Seoul, 25 May 2002 - Meeting in Seoul on 25 May under the chairmanship of Julio Grondona (Argentina), the Finance Committee took note of the financial result of FIFA for the first quarter of 2002, which was according to the budget.

The key figures presented showed that FIFA has liquidity in the amount of CHF 913 million, whereas equity amounts to CHF 155 million and provisions to CHF 367 million. Liquidity is anticipated to decrease to some CHF 400 million at the end of 2002, with FIFA thus being in a comfortable position to meet its current and future financial obligations.

In the matter of taxation of FIFA World Cup contributions to the teams, FIFA has reached agreements with the governments of co-hosts Korea and Japan. While the contributions to the national associations will not be taxable, the premiums and bonuses the associations pay to their players will be subject to taxes. For this reason, FIFA is to withhold a certain percentage of the payments to the associations until all tax claims have been settled after the World Cup.

The Committee was also informed that FIFA’s ongoing SCORE initiative to reduce costs and to increase income is very successful with over 70 initiatives yielding considerable cost saves so far in for 2002.

As for the Financial Assistance Programme (FAP), a report was given on the situation regarding the audits of associations. For the year 2002, 20 associations will be audited, with half of them being selected for such a check, while the other half will be drawn under notary supervision.

The Goal programme is progressing in line with its schedule. 117 projects in total have been approved. Of the budgeted amount of CHF 100 million for this programme, CHF 35 million have already been spent and the remainder of CHF 65 million has been committed to specific projects until the end of 2002.

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FIFA Communications Division
Seoul, 25 May 2002