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Leagues and Governing Bodies

FIFA Facing Untold Consequences After Indictments, Could Undergo Major Changes

The U.S. Department of Justice's indictment yesterday against 14 execs working for or associated with FIFA is "by far the most powerful strike against FIFA" in recent memory -- "perhaps a watershed moment for the governing body of the world’s most popular sport," according to a front-page piece by Steven Goff of the WASHINGTON POST. The scandal has "intensified calls for reform to an organization that has long drawn fans’ ire over corrupt leaders and a structure that helps perpetuate their influence." Whether FIFA "is capable of meaningful reform remains to be seen, in large part because of what has been the unwavering support" for FIFA President Sepp Blatter by "many of the organization’s smaller member-countries who benefit most from his largesse." Blatter yesterday "did appear to lose the support of Brazil" when the country's soccer officials called for the postponement of a vote tomorrow "that is expected to result" in Blatter's reelection." The move "could lead to more defectors," and even if Blatter wins, the criminal investigation "is expected to have long-term effects on the way FIFA conducts itself." Whether the investigation can prompt a re-vote over the '18 or '22 World Cups or "force change in FIFA remains to be seen" (WASHINGTON POST, 5/28).

FOLLOW THE MONEY: In DC, Sally Jenkins in a front-page piece notes U.S. officials yesterday "emphasized this is just the start of their investigation." Officials added that among the subjects of ongoing scrutiny "are banking institutions through which bribes flowed and sponsors who may have participated in alleged kickback schemes." The indictments contain 75 references to "co-conspirators" (WASHINGTON POST, 5/28). The FINANCIAL TIMES' Chon McLannahan notes the indictment indicates that the accused soccer officials "used accounts at major global banks, including JPMorgan Chase, Citigroup and HSBC, to facilitate payments and wire transfers." Other banks named in the complaint "include Bank of America, UBS and Julius Baer in Zurich, raising the prospect that Wall Street could be in the spotlight again over its involvement in yet another scandal." Delta National Bank "is cited numerous times in the indictment, along with Banco do Brasil, through its New York and Paraguay branches" (FINANCIAL TIMES, 5/28). U.S. officials said that soccer execs "treated FIFA business decisions as chits to be traded for personal wealth." In N.Y., Clifford & Apuzzo write whether through "convoluted financial deals or old-fashioned briefcases full of cash, people were expected to pay for access to FIFA’s river of money and publicity" (N.Y. TIMES, 5/28).

DAY OF RECKONING: In L.A., Nathan Fenno notes FIFA, "dogged for years by suspicions of corruption, ... is now in the center of a sprawling, spiraling scandal." Of all the scandals to entangle sports in recent decades, few "could compete with the global surprise from images of Swiss police leading FIFA officials out of a posh Zurich hotel." Previous sports scandals such as Deflategate, Bountygate, BALCO and Biogenesis seem "almost quaint" in the face of more than $150M in "bribes and kickbacks alleged in the FIFA case." This "touches more people -- and vastly more money" -- than Pete Rose's lifetime ban from MLB for betting on games or the Univ. of North Carolina's scandal involving academics and athletics. The scandal also "could grow" (L.A. TIMES, 5/28). The NATIONAL POST's Scott Stinson writes the possibility that further U.S. investigation -- and now parallel probes in Europe -- "could expand beyond alleged malfeasance in the Americas and into FIFA at large, and the office of cartoonishly villainous president Sepp Blatter, raises the prospect that one of sport’s most embarrassing, scandalous enterprises is about to undergo a richly deserved reckoning" (NATIONAL POST, 5/28). USA TODAY's Helena Bachmann notes the multitude of perks "enjoyed by FIFA and other sports organizations headquartered" in Switzerland "likely caused Swiss authorities to drag their feet in pursuing charges." Swiss politician Roland Büchel: "We asked FIFA to clean up its act several years ago. It failed to do so and now it seems that the U.S. is doing that" (USA TODAY, 5/28).

UEFA called on FIFA to halt the election
at its congress in Zurich
ROTTEN EGG: The WALL STREET JOURNAL's Jason Gay writes for decades, "the sumptuous taste and suspected abuses inside soccer’s governing body ... have been an exasperating global punch line, a kind of perverse mixture of pampered oligarchy and Bond villainy." Now, a ref "has stepped in" from the U.S. "of all places -- not a superpower of international soccer, but unwilling to give a pass to the game’s ruling elite" (WALL STREET JOURNAL, 5/28). The WALL STREET JOURNAL's Futterman, Viswanatha & Matthews in a front-page piece note the charges and investigations also "are a big headache for marketers who have spent hundreds of millions of dollars to tie their brands to FIFA." Some of the allegations "describe tactics used by narcotic traffickers and terrorism financiers" (WALL STREET JOURNAL, 5/28). In S.F., Alan Black wrote FIFA "has long been styled on the lines of a medieval patronage system." Almost everyone, "besides those planted at the rotten core, insists on reform." But "what will reform look like in a sport driven by greater concentrations of wealth and power?" (SFGATE.com, 5/27).

