Football is facing a $14bn (€11.8bn) shortfall in revenues globally this year due to the Covid-19 pandemic, according to world governing body, FIFA.
That figure accounts for about a third of the game’s global economic value with the club and national game worth about $46bn worldwide.
The pandemic has already led to more than 150 football associations seeking financial help from the $1.5bn emergency relief fund set up by football’s governing body.
Olli Rehn, chairman of FIFA’s coronavirus steering committee, disclosed for the first time, the true financial effect the coronavirus has had on the game through fixture list chaos, empty stadiums and loss of TV rights revenue.
“It’s a huge number and it covers the football economy in its entirety, including all youth academies,” Rehn, a Finnish politician and governor of the Bank of Finland, said.
“This will impact next year as well, there is a carry over,” Rehn, who is also independent deputy chairman of the FIFA Governance Committee, said.
He said while Europe was hit hardest in terms of absolute cost, it was the associations outside Europe that “have suffered more”.
“It is a real danger that the good work that has been done developing football in Asia and Africa could be ruined, so we want to soften the blow and maintain the development that has been done.”
Last month, European Club Association chairman, Andrea Agnelli predicted lost revenue of four billion euros ($4.7bn) over two years for its member clubs.
Each national association can request a FIFA grant of $1m ($2m for confederations) plus $500,000 for women’s football.
Loans are available to national associations up to a maximum value of $5m ($4m for confederations).
FIFA has also encountered many issues in its past with funds being misused, but Rehn is confident the auditing processes being implemented will detect any corruption.
“Good governance is at the heart of this Covid-19 relief fund,” he said. “We have made this clear to member associations. I know some member associations have complained about heavy compliance procedures – I’m quite used to that. We do require full compliance and we have been working with globally-known auditing companies.
“Corruption has no room in football. It’s essential that the money is being used for the right purposes.”
He gave some examples of how the relief fund is already being put into action. In Thailand it has been used to help restart the national league competition to include coronavirus testing, and the implementation of VAR technology.
In Uruguay, the money has helped the federation rehire staff it had been forced to lay off, crucial to its effective operation whiles in Brazil, te funts are supporting the testing programme in the women’s competition.
Rehn also urged vigilance, warning that while football was gradually returning, a second downturn could not be ruled out.
“We cannot rule out worse developments and that would be another ball game if the pandemic were to continue in a severe form next year. Now we are working on the basis of the current scenario.”
