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Home General News Featured

FIFA posts $369m loss for 2016, expects worse in 2017

Attah Dabone by Attah Dabone
April 8, 2017
in Featured, Voice Sports
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FIFA posts $369m loss for 2016, expects worse in 2017
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World football’s governing body has posted losses for the last calendar year and expects more before the 2018 World Cup gets it back on track

FIFA reported losses of $369 million for 2016 and had budgeted to for a greater loss this year.

The latest financial report issued by world football’s governing body projects a deficit of $489m in 2017, although it expects a bumper year in 2018, with the television deals for the World Cup in Russia forecast to help the FIFA meet its target for the 2015-18 period of a $100m profit.

Legal costs rose, related to the scandal that engulfed the organisation in May 2015, when US and Swiss authorities arrested top football officials at a luxury Zurich hotel as part of an investigation into allegations of criminal misconduct, bribery and corruption. The officials were gathered for FIFA’s annual congress.

A raft of governance reforms have followed and FIFA has worked to co-operate with the authorities, although spending on legal costs was up to $50.5m, from $20.2m the year before.

In the report, FIFA said: “It goes without saying that stagnant global trade and subdued investment, combined with investigations surrounding previous FIFA officials, have put pressure on the organisation’s overall revenue generation.

“Nonetheless, FIFA expects to hit its revenue budget target as approved by the 66th FIFA Congress by the end of the 2015-2018 cycle.”

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The financial year under review covered the first 10 months of Gianni Infantino’s presidency, after the former UEFA chief replaced the disgraced Sepp Blatter.

In the report, Blatter’s investments in a football hotel and museum in Zurich were described as “ill-considered”.

Source : Goal

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