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Revenue Expenses
1,166
1,018
59
89
1,077
77
177
569
13
188
53
Result
89
150
450
600
750
900
1,050
1,200
300
Income statement 2012USD million
Balance sheet as at 31 December 2012USD million
Assets 2,683
Current assets 2,175
Non-current assets 508
Liabilities and reserves 2,683
Current liabilities 1,168
Non-current liabilities 137
Reserves 1,378
Financial expenses
Other operating expenses
Football governance
Development-related expenses
Exploitation of rights
Event-related expenses
Financial income
Other operating income
Event-related revenue
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01
02
03
04
05
Foreword 4
FIFA President 6
Chairman of the Finance Committee 8
Chairman of the Audit and Compliance Committee 10
Facts & Figures 2012 12
Overview 14
Income statement 16
Balance sheet 20
Budget comparison 22
2011-2014 Period 26
Detailed budget for 2014 28
Special Topics 30
Good governance reforms 32
Asset management report 38
FIFA Club Protection Programme 40
Annexe 2012 42
Auditor‘s report 96
Audit and Compliance Committee report 98
Natalia Gómez Junco (L) of Mexico and Cinzia Joerg
(R) of Switzerland battle for the ball during the
FIFA U-20 Women‘s World Cup 2012 match
between Mexico and Switzerland at Miyagi Stadium
in Japan on 22 August.
Foreword 01
7
FIFA President 6Chairman of the Finance Committee 8
Chairman of the Audit and Compliance Committee 10
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2012
Dear football friends,
It is with great pleasure that I present the Financial Report 2012, which once again reveals another prosperous year for FIFA from an economic point of view. Thanks to our healthy balance sheet, we can continue to focus our efforts on the improvement of both the beautiful game itself and of our many competitions.
In line with the organisation’s mandate to serve the sport, our FIFA team recorded many remarkable achievements in 2012, ranging from the successful staging of eight FIFA competitions (in particular the FIFA U-17 and U-20 Women’s World Cups, the FIFA Futsal World Cup and the annual FIFA Club World Cup) to the effective imple-mentation of the very ambitious but essential road map for good governance.
The reform plan I tabled at the 61st FIFA Congress received the full support of delegates and marked the beginning of a reform process. At the 62nd FIFA Congress,
FIFA‘s judicial system and the creation of an Audit and Compliance Committee. The reform process will be completed by the 63rd FIFA Congress in 2013.
In addition, with only a few months left before the start of the FIFA Confederations
delighted to announce that preparations for the 2014 FIFA World Cup Brazil™ are well under way and proceeding according to plan.
for the future tasks that lie ahead. I would like to thank you for all of your valuable support and I have no doubt that together we can meet any challenge that may come our way.
For the Game. For the World.
Joseph S. BlatterFIFA President
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FIFA President 6Chairman of the Finance Committee 8
Chairman of the Audit and Compliance Committee 10
Dear Sir or Madam,
optimism for the remaining half of the cycle.
The development of FIFA’s revenues and costs is progressing according to plan, despite the continued challenging global economic situation. This has been achieved by keeping costs under control and by successfully commercialising our rights. At the same time, FIFA has preserved its assets via prudent asset management.
directly in the beautiful game itself, whether through our many worldwide football development programmes or through the various FIFA competitions.
One of the many milestones achieved in 2012 was the successful implementation
and member associations as well as the players and clubs, and provides for a global harmonised solution.
calendar. The programme runs from 1 September 2012 to 31 December 2014 and was also valid for the 2012 Olympic Football Tournament in London.
in greater detail at the 63rd FIFA Congress in Mauritius. On behalf of the Finance Committee, I would like to thank you for all of the trust and support you have placed in us over the past years.
Julio H. GrondonaChairman of the Finance Committee
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FIFA President 6Chairman of the Finance Committee 8
Chairman of the Audit and Compliance Committee 10
Dear Sir or Madam,
capacity as chairman of the newly constituted Audit and Compliance Committee, particularly given the positive economic results recorded at the halfway mark of the
Following the good governance reform process, the role of the new Audit and
oversight now represent its major tasks. The chairman and deputy chairman must
charter and are part of the FIFA Organisation Regulations.
The new Audit and Compliance Committee has been founded on these criteria and
improvements have taken place in recent years, I am convinced that the committee‘s independence through its oversight and monitoring role can contribute to further
organisational processes and standards and maintaining an effective compliance programme.
FIFA has undergone considerable changes over the years, evolving from a small organisation that primarily regulated the game of football to the important economic entity it is today. Consequently, it was the right decision to support the FIFA President‘s proposal for a good governance reform process. My colleagues and I in the Audit
contributing to the overriding objective of this governance reform: strengthening
unique organisation.
Domenico ScalaChairman of the Audit and Compliance Committee
Panama‘s goalkeeper Jaime Penedo in action
2014 FIFA World
at the BMO Field in Toronto,
Canada.
Facts & Figures 2012 02
14
Facts & Figures 2012
Overview
Income statement and development of reserves
As decided by the Congress in 2010, FIFA is planning for a moderate increase in its reserves during the 2011-2014 period. Because more funds are being invested
2007-2010 period.
draw to a close in the year of the 2014 FIFA World Cup Brazil™. FIFA has so far
crisis unscathed, as proven by the following facts:2012 was a very successful year for FIFA, with a positive annual result of USD 89 million.In comparison to the previous year, revenue increased in 2012 to USD 1,166 million. Overall, the sale of rights for the 2014 FIFA World Cup Brazil™, particularly in the area of marketing, generated higher income than for the 2010 FIFA World Cup™. Expenditure also increased in comparison with the previous year to USD 1,077 million. In total, 69% of overall expenditure was invested directly in football.FIFA’s conservative investment policy and the of
USD 12 million.Systematic cost control once again proved its worth and costs were 6% below the 2012 expense budget.The strategy of hedging foreign currencies also proved to be fully effective in 2012 and protected FIFA against losses.As planned, FIFA’s reserves increased by 7% and stood at USD 1,378 million on 31
independence and to its ability to react to unexpected events.
15
Overview 14Income statement 16
Balance sheet 20Budget comparison 22
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2012
2007 2008 2009 2010 2011 2012
Revenue
Expenses
882957
1,059
1,291
833 773863
1,089
202
1,166
1,077
89
1,070
1,034
3649184 196
Result
2007 2008 2009 2010 2011 2012
1,2801,378
1,293
643
9021,061
December
Income statement 2007-2010 and 2011-2012USD million
Development of reserves 2007-2012USD million
16
Facts & Figures 2012
Income statement
Revenue 2012
This page provides an overview of the total revenue
the FIFA Congress in Zurich in 2011, it was decided that the renowned international
KPMG’s report can be found in the annexe on page 96. The report from the Audit and Compliance Committee is on page 98.
Total revenue amounted to USD 1,166 million, comprised of event-related
In terms of the event-related revenue of was attributable to the sale of television rights, of which the lion’s share – USD
of income was the sale of marketing rights worth USD 370 million, of which USD 367 million was generated by the FIFA World Cup™. The sale of licensing rights
income was made up primarily of revenue from the FIFA Club World Cup, which was matched, however, by comparable costs.
The other operating income of was attributable in particular to
Programme.
FIFA’s of was the result of the conservative investment strategy and was primarily made up of interest income of USD 7 million
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Overview 14Income statement 16
Balance sheet 20Budget comparison 22
100% = USD 1,166 million
Revenue 2012USD million
FIFA Partners
Other operating income (5%)
Total 59
Financial income (8%)
Total 89
Event-related revenue (87%)
Total 1,018
18
Facts & Figures 2012
Income statement
Expenses 2012
Total expenditure amounted to , arising from event-related expenses, development-related expenses, other operating expenses, football
expenditure was invested directly in football.
Of the event-related expenses of , USD 448 million was related to the 2014 FIFA World Cup Brazil™. FIFA also organised eight other competitions in 2012 (the Men‘s and Women‘s Olympic Football Tournaments in London, the FIFA U-20 Women’s World Cup in Japan, the FIFA U-17 Women’s World Cup in Azerbaijan, the FIFA Futsal World Cup in Thailand, the FIFA Club World Cup in Japan, the Blue Stars/FIFA Youth Cup, and the FIFA Interactive World Cup), which accounted for USD 103 million.
