Football: Fifa want U20s cash

New Zealand keeper Oliver Sail reacts after conceding a goal at the FIFA Under-20 World Cup. Photo / Dean Purcell

New Zealand Football could miss out on up to $1 million from the profits of hosting the 2015 Under-20 World Cup with Fifa apparently set to retain a large percentage of the surplus from the tournament.

The Herald on Sunday understands the Under-20 World Cup made a profit of around $2.1 million, thanks to healthy ticket sales and solid cost management by the local organising committee.

The Government will receive approximately $500,000 of that figure to compensate for their $5.5 million investment in the event. In normal circumstances, most of the remaining $1.6 million would be banked by NZF, who technically took the risk on the event.

But it's believed Fifa have, at this stage, asked to retain up to $1 million of the surplus, which would leave around only $500,000 for NZF.

It would be an almost unprecedented move for world's football governing body, especially as their 2015 annual report indicated cash reserves of $2.24 billion, and be another blow to NZF who are expected to find out this week the result of their appeal into the Deklan Wynne eligibility saga.

The national body have re-entered negotiations with Fifa over the distribution of the surplus in an effort to improve their share.

The age-group events Fifa run are not the cash cows that the senior World Cup is, and any profit is typically directed back to the home association, in recognition of significant work required to run such an event.

As an example, the 2011 Women's World Cup in Germany saw Fifa investment of around $102 million, according to their 2012 financial statement. That tournament returned an after-tax profit of $12.66 million, all of which was retained by the German Football Association for distribution.

Fifa budgeted to spend around $32 million for the 2015 Under-20 World Cup, which was a similar amount to the 2013 ($32 million), 2011 ($34 million) and 2009 ($30.8 million) events. They also invested similar sums into the 2011 and 2013 Under-17 World Cups. And sometimes they have had to spend considerably more, putting $63 million into the 2009 Under-17 World Cup in Nigeria.

It's a recognition that such events are more about development than generating revenue, and are subsidised by the gargantuan profits the senior World Cup generates. The 2014 tournament in Brazil delivered $5.87 billion into Fifa's coffers, with an estimated net profit in excess of $3.22 billion.

One million dollars is a trifling amount for Fifa, but a considerable figure for NZF.

In response to a Herald on Sunday inquiry, Fifa referred all questions about the surplus to the LOC. In a text message, LOC CEO Dave Beeche said: "NZF are going to make any comment on the outcomes of the tournament going forward." NZF officials declined to comment.

It has also emerged NZF's public no-vote for Blatter - and NZF CEO's Andy Martin's comments about Fifa and Blatter in the wake of the vote - "did not go unnoticed [by Fifa]", according to one source.

The timing was unfortunate, as the scenario played out at the same time as the Under-20 World Cup kicked off.

There were also other incidents during the tournament which did not help NZF's standing in the eyes of Fifa.

Martin publicly expressed a strong wish that Blatter should not come to New Zealand, and privately expressed the same view to Fifa officials on the ground.

The beleaguered Blatter was always unlikely to come, but the public and private comments made it awkward for Fifa operational staff in New Zealand.

"Fifa had granted New Zealand the tournament - and put considerable resources into it - and were disappointed in how they were treated by some NZF officials," said one source.