Fifa-Memo.com

how does fifa corruption affect countries

by Mr. Terrence Spencer Jr. Published 2 years ago Updated 2 years ago
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How did FIFA get this corrupt? 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.

Full Answer

Does FIFA have a corruption problem?

Of course, people used to think that some cases of corruption or other examples of unethical behavior could be inherent to FIFA. But now they have evidence and know it is true. However, our world is not perfect, and people understand that some mistakes can take place.

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.

Is corruption in football business a good thing?

Business, especially football business, has its own peculiarities, and professional managers should be aware of them. Still, being accused of corruption is not a good thing, and people should think about how to avoid it. Current FIFA’s case may become a good lesson for me.

What is the FIFA scandal?

Everything You Need to Know About FIFA’s Corruption Scandal. A FIFA logo sits next to the entrance to the FIFA headquarters on May 27, 2015 in Zurich, Switzerland. Swiss police on Wednesday raided a Zurich hotel to detain top FIFA football officials as part of a US investigation into corruption.

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How many FIFA officials were arrested in 2015?

Who was the Russian president when the World Cup was stripped?

How much did Jack Warner get from South Africa?

Which countries will host the 2022 World Cup?

Is Visa a sponsor of FIFA?

Does Switzerland have an extradition treaty with the US?

Did South Africa audit the 2010 World Cup?

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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.

Does corruption in FIFA have an impact on football fans?

In a global poll of football fans, organized by anti-corruption NGO Transparency International, 69% said that they had lost confidence in football's governing body. 43% stated that they are enjoying the sport less after the learning about the scandals.

How corrupt is FIFA?

The 2015 arrests centre on the alleged use of bribery, fraud and money laundering to corrupt the issuing of media and marketing rights for FIFA games in the Americas, estimated at $150 million, including at least $110 million in bribes related to the Copa América Centenario to be hosted in 2016 in the United States.

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 the FIFA president corrupt?

A federal prosecutor in Switzerland said on Thursday that he had opened a criminal investigation into Gianni Infantino, the president of FIFA, after concluding that there were “indications of criminal conduct” in meetings between Infantino and an official overseeing an investigation into soccer corruption.

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.

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."

Is the football industry corrupt?

Today, one of the sports most affected by corruption is football. As a result, the reputation of football is falling, potential athletes are dismissing opportunities and sponsors are decreasing their assistance. The aggregate damage caused by corruption in football is barely calculable.

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.

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.

What is the corruption crisis in football?

Fifa corruption crisis: Key questions answered. Fifa, football's world governing body, has been engulfed by claims of widespread corruption since summer 2015, when the US Department of Justice indicted several top executives. It has now claimed the careers of two of the most powerful men in football, Fifa President Sepp Blatter ...

Why did Michael Garcia resign?

The report's independent author, American lawyer Michael Garcia, resigned in protest. The World Cup is the most-watched sporting event in the world, larger even than the Olympics. It generates billions of dollars in revenue from corporate sponsors, broadcasting rights and merchandising.

What is the role of Concacaf?

One of its key roles is helping to agree World Cup TV and sponsorship deals in the US.

Which country hosted the 2006 World Cup?

Germany offers the best option, having hosted the 2006 World Cup. Qatar is more vulnerable and has been dogged with controversy and allegations of corruption ever since it was awarded the tournament.

Is FIFA a corruption organization?

Fifa is the body responsible for running world football. 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 ...

Did the FIFA executive committee accept bribes?

he and others on the Fifa executive committee agreed to accept bribes in connection with the selection of South Africa as the host of the 2010 World Cup. one of his co-conspirators received a bribe in Morocco for its bid to host the 1998 tournament, which was eventually awarded to France.

Why was the FIFA indictment so surprising?

The indictment also struck many by surprise because it seemingly involves the U.S. government in the prosecution of mostly foreign nationals for corrupt conduct related to soccer tournaments and broadcasting rights outside of the United States and in connection with FIFA , a Swiss entity.

When was the FIFA indictment unsealed?

Department of Justice on May 27, 2015 was nevertheless surprising. [2] . The charges were surprising in part because of the sheer scale ...

How many years did the FIFA indictment last?

The 161-page indictment describes systemic bribery spanning a 24-year period, going back to 1991. The fourteen indictees include sports marketing executives and current and former high-level officials of FIFA, as well as the two continental confederations for the Americas, Confederation of North, Central American and Caribbean Association Football ...

Where did the wire fraud indictment take place?

Each count of the indictment is careful to specify that the alleged wire fraud or money laundering took place in the Eastern District of New York, the Southern District of Florida, etc.

Who are the other indictees?

