Fifa-Memo.com

how did fifa scandals hurt countries

by Miss Carolina Heidenreich Published 3 years ago Updated 2 years ago

What is the FIFA scandal and what has happened?

The scandal erupted in May, with a raid on a luxury hotel in Zurich and the arrest of seven Fifa executives - conducted at the behest of the US authorities.

What has happened to the FIFA corruption case?

In the years since the FIFA corruption scandal burst into public view with raids on a luxury hotel on the eve of a FIFA congress in 2015, the case, one of the largest criminal prosecutions in America when it was announced, has moved forward even as public attention to its proceedings and to corruption in global soccer has waned.

How many FIFA officials have been charged in the Zurich scandal?

"Fifa crisis: US charges 16 more officials after earlier Zurich arrests". BBC Sport. Archived from the original on 3 December 2015. Retrieved 3 December 2015. ^ "Former President Of Honduran Soccer Federation Pleads Guilty To Racketeering And Corruption Charges." Www.justice.gove. United States Department of Justice, 28 March 2016.

What is the World Cup corruption scandal?

It has recently been dogged by accusations of corruption, particularly after awarding the 2022 World Cup to the tiny but rich and influential Gulf state of Qatar. In December 2014, Fifa chose not to release its own investigation into corruption, instead releasing an executive summary which it said exonerated the bidding process.

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Which countries bribed FIFA?

U.S. Says FIFA Officials Were Bribed to Award World Cups to Russia and Qatar. For nearly a decade, Russia and Qatar have been suspected of buying votes to win hosting rights for the 2018 and 2022 World Cups.

What was the outcome of the FIFA corruption case?

FIFA, Deemed a Victim of Its Own Scandal, Will Share $200 Million Payout. Soccer's governing body and two affiliates in the Americas have been awarded tens of millions of dollars seized by the Department of Justice.

Who was affected by the FIFA scandal?

IndividualsNameNationalityStatusCarlos Chávez LandivarBoliviaArrestedDaryan WarnerTrinidad and Tobago GrenadaGuilty pleaDaryll WarnerTrinidad and Tobago United StatesGuilty pleaJack WarnerTrinidad and TobagoBailed18 more rows

Who exposed FIFA corruption?

Andrew JenningsLONDON (AP) — Andrew Jennings, a groundbreaking investigative journalist who exposed the darker corners of the Olympic movement and soccer body FIFA, has died.

How did FIFA mismanage the change process?

These executives — from South, Central, and North America —allegedly paid more than $150 million in bribes and kickbacks to FIFA officials. As Vox's Amanda Taub puts it, "FIFA officials treated their positions like toll booths, extracting bribes from marketing organizations that needed their signatures or cooperation."

How much did Qatar bribe FIFA?

According to leaked documents obtained by The Sunday Times, Qatari state-run television channel Al Jazeera secretly offered $400 million to FIFA, for broadcasting rights, just 21 days before FIFA announced that Qatar will hold the 2022 World Cup.

Is FIFA a criminal organization?

The revelation of the criminal charges set off an international firestorm. Then, in December 2015, authorities made public a superseding indictment that expanded the number of suspects charged, and explained in further detail why prosecutors considered FIFA to be a criminal enterprise.

How does the FIFA scandal represent a form of political risk for companies operating in foreign countries?

How does the FIFA scandal represent a form of political risk for companies operating in foreign countries? In many foreign countries where the soccer game is played, institutional infrastructure tends to be weak, thus creating numerous avenues for corruption.

Who is the boss of FIFA?

Giovanni Vincenzo InfantinoGiovanni Vincenzo Infantino (Italian pronunciation: [dʒoˈvanni vinˈtʃɛntso iɱfanˈtiːno]; born 23 March 1970) is a Swiss-Italian football administrator and the current president of FIFA. He was elected President of FIFA during the 2016 FIFA Extraordinary Congress in February 2016.

Is Qatar World Cup corrupt?

A former employee of Qatar's 2022 World Cup organisers who raised concerns over migrant workers has lost his appeal against a conviction for corruption. A court in Doha sentenced Abdullah Ibhais to three years in prison after it upheld a guilty verdict on the charge of misappropriating state funds.

Which countries are prosecuting former FIFA executives?

GENEVA (AP) — Former FIFA officials Sepp Blatter and Michel Platini were charged with fraud and other offenses by Swiss prosecutors on Tuesday after a six-year investigation into a controversial $2 million payment.

