Dr Emese Ivan Associate Professor of Sport management October 20 th 2016 Interdisciplinary Talks St John s University College of Professional Studies
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1 Dr Emese Ivan Associate Professor of Sport management October 20 th 2016 Interdisciplinary Talks St John s University College of Professional Studies
2 ! Governing Structure and Characteristics of International Sport! History of FIFA Investigation! US involvement! Reactions and Conclusion
3 FIFA CONCACAF USSA/ MLS Grassroots soccer clubs / Professional soccer clubs
4 ! Non for Profit organization! Established in Paris on May 21, amateur principles of sport - USA is a member since Headquartered in Zurich under the law of Switzerland! Congress 1-2 a year: one nation one vote! 6 Confederations! 209 member states! (more than the United Nations)! Members represent FIFA in their own country and not the way around! Does NOT fellow international law in country recognition! Executive Committee chaired by the President
5 ! Amateur ideal historically! Voluntary, not for profit organizations 72% of revenue goes back to members! Self governing structure - Law of the Game(s) - Referee, rules - Fair play! No commercial interest for a long time - Sherman Act in Stevenson Act in 1978
6 ! Andrew Jennings: British investigative journalist! He got arrested for investigating the IOC in 1994! Article in International Review for the Sociology of Sport in 2011 on FIFA
7 ! November 2010: Jennings FIFA s Dirty Secrets airs on BBC! December 2010: Vote to host the 2018 and 2022 World Cup! 2018: England lost to Russia! 2022: USA lost to Qatar! Blatter requests an independent report on FIFA practices and decision making
8 ! : General Secretary of CONCACAF! Executive VP of USSF! 2011: Jennings reports on his offshore accounts! : Cooperation with authorities (wire)
9 ! Michael Garcia! US Attorney for Southern District of NY! 350 pages report on FIFA - by Blatter s request! FIFA says: no wrongdoing! Garcia says: Misrepresentation of his findings
10 Example 1:! Jack Warner Minister of National Security of Trinidad and Tobago! VP of FIFA and President of CONCACAF until 2011.! About $ 750,000 diverted from Football Associations to personal account! 2010: Donations were assigned to be relief funds for victims of the earthquake in Haiti
11 Example 2:! Jeffrey Webb: President of CONCACAF! Solicited bribes from sport marketing executives! In return he provided media, marketing and sponsorship rights to events! $ 150 Million between 1990 and 2015
12 Example 3:! 2016 Copa America was hosted by the US $ 150 Million changed hands to bring it to North America for the first time!! US Sporting Good Company paid $ 40 M to be the sole provider of uniforms in the World Cup (entered in guilty plea => will not be named!) FIFA sponsors: Visa, Coca-Cola, Budweiser, etc
13 ! Worked the same place as Garcia! Witnessed Garcia s work on FIFA report! The 2015 corruption charges are the result of 3 years FBI investigation
14 ! : US Attorney Eastern District of NY! 2015: AG! Questions: weather any of the bribetaking and kickbacks took place on American soil?
15 ! Phase 1: 2011 working backwards starting with Chuck Blazer s case(s since the 1990s)! Phase 2: working very closely with international counterparts => leads to arrest! Phase 3; 2015 ongoing investigation against a criminal enterprise
16 ! Jurisdiction - personal - subject matter! Previous anti-corruption acts (RICO 1970; FCPA 1977) to prove the points for international partners a) US citizens or individuals residing in the USA are involved! Meetings held in the US to discuss the activities b) Entities and activities take place or related to US! CONCACAF office operates in the USA (Miami, FL)! Money transferring related to tournaments organized on American soil and financial operations used US banks
17 ! Title I: Enhancing domestic security against terrorism! Title II: Surveillance procedures! Title III: Anti-money-laundering to prevent terrorism! Title IV: Border security! Title V: Removing obstacles to investigating terrorism! Title VI: Victims and families of victims of terrorism! Title VII: Increased information sharing for critical infrastructure protection! Title VIII: Terrorism criminal law! Title IX: Improved intelligence! Title X: Miscellaneous
18 ! Racketeering! Money-laundering! Conspiracy movement of large amount of cash! Strict regulations and international cooperation According to U.S. request, these crimes were agreed and prepared in the U.S., and payments were carried out via U.S. banks (Swiss Office of Justice)
19 Internationally a) Finally a corrupt international non-for profit organization was investigated and people were charged b) The US policing the entire world Domestically a) US provides the main sponsors should be rewarded - subsidy vs bribe by US sponsors b) Another dangerous expansion of Federal Laws
20 ! Commercialization of sport generated new challenges! Political and business elite connected to sport governing bodies! Non-for-profit status allows advantages for both parties must keep a higher standard! Alleged crimes committed go far beyond the game of soccer! Legal procedure now: ethical considerations for the future
21 ! Why right now?! Why the USA is policing international soccer?! Which marketing companies are involved?! What will happen to them?! Who are the real victims of this crime?! Q+A?! Thank You!
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