FIFA spent a total of or of overall expenditure on development projects, allocating USD 68 million to the Financial Assistance Programme (FAP for member associations and confederations), USD 29 million to the Goal Programme and USD 80 million to other development projects.
The other operating expenses of were mainly made up of personnel expenses of USD 91 million and of communications (e.g. FIFA.com and extranet) of USD 24 million.
Football governance expenses of covered the organisation of all committees and the FIFA Congress (USD 32 million) and legal matters (USD 21 million).
The for the exploitation of rightscontractual obligations in relation to marketing, broadcasting and media rights as well as licensing.
Financial expenses of were primarily made up of foreign exchange losses, which were offset by corresponding foreign exchange gains.
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Overview 14Income statement 16
Balance sheet 20Budget comparison 22
69% for FIFA events and development
100% =USD 1,077 million
Expenses 2012USD million
Football governance (5%)Committees and Congress 32
Total 53
Other operating expenses (18%)Personnel 91
Total 188
Exploitation of rights (1%)Marketing 2
Total 13
Event-related expenses (53%)
Total 569
Financial expenses (7%) 1
Total 77
Development-related expenses (16%) 53
15 15
Goal Programme 29
Total 177
20
Facts & Figures 2012
Balance sheet
Balance sheet and development of reserves
As at 31 December 2012, FIFA’s balance sheet totalled , with reserves of . FIFA’s reserves result from the previous years’ reserves of USD 1,293 million, the annual result of and the change in the hedging reserve of minus USD 4 million.
FIFA’s reserves have therefore in comparison to 31 December 2011, in accordance with a decision passed at the FIFA Congress in 2010 to only slightly increase reserves in the future.
Furthermore, article 73 of the FIFA Statutes states that:The revenue and expenditure of FIFA shall be organised in such a way that they balance outFIFA’s major duties in the future shall be guaranteed through the creation of reserves.
magnitude.
amount of reserves required cannot, in principle, be given as an absolute value, but rather depends on FIFA’s overall costs and the associated operational risks during a four-year period. FIFA’s current reserves correspond to approximately one-third of total costs for the period.
and to its ability to react to unexpected events. This has proved particularly vital
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Overview 14Income statement 16
Balance sheet 20Budget comparison 22
2012 result 89Change in hedging reserve -4
31 Dec 2011
1,293
85
31 Dec 2012
1,378
150
450
600
750
900
1,050
1,200
1,350
1,500
300
Balance sheet as at 31 December 2012USD million
Development of reservesUSD million
22
Facts & Figures 2012
Budget comparison
Analysis of revenue for 2012
FIFA’s accounting system is based on International Financial Reporting . As IFRS is not suitable for budgeting and daily cost control on
account of its many technical rules and regulations, the budget is drawn up on a cash basis before being approved by the Congress.
A transition from IFRS is necessary in order to enable the actual revenue to be compared with the cash budget. Hence, from the total amount of revenue according to IFRS, an adjustment was made for the revenue that could not be included for a budget comparison. The resultant cash-in component was then compared with the budget.
In order to carry out a budget comparison, in non-cash items had to be adjusted from the overall revenue of USD 1,166 million for the 2012
items consisted, in particular, of revenue in relation to the percentage-of-completion method, gross effects and value-in-kind revenue, which were not taken into account in the cash budget.
The FIFA Congress passed a revenue budget of USD 676 million for the 2012 . This extra revenue is
mainly due to foreign currency effects, additional income from other FIFA events, brand licensing, and accelerated incoming payments.
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Overview 14Income statement 16
Balance sheet 20Budget comparison 22
Totalrevenue
Non-cashitems
1,166 273
Cash-in component
893
150
450
600
750
900
1,050
1,200
1,350
1,500
300
Cash-incomponent
Budget 2012(approved by
FIFA Congress)
Positive deviation(i.e. over budget)
893 217
150
450
600
750
900
1,050
1,200
1,350
1,500
300
676
Revenue 2012: ComponentsUSD million
Revenue 2012: Budget comparisonUSD million
24
Facts & Figures 2012
Budget comparison
Analysis of expenses for 2012
The basic principle described for the analysis of revenue also applies to expenditure.
A transition from IFRS is necessary in order to enable the actual expenses to be compared with the cash budget. Hence, from the total amount of expenses according to IFRS, an adjustment was made for the expenses that could not be included for a budget comparison. The resultant cash-out component was then compared with the budget.
In order to carry out a budget comparison, in non-cash items had to be adjusted from the for the 2012
adjusted consisted primarily of expenses in relation to the percentage-of-completion method.
The FIFA Congress passed an expense budget of USD 666 million for the 2012 underspent by . This underspend is
mainly due to deferred costs for the 2014 FIFA World Cup Brazil™ and cost savings.
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Overview 14Income statement 16
Balance sheet 20Budget comparison 22
1,077 449
628
150
450
600
750
900
1,050
1,200
1,350
300
Totalexpenses
Non-cashitems
Cash-outcomponent
1,500
628 38666
Cash-outcomponent
Budget 2012(approved by
FIFA Congress)
Positive deviation(i.e. under budget)
150
450
600
750
900
1,050
1,200
1,350
1,500
300
Expenses 2012: ComponentsUSD million
Expenses 2012: Budget comparisonUSD million
Lionel Messi of Barcelona celebrates with
team-mate Dani Alves after scoring his second
goal during the
between Santos and FC Barcelona at the
International Stadium in Yokohama, Japan on
18 December 2011.
2011-2014 Period
28
2011-2014 Period
Detailed budget for 2014
Revenue and investments in 2014
The detailed budget for 2014 has been approved by the FIFA Finance Committee and the FIFA Executive Committee and it now requires from the
.
The detailed budget for 2014 was part of the overall budget approved by the 2010 Congress for the 2011-2014 period, with the exception of the cost for the FIFA Club Protection Programme, which was approved by the 2012 FIFA Congress.
29
Detailed budget for 2014 28
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Investments 2014
300
600
900
1,200
1,500 1,412
217
81
227
784
67
36
Revenue 2014
300
600
900
1,200
1,500
1,080
324
691
65
Budget 2014: RevenueUSD million
Budget 2014: InvestmentsUSD million
Development Financial Assistance Programme (FAP) - 54 member associationsGoal Programme 34New MA development programmes 32PERFORMANCE 30Technical development 19Financial Assistance Programme (FAP) - 15 confederationsConfederation development 15 programmesRefereeing Assistance Programme (RAP) 13Football for Hope 12Other (e.g. solidarity projects, 3 Football for Health)
Committees and Congress 40Transfer Matching System (TMS) 6Early Warning System 2Other (e.g. FIFA Brand) 19
Contributions to teams (prize money, 389 workshop, travel, lodging)TV production 165FIFA Club Protection Programme, etc. 114Financial contributions 53FIFA Fan Fest™ 19Insurance 10Refereeing matters 9
Other (e.g. media, new media, inspections, 20 marketing, TV)
FIFA Club World Cup 25FIFA U-20 Women’s World Cup 18FIFA U-17 Women’s World Cup 17Youth Olympic Football Tournament 3Other (e.g. FIFA Ballon d’Or, FIFA Interactive 18 World Cup, Blue Stars/FIFA Youth Cup)
Personnel, information technology, 162 building and maintenanceCommunications 29Other (e.g. reception, logistics, production, 26 travel, translations, insurance, tax,
Other (e.g. licensing, hospitality)
TV broadcasting rights
Marketing rights
Brazil striker Marta vies with Cameroon striker
Bebey Beyene during their group-stage match in
the Women‘s Olympic Football Tournament
London 2012 at the Millennium Stadium in Cardiff,
Wales on 25 July.
Special Topics 04
Special Topics
32
Good governance reforms
Reform plan
The four FIFA Task Forces, which were created in October 2011 as part of the reform process launched by the FIFA President during the 61st FIFA Congress in Zurich, have all concluded their mandate to propose reforms.
The proposals made by the Task Force Ethics Committee and the Task Force Transparency & Compliance, in particular with regard to the creation of the two-chamber Ethics Committee and the Audit and Compliance Committee with independent chairmen and deputy chairmen, were approved by the 62nd FIFA Congress in Budapest on 25 May 2012. At the same time, Domenico Scala (Italy/Switzerland) was appointed as independent chairman of the Audit and Compliance Committee. Additionally, the new FIFA Code of Conductappointment of a woman as a member of the FIFA Executive Committee, namely Lydia Nsekera (Burundi), were also approved that day.
