FIFA Sees Profit, Income Jump Due To Last Year’s World Cup

FIFA Sees 41% Profit Increase Due To ’06 World Cup

FIFA’s profit in ’06 rose 41% and net income jumped from $176M (all figures converted to U.S.) to $248.4M due largely to the World Cup, according to Ryan Mills of BLOOMBERG NEWS. TV broadcasters paid around $1.7B for World Cup rights, which contributed to FIFA’s event-related revenue of $697.5M. German event organizers said that the tournament made a profit of $179.5M, of which FIFA received $59.6M. Mills noted FIFA is budgeting a revenue for ’07 of $414.4M, with expected costs of $445.3M; $102.7M is slated for preparations in conjunction with the 2010 World Cup in South Africa. FIFA President Sepp Blatter is running for re-election later this year, and “turning around FIFA’s finances may help” his chances (BLOOMBERG NEWS, 3/23).

CONTINENTAL ROTATION COULD END: Blatter said that rotating the World Cup among continents “could end after the 2014 tournament, a move that could hurt the [U.S.’] bid for 2018.” A final decision on the rotation will come during FIFA’s Exec Committee meeting in South Africa in November. The committee at the meeting will also select the site of the 2014 World Cup, which is “designated for South America and is likely to be in Brazil.” Meanwhile, FIFA said that the son of VP and CONCACAF President Jack Warner must pay $1M to SOS Children’s Villages “in repayment for selling tickets at inflated prices” during the World Cup (AP, 3/24).