29 | Financial risk management
a) Accounting classifications and fair value measurements
31. Dezember 2022 in TUSD | Finanzanlagen/finanzielle Verbindlichkeiten ergebniswirksam zum beizulegenden Zeitwert bewertet | Finanzanlagen/finanzielle Verbindlichkeiten zu fortgeführten Anschaffungskosten bewertet | Finanzanlagen/finanzielle Verbindlichkeiten zu FVOCI | Total |
---|---|---|---|---|
Finanzanlagen zum beizulegenden Zeitwert bewertet | ||||
Derivative Finanzanlagen, die als Sicherungsinstrumente klassifiziert sind | 12 255 | 12 255 | ||
Sonstige derivative Finanzinstrumente | 6 567 | 6 567 | ||
Kapitalbeteiligungen | 86 970 | 86 970 | ||
Schuldtitel | 98 322 | 536 226 | 634 548 | |
Total | 204 114 | 536 226 | 740 340 | |
Finanzanlagen zu fortgeführten Anschaffungskosten bewertet | ||||
Flüssige Mittel | 1 708 102 | 1 708 102 | ||
Forderungen | 357 850 | 357 850 | ||
Festgeldanlagen | 314 395 | 314 395 | ||
Schuldtitel | 2 144 936 | 2 144 936 | ||
Darlehen | 855 575 | 855 575 | ||
Total | 5 380 858 | 5 380 858 | ||
Finanzielle Verbindlichkeiten zum beizulegenden Zeitwert bewertet | ||||
Sonstige derivative Finanzinstrumente | 102 970 | 102 970 | ||
Total | 102 970 | 102 970 | ||
Finanzielle Verbindlichkeiten zu fortgeführten Anschaffungskosten bewertet | ||||
Kreditoren | 653 434 | 653 434 | ||
Leasingverbindlichkeiten | 186 783 | 186 783 | ||
Total | 840 217 | 840 217 |
Buchwert | Zeitwert | |||
---|---|---|---|---|
31. Dezember 2022 in TUSD | Total | Stufe 1 | Stufe 2 | Stufe 3 |
Finanzanlagen zum beizulegenden Zeitwert bewertet | ||||
Derivative Finanzanlagen, die als Sicherungsinstrumente klassifiziert sind | 12 255 | 12 255 | ||
Sonstige derivative Finanzinstrumente | 6 567 | 6 567 | ||
Kapitalbeteiligungen | 86 970 | 86 970 | ||
Schuldtitel | 634 548 | 634 548 | ||
Total | 740 340 | |||
Finanzanlagen nicht zum beizulegenden Zeitwert bewertet | ||||
Flüssige Mittel | 1 708 102 | |||
Forderungen | 357 850 | |||
Festgeldanlagen | 314 395 | |||
Schuldtitel | 2 144 936 | 864 606 | 1 235 765 | |
Darlehen | 855 575 | |||
Total | 5 380 858 | |||
Finanzielle Verbindlichkeiten zum beizulegenden Zeitwert bewertet | ||||
Sonstige derivative Finanzinstrumente | 102 970 | 102 970 | ||
Total | 102 970 | |||
Finanzielle Verbindlichkeiten nicht zum beizulegenden Zeitwert bewertet | ||||
Kreditoren | 653 434 | |||
Leasingverbindlichkeiten | 186 783 | |||
Total | 840 217 |
Fair value disclosure: equity investment funds and some debt securities are traded in active markets and the fair value is based on unadjusted quoted market prices on the balance sheet date (Level 1). Derivatives and some debt securities are not traded in active markets and the fair value on the balance sheet is determined by using valuation techniques (Level 2) with observable market data. No transfer was made between Level 1 and Level 2 during the year. FIFA has not disclosed the fair values for financial instruments such as short-term receivables and payables because their carrying amounts are a reasonable approximation of fair value.
Fair value measurements and disclosure of assets and liabilities
When measuring the fair value of an asset or a liability, the group uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability are categorised in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety at the lowest level input that is significant to the entire measurement.
