FIFA ups World Cup prize money

FIFA is to sharply increase total prize money at next year's World Cup finals to 332 million Swiss francs ($281.1 million).

The winners of the tournament in Germany will walk away with 24.5 million Swiss francs, more than double the total for the 2002 World Cup, while every qualifying nation will pocket a minimum of seven million Swiss francs.

Football's world governing body announced the 38 percent rise in total prize money at its annual financial media conference on Tuesday when it said its liquid assets had risen to 439 million Swiss francs.

FIFA posted annual profits for 2004 of 158 million Swiss francs, an increase of 12 percent compared to 2003.

"We have taken another significant stride towards our goal of having equity of between 350 and 450 million Swiss francs by the end of 2006," said FIFA President Sepp Blatter in a statement.

"That equity, together with the results we have already posted from marketing, will further strengthen FIFA's solid financial foundations."

Blatter added that the increased prize money reflected the World Cup's central role in the marketing of the game.

"We can only carry out our various global projects because we have such good contracts for the World Cup, and because it is such an exceptional, attractive and exciting event," he said.

"This (increase in prize money) is just to reward the qualifying teams for their efforts, and to promote this game of football -- not only for the benefit of the money but for the good of the game.

"We are not a bank and we don't want to make a lot of money. But we do want to have normal equity and reserves because we don't know how long this good and positive situation will last."

FIFA has made a priority of increasing its liquid assets since the financial collapse of its marketing and television rights partners, ISL and Kirsch, in 2001 and 2002.

"That was a noisy and unnecessary chapter in FIFA's history, but now we are looking forward with great, great optimism," added Blatter on Tuesday.

"We have learnt our lessons from the events of 2001 and 2002."