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Valcke under investigation as FIFA reveals Blatter wage

(Agencies) Updated: 2016-03-18 09:08

Valcke under investigation as FIFA reveals Blatter wage

In this July 20, 2015 file photo FIFA president Sepp Blatter is photographed while banknotes thrown by British comedian Simon Brodkin hurtle through the air during a press conference following the extraordinary FIFA Executive Committee at the headquarters in Zurich, Switzerland. FIFA is preparing to reveal former president Blatter's salary and pay package for the first time, in its 2015 financial report which is being published Thursday March 17, 2916. [Photo/Agencies]

The Swiss official and UEFA boss Michel Platini were suspended over a $2 million payment that Blatter authorised to Platini for work done without a contract. Both are appealing.

FIFA had to dig into its $1.5 billion cash reserves to cover the 2015 loss, much of which it blamed on higher legal fees because of the scandals that erupted last year.

It has also failed to find new sponsors for the World Cup, ahead of the 2018 tournament in Russia.

It said its reserves had fallen by $183 million to $1.34 billion.

The loss followed a $141 million surplus in 2014. The last loss in 2002 was also caused by corruption -- it followed the collapse of the ISL marketing company which had also been paid huge bribes to football officials.

FIFA blamed the loss on "expenses and higher competition costs" but also "unforeseen costs such as legal fees and costs for extraordinary meetings."

Thirty-nine football officials and business executive faces charges in the United States over more than $200 million in bribes for soccer television and marketing deals.

As a result FIFA's spending on "legal matters" in 2015 was almost double the $31.3 million paid a year earlier, the financial accounts said.

It has hired top American legal firm Quinn Emanuel to defend FIFA's position in the US inquiry.

Football's governing body has struggled to find new sponsors as corruption allegations have mounted.

Sony and Emirates Airlines left as top level sponsors in 2014 and have not been replaced.

FIFA has a four year accounting cycle. It makes about $5.5 billion in television and commercial deals between each World Cup. It has still set a revenue target of $5.65 billion for 2015-2018 and Infantino said he was optimistic for the future.

"With the recently approved reforms, I believe that we have turned a corner and that FIFA is poised to emerge stronger than ever," he said.

Infantino has said he is counting on increased revenues and cost-cutting so that there would be a $100 million surplus for the next four year period from targeted revenues of $5.65 billion.

 

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