10 2015 FIFA Corruption Scandal Facts - WMNews Ep. 30
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VOICE OVER: Rebecca Brayton
Script written by Angela Fafard
In mid-2015, this billion dollar non-profit football association found itself in the midst of an FBI-led investigation into corruption. Welcome to WatchMojo News, the weekly series from http://www.WatchMojo.com where we break down news stories that might be on your radar. In this instalment, we're counting down 10 crucial facts you should know about the 2015 FIFA corruption scandal.
In mid-2015, this billion dollar non-profit football association found itself in the midst of an FBI-led investigation into corruption. Welcome to WatchMojo News, the weekly series from http://www.WatchMojo.com where we break down news stories that might be on your radar. In this instalment, we're counting down 10 crucial facts you should know about the 2015 FIFA corruption scandal.
Script written by Angela Fafard
#10: What Is FIFA?
The acronym FIFA stands for the Fédération Internationale de Football Association. This international governing body is based in Zurich, Switzerland and oversees football, or soccer to North Americans, futsal (foot-sawl) and beach football. Founded in 1904, the association comprises 209 national associations and is in charge of organizing the football tournament known as the World Cup, the Women’s World Cup and most international football tournaments. Formally classified as an “association of associations with a non-commercial, not for profit purpose”, FIFA nevertheless generates millions of dollars annually in profit by selling its TV and marketing rights and thanks to big name sponsors. For example, FOX, an American broadcast network, won the rights to showcase the 2018 and 2022 World Cups for a reputed $425 million. And in a surprise twist, their rights were also extended till 2026, without opening up the bidding process to other companies. Furthermore, in 2014, the Brazil World Cup generated almost $5 billion in revenue, and after expenses, a total of $2.6 billion in profit for the association.
#9: Who Is a Part of FIFA?
FIFA’s governing structure is comprised of a President, a General Secretary, a Congress with representatives from each affiliated member association and an assortment of committees including that of Finance, Disciplinary, and Referees. The Congress meets every year to discuss the association’s implementation, with each member association accorded one vote irrespective of its size or its footballing strength. FIFA also recognizes six confederations that oversee the sport across the world’s different continents and regions. Interestingly, FIFA has more member states than the United Nations, as it also recognizes non-sovereign entities and politically disputed territories like Palestine. The association does not control the rules of football, but is in charge of enforcing sanctions, such as the suspension of players or teams if they interfere with the proper functioning of the sport.
#8: Who Is in Charge of FIFA?
On May 30th, 2015, Joseph S. Blatter, or Sepp Blatter as he is commonly known, was re-elected as President of FIFA. First elected on June 8th, 1988, the Swiss Blatter had begun his 5th consecutive term in 2015 after defeating Prince Ali bin al Hussein. Although Blatter was short of the two-thirds majority of votes needed for re-election, Hussein subsequently withdrew his candidacy. But, just a few days later, on June 2nd, 2015, Blatter resigned amid a corruption scandal. Throughout the years, his reign as President of FIFA had been marred by financial mismanagement allegations. In 2002, FIFA’s secretary-general, Michel Zen-Ruffinen, wrote a report outlining the scope of the financial mismanagement within FIFA to the tune of $100 million in losses. Though Blatter was cleared of the allegations, The Council of Europe published a report a decade later saying that they found it “hard to believe” that Blatter was unaware of the mismanagement within the association.
#7: What Does FIFA Oversee?
FIFA is in charge of overseeing the men’s and women’s World Cup competitions, both of which are held every four years in a different host nation. The men’s championships have been held since 1930, while the women’s began in 1991. The three years preceding the championships are used to determine which national teams will compete. The men’s world cup is the most watched sporting event in the world, and even supersedes the Super Bowl and the Olympics in terms of views. Host nations of the world cup typically spend copious amounts of money in preparation for the tournament; meanwhile, FIFA generates large sums of revenue from the event. For example, the 2014 Brazil World Cup cost Brazil an estimated $15 billion, whereas FIFA generated $2.6 billion in revenue. This has led to widespread protests within the host nations, as many believe FIFA should shoulder more of the event’s costs.
#6: What Is the 2015 Corruption Scandal About?
On May 27th, 2015, 14 top FIFA officials and businessmen were indicted on charges of bribery, fraud and money laundering, totaling $150 million. Swiss authorities also arrested half of those charged in Zurich, on behalf of the United States Department of Justice, which had initiated an FBI-led investigation several years ago. According to U.S. attorney general, Loretta Lynch, these officials did not uphold the game’s rules or protect the sport’s integrity; instead, “they corrupted the business of worldwide soccer to serve their interests and enrich themselves.” Meanwhile, Swiss federal prosecutors have also opened criminal proceedings concerning the awarding of the 2018 and 2022 World Cups to Russia and Qatar respectively.
