FIFA announces $36M profit in 2011 accounts
{{#rendered}} {{/rendered}}Boosted by the World Cup's enduring appeal, FIFA reported a profit of $36 million on Friday from its billion-dollar income in 2011 and increased its reserves to $1.3 billion.
FIFA accounts showed it had $1.07 billion revenue and spent $1.034 billion last year, allowing soccer's world governing body to save an additional $13 million in its reserve fund.
"I am delighted to note that, financially, FIFA stands on rock-solid foundations," FIFA President Sepp Blatter wrote in the financial report.
{{#rendered}} {{/rendered}}Blatter, and other FIFA leaders and executives who were not identified, shared in bonus payments totaling $29.5 million.
FIFA pays no tax because of its status as a not-for-profit association in Swiss law, investing its revenues in soccer development and running costs.
The figures cover the first year in a four-year cycle of commercial deals tied to the 2014 World Cup in Brazil.
{{#rendered}} {{/rendered}}FIFA said the tournament earned $910 million in 2011, and $550 million was banked from broadcasting deals. Nearly all broadcasters and sponsors are signed to two-tournament packages that began with the 2010 tournament in South Africa.
FIFA's financial prospects look even brighter for the subsequent two-tournament deals covering the 2018 and 2022 events being played in Russia and Qatar, respectively.
On Friday, FIFA announced it completed a 37-nation rights deal with the European Broadcasting Union, plus a standalone deal with Scandinavian network SVT, covering both tournaments. German broadcasters ARD and ZDF also bought 2018 rights.
{{#rendered}} {{/rendered}}FIFA did not give the value of the deals, though previous contracts for 2018-2022 worth more than $3 billion combined have been clinched with broadcasters including Al-Jazeera in the Middle East and Fox, which holds English language rights in the United States.
Last year, FIFA spent $428 million on 2014 World Cup expenses and $183 million on development, including $31 million on its Goal program that funds projects in developing nations.
FIFA also gets tax exemptions granted by tournament host nations.
{{#rendered}} {{/rendered}}Accounts published Friday showed that FIFA subsidiaries paid almost $4.9 million in tax and duties to Swiss authorities last year.
FIFA's salary bill in 2011 was $67.3 million for 390 employees, at an average of $172,677. Other employee benefit costs tallied more than $21 million.
In the World Cup year of 2010, FIFA's wage bill was $65.3 million for 387 employees, at an average of $168,700.
{{#rendered}} {{/rendered}}Blatter's payment package was not detailed.
Bonuses totaling $29.5 million were paid to "key management personnel" — defined as members of the 24-man executive committee, financial committee and departmental bosses. In 2010, they were paid $32.6 million.
Blatter and finance director Markus Kattner declined to answer questions at a news conference requesting details of how the $29.5 million was allocated.
{{#rendered}} {{/rendered}}FIFA typically reports its lowest figures in the opening year of a World Cup cycle.
Still, its original budget for 2011 approved two years ago had anticipated revenue of $715 million — $355 million less than the amount reported.
Last year, FIFA declared a profit of $202 million as the 2010 World Cup cycle showed a surplus of $631 million.