Blatter’s balance sheet

By THE DATA TEAM

FIFA, football’s world governing body, is having a rough few days. On May 27th Swiss police, at the behest of American prosecutors, arrested seven FIFA officials in Zurich on suspicion of receiving bribes totalling more than $100m. Two other former officials and five businessmen are also being charged by the Department of Justice on similar allegations, some relating to behaviour which dates back almost 25 years. The upheaval comes two days before a vote to elect the Zurich-based organisation’s president. The incumbent, Sepp Blatter, who is expected to win a fifth term despite the legal troubles, has called an emergency meeting to discuss the organisation’s future.

A further worry for FIFA is that its sponsors and "partners" (extra-privileged sponsors) seem displeased by the latest bout of scandals. Coca-Cola are concerned that such accusations have “tarnished” the World Cup. Visa has warned that it may reassess its FIFA sponsorship unless the organisation can come to grips with its internal problems.

That is money FIFA will not want to lose. Marketing is a cornerstone of FIFA’s swelling balance sheet, accounting for about a third of its $2 billion in yearly revenues. Increased interest in football from Asia and Africa has swelled the flow of money from television-broadcasting rights. A favourable tax status in Switzerland helps too: FIFA only pays around 1% of its income to state coffers. With cash rolling in, the organisation has built up healthy reserves of $1.5 billion, ostensibly for a rainy day. At long last the storm clouds appear to be gathering.