31. Dezember 2021 in TUSD | Finanzanlagen/finanzielle Verbindlichkeiten ergebniswirksam zum beizulegenden Zeitwert bewertet | Finanzanlagen/finanzielle Verbindlichkeiten zu fortgeführten Anschaffungskosten bewertet | Finanzanlagen/finanzielle Verbindlichkeiten zu FVOCI | Total |
---|---|---|---|---|
Finanzanlagen zum beizulegenden Zeitwert bewertet | ||||
Derivative Finanzanlagen, die als Sicherungsinstrumente klassifiziert sind | 30 830 | 30 830 | ||
Sonstige derivative Finanzinstrumente | 15 693 | 15 693 | ||
Kapitalbeteiligungen | 106 950 | 106 950 | ||
Schuldtitel | 105 852 | 591 370 | 697 222 | |
Total | 259 325 | 591 370 | 850 695 | |
Finanzanlagen zu fortgeführten Anschaffungskosten bewertet | ||||
Flüssige Mittel | 832 089 | 832 089 | ||
Forderungen | 398 985 | 398 985 | ||
Festgeldanlagen | 310 775 | 310 775 | ||
Schuldtitel | 1 694 851 | 1 694 851 | ||
Darlehen | 628 004 | 628 004 | ||
Total | 3 864 704 | 3 864 704 | ||
Finanzielle Verbindlichkeiten zum beizulegenden Zeitwert bewertet | ||||
Derivative finanzielle Verbindlichkeiten, die als Sicherungsinstrumente klassifiziert sind | 2 013 | 2 013 | ||
Sonstige derivative Finanzinstrumente | 17 662 | 17 662 | ||
Total | 19 675 | 19 675 | ||
Finanzielle Verbindlichkeiten zu fortgeführten Anschaffungskosten bewertet | ||||
Kreditoren | 100 437 | 100 437 | ||
Leasingverbindlichkeiten | 187 352 | 187 352 | ||
Total | 287 789 | 287 789 |
Buchwert | Zeitwert | |||
---|---|---|---|---|
31. Dezember 2021 in TUSD | Total | Stufe 1 | Stufe 2 | Stufe 3 |
Finanzanlagen zum beizulegenden Zeitwert bewertet | ||||
Derivative Finanzanlagen, die als Sicherungsinstrumente klassifiziert sind | 30 830 | 30 830 | ||
Sonstige derivative Finanzinstrumente | 15 693 | 15 693 | ||
Kapitalbeteiligungen | 106 950 | 106 950 | ||
Schuldtitel | 697 222 | 697 222 | ||
Total | 850 695 | |||
Finanzanlagen nicht zum beizulegenden Zeitwert bewertet | ||||
Flüssige Mittel | 832 089 | |||
Forderungen | 398 985 | |||
Festgeldanlagen | 310 775 | |||
Schuldtitel | 1 694 851 | 1 026 649 | 661 811 | |
Darlehen | 628 004 | |||
Total | 3 864 704 | |||
Finanzielle Verbindlichkeiten zum beizulegenden Zeitwert bewertet | ||||
Derivative finanzielle Verbindlichkeiten, die als Sicherungsinstrumente klassifiziert sind | 2 013 | 2 013 | ||
Sonstige derivative Finanzinstrumente | 17 662 | 17 662 | ||
Total | 19 675 | |||
Finanzielle Verbindlichkeiten nicht zum beizulegenden Zeitwert bewertet | ||||
Kreditoren | 100 437 | |||
Leasingverbindlichkeiten | 187 352 | |||
Total | 287 789 |
Fair value disclosure: equity investment funds and some debt securities are traded in active markets and the fair value is based on unadjusted quoted market prices on the balance sheet date (Level 1). Derivatives and some debt securities are not traded in active markets and the fair value on the balance sheet is determined by using valuation techniques (Level 2) with observable market data. No transfer was made between Level 1 and Level 2 during the year. FIFA has not disclosed the fair values for financial instruments such as short-term receivables and payables because their carrying amounts are a reasonable approximation of fair value.
b) Financial risk management
FIFA is exposed to currency and interest risks as well as credit, liquidity and equity price risks in the course of its normal operations.