The other indictees are nationals of Argentina, Brazil, the Cayman Islands, Costa Rica, Paraguay, Nicaragua, Trinidad and Tobago, the United Kingdom, and Venezuela. A number of these foreign nationals did, however, own property and/or live in the United States during the period at issue in the indictment. In addition to the fact that most of the ...

Does the Foreign Corrupt Practices Act cover bribery?

U.S. federal laws cover the bribery of foreign public officials under the Foreign Corrupt Practices Act, [16] as well as the bribery of domestic public officials, [17] but bribery solely within the private sector remains a matter for state law in the United States. [18]

Is private to private corruption a federal law?

A federal law that specifically criminalizes private-to-private corruption might further enhance the ability of prosecutors to target this type of conduct , particularly if Congress gave the law an extraterritorial scope.

What are the books on corruption in FIFA?

The five books reviewed in this review essay are written for a general audience about the corruption in the Fédération Internationale de Football Association (FIFA), the international governing body of football. They focus on the recent history of corruption in FIFA, including the 2010 vote for the 2018/2022 World Cups, which was mired in widespread accusations of corruption, and the USA’s May and December 2015 indictments of a total of 29 present and former FIFA officials for corruption in the organization including racketeering, wire fraud and money laundering, conducted through the US banking system. 1 These books are as useful for describing acts of corruption in FIFA as they are for beginning to analyse the underlying causes of this corruption through the lens of global governance.

Why did FIFA expand?

Yet even without the grip of the old leadership, FIFA had sustained a ‘culture of corruption’ over almost 40 years, even as global organized football kept growing worldwide. FIFA managed to expand the game in part because it could coordinate decision-making on the important issues within its purview: who should run FIFA, which tournaments to host, when and where, what rules to create for team and club management including player transfers, how to make money from organized football and how to spend revenues to promote football development.

Is FIFA a non profit organization?

FIFA is a non-profit organization registered as a Swiss verein, which permits it to pursue commercial activity only in pursuit of its non-profit goal. 14 In its modern history, FIFA’s pursuit of its non-profit goal – ‘to improve the game of football constantly and promote it globally in the light of its unifying, educational, cultural and humanitarian values’ 15 – has been inextricably tied to the injection of capital into the game. For Havelange, gaining revenue for FIFA was essential in order to deliver on his election promise to expand the game globally – to fund new member associations and to expand the World Cup to 24 countries in 1982 (Conn, at 49). Conn notes that European member associations would have preferred to keep FIFA under their control, but, once Havelange became president, with the backing of Africa, Asia, and South America, governing football ‘for the world’ would require more commercialization. The amateurism would need to become professionalism ( ibid., ch. 4). Both Conn and Sugden and Tomlinson write that doing so was essential for Havelange to meet his campaign promises ( ibid.; Sugden and Tomlinson, at 50). Furthermore, it was now possible to sell the FIFA World Cup as a more lucrative product. Sports marketing advertisers like Adidas were developing a model of exclusive sponsorships of players and tournaments, creating an opportunity for FIFA to sell advertising rights. Increasing television penetration meant that FIFA could sell television rights for its matches at significant value as well.

Is FIFA governed in the public interest?

The books reviewed here all call for FIFA to be governed in the public interest. As discussed above, throughout FIFA’s modern history, stakeholders’ voices have been excluded and their interests captured. However, the books identify several different stakeholders in FIFA who vary significantly. This is where Chade’s analysis provides a different angle in viewing FIFA’s impact on member associations and their countries. Chade writes about football fans in host countries who face human rights abuses, such as mass evictions, that were associated with hosting the 2014 World Cup in Brazil. He observes that, in states without the opportunity for public voice in government, the decision to host a World Cup has disastrous consequences. He illustrates this point with absurd examples of the consequences of Brazil’s World Cup – for example, the Local Organizing Committee (LOC) choosing to build one World Cup stadium in Manaus, a town in the middle of the Amazon region with dangerously high temperatures, which is now facing unbearable maintenance costs (over 700,000 Brazilian reais or US $185,500 per month) and no longer hosts matches (Chade, ch. 13). The Mané Garrincha Stadium in Brasilia, also built for the 2014 FIFA World Cup in Brazil, now serves as an office building for the regional administration offices, and its car park functions as a garage for the buses of the city. All of this because FIFA did not give stakeholders – as human rights holders, as football fans, as Brazilian citizens – a voice in FIFA to counter special interests. Mersiades addresses the challenges for states like Australia whose bids tend to have fewer government resources to devote to World Cup bids than non-democratic ones and in which those funds that are available are pulled directly from taxpayers to which the government is accountable. As the 2018/2022 bidding process might have suggested, in a bidding process that rewards the highest bidder, non-democratic states that can spend heavily without accountability are better positioned than democratic ones. Similarly, Conn points out that the stake of football fans in their sport is symbolic: because they believe in the principles of fair play that govern football on the pitch, they believe that the same rules should apply off it. Both Conn and Sugden and Tomlinson highlight the particular disadvantage that players in the global South face when their only funds for football come from FIFA, and FIFA is not holding their member associations accountable to ensure that the funds actually reach them. The ‘public’ interest covers all of these issues. But, as the ‘public’ are outside the FIFA governance structure, the only way forward for reform is to continue to push legal challenges that promote better governance generally.