On 17 July 2012, based on a mandate given by the 62nd FIFA Congress, the FIFA Executive Committee appointed Michael J. Garcia (USA) and Hans-Joachim Eckert (Germany) as independent chairmen of the Ethics Committee in addition to appointing the members of the Ethics Committee and adopting a new Code of Ethics.
The Task Force Revision of Statutes presented a draft proposal of amendments to the FIFA Statutes and the remaining proposals which were not voted on at the Congress in 2012 will be presented to the FIFA Congress in 2013. In this context, the FIFA Executive Committee decided at its meeting on 27 and 28 September 2012 to create a working group, chaired by FIFA Executive Committee member and chairman of the Task Force Revision of Statutes Theo Zwanziger and comprising the general secretaries as well as the legal directors of the confederations and FIFA, in order to consult the 209 member associations on these amendments and submit the remaining proposals on the revision of the FIFA Statutes to the 63rd FIFA Congress.
The reform process will be completed by the 2013 FIFA Congress.
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Good governance reforms 32Asset management report 38
FIFA Club Protection Programme 40
ExCo 21.10.2011 Structural set-up
Transparency & Compliance, and Football 2014
Reform work Nov-Dec 2011First Task Force meetings
Compliance; analysis of situation and discussion of reform proposals
ExCo 17.12.2011
Reform workJanuary – March 2012Meetings of Task Forces and Independent Governance Committee
recommendations for the Executive Committee
ExCo 30.03.2012Approval of reforms
Congress 25.05.2012Approval and implementation of reforms
to be split into two chambers, new Audit and Compliance Committee with independent chairman, independence criteria, Code of Conduct
ExCo 17.07.2012 Ethics Committee, Code of Ethics
(based on the mandate given by the FIFA Congress)
Audit and Compliance CommitteeAug and Oct 2012Various reform proposals
Transparency & Compliance (e.g. FIFA Organisation Regulations, General Regulations on FIFA Development Programmes)
Member associations Nov 2012 – Feb 2013Consultation process on remaining reforms
directors of the confederations, to consult the 209 member associations on further amendments to the FIFA Statutes
ExCo 21.03.2013Approval of reforms
Development Programmes
Congress 31.05.2013Completion of reform process
judicial bodies, of the Audit and Compliance Committee and of the Representative of
Road map Key steps
Special Topics
34
Good governance reforms
Code of Ethics and Ethics Committee
decision of the FIFA Congress to restructure the Ethics Committee by dividing it into two chambers, one investigatory and one adjudicatory, both with independent chairmen who were appointed by the Executive Committee in July 2012.
Heading up the investigatory chamber is Michael J. Garcia, a leading US attorney who has led a wide range of prosecutions, including investigations into white-collar fraud and money laundering.
Hans-Joachim Eckert, the German judge chosen to preside over the adjudicatory chamber. Currently serving as the
experience, specialising in corruption, tax fraud and economic crime.
The investigatory chamber is free to investigate all allegations of wrongdoing, including those related to past incidents, with no statute of limitations being imposed upon the investigators.
Good governance reforms 32Asset management report 38
FIFA Club Protection Programme 40
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FIFA Code of Ethics
2012 edition
Ethics Committee
ChairmenMichael J. GARCIA USA (investigatory chamber) Hans-Joachim ECKERT Germany (adjudicatory chamber)
Members – investigatory chamberLes MURRAY AustraliaRobert TORRES GuamJorge Iván PALACIO ColombiaNoël LE GRAËT France Ahmed YAHYA Mauritania Ronald JONES Barbados
Members – adjudicatory chamberPetrus DAMASEB NamibiaJuan Pedro DAMIANI UruguayAbdoulaye Mokhtar DIOP SenegalBurton K. HAIMES USAYngve HALLEN NorwayThi My Dung NGUYEN VietnamJack KARIKO Papua New Guinea
FIFA Code of Ethics
Composition
Special Topics
36
Good governance reforms
Audit and Compliance Committee
The Audit and Compliance Committee started its work in August 2012 and has met three times. The FIFA Congress elected Domenico Scala (Italy/Switzerland), as independent chairman of the committee.
Domenico Scala studied at the University of Basel and graduated with a degree in
Nobel Biocare Holding AG and CFO of Syngenta Holding AG. Today, he serves as a non-executive director of Basilea Pharmaceutica Ltd. He can draw on a wide range of business, senior leadership and multicultural experience.
The main task of the Audit and Compliance Committee is to ensure the completeness and to review the
and the external auditor’s report. In addition, the
Organisation Regulations. The responsibility of the committee is divided into three operations, and compliance.
The Audit and Compliance Committee has accepted the 26 reform proposals prepared by the Task Force Transparency & Compliance, which mainly aim at improving control mechanisms and transparency throughout all of FIFA’s core processes. The committee has discussed all of these proposals in detail and put forward corresponding changes to the FIFA Organisation Regulations, General Regulations for FIFA Development Programmes and other regulations, which will be examined by the Executive Committee.
Good governance reforms 32Asset management report 38
FIFA Club Protection Programme 40
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Composition
Tasks
Audit and Compliance Committee
ChairmanDomenico SCALA Italy/Switzerland
Deputy chairmanto be elected by the FIFA Congress in 2013
MembersAllan HANSEN DenmarkRajesh PATEL FijiCanover WATSON Cayman IslandsRichard K. LAI GuamRomer OSUNA BoliviaSuketu PATEL Seychelles
Operations Financial reporting Compliance
management and the internal control system
the internal audit function
to ensure that appropriate action is taken if shortcomings have been detected in internal reviews or procedures
statements
accounting standard (IFRS)
statements are carried out properly
subsidiaries
with the law and the FIFA internal rules relating to compliance
the laws and rules on ethics as well as with the FIFA internal rules applicable to them
the Secretary General’s monitoring of FIFA employees’ compliance with laws on ethics as well as with the FIFA internal rules applicable to them
internal rules on compliance
impact on FIFA
by FIFA employees with the laws and rules on ethics as well as with the FIFA internal rules submitted by the body operating the whistle-blowing hotline for FIFA
Special Topics
38
Asset management report
The overriding, long-term investment objective is the preservation of the real value of FIFA’s assets. Returns must be in line with the market, in relation to the risk incurred.
The investment portfolio is divided into a liquid part (investment periods of less than one year) and a bond part (investment periods of more than one year).
needs, and secondly on the basis of the yield forecasts of the duration and credit-FIFA Asset
Management Regulations.
The year 2012 will also be remembered for volatile markets given the continuing
Government bonds of the highest quality were issued with negative yield, i.e. the investor paid to hold these securities, e.g. Swiss and German government bonds;The overall yield level was very low again.
The investment guidelines for the portfolio are designed to secure the preservation of FIFA’s assets and therefore, the yield expectation in such an environment is rather low. However, due to a shortage of USD in the interbank market, FIFA was able to
of the portfolio.
The implementation of the benchmark continued as planned and will continue
Overall, in 2012 FIFA again managed to increase the value of its portfolio and thereby contributed to the strengthening of its asset basis.
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Good governance reforms 32Asset management report 38
FIFA Club Protection Programme 40
Details on current investment portfolio
13%Other banks/securities
27%Swiss cantonal bank deposits(with government guarantee)
39%System-relevant banks
13%Government securities
8%Securities with government guarantee100% = USD 1,521 million
10
30
40
50
60
70
80
90
100
20
Liquidity
100% = USD 1,877 million
Strategy
Range
Asset management strategy and current status
Special Topics
40
FIFA Club Protection Programme
In May 2012, the 62nd Congress in Budapest approved the FIFA Club Protection Programme on behalf of the member associations.
The aim of this programme is to help FIFA, the confederations, member associations and clubs with their rights and obligations according to the FIFA Regulations on the Status and Transfer of Players, which state that clubs are obliged to release their players for senior men’s representative “A” team matches on dates listed in the international match calendar.
Under the FIFA Club Protection Programme, clubs will be compensated if their players are injured while on duty with senior men’s representative “A” teams for matches listed in the international match calendar for the period between 1 September 2012 and 31 December 2014.
During the release period for such international “A” matches, football players may suffer bodily injuries caused by accidents. As a consequence, a football player can suffer a temporary total disablement that prevents him from participating in his football club’s matches. However, the football club still has an obligation to pay the football player’s salary based on the employment contract. Since the football player cannot work for the football club during a temporary total disablement, FIFA has decided to provide compensation for the losses suffered by the football club during the period that the football player is temporarily totally disabled.
foster the relationship between clubs and national teams.
