World Cup FRANCE 98 – Press Releases

6 March 1997

FRANCE 98 Budget: the CFO confirms its objective of breaking even

A forecast of considerably increasing revenues, a more focused appreciation of expenses, and a reaffirmation of its objective of breaking even: these, fifteen months away from the event, are the principal features of the World Cup French Organising Committee’s budget, approved on 6 March 1997 by the Board of Directors.

This new budget stands at FF 1,968 million, and shows a progression of 17.8% compared with the budget adopted a year ago.

The more sizeable budget can be attributed to a rise in anticipated receipts. Estimated at FF 1,035 million, receipts from ticketing now constitute the main source for financing the World Cup. These receipts comprise the highly satisfactory ticket sales to the French public to date, and the encouraging prospects of sales for the “FRANCE 98 Selections”, prestige ticket packages designed for businesses, which the CFO decided to sell directly and exclusively.

Receipts from the commercial affiliates are valued at FF 867 million. In agreeing partnership terms with the eight World Cup Official Suppliers in 1996, the CFO in effect ensured 80% of its marketing revenues.

The re-evaluation of the forecast expenses takes into account the rising activity generated by the CFO’s move into its operational phase, including the deployment of its organisational arsenal at the venues. This means an increase in Human Resources (in 1998, the CFO staff will number around 400, half of which will be working at the venues) and a rise in the sums allocated to security, and installations and lay-out in and around the stadiums.

The budget is presented as a break-even plan, and includes a sum of FF 148 million to be put aside for risks and unforeseen expenses, a figure which represents around 10% of the outlay for 1997 and 1998.

“Our objective remains to stage a World Cup worthy of France’s international standing, which will be a celebration for the country’s population as a whole. We also want to make the event a financial success, and will do everything in our power to ensure break-even budget or even better,” say Fernand Sastre and Michel Platini, Presidents of the CFO.