At the end of 2022, FIFA’s balance sheet totalled USD 6,796 million, an increase of USD 2,407 million compared to the amount at the end of the 2015-2018 cycle. Cash and cash equivalents and financial assets amounted to USD 5,745 million, representing a significant share of 85% of the total assets. FIFA’s liquidity levels also remained healthy, providing the ability to react quickly to unexpected circumstances with a current ratio of 229%.
FIFA operates in a four-year cycle, with the FIFA World Cup™ being the main source of income in the fourth year of the cycle. A large share of the FIFA World Cup 2022™ revenues was contracted and collected well in advance of the event, and recognised as contract liabilities. In line with IFRS 15, revenue is recognised on the successful staging of the FIFA World Cup and related contract liabilities are derecognised at the same time. Contract liabilities had thus dropped by 90% at the end of 2022.
As at 31 December 2022, FIFA’s reserves had reached an unprecedented high of USD 3,971 million, USD 1,227 million or 45% higher than the amount at the end of the 2015-2018 cycle. Accordingly, the equity ratio at the end of the 2019-2022 cycle had increased to 58%.
Having sufficient reserves with high liquidity ensures that FIFA can cover all of its obligations to the FIFA World Cup and its increased commitments under the future FIFA Forward 3.0. The budget for the 2023-2026 cycle takes the available reserves into consideration. Accordingly, FIFA Forward 3.0, due for launch in 2023, will increase the funds currently available under Forward 2.0 by a significant 29%. In addition, FIFA’s solid financial position maintains its ability to react quickly to unforeseen circumstances beyond its regular commitments.