Football's world governing body has issued bonds which effectively bet on whether the 2006 World Cup finals will escape major disruption, according to a report.
The Federation Internationale de Football Association (Fifa) said the deal, arranged by Credit Suisse First Boston, was cheaper than insurance and gave better protection against liability for damages, said the report.
According to the report, Fifa has sold £160m worth of bonds in the deal. Fifa will keep £120m of the money if the World Cup final has not been played by 31 August 2007, the report continued. It is scheduled to take place in Berlin on 9 July 2006.
According to the report, bondholders will get a high rate of interest in return for risking the 75% loss. The first 25% of their capital will be repaid at the end of 2004, with the rest repayable only once the tournament has been successfully completed.