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Good governance reforms 32Asset management report 38
FIFA Club Protection Programme 40
FIFA Club Protection ProgrammeProgramme provider FIFA
Professional football club for which the injured player is contracted to play
Covered persons Professional football players whilst on international duty
Covered risk An injury which renders a player totally unable to carry out his profession on a temporary basis (temporary total disablement)
Covered interest Contracted salary payments from a club to a football player
Covered matches Cover applies to all selected players of senior men’s “A“ representative teams
international match calendar
Geographical limit Worldwide
Waiting period/excess 28 days for each and every loss
Compensation amount as his employer in weekly or monthly instalments, including mandatory social security charges, as stipulated in writing, but excluding any additional bonuses, appearance fees, expenses, performance payments and/or services of a different kind
20,548 per day
365 days
Maximum amount per claim EUR 7,500,000
Terms and conditions FIFA Club Protection Programme Technical Bulletin available on FIFA.com
Key facts
Annexe 2012 05
Griedge Mbock Bathy of France heads the ball
clear during the FIFA U-17 Women‘s World Cup
between France and Korea DPR at the
Annexe 2012
44
according to International Financial
47
48
49
50
51
52
52
52
54
54
56
56
56
57
57
57
58
58
59
59
59
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60
61
61
61
62
62
64
64
65
66
66
66
67
69
69
72
72
76
77
77
78
79
79
79
80
81
82
82
84
85
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in TUSD 2012 2011
1
2
4
5
1,018,617 988,044
FIFA World Cup™ expenses 6
6 0
6
–569,744 –588,602
448,873 399,442
7
8
9
Exploitation of rights 10
Personnel expenses 11
19–20
12
Taxes and duties 15
76,961 28,551
Financial expenses 14
88,882 35,962
0 0
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Consolidated balance sheet
in TUSD
16
17
27
Financial assets 21
18
2,174,980 2,050,088
19
Intangible assets 20 0 542
27
Financial assets 21
507,868 277,683
2,682,848 2,327,771
Payables 22
Tax liabilities
27
1,167,320 896,553
27
24
137,089 138,327
1,304,409 1,034,880
Association capital 25
27 –275
–69 –89
25
1,378,439 1,292,891
2,682,848 2,327,771
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in TUSD 2012 2011
Net result for the year
19–20
Taxes and duties 15
–989
24
Taxes and duties paid
218,480 53,315
19
21
21 606
43,508 –801,497
Interest paid 14
–563 –432
261,425 –748,614
16 859,071 1,609,436
16 1,125,366 859,071
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in TUSD
4,104 26,338 1,249,835 –141 1,280,136
0 0 0
0 0 0
0 0 0 52 52
0 –23,259 0 52 –23,207
Net result for the year 0 0 0
0 –23,259 35,962 52 12,755
4,104 3,079 1,285,797 –89 1,292,891
in TUSD
4,104 3,079 1,285,797 –89 1,292,891
0 0 0
0 0 0
0 0 0 20 20
0 –3,354 0 20 –3,334
Net result for the year 0 0 0
0 –3,354 88,882 20 85,548
4,104 –275 1,374,679 –69 1,378,439
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in TUSD 2012 2011
20 52
–3,334 –23,207
Net result for the year
85,548 12,755
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64
Notes to the consolidated income statement
1 Revenue from television broadcasting rights
in TUSD 2012 2011
Revenue from television broadcasting rights – FIFA World Cup™
– Europe 287,685 281,144
– Asia and North Africa 126,459 107,054
– South and Central America 83,025 83,025
– North America and the Caribbean 61,229 61,159
– Rest of the world 6,498 9,909
– Other revenues 591 376
– Sales commission –12,090 –5,939
Total revenue from television broadcasting rights – FIFA World Cup™ 553,397 536,728
Other FIFA events 7,455 13,558
Total revenue from television broadcasting rights 560,852 550,286
The accumulated revenue from television broadcasting rights recognised through the percentage-of-completion method (excluding hedge accounting effects, other revenues and sales commission) for the
A substantial part of the income from television broadcasting rights is denominated in EUR. The majority of the contractually agreed revenue in currencies other than USD is hedged. The revenue is increased by
Sales commissionThe broadcasting rights in certain countries, especially in Asia, are sold in cooperation with agencies.
Other FIFA eventsThe revenue from the television broadcasting rights for other FIFA events includes the revenue from the sale of television broadcasting rights and services offered to the broadcasters in connection with the FIFA U-17 Women’s World Cup Azerbaijan 2012, the FIFA U-20 Women’s World Cup Japan 2012 and the FIFA Futsal World Cup Thailand 2012.
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2 Revenue from marketing rights
in TUSD 2012 2011
Revenue from marketing rights – FIFA World Cup™
– FIFA Partners 177,125 177,125
– FIFA World Cup Sponsors 130,553 130,787
– National Supporters 43,327 28,590
– FIFA Fan Fest™ 6,981 0
– Value-in-kind transactions 12,775 14,983
– Sales commission –4,015 –3,579
Total revenue from marketing rights – FIFA World Cup™ 366,746 347,906
Other FIFA events 3,353 33,339
Total revenue from marketing rights 370,099 381,245
The accumulated revenue recognised through the percentage-of-completion method (excluding hedge
invoiced from marketing rights amounts to TUSD 785,727.
Other FIFA eventsThe revenue from other FIFA events includes National Supporter payments in connection with the FIFA U-17 Women’s World Cup Azerbaijan 2012, the FIFA U-20 Women’s World Cup Japan 2012 and the FIFA Futsal World Cup Thailand 2012. The majority of these payments are transferred to the Local Organising Committees. The relevant costs are shown as event-related expenses (Note 6).
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3 Revenue from licensing rights
in TUSD 2012 2011
FIFA World Cup™ 18,141 10,231
Other FIFA events 5,253 2,244
Sales commission –333 0
Total revenue from licensing rights 23,061 12,475
The accumulated revenue from licensing rights for the 2014 FIFA World Cup Brazil™ recognised for the period 1 January 2011 to 31 December 2012 amounts to TUSD 28,372. The accumulated amount invoiced by 31 December 2012 totals TUSD 33,773.
4 Revenue from hospitality rights
in TUSD 2012 2011
FIFA World Cup™ 12,000 15,000
Other FIFA events 0 111
Total revenue from hospitality rights 12,000 15,111
The hospitality rights for the 2014 FIFA World Cup Brazil™ have been granted to MATCH Hospitality AG
5 Other event-related revenue
in TUSD 2012 2011
Revenue from the FIFA Club World Cup 25,400 26,000
Revenue from the Olympic Football Tournaments London 2012 22,412 0
2,481 1,849
2,499 2,062
Various event-related revenue –187 –984
Total other event-related revenue 52,605 28,927
FIFA organised the Olympic Football Tournaments London 2012. FIFA received a contribution of TUSD 22,412 from the International Olympic Committee.
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6 Event-related expenses
in TUSD 2012 2011
FIFA World Cup™ 448,339 427,944
FIFA Club Protection Programme 18,368 0
Other FIFA events 103,037 160,658
Total event-related expenses 569,744 588,602
Expenses related to the 2014 FIFA World Cup™
in TUSD 2012 2011
11,159 10,823
Contributions to the LOC 35,591 58,050
Ticketing and accommodation services/IT solution 14,960 23,046
Event marketing rights and TV production 35,968 23,975
Other 20,105 11,187
Event-related expenses – accrued 330,556 300,863
Total expenses related to the 2014 FIFA World Cup™ 448,339 427,944
The accumulated expenses recognised in connection with the 2014 FIFA World Cup Brazil™ in the period 1 January 2011 to 31 December 2012 amount to USD 876.3 million. The accumulated expenses incurred up to 31 December 2012 amount to USD 237.5 million. Part of the expenses are incurred as value-in-kind transactions.
™ Organising Committee
Accounting estimates and judgmentsExpenses related to the 2014 FIFA World Cup Brazil™ are recognised based on the stage of completion of the event preparation. Event-related expenses for the whole four-year period must be estimated in order to calculate the total for the given stage of completion. This is achieved by regular, systematic
estimate for the event. The recognition of expenses is adjusted accordingly. However, the overall cost estimate at a certain stage inherently includes an estimation uncertainty.
