World Aquatics released its 2022 financial report on Tuesday after presenting the numbers at its General Congress meeting in Fukuoka, shedding light on the state of the governing body coming out of the pandemic and moving into the Paris Olympics next summer.
OPERATING NUMBERS
All figures in USD
World Aquatics finished 2022 with an operating deficit of $4.1 million (USD), with the World Aquatics Championship events ($12.4 million) being the organization’s top source of revenue and personnel ($6.9 million) and development ($6.7 million) their biggest expenditures.
However, the financial report notes that World Aquatics ended the year with a net deficit of $16.4 million due to a financial loss of $12.3 million (more below).
In 2021, World Aquatics (then FINA) had an operating surplus of $11.8 million buoyed by the Olympic Games, while its investment performance resulted in an overall surplus of $16.1 million.
Operating Revenue
- World Aquatics Championships – $12.4 million
- World Swimming Championships (SCM) – $2.6 million
- Olympic Movement – $1 million
- Other revenues – $4.7 million
- Total Revenue – $20.7 million
Operating Expenditures
- Cost of Personnel – $6.9 million
- Development Expenditure – $6.7 million
- Anti-Doping Expense – $3.7 million
- Litigation & Provisions – $1.5 million
- Digital & Communication – $1.1 million
- Office Costs – $1 million
- Other Events – $3.9 million
- Total Expenditures – 24.8 million
World Aquatics notes in the report that the $4.1 million deficit was a significant improvement relative to their projections in December ($17.1 million deficit) due to a settlement with a commercial partner ($4 million), event revenues secured late in the year ($3.5 million) and cost savings from the development program ($3.3 million).
Notes
- World Aquatics’ expenses in personnel and office costs both seem high, but are less than the year prior. In 2021, the organization spent $7.3 million on payroll and $1.3 million in office costs.
- World Aquatics spent $1.2 million more on anti-doping compared to 2021 ($2.5 million), while more money was also spent on development (+0.6 million).
- The revenue generated by the World Aquatics Championships is significantly less than what the Olympics generated in 2021 ($29.5 million), while the 2021 SC Worlds ($7.4 million) also generated significantly more than the 2022 edition.
- World Aquatics says it spent “less than” $500,000 on its rebrand from FINA.
- World Aquatics emphasizes that $11.7 million was paid in athlete prize money, more than a quarter of its annual revenue. $22.8 million has been budget for prize money across 2023 and 2024.
$16.4 MILLION NET DEFICIT
World Aquatics had a financial loss of $12.3 million in addition to the $4.1 million operating deficit due to the market, according to the report.
The better-than-expected World Aquatics operating result was offset by valuation losses within our investment portfolio that were reflective of global financial markets in 2022. The post-pandemic market recovery in 2021 was substantially impacted by the Russian invasion of Ukraine and the subsequent rise in energy prices and global inflationary pressures. The result was a very rare, double hit: equity losses coupled with falling bond markets and rising interest rates that created a financial loss of 12.3 million USD for the year. Thankfully, financial market recovery in the last quarter of the year allowed the portfolios to recover some 4 million USD of lost value.
Despite the additional loss, World Aquatics notes that at year-end it had $98.4 million in reserves, higher than it was in December 2020, with $24 million in cash and $131.8 million in portfolio investments.
ISL LEGAL BATTLE
World Aquatics notes that it spent $3.1 million in costs associated with its legal battle with the International Swimming League (ISL) last year, down from the $4.8 million spent in 2021.
In total, World Aquatics has spent $10.3 million on the case, which opened in 2018, when two antitrust lawsuits were filed—one from the ISL itself, and another from swimmers Tom Shields, Michael Andrew and Katinka Hosszu with the league’s support.
In January, the U.S. District Court ruled in favor of World Aquatics, though the complainants have appealed the decision.
FUTURE PROJECTIONS
World Aquatics says that the COVID-19 pandemic and current geo-political events (specifically the ongoing Russian war in Ukraine) have severely impacted its financial situation and it won’t be until the end of 2024 that “we will be able to look back over the two Olympic cycles from 2017-2024 with a full appreciation of our Federation and its financial performance.”
With the 2023 World Aquatics Championships in Fukuoka, the 2024 World Aquatics Championships in Doha, the 2024 World Short Course World Championships in Budapest and the Paris Olympic Games all occurring in an 18-month span, World Aquatics projects a $29.9 million operating surplus in 2024 and a quadrennial surplus in excess of $40 million.
World Aquatics says in a “medium-term outlook” it is currently working with its partners to renew media broadcast contracts for the cycle through the 2028 Olympic Games in Los Angeles with a “revitalized event series and a sponsor portfolio in the image of our rebranded Federation.”
They should fire whoever managed their money cause thats a terrible result. On a positive note they gave out a decent percentage of revenue back to swimmers in the form of prize money. The other thing I seemed to remember is that they spent a sizable amount of money on improvements to their Switzerland offices not that long ago and now they are moving out. I don’t know if they own them or rent them but its seems like anytime that amount of money is spent that you should be committed to that office space for a long period of time like at least 20 years otherwise you are throwing money away. It was 17.5Million spent from the 2013-16 timeframe… Read more »
I’m always curious about the Speedo and Arena economics. The last speedo annual reported annual revenue was 242 million USD. The last Arena was 142 million euro. Wonder what monies they return either to the various swim organizations either at the age group level or the country level. I believe the Arena ceo was touting 34 pcent annual growth expectations. Recognizing this isn’t an nba or nfl sport in terms of economics I always felt the give back certainly at the club level was underwhelming.
“Development”? Sounds like a greasy slush fund. Who recently purchased a Lambo?
While I understand and really appreciate skepticism when it comes to governing bodies, World Aquatics do have a pretty impressive number of programs to stimulate global development in aquatics, including scholarship programs, the Centers of Excellence, coaching and official trainings. I don’t know that there isn’t slush in there, but there is a lot of real investment in development.
It can be easier to accept that when you realize that it isn’t necessarily altruism. There are a lot of aquatics and Olympic administrators who come from countries without great swimming/aquatics programs, and we of course have to remember that every country – whether that country wins 10 gold medals or has never come close – gets the same number of… Read more »
You are too trusting. It has to been too long since the Cornel days. Ask some old timers about the cash bag.