World Cup bonanza for Fifa

Zurich - Fifa made a profit of $196 million in 2009 and increased their reserves to more than $1 billion as football's commercial appeal defied the global economic crisis.

In their annual financial report published Friday, football's world governing body said they made their surplus on revenue of $1.059 billion. Fifa president Sepp Blatter said he was a "happy president" that revenue had topped 10 figures for the first time.

"We are comfortable. I wouldn't say we are rich," Blatter said after a two-day meeting of Fifa's ruling executive. "A good result has been achieved."

Blatter said the financial report showed that awarding the 2010 World Cup to South Africa was a "good financial and commercial decision."

In the report, Julio Grondona, the chairman of Fifa's finance committee, said the first World Cup in Africa had posted marketing revenues that surpassed the results of the previous two tournaments, in Germany (2006) and South Korea and Japan (2002).

Fifa have focused on building their reserves in recent years to sustain the body in the event that a World Cup is cancelled and commercial partners have to be repaid. They originally had a target of $800 million to be set aside by the end of 2010, but have exceeded that with their equity now totaling $1.061 billion.

Fifa said theirfinancial health hinged almost entirely on the successful staging of the World Cup and an equity of more than $1 billion would cover only the costs of the next 18 months.

"Fifa has thus far made it through the turbulence in the financial markets and the global recession unscathed and has emerged from the crisis in a stronger position," the report said.

In 2008 they made $184 million profit on revenue of $957 million and their equity stood at $902 million.

Presenting the financial report, deputy secretary general Markus Kattner said a $200 million surplus was expected on revenue of $3.8 billion for the 2011-14 cycle leading up to the 2014 World Cup in Brazil.

Fifa will distribute some of their extra cash - earned mostly from better-than-expected television and marketing deals - to their continental and national members.

Each continental confederation will get an extra $2.5 million, with a $200,000 payment to each of Fifa's 208 national associations.

"It is a gift," Blatter said. "$56 million that we give back to shareholders, if we can say this."

Fifa have also created football project funds for Haiti and Chile which have suffered devastating earthquakes this year. Haiti have a $3 million fund, and Chile - who have qualified for the 2010 World Cup - got $1.2 million.

Blatter said Fifa had benefited from losing their former marketing partner ISL.