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FIFA Club Protection ProgrammeUnder the FIFA Club Protection Programme, clubs will be compensated for injuries due to an accident sustained by their players while on duty with senior men’s representative “A” teams for matches on dates listed in the international match calendar for the period between 1 September 2012 and 31 December 2014. FIFA has decided to provide compensation up to a maximum amount for losses incurred by the football club during the period that the football player is temporarily totally disabled. Costs for the FIFA Club Protection Programme are costs for FIFA and are recognised in the year they are incurred.
Expenses related to other FIFA events
in TUSD 2012 2011
FIFA Club World Cup Japan 2012 24,015 0
FIFA U-20 Women's World Cup Japan 2012 19,315 0
FIFA U-17 Women's World Cup Azerbaijan 2012 18,161 0
Olympic Football Tournaments London 2012 16,442 0
FIFA Futsal World Cup Thailand 2012 11,654 0
FIFA Women’s World Cup Germany 2011™ –89 70,385
FIFA Club World Cup Japan 2011 331 23,538
FIFA U-20 World Cup Colombia 2011 –113 23,166
FIFA U-17 World Cup Mexico 2011 118 20,981
FIFA Beach Soccer World Cup Ravenna/Italy 2011 –16 6,084
2010 FIFA World Cup South Africa™ 424 3,667
Youth Olympic Football Tournaments Singapore 2010 0 56
FIFA U-17 Women’s World Cup Trinidad & Tobago 2010 0 –37
FIFA U-20 Women’s World Cup Germany 2010 0 –39
FIFA Club World Cup UAE 2010 0 –319
Blue Stars/FIFA Youth Cup 1,289 1,423
Other events 11,506 11,753
Total expenses related to other FIFA events 103,037 160,658
The expenses for the other FIFA events are recognised in the year when the event takes place. The
of the expenses are incurred as value-in-kind transactions.
Costs related to the FIFA U-17 Women’s World Cup Azerbaijan 2012, the FIFA U-20 Women’s World Cup Japan 2012 and the FIFA Futsal World Cup Thailand 2012 include payments from National Supporters which were transferred to the Local Organising Committees (see also Note 2).
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7 Other operating income
in TUSD 2012 2011
Quality Programme 12,794 14,637
3,142 3,177
Brand licensing 34,067 25,556
Penalties/appeals from friendly matches 14 41
Rental income 1,013 1,380
Match levies from friendly matches 4,259 3,841
Other 3,557 3,724
Total other operating income 58,846 52,356
Quality Programme contains the revenue in connection with the test programmes for footballs and football turf. Brand licensing relates to licences granted to use the brand “FIFA”.
8 Development-related expenses
in TUSD 2012 2011
Financial Assistance Programme (FAP) – member associations 53,003 53,218
Financial Assistance Programme (FAP) – confederations 15,000 17,500
Confederation development programmes 15,000 15,000
Goal Programme 28,672 30,687
PERFORMANCE 17,772 9,218
Football for Hope 8,770 5,613
Refereeing Assistance Programme (RAP) 8,336 10,218
Football for Health (F-MARC) 5,804 3,293
Education 5,317 5,429
Women’s football 3,195 4,261
Solidarity projects 2,211 6,300
Win in ... projects 165 0
Win in Africa with Africa 14 6
Other projects 14,295 22,157
Total development-related expenses 177,554 182,900
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FAP
technical infrastructure (see accounting policy H. Development-related expenses). FIFA grants this
Facilitate the recruitment, training and remuneration of administrative and technical staff employed
Provide basic and further training for member association members, as well as others seconded to
every year. Additionally, FIFA arranges a central audit of 21 member associations and one confederation
compliance with the FAP Regulations.
USD 18.6 million).
Confederation development programmes
USD 2.5 million per year. The use of these funds must be in compliance with the FAP Regulations. In addition, this programme is also subject to local and central audits as described above.
Goal ProgrammeGoal Goal offers funding for tailor-made projects to meet the individual needs of the member associations in the following
Youth football – training youth team coaches, regional and national youth training centres and
Infrastructure – the renovation and construction of football pitches, physical training and tuition
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2012, funds committed but not yet paid out to Goal
PERFORMANCEThe main objective of the programme is to strengthen and enhance football leadership and management systems, enabling the member associations to better organise, professionalise and commercialise their
Refereeing Assistance Programme (RAP)The Refereeing Assistance Programme includes several programmes to support the education of referees, for example through various seminars and courses.
Solidarity projects
the condition that they invested in youth football. In addition, FIFA granted USD 300,000 to the member association of Madagascar for renovation of their football pitches.
Football for HopeFootball for Hope is a social responsibility programme which uses the power of the game for social development. Part of Football for Hope is the 20 Centres for 2010 initiative related to the 2010 FIFA World Cup South Africa™. Its aim is to create 20 Football for Hope Centres to promote public health, education and football in disadvantaged communities across Africa.
Education FIFA supports the International Centre for Sports Studies (CIES) at the University of Neuchâtel and the
Women’s footballIn 2012, various courses and seminars were organised to improve the game.
Football for Health (F-MARC)
control and the “FIFA 11 for Health” programme.
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9 Football governance
in TUSD 2012 2011
Committees and Congress 32,089 31,067
Legal matters 20,608 20,826
Total football governance 52,697 51,893
The costs for committees and the Congress comprise the costs incurred in connection with the 62nd FIFA Congress in Budapest which took place in May 2012, plus the costs of the meetings of more than 25 standing committees and three FIFA judicial bodies (Disciplinary Committee, Appeal Committee and Ethics Committee). The cost for travel and accommodation of the committee members as well as of the
are paid by FIFA.
10 Exploitation of rights
in TUSD 2012 2011
Marketing 1,920 2,593
Broadcasting and media rights 9,445 10,249
Licensing 1,655 2,332
Total exploitation of rights 13,020 15,174
commercialisation of marketing and broadcasting rights.
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11 Personnel expenses
in TUSD 2012 2011
Wages and salaries 70,799 67,344
13,940 13,789
1,630 1,918
Other 4,280 5,886
Total personnel expenses 90,649 88,937
The pension plan for FIFA employees is funded by employee and employer contributions. Since the plan
in TUSD 2012 2011
103,594 87,370
Current service cost 11,444 11,046
Interest on obligations 2,342 2,378
Actuarial loss 14,359 5,408
–377 –1,680
Foreign exchange effect 3,829 –928
135,191 103,594
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Change in fair value of plan assets
in TUSD 2012 2011
Fair value of plan assets at beginning of year 91,772 81,064
Expected return on plan assets 2,213 2,334
Employer contribution 6,346 7,382
Employees’ contribution 2,455 2,578
–377 –1,680
Actuarial gain on plan assets 1,608 990
Foreign exchange effect 3,082 –896
Fair value of plan assets at end of year 107,099 91,772
The actual annual return on plan assets for the year ending 31 December 2012 amounted to TUSD 3,821
Amount recognised in the balance sheet
in TUSD 2012 2011
135,191 103,594
Fair value of plan assets –107,099 –91,772
28,092 11,822
Unrecognised net actuarial (loss)/gain –24,113 –10,746
Net liability 3,979 1,076
The net liability is included in and presented as part of the accrued expenses.
The expected contribution to be paid into the plan for 2013 is TUSD 6,635.
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Components of pension expenses
in TUSD 2012 2011
Current service cost 11,444 11,046
Interest on obligations 2,342 2,378
Net actuarial loss recognised in the year 29 0
Expected return on plan assets –2,213 –2,334
Net periodic pension cost 11,602 11,090
Employees’ contribution –2,455 –2,578
Total pension expenses 9,147 8,512
Historical information
in TUSD 2012 2011 2010 2009 2008
135,191 103,594 87,370 64,414 55,225
Fair value of plan assets –107,099 –91,772 –81,064 –65,324 –56,206
plan 28,092 11,822 6,306 –910 –981
Change in assumptions in plan liabilities 13,662 4,270 5,091 –2,415 4,977
Experience loss on plan liabilities 1,057 1,138 440 2,667 779
Experience loss/(gain) on plan assets –1,648 –990 338 339 691
(gain) 13,071 4,418 5,869 591 6,447
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Principal actuarial assumptions
31 Dec 2012 31 Dec 2011
Discount rate 1.75% 2.25%
Expected rate of return on plan assets 1.90% 2.40%
Future salary increases 2.00% 2.00%
Future pension increases 0.50% 0.50%
All assets are invested through an insurance contract, therefore the plan assets cannot be split into different categories.
