Earlier this year Jean Poczobut, the IAAF honorary treasurer, revealed in a report to the  ruling Council at a meeting in Doha that the world ruling body for athletics faced bankruptcy unless it dramatically cut its costs.

Poczobut presented a frightening financial projection that showed spending was far above its $48 million (£30 million) and that the reserves of $80 million (350 million) would soon be exhausted.

But an extraordinary meeting of the IAAF's small, all-powerful Council, chaired by President Lamine Diack and featuring vice president's Sebastian Coe and Sergey Bubka, called for an "austerity budget" for the next four years.

As a result of that crucial decision - that involved major cost-cutting and the arrival of new revenue streams such as Samsung's title sponsorship of the IAAF Diamond League - the financial situation of the IAAF has been stabilised.

The IAAF reserves, in the long-term, will now remain in excess of the minimum level agreed of $50 million (£31 million)) for the next five years while the reserves in 2015 will be higher than at the end of 2011.

Weiss told insidethegames: "We survived.

"The financial difficulty which we faced has been overcome.

"It means we have won a good deal on marketing but also cut a lot in our activities.

"We haven't cancelled any competitions or cut prize money for athletes but we have had to look very seriously about how we were spending our money and we must continue with a strategy of strict financial control, which together with aggressive commercial and marketing activities, will ensure a bright long term future for the IAAF.

"There have been $4 million (£2.5 million) of savings in 2010 because of the cuts in expenses and increase in income and we now have a four-year plan that is balanced.

"We don't make money; we are just balancing our activities in terms of what revenue we have coming in."

Weiss added that the IAAF have been boosted by agreeing numerous television deals including a major agreement with Channel 4 that will see the broadcaster provide in excess of 50 hours of free to air coverage of the 2011 IAAF World Championships.

"Channel 4 is a very big deal for us," explained Weiss.

"Not so much financially but by the fact they are a major broadcaster and have made a huge commitment to helping to promote our sport.

"We have also signed a number of other deals including a very recent one with NRK regarding a two-year broadcasting deal covering Norway from 2011-2013.

"This is very good news for the sport of athletics."

Contact the writer of this story at [email protected]


Related stories
September 2010: Another coup for Channel 4 as they win rights to World Athletics Championships from BBC
August 2010: Athletes prize money will not be cut, promises IAAF President Lamine Diack
June 2010: Samsung to sponsor IAAF Diamond League
May 2010: IAAF to make $20 million savings
May 2010: Exclusive - Support growing for Coe to stand as Diack denies financial crisis