Credit risk
The revenue from television and marketing rights is received from large multinational companies and public broadcasters. Part of the outstanding revenue is also covered by bank guarantees. Additionally, the contracts include a default clause, whereby the contract terminates as soon as one party is in default. In the event of a default, FIFA is not required to reimburse any of the services or contributions received. FIFA is also entitled to replace terminated contracts with new marketing or broadcasting agreements.
Material credit risks could arise if several parties were unable to meet their contractual obligations. FIFA’s management monitors the credit standing of the Commercial Affiliates very closely on an ongoing basis. Given their good credit ratings and the high diversification of the portfolio of Commercial Affiliates, the management believes that this scenario is unlikely to occur.
The vast majority of cash and cash equivalents are held with bank and financial institution counterparties with a rating equivalent to “A-1” or higher in S&P ratings. Fixed-income investments with residual terms to maturity of 12 months or less are only executed with borrowers with a short-term rating of “A-3” or higher. Investments in bonds are only executed in listed, tradable bonds issued by borrowers with a “BBB-” rating or higher. Derivative financial instruments are executed only with counterparties with high credit ratings. The carrying amount of the financial assets represents the maximum exposure to credit risk.
Equity price risk
FIFA’s exposure to equity price risk arises from equity investment funds held by the group classified as at fair value through profit or loss. FIFA manages its price risk arising from equity securities through diversification.
As at 31 December 2022, the exposure to equity investments was USD 87 million (2021: 107 million). If the fair values of the equity investments had increased/(decreased) by 10%, the impact on the net result would have been USD +8.7 million or USD -8.7 million, respectively (2021: USD +10.7 million or USD -10.7 million).
Interest rate risk
Interest rate risks arise from changes in market interest rates, which could affect the Group’s profit or loss or equity. Since the interest rates of all term deposits and debt securities are fixed, there is only limited exposure to cash flow interest rate risk. FIFA’s interest rate risk exposure therefore mainly arises from changes in the fair value of such fixed-rate debt instruments measured at FVOCI and FVTPL.
As at 31 December 2021 and 31 December 2022, there was no interest rate risk arising from financing transactions because FIFA is self- financed.
Foreign currency risk
FIFA’s functional currency is USD because the majority of its cash flows are denominated in USD. Exposure to foreign currency exchange rates arises from transactions denominated in currencies other than USD, especially in EUR, CHF and QAR.
FIFA receives foreign currency cash inflows in the form of revenue from the sale of certain rights denominated in currencies other than USD, such as EUR, GBP and CHF. On the other hand, FIFA has substantial costs, especially employee costs and operating costs in connection with FIFA’s offices in Zurich, denominated in CHF and other currencies. The Controlling & Strategic Planning Subdivision regularly forecasts the liquidity and foreign exchange requirements. If any foreign currency risks are identified, FIFA uses derivative products to hedge this exposure (see also Note 30).
As at 31 December 2022, FIFA was exposed to the following foreign exchange fluctuation risks:
If the CHF had gained 10% against the USD as at 31 December 2022, the impact on the net result would have been USD +1.6 million (2021: USD +1.2 million).
If the EUR had gained 10% against the USD as at 31 December 2022, the impact on the net result would have been USD +2.4 million (2021: USD +0.8 million).
If the GBP had gained 10% against the USD as at 31 December 2022, the impact on the net result would have been USD -0.4 million (2021: USD 0 million).
If the AUD had gained 10% against the USD as at 31 December 2022, the impact on the net result would have been USD -0.2 million (2021: USD 0 million).
If the QAR had gained 10% against the USD as at 31 December 2022, the impact on the net result would have been USD +4.6 million (2021: USD +0.1 million).
