The Football Association’s failed bid to stage the World Cup cost £6m more than has been previously thought. The total cost was £21m, or £10.5m per vote, although the net cost was £14m. £2.5m came from the public purse in terms of contributions from local authorities who hoped to stage matches in their cities. Another £4.5m came from sponsors.
The Football Association’s failed bid to stage the World Cup cost £6m more than has been previously thought. The total cost was £21m, or £10.5m per vote, although the net cost was £14m. £2.5m came from the public purse in terms of contributions from local authorities who hoped to stage matches in their cities. Another £4.5m came from sponsors.
The FA’s finances are sound with a loss of £3m in 2009 being turned into a profit of £9m after tax in 2010. There is cash balance of £75m. However, a good part of the savings have been achieved by cutting back grants to the Football Foundation by £3m and also reducing FA Cup prize money. Both of these are important sources of income for grass roots clubs whose nurturing is a key part of the FA mission. Certainly, £14m could have achieved a lot for community level football.
More than half (£169m) of the FA’s income comes from broadcasting and sponsorship contracts that are due for renewal. Broadcasting income fell from £127m to £119m during the year, as a result of the loss of the contract with Setanta. It was partly offset through deals with ITV and ESPN and overseas contracts. The loss of Nationwide as lead partner to England reduced income by £3m.
Securng a new partner for the FA Cup from next season and a new broadcast deal from next year are major objectives for the FA.