A group of European officials no longer want FIFA’s money.
Swiss officials are reportedly hesitant to borrow money from soccer’s international governing body after $2 billion worth of loans to capital city Bern drew criticism.
“The priority is to have low-risk and short-term investments to be able to fulfill our mandate, which is to develop football around the world,” said a FIFA spokesperson.
FIFA’s financial practices have drawn criticism following the 2015 corruption scandal, which saw 14 people indicted for allegations of wire fraud, racketeering, and money laundering.
Officials in Switzerland have proposed a motion that would require Bern to create and implement governance rules regarding borrowing practices.
- FIFA lent Swiss local authorities $2 million in 2016.
- A year later, FIFA increased lending and the loans jumped to $447.2 million.
- The loans from FIFA are profits from media rights and sponsorship deals.
The Zurich-based organization has invested $5.3 billion in soccer over the last four-year cycle.
FIFA expects to earn $11 billion for the 2023-26 commercial cycle — with nearly a 50% raise in income — thanks primarily to sponsorships and media deals for the men’s World Cup.
In 2026, FIFA will expand the World Cup from 32 teams to 48.
FIFA generated $7.5 billion in revenue for the 2019-22 cycle — $1 billion more than it budgeted.