This fluctuation analysis can be applied using the same method in reverse (a decrease of 10%). It only shows the effect from a risk management perspective and not realised gains or losses.
Positions exposed to foreign currency risk as at 31 December 2022
in Tausend | CHF | EUR | GBP | AUD | QAR |
---|---|---|---|---|---|
Flüssige Mittel* | 19 688 | 18 224 | 293 | 93 | 205 272 |
Forderungen | 28 708 | 22 769 | 141 | 69 | 51 851 |
Finanzanlagen* | 724 | 0 | 0 | 0 | 0 |
Total Aktiven in Fremdwährung | 49 120 | 40 993 | 434 | 162 | 257 123 |
Kreditoren | 32 280 | 16 655 | 3 772 | 3 493 | 91 390 |
Leasingverbindlichkeiten | 2 460 | 1 680 | 0 | 0 | 0 |
Total Verbindlichkeiten in Fremdwährung | 34 740 | 18 335 | 3 772 | 3 493 | 91 390 |
Nettopositionen in Fremdwährung | 14 380 | 22 658 | -3 338 | -3 331 | 165 733 |
Nettopositionen in Funktionswährung (USD) | 15 564 | 24 116 | -4 019 | -2 257 | 45 522 |
Positions exposed to foreign currency risk as at 31 December 2021
in Tausend | CHF | EUR | NZD | BRL | QAR |
---|---|---|---|---|---|
Flüssige Mittel* | 0 | 0 | 887 | 0 | 4 961 |
Forderungen | 26 800 | 12 581 | 122 | 3 883 | 354 |
Finanzanlagen* | 0 | 0 | 0 | 0 | 0 |
Total Aktiven in Fremdwährung | 26 800 | 12 581 | 1 009 | 3 883 | 5 315 |
Kreditoren | 13 506 | 2 634 | 134 | 12 | 79 |
Leasingverbindlichkeiten | 2 558 | 3 067 | 54 | 0 | 0 |
Total Verbindlichkeiten in Fremdwährung | 16 064 | 5 701 | 188 | 12 | 79 |
Nettopositionen in Fremdwährung | 10 736 | 6 880 | 821 | 3 871 | 5 236 |
Nettopositionen in Funktionswährung (USD) | 11 740 | 7 783 | 561 | 695 | 1 438 |
* Positions exposed to foreign currency risk arise on financial instruments that are denominated in a foreign currency, i.e. in a currency other than the functional currency in which they are measured. The amounts displayed in the above tables represent the unhedged portion in foreign currency. As at 31 December 2022, FIFA held a total amount of USD 1,868 million (2021: USD 1,312 million) in financial assets, USD 92 million (2021: USD 70.3 million) in cash and cash equivalents as well as zero (2021: USD 36.4 million) in receivables, categories of which were denominated in CHF and are fully hedged against foreign currency risk.
Liquidity risk
As at 31 December 2021 and 31 December 2022, FIFA was self-financed. Moreover, FIFA holds mortgage notes in the amount of CHF 145.7 million (2021: CHF 145.7 million), guaranteed by its own properties, which could be used to cover any additional liquidity needs.
Maturity of financial liabilities
31. Dezember 2022 | 31. Dezember 2021 | |||||
---|---|---|---|---|---|---|
in TUSD | 90 Tage | bis 1 Jahr | mehr als 1 Jahr | 90 Tage | bis 1 Jahr | mehr als 1 Jahr |
Kreditoren gegenüber Mitgliedsverbänden und Konföderationen | 0 | 377 979 | 0 | 0 | 49 071 | 0 |
Kreditoren gegenüber Dritten und nahestehenden Parteien | 275 455 | 0 | 0 | 51 366 | 0 | 0 |
Derivative finanzielle Verbindlichkeiten | 0 | 102 970 | 0 | 0 | 19 675 | 0 |
Total | 275 455 | 480 949 | 0 | 51 366 | 68 746 | 0 |
Please refer to Note 27 for the maturity analysis of undiscounted lease liabilities.