Who is the FIFA leader who has been accused of scandal?

Scandal and accusations have dotted the FIFA reign of Sepp Blatter.

Where was FIFA arrested?

Swiss authorities in May arrested several top FIFA officials on corruption charges at a luxury hotel in Zurich.

Why did Valcke leave FIFA?

Sept. 17: FIFA places Mr. Valcke on leave after allegations of corruption involving the black-market sale of World Cup tickets. Mr. Valcke, Mr. Blatter’s top deputy, had previously maintained he would remain at FIFA until the next FIFA election in 2016.

How many counts of corruption were there in the Brooklyn indictment?

The United States unseals a 47-count indictment in federal court in Brooklyn, charging 14 soccer and marketing officials with corruption schemes dating back 24 years.

Who is the FIFA president in 2016?

Feb. 26, 2016: FIFA has scheduled the election of a new president to succeed Mr. Blatter for next February, during a special FIFA congress in Zurich. Michel Platini, who leads Europe’s governing body, is considered the front-runner, though the allegation that he received a secret $2 million payment from Mr.

Who shouted "Where is my security"?

July 20: At a meeting of FIFA’s executive committee in Zurich, a comedian throws stacks of money at Mr. Blatter, who is defiant in announcing he will remain president until next year. Mr. Blatter shouts out, “Where is my security?” before stalking off the stage.

Where was Blatter interrogated?

The Swiss police interrogate Mr. Blatter for hours at FIFA headquarters in Zurich and seize data after a search of his office.

What is the FIFA corruption case?

The FIFA corruption case is unique in that international soccer does not have another governing body, as FIFA has a sole monopoly over the administration of the sport. As the sole keepers of the biggest international soccer tournaments, FIFA is in a position of implementing reforms at their own pace and how they see fit, because FIFA’s ethics controversies will not stop the majority of soccer fans from viewing major tournaments like the World Cup, the European Championships and the Confederations Cup. The only potential cost to FIFA is a fan base that views them in a negative light but really has no other options to turn to.

How many FIFA officials were arrested?

Fourteen FIFA officials were arrested and indicted in connection with an investigation by the US Federal Bureau of Investigation (FBI) and US Justice Department into wire fraud, racketeering and money laundering, spanning a period of 24 years.

What are the reforms in FIFA?

Some of the reforms included separating the management part of the organization from the political, limiting terms of office, performing consistent integrity checks, and greater transparency in day-to-day operations. FIFA’s Independent Ethics Committee also received an extended mandate to investigate violations of FIFA’s Code ...

When did FIFA reforms start?

FIFA officially started the process when it convened a special session of the FIFA Congress on February 26, 2016, in response to the corruption case.

Is FIFA ethical?

For the longest time, the average fan of international soccer could tell you that FIFA was not the most ethical of organizations. Whether it was awarding the 2022 World Cup to Qatar, a nation that has no tradition of soccer and questionable labor and human rights standards, over countries like the United Kingdom and US or using FIFA’s status as “guardians” of the World Cup and other major international tournaments to garner lucrative television deals, fans had reason for uneasiness. Now that the shady, high value network of schemes, side deals and avarice has been revealed, fans would like to see reforms initiated in FIFA.

Is soccer a beautiful sport?

Soccer (or “football” depending on your geographic orientation) is often referred to as the “beautiful game.”. Of late, as recently as this month, the sport has become a bit less beautiful. The Fédération Internationale de Football Association (known as FIFA), the international governing body of soccer, has been embroiled in a corruption scandal ...

Is FIFA going to continue?

Going forward, it looks like FIFA is set to continue in the same mold that it has for much of its existence. The case of FIFA is a lesson of how hard it is for any organization to reform a deep-rooted unethical culture. The FIFA scandal shows that a change in leadership may not be sufficient to reform a corrupt culture, even the culture of one of the highest profile institutions in the world. As a result of the ongoing turmoil, FIFA will find it difficult to overcome its negative image of an organization that resists reform.

Why was FIFA indicted?

Nine FIFA officials were indicted last week by the U.S. Department of Justice for taking $150 million in bribes while awarding FIFA broadcast rights. This kicked off a Swiss investigation into the bidding process for the 2018 Russia World Cup and the 2022 Qatar World Cup. Since the story broke last week, FIFA president Sepp Blatter has managed to win reelection and then resign his post.

