revenue eaten up by $990 million of ‘expenses and solidarity contributions and an $878 million bite out of FIFA’s reserves so the organisation could meet its statutory obligations.
FIFA said that its assets at the end of 2020 stood at $4.535 billion, up from $4.504 billion in 2019. However its reserves, mainly due to the covid relief fund, had taken a hit, dropping from $2.586 billion at the end of 2019, to $1.881 billion at the end of 2020.
The organisation is still cash rich, holding $1.155 billion at the end of 2020.
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