FIFA losses hit $369m in 2016
FIFA finances showed a loss of US$369 million last year as American and Swiss corruption investigations added legal costs to the football body's budget and scared off sponsors.
An even bigger loss is expected next year, FIFA said yesterday after publishing its 2016 accounts, which reflect a new way of reporting income.
FIFA expects to rebound with US$1 billion in profit in the accounts for 2018, which will include income from most TV broadcast deals for the World Cup in Russia.
Still, the scandal-hit body's confidence will be tested with 24 slots currently unsold in a 34-sponsor programme for a World Cup that kicks off in only 14 months.
"However, 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," FIFA said in the 116-page financial report for 2016.
FIFA's costs in 2016 included legal bills of more than US$50 million for the American and Swiss federal investigations of bribery and mismanagement linked to international soccer leaders. That legal bill rose from US$20.2 million in 2015, the report said.
FIFA is sticking to its revenue target of US$5.56 billion mostly from World Cup TV and sponsorship deals for the four-year financial cycle tied to the tournament in Russia.