How many countries vote for the President of FIFA?

Each of the 209 FIFA member nations casts a single vote for the body’s president. This system gives smaller countries outsized influence—a vote from Lesotho weighs exactly the same as a vote from Germany. When news broke of the DOJ investigations, the African Bloc and all of its 54 members immediately announced their support for Blatter and the current system.

What is the only thing the world hates more than American unilateralism?

Fortunately, the only thing the world hates more than American unilateralism is corrupt officials compromising the integrity of the world’s most popular sport. These five facts explain the FIFA scandal and the geopolitical implications of this growing story. 1. Sepp Blatter.

How much money will Qatar spend on the 2022 World Cup?

Qatar is expected to spend about $200 billion over a 12-year period upgrading its infrastructure and building stadiums.

Did South Africa pay for the 2010 World Cup?

U.S. investigators have accused South Africa of paying $10 million to secure rights to the 2010 World Cup. The South African response? “We have fought colonialism and defeated it, and we still fight imperialism,” proclaimed Fikile Mbalula, South Africa’s minister of sport. A tournament that netted just $500 million for South Africa after $4.6 billion were spent in preparations may well prove more trouble than it was worth. In fact, there is scant evidence that hosting major sports tournaments ever pays off economically for countries.

Is FIFA a political organization?

Yet it isn’t realistic to think that, when it comes to organizations like FIFA, sports can ever remain separate from politics. No sovereign power oversees FIFA so its members must essentially govern themselves, leaving countries to investigate highly sensitive activities involving other countries. But for many Americans, there is a silver lining: scandals involving international bureaucrats are a lot more fun than watching soccer.

How many defendants were indicted in the FIFA scandal?

Hours later, across the Atlantic in New York City, the Justice Department unsealed a 47-count indictment against 14 defendants ---including FIFA bigwigs, sports marketing executives, and the owner of a broadcasting corporation---with charges of racketeering, wire fraud, and money laundering. But there's a lot of background here, so let's get into it.

Why is FIFA a legal takedown?

FIFA is uniquely positioned for this kind of epic legal takedown because the Justice Department kind of gets off on this heavy-lifting display of authority even outside American borders over the past decade. Also, it helps that Americans don't really care about soccer.

Why did Swiss police raid a hotel?

Swiss police on Wednesday raided a Zurich hotel to detain top FIFA football officials as part of a US investigation into corruption. Philipp Schmidli/Getty. Early this morning in Zurich (or late last night for those of us stateside), Swiss plainclothes police entered the Baur au Lac; the five-star hotel was the site of this week's annual meeting ...

How many countries are there in FIFA?

It all comes down to how FIFA is organized. Each of the 209 member nations gets a single vote when it comes to electing a federation President and executive committee. That means that the Maldives, Trinidad & Tobago, or Andorra have the same say in federation decisions as Brazil, Germany, or England. The smaller countries, and the (mostly) men who run their countries’ federations, also receive an equal cut of FIFA’s revenues---which means there’s no incentive for them to change any of the structure to the voting process.

Why do sports leagues lock out players?

Endemically American sports leagues—the NFL, NBA, MLB for instance—can get away with holding cities hostage for taxpayer money to rebuild stadiums, or locking out players to get a larger share of league revenue, because Americans care too much about seeing the sport to rise up against the shady business.

What was the Justice Department's announcement about the World Cup?

The Justice Department’s announcement primarily cites deals between FIFA, sports marketing groups, and broadcast corporations for the television rights to air the World Cup and other international soccer tournaments. Dating back to 1991, the indictment alleges, those involved conspired to receive bribes from marketing firms in exchange for exclusive television contracts---to the cumulative tune of more than $150 million. As Attorney General Loretta Lynch stated, "It spans at least two generations of soccer officials who, as alleged, have abused their positions of trust to acquire millions of dollars in bribes and kickbacks."

Who is the president of FIFA?

Joseph "Sepp" Blatter has been president of FIFA since 1998; under his watch, football has increased in global popularity and become financially successful beyond imagination. But while he maintains that FIFA is but a humble nonprofit doing humanitarian work to bring sport to the world, he’s basically the head of a shadow nation-state that doesn’t "govern" world soccer so much as it plunders countries that want to host the World Cup. (Like, say, Qatar .) He's also enough of a charmer to have said that women’s soccer would be more popular if the players wore tighter shorts.

