The financial struggles of the Russian Football Union are apparent, as Russia national team manager Fabio Capello wasn’t paid any portion of his $11 million annual salary since June, per the Associated Press.
It was the goal of the RFU to pay off at least some of the Italian’s earnings in the past six months, but nothing has materialized.
RFU president Nikolai Tolstykh held meetings with Russian Sports Minister Vitaly Mutko searching for an answer to the problem. The use of government funds was not ruled out.
Tolstykh spoke of the situation yesterday.
“We will use any official source (of funds) which can help the RFU to fulfil its obligations to Capello,” he was quoted as saying by the R-Sport agency.
He added that talks will resume on Jan. 12, and being holiday time in Russia, the president said that it would be difficult to fulfill their monetary obligations to Capello by the end of 2014 as originally planned.
Supposedly, an issue with currency conversion (explained below) has swelled the complications of payment.
Capello’s unpaid wages have caused further problems for the RFU because of the recent collapse in value of the Russian currency.
The veteran coach’s contract is believed to be denominated in euros but paid in roubles according to the exchange rate at the time of payment. That means a missed monthly salary payment from July may now cost the RFU over 40 per cent more in rouble terms than if it had been paid on time. Capello has insisted the unpaid money is not a factor in Russia’s poor form, with just one win in its last eight competitive matches.
Capello’s contract runs through 2018, when Russia hosts the upcoming World Cup, and the former England manager hasn’t spoken out about his lack of wages since October.