The FIA regains stable finances with a projected profit for 2024

The operational accounts of the Fédération Internationale de l’Automobile were not really in good shape in recent years. Mohammed Ben Sulayem revealed in 2022 that the FIA had a 20 million euro deficit just before the end of Jean Todt’s mandate. This carry-forward deficit therefore had to be filled gradually over the following years.

Reserves of past profits, which are dwindling

Indeed, the FIA being a global non-profit organization (as confirmed by its statutes), it must at least break even to continue to exist, but it cannot accumulate a deficit for too long, at the risk of no longer being able to draw from its previous profits.

The following year, Jean Todt settled his scores with Mohammed Ben Sulayem by providing more details and explaining in particular that the FIA’s reserves amounted to several hundred million euros (240 million in 2019 according to the figures given by Jean Todt).

Specifically, over the period from 2019 to 2022, the operational deficit had to be gradually filled to avoid overusing the FIA’s financial reserve.

In 2022, the FIA reduced its operational deficit, going from -24 million euros in 2021 to -7.7 million euros. In 2023, the FIA almost broke even with an operational deficit of -800,000 euros, and is finally projected to return to profit in 2024.

« The year 2023 was marked by a significant reduction in operational and net losses for the FIA, thanks to a strong increase in operational revenue. The operational loss for 2023, amounting to -0.8 million euros, was reduced by 6.9 million euros compared to the previous year, which was -7.7 million euros. The net result for 2023 is 7.2 million euros, an improvement of 22.4 million euros compared to the previous year, where it was -15.2 million euros. The FIA’s balance sheet remains solid, showing a debt ratio of 45% and no financial debt », details the FIA’s 2023 annual report.

Return to profit in 2024

In 2024, the FIA’s forecast stands at 2.2 million euros: « The financial results to date for 2024 demonstrate a significant reduction in the FIA’s operational costs, thanks to an increase in revenue and achieved savings », explains the statement. « The improved operational situation, confirmed during the two World Council meetings in Kigali, indicates a return to profitability despite the implementation of several new initiatives. »

« The FIA forecasts an operating result of 2.2 million euros in 2024, which represents a remarkable improvement compared to the deficit of 24.0 million euros recorded in 2021. This forecast would mark the best result in the last seven years and the first positive result since 2018 ».

Mohammed Ben Sulayem commented on the sidelines of the FIA gala which is taking place this Friday evening in Kigali: « This success is the result of our commitment to reforming the organization in the areas of governance and finance.

« The new FIA leadership inherited an unsustainable financial situation in 2022. We worked hard to reduce a significant deficit and stabilize the overall financial health of the federation », continued Ben Sulayem, still seeming vindictive about last year’s comments by Jean Todt.

« We have implemented cost control measures and revenue-generating strategies to place the FIA on a more sustainable financial footing, in order to fulfill our core mission: supporting our member clubs. »