Why were FIFA officials arrested?

Early on the morning of May 27, Swiss plainclothes policemen walked into the five-star Baur au Lac hotel in Zurich, Switzerland and arrested seven top FIFA officials on account of major corruption charges levied by the US Department of Justice. Those arrested will face extradition from Switzerland to the United States to appear in a US court to face their charges.

Which football leagues are not affected by the scandal?

Most of the major football leagues around the world, such as the English Premier League or the Spanish La Liga, are administered by their own football associations and should not be affected by the scandal.

What is the second investigation of FIFA?

As part of the second investigation, officials from Swiss Office of the Attorney General seized data and documents from FIFA IT systems as part of their investigation. This followed an earlier complaint by FIFA, on November 18, 2014, against unidentified people. FIFA says that the second investigation is being conducted with full co-operation from their side. Swiss officials are now interviewing ten FIFA executive committee members who were part of the 2010 World Cup bidding process.

How many FIFA officials have been charged?

A total of 14 officials have been charged. While FIFA has been plagued with rampant corruption accusations in the recent past, this marks a new low in the history of world football.

How much did Jack Warner get from South Africa?

The New York Times has run a story suggesting that one of the committee members, Jack Warner, received $10 million from South Africa to cast his vote in their favour. According to the report, this is how business has been conducted in international football for decades.

Did Blatter show up for the medical conference?

On Thursday morning, Blatter was scheduled to speak at the opening of the second session of FIFA’s Medical Conference but did not show up. However, he is believed to be conducting emergency meetings with various football federations.

Is there corruption in FIFA?

It’s unclear, but unlikely. There have been allegations of corruption regarding the allocations since 2010, when the tournaments were awarded to Russia and Qatar after a vote from FIFA’s executive committee. Officials from competing countries alleged that bribes were asked for in exchange of votes.

Why is corruption bad in FIFA?

Second, corruption at the highest levels of FIFA reduces the incentive to deal with problems on the field that affect fan experience, namely racism on the pitch and match-fixing. ExCo members won’t take on more responsibility and accountability, jeopardizing their current comfortable situation, if they can instead continue to offer lip service to improving the game while doing little behind the scenes to affect real change.

How many matches were fixed by Europol?

Match-fixing has also run rampant. In February, Europol released the results of its 19-month Operation Veto that found 680 games with suspicious results, including 150 international friendlies and 380 World Cup and European championship qualifiers between 2008 and 2011. The Europol investigation found that the fixing activity implicated 425 people, including referees and players, some of whom received bribes of over $136,000.

Why was Jack Warner censured?

In 2006, FIFA’s Ethics Committee censured Warner after an audit revealed he made at least $1 million illegally selling World Cup tickets. Warner’s deputy, CONCACAF General Secretary Chuck Blazer, earned the nickname “Mr. 10 Percent” for his rumored skimming on deals and was suspended for “fraudulent” behavior in 2013.

Has FIFA been tainted?

The series of scandals have not only tainted FIFA, but undermined trust in the game as well. - Americas Quarterly

Is FIFA corrupt?

FIFA, international soccer’s governing body, is corrupt. The degree of corruption may be debatable, but its existence at the highest levels is not. Over the past three years, at least a dozen of the organization’s 24 Executive Committee (ExCo) members have been accused of serious improprieties stemming from bribes, illegal ticket sales and other scandals. While Sepp Blatter, FIFA’s president since 1998, has escaped punishment—so far, at least—many of his colleagues have fallen or resigned. The endemic corruption not only compromises the quality of play on the field, but reduces fan support of the sport and tarnishes the beauty of the beautiful game.

Which countries have been involved in FIFA arrests?

The arrests case triggered Australia, Colombia, Costa Rica, Germany and Switzerland to open or intensify separate criminal investigations into top FIFA officials for corruption.

What was the investigation of FIFA?

The investigation mostly revolved around collusion between officials of continental football bodies CONMEBOL (South America) and CONCACAF (Caribbean, Central and North America), and sports marketing executives. The sports marketing executives were holders of media and marketing rights for high-profile international competitions including the Americas' FIFA World Cup qualifying tournaments, and showpiece tournaments CONCACAF Gold Cup and Copa América .

How long has Sepp Blatter been president of FIFA?

