FIFA's crisis has had "serious financial consequences," according to the PA. A drop in income from sponsors -- and huge legal bills following the corruption scandal -- "has led to the world governing body being hit hard in the pocket." Losses for the year totaled 103M Swiss francs ($104M), "according to insiders." It is the "first time the body has reported a loss" since '01. FIFA has so far been unable to replace its top-tier corporate partners Emirates and Sony as well as second-tier sponsors Castrol, Continental and Johnson & Johnson "because of its now toxic reputation." FIFA’s income "always drops in the year after World Cups but it has always managed to make a surplus" -- in '11 it made a £24M profit, which was added to its reserves, which total around £1B ($1.5B). The legal bills are "also significant" -- suspended President Sepp Blatter "brought in a team of American lawyers after the US justice department announced its indictments of 18 officials on football-related corruption charges in May." Blatter and other senior FIFA execs are "also believed to be under investigation by the FBI." FIFA’s last annual deficit came in '01 when the bankruptcy of its marketing partner ISL "saw the world governing body end the year in the red" and forced to take out a £118M bridging loan (PA, 12/2).
