The ICAS has published financial statements showing a loss of CHF12.5 million for 2022, as a consequence of an accounting procedure linked to the CAS's new Lausanne headquarters ©Getty Images

The International Council of Arbitration for Sport (ICAS) has published financial statements showing a loss of CHF12.5 million (£11.2 million/$14.4 million/€13.1 million) for 2022, as a consequence of an accounting procedure linked to the Court of Arbitration for Sport's (CAS) new Lausanne headquarters.

The new CHF35.45 million (£31.7 million/$40.8 million/€37.1 million) premises at the Palais de Beaulieu were occupied in spring 2022.

The new accounts show a CHF13 million (£11.6 million/$15 million/€13.6 million) "extraordinary depreciation" linked to the building.

Without this, ICAS, which governs CAS, would have recorded a small surplus of just under CHF500,000 (£450,000/$575,000/€525,000) on total revenue of CHF20.2 million (£18.1 million/$23.3 million/€21.1 million).

More than 40 per cent of the cost of the building has been paid for already - CHF13 million from a reserve fund constituted since 1994, and a further CHF2 million (£1.8 million/$2.3 million/€2.1 million) by reimbursing a bank loan.

The remaining CHF20.45 million (£18.3 million/$23.6 million/€21.4 million) is being financed by loans: CHF11.25 million (£10 million/$13 million/€11.8 million) by bank loans bearing average interest of 1.5 per cent and CHF9.2 million (£8.2 million/$10.6 million/€9.6 million) from the canton of Vaud.

The loan from Vaud is interest-free and has a 25-year term.

The cost of servicing and eventually paying off the loans is expected to be covered by additional stakeholder contributions that have already been agreed.

ICAS President John Coates, centre, inaugurated the new CAS headquarters in Lausanne in June 2022 ©Getty Images
ICAS President John Coates, centre, inaugurated the new CAS headquarters in Lausanne in June 2022 ©Getty Images

These contributions amounted to some CHF9.3 million (£8.3 million/$10.7 million/€9.7 million) in 2022, with parties to proceedings paying a further CHF10.9 million (£9.8 million/$12.6 million/€11.4 million).

On the expenses side, arbitration costs reached some CHF9.3 million (£8.3 million/$10.7 million/€9.7 million), with personnel expenses amounting to CHF7.4 million (£6.6 million/$8.5 million/€7.75 million). 

There were CHF504,000 (£453,000/$580,000/€528,000) of bad-debt losses.

The end-of-year balance-sheet showed assets of CHF61.7 million (£55.2 million/$71.1 million/€64.6 million), principally property and cash.

It reflected the burden of financing the new headquarters, with long-term debts up from CHF13.5 million (£12.1 million/$15.6 million/€14.1 million) a year earlier to CHF20.45 million and equity down from CHF21.6 million (£19.3 million/$24.9 million/€22.6 million) a year earlier to CHF8.8 million (£7.9 million/$10.1 million/€9.2 million).

This made for an end-2022 long-term debt to equity ratio of 232 per cent, against 62.5 per cent at end-2021.

ICAS President John Coates said in his message in the new annual report that "for the first time in its history, CAS has a dedicated, purpose-built, home that is adapted to its needs."

He added that this was a "major step in the history of CAS".