The recent election of Vitaly Mutko as president of the Russian Football Union (RFS) is expected to improve the organization's dire financial situation. Immediately upon election earlier this month, Mutko secured a sponsorship deal with metals company Norilsk Nickel, but he warned that paying out all the organization’s outstanding debts could take a year and a half. Mutko said that RFS needs 3B rubles ($44M) a year to properly operate, while the organization's outstanding debt currently stands at 1.2B rubles ($17.7M). RFS' finances have been precarious since its contract with major sponsor, natural gas firm Gazprom, expired in late '12. The organization's previous president, Nikolai Tolstykh, ousted this past May, was unable to find a replacement, and under him RFS fell behind in paying Russia's national squad's former coach, Fabio Capello's salary. The debt to Capello was eventually paid by tycoon Alisher Usmanov.
SEARCHING FOR SPONSORS: Meanwhile, finding new major sponsors is set to become Mutko's main task. Repucom Head of Business Development & Sales Russia Maxim Kleiman told SBD Global, "The most important thing for the Russian national team is their performance on the pitch, whilst for the RFS itself, it is to be more appealing and transparent for sponsors to engage." According to Kleiman, the recent strong performance of Russia's national side, which substantially improved it chances of qualifying to Euro 2016 directly by winning two games in early September, may also help RFS to secure more sponsorship deals. Kleiman said, "This is of course a vital element in attracting sponsorship, especially ahead of the 2018 World Cup. It goes without saying that the marketability of sponsorship packages is much more promising in a positive environment with sponsors more willing to invest in the Russian Football Union." Mutko already was RFS president between '05-09. Since '08, he has been Russia's sports minister, a position he will keep in addition to his responsibilities as RFS president.
Vladimir Kozlov is a writer in Moscow.
