Monday, November 1, 2010

FIFA - Football's very own 'Big-Government' problem

A nice piece on the FIFA's monopoly on the World Cup and assorted scandals that it’s currently facing.

FIFA is a Geneva based non-profit organization that had 2009 revenues of $1.06 billion and profits of $196 million.

"While equity of over a billion dollars seems high, it is necessary as the financial risks exceed it many times over," Franco Carraro, chairman of the internal audit committee, told delegates. "The figure is only enough to cover the next year and a half."

I bet there's a lot of not for profit organizations that might consider $1bn surplus to be more than enough for more than 18 months - especially if they owned such a lucrative franchise....

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