Sepp Blatter had been president of FIFA since 1998 (until his removal in December 2015). The Guardian said that FIFA's actions would "... inevitably be viewed with cynicism given Blatter's track record of using the Swiss courts and FIFA's regulatory processes to kick problematic issues into the long grass and deflect attention onto individuals who have already left football".

How much did Blatter sell the 2010 World Cup?

In September 2015, Swiss public television channel SRF published that Blatter would have sold the 2010 and 2014 FIFA World Cup rights in North America for US$600,000, a small fraction of their market value.

Why did FIFA suspend a donation?

On 12 June 2015, an international law enforcement agency Interpol announced it was suspending a 20 million euro donation by FIFA to fund an anti-gambling and match-fixing program. Four million euros were spent in the first two years on prevention and education and another 1.5 million euros was set to be spent in the remaining eight years.

What is the FIFA?

In 2015, U.S. federal prosecutors disclosed cases of corruption by officials and associates connected with the Fédération Internationale de Football Association ( FIFA ), the governing body of association football, futsal and beach soccer .

Why was the 2014 World Cup so controversial?

Brazilian residents were unhappy with the amount of public money spent in order to build stadiums and other necessary facilities to host the World Cup. Many protests were held by citizens claiming poor financial management from the Brazilian government. Furthermore, there were additional issues with regard to safety, misconduct, and officiating with underperformance referees.

Why did Swiss authorities seize documents from FIFA offices?

Swiss authorities seize documents from FIFA offices as part of a separate criminal investigation into the 2018 and 2022 World Cup bids.

What did Putin say about the Russia investigation?

Russian President Vladimir Putin describes the criminal investigations as “yet another evident attempt to derail Mr. Blatter’s reelection” and says the U.S.-led arrests had an ulterior motive — to throw into question Russia’s 2018 World Cup.

Why did Blatter suggest the criminal investigations were launched?

Blatter suggests why the criminal investigations were launched. “The Americans were the candidates for the World Cup of 2022 and they lost,” Blatter says. “The English were the candidates for 2018 and they lost, so it was really with the English media and the American movement that came down.”

Who is Blatter pitted against?

A FIFA election in which Blatter, 79, is pitted against the candidate Prince Ali bin al Hussein of Jordan for the presidency, will go ahead as planned. “I can’t monitor everyone all of the time. If people want to do wrong, they will also try to hide it,” Blatter says.

Who is the secretary general of FIFA?

FIFA announces that its secretary general, Jerome Valcke — Blatter’s top lieutenant — won’t attend the women’s World Cup in Canada. A few hours later, the New York Times reports federal authorities believe Valcke was behind the $10 million in bank transactions that are at the center of FIFA’s corruption scandal.

Who is Michael Garcia?

July 2012: FIFA’s ethics committee appoints Michael Garcia, the former U.S. attorney for the Southern District of New York, to head an investigation into corruption allegations.

How much money did FIFA lose?

In a court filing in 2016, lawyers for FIFA argued that the organization had lost at least $28 million paid to 20 soccer officials over 12 years, along with having suffered other incalculable costs.

Where is FIFA money held?

The money will be held in the U.S. bank system instead of in Switzerland, where FIFA has its headquarters, according to the terms of the agreement, which were described by two people familiar with the arrangement who requested anonymity because they were not authorized to discuss the details publicly.

Who was the El Salvador soccer player who was charged in 2015?

Just this week, Reynaldo Vasquez, El Salvador’s former top soccer official who was charged in 2015, pleaded guilty in federal court in Brooklyn. And earlier this year, prosecutors announced the Swiss bank Julius Baer had agreed to pay more than $79 million in penalties for its role in laundering money in the scandal.

Who is the former head of Brazil's soccer federation?

Even so, years on, key figures await sentencing, and some former officials remain at large. One, Marco Polo Del Nero, the former head of Brazil’s soccer federation, was recently recorded appearing to direct the federation’s affairs despite having been barred for life by FIFA from working in organized soccer.

Who is the president of FIFA?

In a statement, FIFA’s president, Gianni Infantino, thanked the American authorities for their “fast and effective approach in bringing these matters to a conclusion, and also for their trust in general,” adding that soccer now considered itself “well past” its corrupt history.

Who is the new FIFA president?

FIFA, under its new president, Gianni Infantino, had argued it was a victim in the corruption scandal.

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