Accounting estimates and judgmentsThe rates and parameters applied above are based on past experiences. Future developments in capital
calculation of pension obligations.
12 Other operating expenses
in TUSD 2012 2011
Information technology 9,183 9,750
Building and maintenance 12,144 10,045
Communications 23,532 22,277
Other 20,486 24,223
Total other operating expenses 65,345 66,295
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13 Financial income
in TUSD 2012 2011
6,558 6,046
Total interest income 6,558 6,046
Foreign currency gains 76,521 20,200
Gains on currency derivatives 0 1,509
Total foreign currency gains 76,521 21,709
582 277
Income from held-to-maturity investments 5,158 1,809
5,740 2,086
88,819 29,841
held in foreign currency. The foreign exchange risk of these investments has been hedged using swaps.
14 Financial expenses
in TUSD 2012 2011
Interest expenses 563 432
Total interest expenses 563 432
Foreign currency loss 76,335 21,998
Total foreign currency loss 76,335 21,998
76,898 22,430
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15 Taxes and duties
in TUSD 2012 2011
Taxes and duties 17,052 4,866
Total taxes and duties 17,052 4,866
FIFA is taxed according to the Swiss taxation rules for associations. Pursuant to these taxation rules, the
development of football, the long-term perspective of development projects, the four-year accounting
also Note 26 Financial risk management). FIFA’s restricted reserves are reviewed on a regular basis to
reserves.
FIFA’s subsidiaries are taxed based on the applicable local tax laws.
This position includes all non-recoverable taxes and duties borne by FIFA or its subsidiaries. The majority of taxes and duties are paid to tax authorities in Switzerland.
There are no tax loss carry-forwards.
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Notes to the consolidated balance sheet
16
in TUSD 31 Dec 2012
Weighted average
interest rate 31 Dec 2011
Weighted average
interest rate
Cash on hand, post and bank accounts 847,256 708,521
with maturities of up to 3 months 278,110 150,550
Total cash and cash equivalents 1,125,366 0.34% 859,071 0.35%
A bank account in the amount of is pledged to cover a bank guarantee towards a third party.
17 Receivables
in TUSD 31 Dec 2012 31 Dec 2011
Receivables from exploitation of rights
– Due from third parties 244,617 250,100
– Provisions for bad debts –2,295 –3,372
Total receivables from exploitation of rights 242,322 246,728
Other receivables
– Due from member associations and confederations 11,866 8,281
– Due from related parties 208 302
– Due from third parties 22,495 29,900
– Provisions for bad debts –1,585 0
Total other receivables 32,984 38,483
Short-term loans
– Due from related parties 0 5,175
Total short-term loans 0 5,175
Total receivables, net 275,306 290,386
The majority of the open receivables relates to contractual payments from broadcasters and sponsors for the 2014 FIFA World Cup™ which are due in January 2013.
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Provisions for bad debts
in TUSD 2012 2011
Provisions for bad debts
Balance as at 1 January 3,372 3,101
Use –275 –236
Additions 786 507
Foreign exchange effect –3 0
Balance as at 31 December 3,880 3,372
Ageing structure of receivables
in TUSD 31 Dec 2012 31 Dec 2011
Receivables
Not due 264,016 274,680
Overdue – less than 30 days 2,781 13,204
Overdue – less than 60 days 7,722 253
Overdue – more than 60 days 4,667 5,621
Total receivables 279,186 293,758
18 Prepaid expenses and accrued income
in TUSD Note 31 Dec 2012 31 Dec 2011
Accrued income
– 2014 FIFA World Cup™ 1–4 239,464 123,716
– Other FIFA events 1–5 5,400 6,000
– Other accrued income 9,400 1,580
Total accrued income 254,264 131,296
Prepaid expenses
– 2018 FIFA World Cup™ 21,750 0
– Other FIFA events 6 14,600 10,609
– Development programmes 8 3,068 2,565
– Other prepaid expenses 9,441 6,953
Total prepaid expenses 48,859 20,127
Total prepaid expenses and accrued income 303,123 151,423
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19
in TUSDOperational
buildings Land
and other
equipment Total
Cost
Balance as at 1 January 2011 225,865 15,124 22,743 263,732
1,749 0 234 1,983
Balance as at 31 December 2011 227,614 15,124 22,977 265,715
308 0 901 1,209
Foreign exchange effects 0 0 14 14
Disposals 0 0 –1,434 –1,434
Balance as at 31 December 2012 227,922 15,124 22,458 265,504
Accumulated depreciation
Balance as at 1 January 2011 61,256 0 13,232 74,488
Depreciation 11,442 0 1,198 12,640
Balance as at 31 December 2011 72,698 0 14,430 87,128
Depreciation 12,907 0 992 13,899
Foreign exchange effects 0 0 10 10
Disposals 0 0 –1,434 –1,434
Balance as at 31 December 2012 85,605 0 13,998 99,603
Net carrying amount
As at 1 January 2011 164,609 15,124 9,511 189,244
As at 31 December 2011 154,916 15,124 8,547 178,587
As at 31 December 2012 142,317 15,124 8,460 165,901
The column “operational buildings” includes the Home of FIFA, FIFA House and two other buildings in Zurich.
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20 Intangible assets
Film archive
in TUSD 2012 2011
Cost
Balance as at 1 January 5,418 5,418
0 0
Balance as at 31 December 5,418 5,418
Accumulated amortisation
Balance as at 1 January 4,876 4,334
Amortisation 542 542
Balance as at 31 December 5,418 4,876
Net carrying amount
As at 1 January 542 1,084
As at 31 December 0 542
21 Financial assets
in TUSD 31 Dec 2012 31 Dec 2011
Debt securities 250,868 284,558
Fixed-term deposits with maturities of over 3 months 214,992 451,640
465,860 736,198
Debt securities 312,991 96,314
1,426 1,094
Other 20,562 0
334,979 97,408
800,839 833,606
and long-term bonds.
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22 Payables
in TUSD 31 Dec 2012 31 Dec 2011
– Due to member associations and confederations 17,809 52,113
– Due to related parties 1,907 1,616
– Due to third parties 47,027 34,562
Total payables 66,743 88,291
23 Accrued expenses and deferred income
in TUSD Note 31 Dec 2012 31 Dec 2011
Accrued expenses
– 2014 FIFA World Cup™ 6 638,756 302,898
– Other FIFA events 6 20,106 14,286
– Development programmes 8 120,691 126,060
Total accrued expenses 779,553 443,244
Deferred income
– 2014 FIFA World Cup™ 1–3 202,002 236,523
– Other FIFA events 1–3 16,210 8,124
Total deferred income 218,212 244,647
Other accrued expenses and deferred income 83,816 118,022
Total accrued expenses and deferred income – current 1,081,581 805,913
Deferred income – non-current
– 2018 FIFA World Cup™ 1–3 119,018 118,267
Total deferred income – non-current 119,018 118,267
Total accrued expenses and deferred income 1,200,599 924,180
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24 Provisions
in TUSD 2012 2011
Balance as at 1 January 14,035 16,816
Provisions made during the year 863 866
Provisions used during the year –291 –266
Adjustments –216 –114
0 –3,267
Balance as at 31 December 14,391 14,035
The provisions cover the future costs of the pension plan for members of the FIFA Executive Committee. An annual pension payment will be made to all long-serving FIFA Executive Committee members retiring. Under this retirement plan, Executive Committee members receive pension payments if they have served as a member of the committee for eight or more years. The pension is paid for up to a maximum of the number of years that the member served on the committee. Only the FIFA Executive Committee members
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25 Reserves
Association capitalThe association capital is CHF 5 million.
Hedging reserveThe hedging reserve comprises the effective portion of the cumulative net change in the fair value of
Restricted reservesPursuant to articles 2 and 73 of the FIFA Statutes, FIFA has to balance out revenue and expenditure over
The purpose of the reserves is to protect FIFA against risks and unforeseen events, in particular in relation to the FIFA World Cup™ ™, which takes place only every four years, needs to be considered, since the FIFA World Cup™ is FIFA’s main revenue source.
programmes and other FIFA events.
The use of the reserves is restricted to FIFA’s statutory duties such as the organisation of international competitions, in particular the FIFA World Cup™, and implementation of football-related development programmes.
