15 % of 3.3bn is not a profit says FIFA

In an interview with BBC, Jerome Valke the FIFA general secretary was asked how much money will be made from the World Cup.

The World Cup costs about 1bn, but makes 3.3bm which FIFA then spends on Football development. The general secretary emphasised that FIFA `only’ take 15% for administration.

We are not making any profit, all the money, 85% is going back to football.

15% of 3.3 bn is 495 M, that means FIFA costs 124M per year. I presume these amounts are in UK pounds because interview was with BBC. I think 15% is quite a nice profit. I couldn’t find out is this governing body is a company or charity though.

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One Response

  1. Here I found a blog discussing TAX free status that FIFA demands of host countries. FIFA is a registered charity in Switzerland. Interestingly they even demand that the wages (AKA prize money) they pay to players also be TAX free for which I cannot see any justification.

    http://www.taxresearch.org.uk/Blog/2010/05/12/fifa-demands-tax-free-status/

    One thing I cannot understand is, if FIFA is a legitimate charity, surely when asked about making a profit from the world cup their natural response should be to say “yes” rather than trying to weasel out of the question.

    [Obviously the same thing goes if FIFA was a company – Profit earned legitimately and honestly is a good thing! – They are presumably providing a service in high demand by organising this event]

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