#5: What Are the Charges?
The U.S. charges revolve around bribes and collusion between FIFA officials and sports marketing executives. According to U.S. officials, a total of $150 million in bribes and kickbacks occurred over a 24-year period in order to block out competitors and keep lucrative marketing contracts between the two parties. The Swiss investigation centers on the claims of bribery by the 2018 and 2022 World Cup host nations that have circulated since the vote took place in December 2010. Swiss investigators raided FIFA headquarters in Zurich, Switzerland and collected documents from Swiss financial institutions. The ten members of the FIFA executive committee who took part in voting for the World Cup in 2010 are being questioned in regards to allegations of criminal mismanagement and money laundering.
#4: Who Does the Scandal Involve?
The main players are the FIFA officials from South America and North America, the sports marketing executives, the U.S. Department of Justice and Swiss authorities. As of early June 2015, the arrested officials in Zurich are waiting to be processed and extradited to the United States for prosecution. The FIFA officials charged include Jeffrey Webb, Eugenio Figueredo, Jack Warner, Eduardo Li, Julio Rocha Lopez, Costas Takkas, Rafael Esquivel, José Maria Marin and Nicolás Leoz. Notable high-ranking members from these individuals include Jeffrey Webb, the current vice president of FIFA and the former president of CONCACAF, the governing body for association football in North and Central America, as well as the Caribbean. There is also Jack Warner, the former Vice Present of FIFA and President of CONCACAF, positions he held until his suspension and resignation in 2011. Furthermore, an unidentified high-ranking official is alleged to have supplemented Mr. Warner with a $10 million payment in exchange for his vote in support of the 2010 South Africa World Cup. It is widely believed that the unidentified official is FIFA’s Secretary General, Jerome Valcke.
#3: Will It Affect the 2018 and 2022 World Cups?
In the history of the World Cup, not a single host nation has ever been stripped of its hosting duties. That being said, the FIFA arrests have placed a spotlight on the highly controversial World Cup host nations. Following the 2010 host announcement, allegations of attempted vote buying came to light. Among the accusers is former England 2018 bid chief Lord Treisman, who confessed that four FIFA committee members had approached him in an attempt to buy his vote. Michael J. Garcia, the chairman of the investigative branch of FIFA’s Ethics Committee, subsequently launched an investigation into corruption allegations in world association football on July 17th, 2012. Garcia delivered in his report 2 years later, but the head of the adjudicatory arm of FIFA’s ethics committee, Hans-Joachim Eckert, blocked its publication citing legal reasons. Eckert eventually released a 42-page summary after evaluating Garcia’s report, which had some denouncing it as a whitewash. A month later, Garcia resigned from his position, citing a “lack of leadership” and a general lack of trust in Eckert’s actions.
#2: What Is the Current Scandal Surrounding the 2022 World Cup?
The choice of Qatar as the 2022 World Cup host nation has been marred by allegations of selection process corruption. Qatar will be the first Arab nation to host the World Cup, and the event will mark the first time it is held in the Middle East. Beyond the corruption allegations, the suitability of the location has been questioned. Due to extreme heat in the summer months, nearing 122 Fahrenheit, the tournament will be held in the winter season from November to December, and will thereby interfere with the traditional World Cup finals schedule. Furthermore, the lack of human rights for the workers has many international human rights groups questioning the right of Qatar to host the World Cup. According to “The Guardian,” an estimated 4,000 workers will die before the World Cup kickoff; as many are forced to work in 122-degree heat, have no access to clean water, and have their passports locked away so they can’t leave the country. To put this in perspective, more people may die during the construction of the venues than in the September 11th attacks on the United States.
#1: Will This Affect the Future of FIFA?
As of early June 2015, the 2015 FIFA Corruption Case continued, with investigations into the awarding of the 2018 and 2022 World Cups continue, and the charges of bribery, fraud and money laundering within the association looming. Furthermore, despite being re-elected on May 30th, 2015 as President of FIFA, Sepp Blatter resigned from his position on June 2nd, 2015. To take his place, he believes a new presidential election at an Extraordinary FIFA congress should take place between December 2015 and March 2016, which will allow enough time for future candidates to prepare their campaigns. His announcement was well received, as many in the football community believe it’s time for new leadership at the helm of FIFA. Finally, in the words of Blatter, it does seem that “FIFA needs a profound overhaul.”