Capital managementFIFA was established in the legal form of an association pursuant to articles 60ff. of the Swiss Civil Code. Pursuant to article 2 of its Statutes, FIFA’s objective is to improve the game of football constantly and
organisation and is obliged to spend its results, reserves and funds for this purpose. As FIFA is an association, no dividends are paid.
In the event of the dissolution of FIFA, its funds shall not be distributed, but transferred to the supreme
edged securities until the re-establishment of the federation.
FIFA’s goal is to further increase reserves until the end of the 2011-2014 cycle by the amount of
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Other disclosures
26 Financial risk management
normal operations.
Credit riskIn line with FIFA’s marketing and TV strategy, FIFA sold the television broadcasting rights in the key
the 2006 FIFA World Cup™, the rights were sold in packages to intermediaries.
The revenue from television and marketing rights is received from large multinational companies and public broadcasters. Part of the outstanding revenue is also covered by bank guarantees. Additionally, the contracts include a default clause, whereby the contract terminates as soon as one party is in default. In
contributions received. FIFA is also entitled to replace terminated contracts with new marketing or broadcasting agreements.
believes that this scenario is very unlikely to occur.
Fixed-income investments with residual terms to maturity of 12 months or less are only executed with borrowers with a short-term rating of “A-3” or higher. Investments in bonds are only executed in listed,
executed only with counterparties with high credit ratings.
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Interest rate risk
due to possible changes in interest rates. This interest rate risk is assessed as low.
Foreign currency risk
Exposure to foreign currency exchange rates arises from transactions denominated in currencies other than USD, especially in EUR, CHF, GBP and BRL.
denominated in EUR, GBP or CHF. On the other side, FIFA has substantial costs, especially employee costs
are expected in EUR or GBP. A substantial part of the costs in connection with the 2014 FIFA World Cup Brazil™ are denominated in BRL. The Controlling & Strategic Planning Department regularly forecasts the
If the EUR had gained (lost) 10% against the USD as at 31 December 2012, the net result would have been USD 39.3 million higher (lower). If the CHF had gained (lost) 10% against the USD as at 31 December 2012, the net result would have been USD 3.6 million higher (lower). If the GBP had gained (lost) 10% against the USD as at 31 December 2012, the net result would have been USD 7.2 million higher (lower). If the BRL had gained (lost) 10% against the USD as at 31 December 2012, the net result would have been USD 10 million higher (lower).
losses.
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Positions exposed to foreign currency risk as at 31 December 2012
in thousands CHF EUR BRL
41,549 111,673 273,405
Receivables 28,787 55,465 21,759
Prepaid expenses and accrued income 0 0 1,035
Exposure from applying percentage-of-completion method 3,025 163,262 42,146
Total assets in foreign currency 73,361 330,400 338,345
Payables 21,501 1,764 214
Accrued expenses and deferred income 34 0 0
Exposure from applying percentage-of-completion method 18,885 31,529 133,406
Total liabilities in foreign currency 40,420 33,293 133,620
Net exposure in foreign currency 32,941 297,107 204,725
Liquidity risk
short-term credit facilities in the amount of CHF 158 million, guaranteed by its own properties, which
31 December 2012 31 December 2011
in TUSD 90 days1 year or
lessMore than
a year 90 days1 year or
lessMore than
a year
Payables – associations and confederations 0 17,809 0 0 52,113 0
Payables – related parties 1,907 0 0 1,616 0 0
Payables – third parties 47,027 0 0 34,562 0 0
Derivative 0 17,872 3,680 0 1,322 6,025
Total 48,934 35,681 3,680 36,178 53,435 6,025
Generally, the accounts are used to settle new invoices to and from associations and confederations. In accordance with the FIFA Statutes, payables and receivables can be netted.
Auditor’s report 96 98
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Cancellation risk
abandonment of the FIFA World Cup™, FIFA would run the risk of some of the revenues already received and accounted for having to be repaid.
At its meeting on 24 October 2008, the Executive Committee decided to insure against the risk of postponement and/or relocation of the FIFA World Cups™. The risks covered include natural catastrophe, accidents, turmoil, war, acts of terrorism, non-participation of teams and epidemic diseases. The cancellation of the event is not covered by the insurance and would need to be covered by FIFA’s own
For the 2014 FIFA World Cup™ and the 2018 FIFA World Cup™, the maximum insurance volume is
31 December 2012 31 December 2011
in TUSDLoans and receivables
Financial assets at fair value through
P&L
Financial assets held to maturity
Derivatives used for hedging activities
Loans and receivables
Financial assets at fair value through
P&L
Financial assets held to maturity
Derivatives used for hedging activities
Cash and cash
1,125,366 0 0 0 859,071 0 0 0
Receivables 275,306 0 0 0 290,386 0 0 0
Derivative
assets 0 2,352 0 9,961 0 0 0 14,156
Financial assets 235,554 1,626 563,659 451,640 31,279 350,687 0
Accrued income 14,800 0 0 0 6,000 0 0 0
Total 1,651,026 3,978 563,659 9,961 1,607,097 31,279 350,687 14,156
Annexe 2012
90
31 December 2012 31 December 2011
in TUSD
Financial liabilities
at fair value through P&L
Financial liabilities at amortised
cost
Derivatives used for hedging activities
Financial liabilities
at fair value through P&L
Financial liabilities at amortised
cost
Derivatives used for hedging activities
Payables 0 66,743 0 0 88,291 0
Derivative 11,317 0 10,235 0 0 7,347
Accrued expenses 0 779,553 0 0 443,244 0
Total 11,317 846,296 10,235 0 531,535 7,347
Due to their short maturity, the carrying amount of the payables approximates the fair value.
Fair value disclosure
are not traded in active markets and the fair value on the balance sheet date is determined by using
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27
FIFA uses foreign currency derivatives and forwards to hedge the exposure on revenue from TV rights denominated in EUR or GBP. Depending on the expected needs based on the forecast, the revenue is
Additionally, FIFA hedges its exposure in BRL for future costs in connection with the 2014 FIFA World Cup Brazil™ and in RUB for future costs in connection with the 2018 FIFA World Cup Russia™. All hedging transactions are in line with the strategy decided by the FIFA Executive Committee.
FIFA uses hedge accounting in accordance with IFRS to reduce the volatility of earnings and event-related
highly effective, as the amount, the currency and the maturity of the underlying and hedging transaction are identical.
As of 31 December 2012, FIFA has hedged part of the broadcasting rights in connection with the 2014 FIFA World Cup Brazil™ in EUR in the amount of EUR 263.4 million, in GBP in the amount of
FIFA World Cup™ in Russia.
hedged using swaps. The total notional value of the outstanding swaps as at 31 December 2012 amount
31 December 2012 31 December 2011
in TUSDPositive
fair valueNegative fair value
Positivefair value
Negativefair value
– effective in the next year 2,973 9,140 13,010 1,322
– effective in the following years 6,988 1,095 1,146 6,025
– effective in the next year 2,352 8,732 0 0
– effective in the following years 0 2,585 0 0
Total 12,313 21,552 14,156 7,347
– recognised in hedging reserve 0 275 3,079 0
Annexe 2012
92
The effective part of the hedge transactions has been recognised in the hedging reserve. As at
hedging instruments between the beginning of the year and the settlement date.
28 Legal matters and contingent liabilities
FIFA is a defendant in various court cases. Based on the legal advice received, the management is of the
29 Capital commitments
As at 31 December 2012, FIFA has no capital commitments.
30 Operating leases
in TUSD 31 Dec 2012 31 Dec 2011
Less than 1 year 28 335
1–5 years 643 41
Total 671 376
None of the leases include contingent rentals.
In 2012, a total amount of TUSD 567 statement for operating leases.
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31 Related-party transactions
Identity of related parties
confederations. Additionally, from FIFA’s perspective, the following persons are regarded as related
personnel.
Each member of FIFA must pay an annual subscription fee, currently CHF 300, and for every international match – including friendly matches, tournaments and all the matches of the Olympic Football Tournaments – played between two international “A” teams, the member association of the country in which the match is being played pays a share of the gross receipts from the match to FIFA. Revenue from international
FIFA makes yearly contributions to the member associations and confederations (FAP, Goal Programme and other development programmes) to support their efforts in promoting and developing football in
FIFA organises the FIFA World Cup™ and other FIFA events. In connection with these competitions, FIFA
Committee Brazil.
FIFA paid USD 4.6 million to other related parties for rendering of services. The transactions were performed at arm’s length.
