Notes

32. Personnel expenses

in TUSD
2023
2022
Wages and salaries227,616327,476
Social benefit costs28,29439,116
Other employee benefit costs14,44329,792
Other12,24311,585
Total personnel expenses282,596407,969
Of which
– Competitions & Events – general55,94961,137
– Competitions & Events – directly attributable to the FIFA World Cups56,428185,308
– Development & Education44,19843,584
– Football Governance21,92317,713
– FIFA Governance & Administration81,90976,083
– Marketing & TV Broadcasting22,18924,144

Personnel expenses

In 2023, personnel costs amounted to USD 282.6 million. Personnel costs that were directly allocated to the FIFA Women’s World Cup™ were deferred in previous years and recognised in 2023 when the event was staged. In addition to the actual workforce employment, personnel expenses describe how FIFA provides its employees with the right space and technology at each location to create a comprehensive physical and virtual work environment. Overall, personnel expenses decreased due to the FIFA World Cup 2022™ and associated need for more resources in 2022, and lower non-cash post-employment benefit expenses.

in TUSD
2023
2022
Net post-employment benefit obligation45,44216,989
Total post-employment benefit obligation45,44216,989

Retirement benefit plan for employees

FIFA has established a retirement benefit plan in Switzerland for all of its employees through an insurance company. This Swiss plan is governed by the Swiss Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans (BVG), which stipulates that pension plans are to be managed by independent, legally autonomous units. The assets of the pension plan are held within a separate foundation and cannot revert to the employer. Pension plans are overseen by a regulator as well as by a state supervisory body. FIFA participates in a Swiss “Sammelstiftung”, which is a collective foundation administrating the pension plan of various unrelated employers. The pension plan has reinsured all demographic risks and fully transferred the investment activities to the insurance company. The most senior governing body of the collective foundation is the Board of Trustees, which manages the pension fund in compliance with the statutory provisions, the articles of association of the foundation and the directives of the supervisory authority.

The plan’s governing body (Occupational Benefits Fund Commission) is composed of an equal number of employer and employee representatives. The plan is funded by employee and employer contributions and has certain defined benefit characteristics, such as the interest guaranteed on the savings and the conversion of the savings at the end of working life into a life-long pension annuity. The employee’s contributions are determined based on the insured salary and range from 5% to 9% of the insured salary, depending on the selection of the scale by the beneficiary. The employer’s contributions must be at least equal to those of the employee. If the plan becomes underfunded, various measures can be adopted, such as lowering the interest credit rate, reducing benefits or increasing the employer and employee contributions. If an employee leaves FIFA or the plan before reaching retirement age, the law provides for the transfer of the vested benefits to the new plan. These vested benefits comprise the employee’s and the employer’s contributions plus interest, the money originally brought into the pension plan by the beneficiary and an additional legally stipulated amount. On reaching retirement age, the plan participant may decide whether to withdraw the benefits in the form of an annuity or (entirely or partly) as a lump-sum payment. The pension law requires pension annuities to be adjusted for inflation, depending on the financial condition of the plan.

Movement in the employees’ post-employment benefit obligation over the year 2023
in TUSD
Present value of obligation
Fair value of plan assets
Net post- employment benefit obligation
At 1 January 2023229,937-212,94816,989
Included in profit or loss:
– Current service cost17,399017,399
– Plan amendments / curtailments-10,6640-10,664
– Interest expense/(income)5,527-5,125402
– General administration costs0258258
– Exchange differences24,873-21,6013,272
Total37,135-26,46810,667
Remeasurements included in comprehensive income:
– Return on plan assets, excluding interest income0-5,862-5,862
– (Gain)/loss from change in demographic assumptions84084
– (Gain)/loss from change in financial assumptions36,482036,482
– Experience (gains)/loss1,92601,926
Total38,492-5,86232,630
Contributions and benefits paid:
– Plan participants10,009-10,0090
– Employer0-14,844-14,844
– Benefit payments-17,28417,2840
Total-7,275-7,569-14,844
At 31 December 2023298,289-252,84745,442
Of which
– Due to active members274,295
– Due to pensioners23,994