Did these facts surprise you? To vote for which news story is covered next, head over to WatchMojo.com/suggest, and be sure to hit that subscribe button for more newsworthy top 10s.
10 2015 FIFA Corruption Scandal Facts - WMNews Ep. 30
#10: What Is FIFA?
The Association
The acronym FIFA stands for the Fédération Internationale de Football Association. This international governing body is based in Zurich, Switzerland and oversees football, or soccer to North Americans, futsal (foot-sawl) and beach football. Founded in 1904, the association comprises 209 national associations and is in charge of organizing the football tournament known as the World Cup, the Women’s World Cup and most international football tournaments. Formally classified as an “association of associations with a non-commercial, not for profit purpose”, FIFA nevertheless generates millions of dollars annually in profit by selling its TV and marketing rights and thanks to big name sponsors. For example, FOX, an American broadcast network, won the rights to showcase the 2018 and 2022 World Cups for a reputed $425 million. And in a surprise twist, their rights were also extended till 2026, without opening up the bidding process to other companies. Furthermore, in 2014, the Brazil World Cup generated almost $5 billion in revenue, and after expenses, a total of $2.6 billion in profit for the association.
#9: Who Is a Part of FIFA?
The Structure
FIFA’s governing structure is comprised of a President, a General Secretary, a Congress with representatives from each affiliated member association and an assortment of committees including that of Finance, Disciplinary, and Referees. The Congress meets every year to discuss the association’s implementation, with each member association accorded one vote irrespective of its size or its footballing strength. FIFA also recognizes six confederations that oversee the sport across the world’s different continents and regions. Interestingly, FIFA has more member states than the United Nations, as it also recognizes non-sovereign entities and politically disputed territories like Palestine. The association does not control the rules of football, but is in charge of enforcing sanctions, such as the suspension of players or teams if they interfere with the proper functioning of the sport.
#8: Who Is in Charge of FIFA?
The President
On May 30th, 2015, Joseph S. Blatter, or Sepp Blatter as he is commonly known, was re-elected as President of FIFA. First elected on June 8th, 1988, the Swiss Blatter had begun his 5th consecutive term in 2015 after defeating Prince Ali bin al Hussein. Although Blatter was short of the two-thirds majority of votes needed for re-election, Hussein subsequently withdrew his candidacy. But, just a few days later, on June 2nd, 2015, Blatter resigned amid a corruption scandal. Throughout the years, his reign as President of FIFA had been marred by financial mismanagement allegations. In 2002, FIFA’s secretary-general, Michel Zen-Ruffinen, wrote a report outlining the scope of the financial mismanagement within FIFA to the tune of $100 million in losses. Though Blatter was cleared of the allegations, The Council of Europe published a report a decade later saying that they found it “hard to believe” that Blatter was unaware of the mismanagement within the association.
#7: What Does FIFA Oversee?
The World Cups
FIFA is in charge of overseeing the men’s and women’s World Cup competitions, both of which are held every four years in a different host nation. The men’s championships have been held since 1930, while the women’s began in 1991. The three years preceding the championships are used to determine which national teams will compete. The men’s world cup is the most watched sporting event in the world, and even supersedes the Super Bowl and the Olympics in terms of views. Host nations of the world cup typically spend copious amounts of money in preparation for the tournament; meanwhile, FIFA generates large sums of revenue from the event. For example, the 2014 Brazil World Cup cost Brazil an estimated $15 billion, whereas FIFA generated $2.6 billion in revenue. This has led to widespread protests within the host nations, as many believe FIFA should shoulder more of the event’s costs.
#6: What Is the 2015 Corruption Scandal About?
The Bids
On May 27th, 2015, 14 top FIFA officials and businessmen were indicted on charges of bribery, fraud and money laundering, totaling $150 million. Swiss authorities also arrested half of those charged in Zurich, on behalf of the United States Department of Justice, which had initiated an FBI-led investigation several years ago. According to U.S. attorney general, Loretta Lynch, these officials did not uphold the game’s rules or protect the sport’s integrity; instead, “they corrupted the business of worldwide soccer to serve their interests and enrich themselves.” Meanwhile, Swiss federal prosecutors have also opened criminal proceedings concerning the awarding of the 2018 and 2022 World Cups to Russia and Qatar respectively.
#5: What Are the Charges?