Annexe 2012
94
Key management personnelMembers of the Executive Committee, the Finance Committee and the FIFA management, in particular
32 Consolidated subsidiaries
Location of incorporation Activity
interest
2012
interest
2011
FIFA Travel GmbHZurich,
Switzerland Travel agency 100% 100%
Early Warning System GmbHZurich,
Switzerland Service company 95% 95%
FIFA Transfer Matching System GmbHZurich,
Switzerland Service company 95% 95%
FIFA Beach Soccer S.L.Barcelona,
SpainEvent
management 70% 70%
2010 FIFA World Cup Ticketing (Pty) LtdNasrec,
South Africa Ticket sales 100% 100%
FIFA World Cup South Africa (Pty) Ltd Nasrec,
South Africa Service company 100% 100%
FWC 2014 Assessoria LtdaRio de Janeiro,
Brazil No activity 95%
FIFA World Cup Brazil Assessoria LtdaRio de Janeiro,
Brazil Service company 100% 100%
FIFA Marketing & TV AGZurich,
Switzerland No activity 100% 100%
2014 FIFA World Cup Venda de Ingressos Ltda
Rio de Janeiro, Brazil Ticket sales 100% n/a
FIFA Ticketing AGZurich,
Switzerland Ticket sales 100% 100%
Annexe 2012
96
Report of the Statutory Auditor to the FIFA Congress
Internationale de Football Association (FIFA), which comprise the balance sheet, income statement, cash
47-95) for the year ended 31 December 2012.
FIFA Executive Committee’s ResponsibilityThe FIFA Executive Committee is responsible for the preparation and fair presentation of the consolidated
statements that are free from material misstatement, whether due to fraud or error. The FIFA Executive Committee is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
We conducted our audit in accordance with Swiss law and Swiss Auditing Standards as well as
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
whether due to fraud or error. In making those risk assessments, the auditor considers the internal
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control system. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of
a basis for our audit opinion.
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Auditor’s report 96 98
Opinion
International Financial Reporting Standards (IFRS) and comply with Swiss law.
Report on Other Legal Requirements
(AOA) and independence (article 728 CO) and that there are no circumstances incompatible with our independence.
that an internal control system exists, which has been designed for the preparation of consolidated
KPMG AG
Roger Neininger Alex Fähndrich Licensed Audit Expert Licensed Audit Expert Auditor in Charge
Zurich, 21 March 2013
Annexe 2012
98
Audit and Compliance Committee report
to the FIFA Congress
In our function as the Audit and Compliance Committee of FIFA, we have assessed the consolidated
held on 10 August 2012, 11 October 2012 and 18 March 2013 in the presence of the Deputy Secretary General and the external auditors.
relevant documents and information necessary for our assessment.
compliance matters and monitored compliance as set out in the FIFA Organisation Regulations.
2012.
For the Audit and Compliance Committee
Domenico Scala Chairman
Zurich, 18 March 2013
Financial Report 2012Official publication of theFédération Internationale de Football Association
PublisherFédération Internationale de Football Association
President Secretary GeneralJoseph S. Blatter Jérôme Valcke
FIFA-Strasse 20, P.O. Box, 8044 Zurich, SwitzerlandTel.: +41-(0)43-222 7777, Fax: +41-(0)43-222 7878, www.FIFA.com
PhotosFIFA Archive, Fotoagentur Sven Simon, FIFA via Getty Images, Getty Images, Action Images
Graphic design/layoutSven Müller Design, 82319 Leutstetten/Munich, Germany
PrintingVogt-Schild Druck AG, 4552 Derendingen, Switzerland
The reproduction of articles – even partially – is prohibited unless permission has been sought from the editors and a reference is made to the source (copyright: FIFA).Permission to reproduce photos must be sought from the individual photo agencies concerned.
The FIFA logo is a registered trademark.
FIFA organisation chart
President
Executive Office of the President
Security
Secretary General
Competitions TV & Marketing
HR & Services TV
Marketing
Finance & Administration
Member Associations& Development
Com. & Public Affairs Legal Affairs
Committees
· Executive Committee · Emergency Committee
FIFA standing committees · Finance Committee · Audit and Compliance Committee · Organising Committee for the FIFA World Cup™ · Bureau 2014 FIFA World Cup Brazil™ · Organising Committee for the FIFA Confederations Cup
· Organising Committee for the Olympic Football Tournaments
· Organising Committee for the FIFA U-20 World Cup · Organising Committee for the FIFA U-17 World Cup · Committee for Women’s Football and the FIFA Women’s World Cup™
· Organising Committee for the FIFA U-20 Women‘s World Cup
· Organising Committee for the FIFA U-17 Women‘s World Cup
· Futsal Committee · Beach Soccer Committee · Committee for Club Football · Organising Committee for the FIFA Club World Cup
· Referees Committee · Football Committee · Medical Committee
· Players‘ Status Committee · Legal Committee · Committee for Fair Play and Social Responsibility · Media Committee · Associations Committee · Marketing and TV Committee · Strategic Committee · Development Committee · Stadium and Security Committee
FIFA judicial bodies · Disciplinary Committee · Appeal Committee · Ethics Committee
Other FIFA bodies · FIFA Medical Assessment and Research Centre · Dispute Resolution Chamber · Independent Governance Committee
Member associationsA
Afghanistan
Albania
Algeria
American Samoa
Andorra
Angola
Anguilla
Antigua and Barbuda
Argentina
Armenia
Aruba
Australia
Austria
Azerbaijan
B
Bahamas
Bahrain
Bangladesh
Barbados
Belarus
Belgium
Belize
Benin
Bermuda
Bhutan
Bolivia
Bosnia-Herzegovina
Botswana
Brazil
British Virgin Islands
Brunei Darussalam
Bulgaria
Burkina Faso
Burundi
C
Cambodia
Cameroon
Canada
Cape Verde Islands
Cayman Islands
Central African Republic
Chad
Chile
China PR
Chinese Taipei
Colombia
Comoros
Congo
Congo DR
Cook Islands
Costa Rica
Côte d‘Ivoire
Croatia
Cuba
Curaçao
Cyprus
Czech Republic
D
Denmark
Djibouti
Dominica
Dominican Republic
E
Ecuador
Egypt
El Salvador
England
Equatorial Guinea
Eritrea
Estonia
Ethiopia
F
Faroe Islands
Fiji
Finland
France
G
Gabon
Gambia
Georgia
Germany
Ghana
Greece
Grenada
Guam
Guatemala
Guinea
Guinea-Bissau
Guyana
H
Haiti
Honduras
Hong Kong
Hungary
I
Iceland
India
Indonesia
Iran
Iraq
Republic of Ireland
Israel
Italy
J
Jamaica
Japan
Jordan
K
Kazakhstan
Kenya
Korea DPR
Korea Republic
Kuwait
Kyrgyzstan
L
Laos
Latvia
Lebanon
Lesotho
Liberia
Libya
Liechtenstein
Lithuania
Luxembourg
M
Macau
FYR Macedonia
Madagascar
Malawi
Malaysia
Maldives
Mali
Malta
Mauritania
Mauritius
Mexico
Moldova
Mongolia
Montenegro
Montserrat
Morocco
Mozambique
Myanmar
N
Namibia
Nepal
Netherlands
New Caledonia
New Zealand
Nicaragua
Niger
Nigeria
Northern Ireland
Norway
O
Oman
P
Pakistan
Palestine
Panama
Papua New Guinea
Paraguay
Peru
Philippines
Poland
Portugal
Puerto Rico
Q
Qatar
R
Romania
Russia
Rwanda
S
Samoa
San Marino
São Tomé e Príncipe
Saudi Arabia
Scotland
Senegal
Serbia
Seychelles
Sierra Leone
Singapore
Slovakia
Slovenia
Solomon Islands
Somalia
South Africa
South Sudan
Spain
Sri Lanka
St. Kitts and Nevis
St. Lucia
St. Vincent and the Grenadines
Sudan
Suriname
Swaziland
Sweden
Switzerland
Syria
T
Tahiti
Tajikistan
Tanzania
Thailand
Timor-Leste
Togo
Tonga
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
Turks and Caicos Islands
U
Uganda
Ukraine
United Arab Emirates
Uruguay
US Virgin Islands
USA
Uzbekistan
V
Vanuatu
Venezuela
Vietnam
W
Wales
Y
Yemen
Z
Zambia
Zimbabwe