Post-employment benefit obligation

The post-employment benefit expenses of USD 7.4 million included in profit or loss are part of the total expenses from football activities and total expenses from administrative activities (2022: USD 26.4 million). As at 31 December 2023, the plan assets were invested in cash and cash equivalents of 2.2% (2022: 2.4%), debt instruments of 34% (2022: 32.7%), equity instruments of 33.6% (2022: 34.1%), real estate of 25.6% (2022: 27.2%) and other of 4.6% (2022: 3.6%). In 2023, FIFA recognised a gain of USD 10.7 million on plan amendment and curtailment. The former effect related to a change in the conversion rate of the pension plan, while the latter is a result of employees leaving the plan due to a re-location of employees. The expected contributions to be paid by the employer into the plan for 2024 are USD 16.3 million.

Movement in the employees’ post-employment benefit obligation over the year 2022
in TUSD
Present value of obligation
Fair value of plan assets
Net post- employment benefit obligation
At 1 January 2022294,345-229,15865,187
Included in profit or loss:
– Current service cost25,872025,872
– Plan amendments000
– Interest expense/(income)1,000-782218
– General administration costs0293293
– Exchange differences-4,9392,770-2,169
Total21,9332,28124,214
Remeasurements included in comprehensive income:
– Return on plan assets, excluding interest income021,23821,238
– (Gain)/loss from change in demographic assumptions000
– (Gain)/loss from change in financial assumptions-76,7340-76,734
– Experience (gains)/loss-410-41
Total-76,77521,238-55,537
Contributions and benefits paid:
– Plan participants8,620-8,6200
– Employer0-16,875-16,875
– Benefit payments-18,18618,1860
Total-9,566-7,309-16,875
At 31 December 2022229,937-212,94816,989
Of which
– Due to active members217,255
– Due to pensioners12,682
Principal actuarial assumptions
31 Dec 2023
31 Dec 2022
Discount rate1.50%2.30%
Future salary increases2.00%2.00%
Future pension increases0.50%0.50%
Inflation rate1.50%1.50%

Assumptions regarding future mortality as presented below are set based on Swiss BVG/LLP 2020 mortality tables for 2023 (2022: Swiss BVG/LLP 2020), which include generational mortality rates allowing for future projections of increasing longevity.

31 Dec 2023
31 Dec 2022
Longevity at age 63/62 for current pensioners:
– male24.7924.66
– female27.6227.51
Longevity at age 63/62 for employees retiring 20 years after the end of the reporting period:
– male27.0926.98
– female29.6529.56
Sensitivity of the employees’ post-employment benefit obligation to changes in the weighted principal assumption at 31 December 2023
Impact on post-employment benefit obligations
Change in assumption
Increase in assumption
Decrease in assumption
Discount rate0.25%Decrease 3.81%Increase 4.03%
Future salary increases0.25%Increase 0.31%Decrease 0.30%
Future pension increases0.25%Increase 1.96%Decrease 1.83%
Sensitivity of the employees’ post-employment benefit obligation to changes in the weighted principal assumption at 31 December 2022
Impact on post-employment benefit obligations
Change in assumption
Increase in assumption
Decrease in assumption
Discount rate0.25%Decrease 3.73%Increase 4.00%
Future salary increases0.25%Increase 0.31%Decrease 0.30%
Future pension increases0.25%Increase 1.82%Decrease 1.75%

The above sensitivity analyses are based on a change in assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the post-employment benefit obligation to significant actuarial assumptions, the same method (present value of the defined post-employment obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the net post-employment benefit obligation recognised within the balance sheet. The weighted average duration of the post-employment benefit obligation is 17.3 years (2022: 16 years).

Accounting estimates and judgements

The rates and parameters applied above are based on past experience. Future developments in capital and labour markets could make adjustments of such rates necessary, which could significantly affect the calculation of the net post-employment benefit obligation.

More

31. Hedging activities and derivative financial instruments

33. Contingent liabilities