The Bribery
The U.S. charges revolve around bribes and collusion between FIFA officials and sports marketing executives. According to U.S. officials, a total of $150 million in bribes and kickbacks occurred over a 24-year period in order to block out competitors and keep lucrative marketing contracts between the two parties. The Swiss investigation centers on the claims of bribery by the 2018 and 2022 World Cup host nations that have circulated since the vote took place in December 2010. Swiss investigators raided FIFA headquarters in Zurich, Switzerland and collected documents from Swiss financial institutions. The ten members of the FIFA executive committee who took part in voting for the World Cup in 2010 are being questioned in regards to allegations of criminal mismanagement and money laundering.
#4: Who Does the Scandal Involve?
The Extradition
The main players are the FIFA officials from South America and North America, the sports marketing executives, the U.S. Department of Justice and Swiss authorities. As of early June 2015, the arrested officials in Zurich are waiting to be processed and extradited to the United States for prosecution. The FIFA officials charged include Jeffrey Webb, Eugenio Figueredo, Jack Warner, Eduardo Li, Julio Rocha Lopez, Costas Takkas, Rafael Esquivel, José Maria Marin and Nicolás Leoz. Notable high-ranking members from these individuals include Jeffrey Webb, the current vice president of FIFA and the former president of CONCACAF, the governing body for association football in North and Central America, as well as the Caribbean. There is also Jack Warner, the former Vice Present of FIFA and President of CONCACAF, positions he held until his suspension and resignation in 2011. Furthermore, an unidentified high-ranking official is alleged to have supplemented Mr. Warner with a $10 million payment in exchange for his vote in support of the 2010 South Africa World Cup. It is widely believed that the unidentified official is FIFA’s Secretary General, Jerome Valcke.
#3: Will It Affect the 2018 and 2022 World Cups?
The Investigation
In the history of the World Cup, not a single host nation has ever been stripped of its hosting duties. That being said, the FIFA arrests have placed a spotlight on the highly controversial World Cup host nations. Following the 2010 host announcement, allegations of attempted vote buying came to light. Among the accusers is former England 2018 bid chief Lord Treisman, who confessed that four FIFA committee members had approached him in an attempt to buy his vote. Michael J. Garcia, the chairman of the investigative branch of FIFA’s Ethics Committee, subsequently launched an investigation into corruption allegations in world association football on July 17th, 2012. Garcia delivered in his report 2 years later, but the head of the adjudicatory arm of FIFA’s ethics committee, Hans-Joachim Eckert, blocked its publication citing legal reasons. Eckert eventually released a 42-page summary after evaluating Garcia’s report, which had some denouncing it as a whitewash. A month later, Garcia resigned from his position, citing a “lack of leadership” and a general lack of trust in Eckert’s actions.
#2: What Is the Current Scandal Surrounding the 2022 World Cup?
The Deaths
The choice of Qatar as the 2022 World Cup host nation has been marred by allegations of selection process corruption. Qatar will be the first Arab nation to host the World Cup, and the event will mark the first time it is held in the Middle East. Beyond the corruption allegations, the suitability of the location has been questioned. Due to extreme heat in the summer months, nearing 122 Fahrenheit, the tournament will be held in the winter season from November to December, and will thereby interfere with the traditional World Cup finals schedule. Furthermore, the lack of human rights for the workers has many international human rights groups questioning the right of Qatar to host the World Cup. According to “The Guardian,” an estimated 4,000 workers will die before the World Cup kickoff; as many are forced to work in 122-degree heat, have no access to clean water, and have their passports locked away so they can’t leave the country. To put this in perspective, more people may die during the construction of the venues than in the September 11th attacks on the United States.
#1: Will This Affect the Future of FIFA?
The Resignation
As of early June 2015, the 2015 FIFA Corruption Case continued, with investigations into the awarding of the 2018 and 2022 World Cups continue, and the charges of bribery, fraud and money laundering within the association looming. Furthermore, despite being re-elected on May 30th, 2015 as President of FIFA, Sepp Blatter resigned from his position on June 2nd, 2015. To take his place, he believes a new presidential election at an Extraordinary FIFA congress should take place between December 2015 and March 2016, which will allow enough time for future candidates to prepare their campaigns. His announcement was well received, as many in the football community believe it’s time for new leadership at the helm of FIFA. Finally, in the words of Blatter, it does seem that “FIFA needs a profound overhaul.”
Did these facts surprise you? To vote for which news story is covered next, head over to WatchMojo.com/suggest, and be sure to hit that subscribe button for more newsworthy top 10s.
