Fifa helps federations with EUR 1.32 billion

The International Football Association (FIFA) has announced the establishment of a National Federation Support Fund to help them cope with the financial impact of Covid-19.

This support should facilitate the coming months for a number of small organizations in troubled football. On Thursday, June 25, Fifa released a fund to assist federations of $ 1.5 billion ($ 1.32 billion) in the form of grants and loans to meet the consequences of the krona virus crisis, its president Gianni Infantino announced on Thursday.

“Fifa unanimously approved a $ 1.5 billion aid plan,” Infantino said after a virtual meeting of the FIFA Council, adding that the International Federation would “strictly control the use of funds.”

Each of the 211 affiliates can receive $ 1 million and an additional $ 500,000 grant can be awarded to help women’s football.

Other assistance will be in the form of interest-free loans, which can amount to 35% of the income for each federation. The minimum amount for each loan is $ 500,000 and a maximum of $ 5 million. In addition, each confederation will be able to get a $ 4 million loan.

Endangered clubs and federations

“We will exercise strict control over the use of funds, with audits, and there will be very clear terms for repayment,” said Infantino.

To fund the support, Fifa will deduct its reserves, namely $ 328 million to cover direct grants and $ 556 million to finance loans, Infantino says.

“Clubs and federations are in real danger. In some parts of the world, football has not yet resumed. We have to help them,” he added. The establishment of this football support fund was announced in March by Fifa.

At the end of April, the Zurich-based agency announced the $ 150 million advance ($ 138 million) in subsidies to its 211 affiliates, ie all support for the years 2019 and 2020, to deal with the consequences of the Covid-19 pandemic.

With AFP