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≡ THE BIG PICTURE ≡
World Aquatics posted its financial statements for 2023, showing a surplus that was more than double what was expected and assets nearing $200 million.
The report from Treasurer Dale Neuburger (USA) explained:
● “World Aquatics generated an operating surplus of $10.69 million USD, and combined with investment income of $11.70 million USD, the net result was a surplus of $22.40 million USD. Our budget projected a surplus of $11.93 million USD, and through sound management and prudent expense reduction, the result is far more favorable than our original expectation.”
● “The [2023] World Aquatics Championships in Fukuoka (JPN) was an extraordinary success, generating $59.49 million USD in host partnership fees, broadcast rights, sponsorship income, and VIK revenues. Based upon expenses of $21.98 million USD, the net result was a surplus of $37.50 million USD. I express gratitude to the City of Fukuoka and Japan Swimming Association for an exceptional partnership with World Aquatics that exceeded all expectations.”
● “World Aquatics projects a very favorable outcome for the period 2021 to 2024 – prospectively, an operating surplus of more than $40 million USD. This is in sharp contrast to the 2017 to 2020 quadrennium that produced a $10.21 million USD deficit, owing largely to the absence of an Olympic Games within this period, as well as the postponement of other events because of the pandemic.”
For the calendar year 2023, World Aquatics showed operating revenue of $64.41 million against expenses of $53.71 million; with $11.70 million in investment income added, that’s a $22.40 million surplus for the year.
The federation’s balance sheet now shows $191.51 million in assets, actually down by $10.51 million from 2022 as deferred revenues came down significantly. Financial reserves, however, increased from $98.40 million to $120.80 million. That’s an extraordinarily impressive financial position for any international federation outside of FIFA.
As noted, the 2023 World Aquatics Championships in Fukuoka (JPN) was an enormous financial windfall, with $26.50 million in hosting rights and fees, and $28.98 million in television rights and sponsorships, plus another $4.02 million in in-kind support.
Athlete prize money for 2023 was shown at $11.65 million all together, across multiple events. World Aquatics spent $3.78 million on anti-doping activities, mostly through the International Testing Agency.
World Aquatics expects to get richer in 2024, estimating more than $100 million in revenue. The projected budget includes $107.73 million in income:
● $39.25 million from the International Olympic Committee
● $67.32 million from hosting fees, TV rights and sponsorships
● $0.19 million from penalties and other fees
● $0.98 million from other income
The Olympic television rights income from the IOC is a significant increase from the $31.36 million received from the Tokyo 2020 Games.
Expenses were estimated at $85.75 million, including $25.47 million in event expenses, $15.17 million in athlete prize money and $12.77 million in administrative expenses (there were 48 employees at the end of 2023). Some $5.71 million was budgeted for national federation support and $4.29 million for athlete and staff travel support to the 2024 World Championships held in Qatar in February.
(World Aquatics is one of the few federations that subsidizes the travel and lodging to its World Championships. Neuburger noted in his comments that for 2023, “$4.57 million USD was allocated to athlete, coach, and other Federation representatives to attend the World Aquatics Championships and other events within the competitive calendar. This travel subsidy has produced consistently higher levels of participation and involvement.”)
The financial statements for 2023 noted that World Aquatics President Husain Al-Musallam (KUW):
“has waived Per Diem payments and receives no remuneration from World Aquatics. The President’s personal office organises and pays for the majority of his travel costs, as well as, on occasions, accompanying World Aquatics personnel (athletes, officials, staff etc). The value of the contribution of the President to World Aquatics is impossible to accurately estimate but is at least 100k US Dollars and does not exceed 500k US Dollars.”
And as for the intention of World Aquatics to move its headquarters from Lausanne (SUI) to Budapest (HUN), the statements noted:
“On 26 May 2023, World Aquatics and the Government of Hungary announced that they were engaged in discussions about transferring the headquarters, and the seat, of World Aquatics to Budapest, Hungary. Such discussions are still ongoing in 2024 and, should the discussions end in an agreement, based on anticipated timelines, there is no impact on the going concern of World Aquatics for the foreseeable future.”
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