How does unethical behavior affect FIFA?

FIFA is not only one of the most famous world cups with its traditions, history, and impact on society. It is an event that unites millions of people from different parts of the world. It is a story that helps to comprehend the worth of a game and prove the reputation of football.

If your business relates to FIFA (e.g., you are the owner of a soccer club), how will your business be affected by news, and how will you deal with it?

If I were the owner of a soccer club, I think I would be influenced by the events and the news spread about FIFA and the cases of corruption. However, telling the truth, I would not be surprised. As a professional manager, I would know that corruption could be spread in all spheres of life.

Reference List

Kelso, P. (2011). Lord Triesman alleges FIFA corruption in World Cup bidding process at Commons committee hearing. The Telegraph. Web.

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.

Which countries have the same say in the federation?

That means that the Maldives, Trinidad & Tobago, or Andorra have the same say in federation decisions as Brazil, Germany, or England.

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 ...

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.

Is FIFA a federal case?

This is a federal case, and the indictment deals chiefly with alleged fraud and corruption in North and South America. Until now, FIFA has deflected widespread corruption allegations by finding and suspending scapegoats, rather than acknowledging any problems at an institutional level.

Is the 2022 World Cup in Qatar?

That ’s essentially what FIFA is doing to European professional soccer leagues when it shifted the 2022 World Cup in Qatar to the winter. Because the rest of the world adores soccer so much, other prominent countries weren’t willing to take a stand for fear of backlash against its teams.

Is FIFA a nonprofit?

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 .)

How many FIFA officials were arrested?

The international soccer governing body FIFA has been plagued by corruption for years — and according to many experts, Wednesday's arrest of seven officials in connection with a bribery investigation is just the tip of the iceberg. The US Department of Justice is claiming that FIFA officials took more than $150 million in bribes when awarding ...

How much money did FIFA take from the World Cup?

The US Department of Justice is claiming that FIFA officials took more than $150 million in bribes when awarding broadcast rights to the World Cup and other tournaments.

What is the model of the World Anti-Doping Agency?

RP: One possible model is the World Anti-Doping Agency. It's jointly overseen by governments and people from the sporting world, including athletes. So it has that connection to governments, which help hold it accountable.

When did the ICC move to Dubai?

But the International Cricket Council did move to the Middle East — it moved to Dubai in 2005. Cricket doesn't get quite as much attention as soccer, but it's still a huge deal, and this happened. And the ICC still runs the Cricket World Cup.

Is the International Olympic Committee a standalone organization?

The International Olympic Committee, while a standalone organization, does have tighter connections to the UN and the international community, and that helps some. FIFA's World Cup trophy. (Clive Mason/Getty Images) JS: There have been allegations of corruption for years.

Is FIFA a business?

One of the biggest things, which many people don't really get, is that FIFA isn't a business, it's not an international organization — like the WHO, for example — and it's not governmental. Like many international sports bodies, including the Olympics, FIFA falls into a netherworld of governance. It's basically a members' club.

How many FIFA officials were arrested in 2015?

A total of 14 officials have been charged. While FIFA has been plagued with rampant corruption accusations in ...

Who was the Russian president when the World Cup was stripped?

Vladimir Putin, the Russian president, is one of the few to have to jumped to Blatter’s defence, perhaps rattled by the threat of Russia’s being stripped of the 2018 World Cup. In a typically combative statement, Putin accused the USA of trumping up allegations for political reasons.

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.

Which countries will host the 2022 World Cup?

The final straw was the allocation of the 2018 and 2022 World Cups to Russia and Qatar, both countries with dismal records of human rights violations.

Is Visa a sponsor of FIFA?

VISA, one of FIFA’s biggest sponsors, have warned the football body that it would “ reassess its sponsorship ” if FIFA failed to clean up its act.

Does Switzerland have an extradition treaty with the US?

Switzerland and the United States have an extradition treaty which can be used to send accused persons back to trial in the US. The Federal Office of Justice in Switzerland said that six of those arrested had contested extradition, while one had agreed to be extradited.

Did South Africa audit the 2010 World Cup?

Not if you ask the South Africans. Though investigators have declared that they are investigating the 2010 World Cup bidding process as well, South Africa’s sports minister has categorically announced that “all 2010 World Cup funds had been accounted and audited”.

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