FROM THE EDITORIAL BOARDS: A SACRAMENTO BEE editorial states it is "past time" that FIFA execs "are facing allegations of fraud, racketeering and money laundering." U.S. and Swiss prosecutors "should aggressively pursue this case wherever it leads" with the future of the sport "at stake" (SACRAMENTO BEE, 5/28). In L.A., Bill Dwyre writes int'l soccer "is crooked." Dwyre: "We shall pause here while you gather yourself from the shock. Five seconds ought to be enough." For decades, "we have been told, by soccer, that soccer would soon be getting the big sports headlines in the U.S." Well, "here they are" (L.A. TIMES, 5/28). A NEWSDAY editorial states it is clear that soccer "is rotten at the top." The characterization of FIFA "sounded like a description of an organized crime family." For many soccer followers, "the reaction was: at last" (NEWSDAY, 5/28). A CHICAGO SUN-TIMES editorial states when "corrupt government and corporate officials finally are exposed, the rest of us score a big victory." It is "about time FIFA got that message." Regardless of "how these criminal charges against FIFA officials shake out in court, this should be a giant step toward greater accountability and transparency by FIFA" (CHICAGO SUN-TIMES, 5/28).

STAYING OPTIMISTIC: In Orlando, Paul Tenorio writes though yesterday "was not a revelatory moment for the sport, it was perhaps a revolutionary one." Pessimism "abounds when it comes to whether FIFA will ever change," but yesterday's news "brings hope" (ORLANDO SENTINEL, 5/28). Rapids TV analyst Marcelo Balboa thinks that FIFA "can be saved." He said, "I'm glad that they've caught people, and now there's an opportunity to straighten it out" (DENVER POST, 5/28).

TEAM AMERICA, WORLD POLICE: A N.Y. TIMES editorial is written under the header, "FIFA's Corruption Stains World Soccer." The surprise of yesterday "was not only the arrests and the investigations, but also that Washington would take such aggressive action against officials of a sport that is notably less popular in the United States than elsewhere in the world" (N.Y. TIMES, 5/28). NBCSN's Roger Bennett said, "It is a great day to be here in America, a country who yesterday gave the world the greatest contribution since the Marshall Plan" ("CBS This Morning, 5/28). USA TODAY's Christine Brennan in a front-page piece writes it is "both fascinating and fitting that it would be" the U.S., "a nation that doesn't care as much about soccer as so many others, to be the one to take on the task of bringing down" FIFA. True soccer nations "live in awe, and fear, of the power of Blatter and FIFA to control their national sport and all the companies and livelihoods linked to it." Brennan: "Not Americans" (USA TODAY, 5/28). The GUARDIAN's Owen Gibson notes just as it took the involvement of U.S. law enforcement to "finally get to the truth in another long-running sporting scandal -- institutionalised doping in professional cycling -- so it appears that the culture cultivated and overseen by Blatter could finally be brought crashing down" (GUARDIAN, 5/28).

LEGAL WRANGLING REMAINS: Swiss authorities today said that "all seven individuals arrested ... will contest their extradition" to the U.S. (REUTERS, 5/28). Trinidad & Tobago Attorney General Garvin Nicholas "confirmed an application had been made" by U.S. authorities to extradite former CONCACAF President Jack Warner to the U.S. (TRINIDAD & TOBAGO GUARDIAN, 5/28). SI.com's Michael McCann wrote it is "worth noting that physically relocating foreign defendants to face trial in United States will not be an automatic or necessarily swift process." It "could take months or even years before the defendants are extradited -- if they are extradited at all." Many, "if not most, of these defendants likely have considerable financial resources to spend on assembling legal teams that could significantly delay extradition" (SI.com, 5/27). Attorney Alfredo Mendez said that the fact that some guilty pleas "came almost two years ago speaks to how long authorities have been gathering evidence, likely some of it from those defendants." The AP's Hays & Peltz cite experts as saying that what also is telling is the "extent of the allegations prosecutors have unveiled," which indicates "they're confident they have voluminous evidence" (AP, 5/28). A N.Y. POST editorial notes what still is unclear is what former U.S. Attorney Michael Garcia "may have handed over" during his stint as FIFA Chief Investigator. FIFA "hired him to do an independent probe of bribery allegations, then suppressed his 350-page report last year." He protested and "may have seen a duty to share his dirt" with U.S. prosecutors (N.Y. POST, 5/28).

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