World Cup profit helps boost FIFA finances

GENEVA (AFP) - World football's governing body FIFA said Friday it had paid back 111 million euros (148 million dollars) to the German organisers of the World Cup in 2006 after racking up a big profit on the event.

FIFA said it retained 45 million of the 156 million euro profit on the 2006 World Cup, fuelling an "exceptional" year for its own finances.

"The World Cup in Germany was a wonderful, wonderful event, but it has also been economically a success," FIFA General Secretary Urs Linsi told journalists.

FIFA, a non-profit organisation under Swiss law, made a surplus of 303 million Swiss francs (250 million dollars, 187 million euros) on its overall business in 2006, raising its equity reserves to 752 million Swiss francs.

"FIFA is not rich, but we have now created a comfortable position for ourselves," said governing body chief Sepp Blatter.

FIFA has been turning its back in recent years on massive financial problems in 2001-2002, when its contracted marketing and television rights partners collapsed.

That financial trouble contributed a short-lived challenge to Blatter's presidency and internal tensions that almost ripped world football apart.

"Only a few years ago, FIFA was being criticised for its financial situation. Today, we have proved that the facts are somewhat different," Blatter said Friday.

Earlier this month, a Swiss prosecutor issued fraud charges against executives at sports marketing firm ISMM/ISL, FIFA's bankrupt former partner.

No FIFA officials were among those charged.

Football's governing body was one of the original plaintiffs against ISM/ISL but its headquarters, including Blatter's office, were searched and documents were seized in November 2005 by investigators probing the collapse.

FIFA protested at the search.

A financial boost for FIFA's reserves in a World Cup year is essential to keep football development projects and preparations for the next finals four years later on track.