Football’s financial fallout finds Fifa trying to foot the bill

Fifa is working on the details of a Football Marshall Plan to deal with the financial fallout from the Covid-19 coronavirus pandemic, which will almost certainly result in it dipping into its $2.7 billion (R48.5 billion) reserves.

The world soccer’s governing body has set up a working group to look into the myriad issues thrown up by the halting of the game across the globe as a result of the pandemic, and this week they are expected to focus on ways in which they can help give a cash boost to struggling parties.

A spokesperson for Fifa told Reuters that they were aware that there were “serious financial problems on account of the Covid-19 outbreak”.

“This threatens to disrupt and impair the ability of Fifa’s member associations and other football organisations, such as leagues and clubs, to develop, finance and run football activities at all levels of the game, including professional, non-professional, youth and grassroots.

“It is foreseen that in many parts of the world a considerable number of persons involved in football ... will be left in extremely difficult economic conditions.”

The spokesperson added that owing to Fifa’s strong financial situation, the body has to help those in need.

The exact format and details of this assistance have yet to be decided, but this week will see further consultations with Fifa’s member associations, the continental confederations and other stakeholders.

The spokesperson said that while several issues about how to distribute resources and implement the plan remain unresolved, they aimed to have a scheme “agreed and announced soon”.

Fifa president Gianni Infantino’s 2016 election campaign included plans to distribute the organisation’s resources.

At the time he declared: “The money of Fifa is your money; it’s not the money of the Fifa president.”

Most domestic and international football competitions around the world have been suspended owing to the pandemic, and continental team tournaments such as Euro 2020 and the Copa America have been postponed.

Last week, Reuters reported a leaked internal Fifa document which showed that the working group was assessing proposals that current contracts for players and coaches should be extended until the end of the delayed domestic soccer seasons.

The document recommended that Fifa use its newly created Fund for Professional Players to help ease any difficulties that clubs are facing. – Reuters

Get in touch  City Press

+27 11 713 9001 news@citypress.co.za Media Park, 69 Kingsway Road, Auckland Park

Rise above the clutter | Choose your news | City Press in your inbox

City Press is an agenda-setting South African news brand that publishes across platforms. Its flagship print edition is distributed on a Sunday.