Federal authorities believe that FIFA Secretary General Jerome Valcke made $10M in bank transactions that are "central elements of the bribery scandal engulfing international soccer," according to sources cited in a front-page piece by Rashbaum & Apuzzo of the N.Y. TIMES. Because Valcke is FIFA President Sepp Blatter’s top lieutenant, this "puts the money trail closer" to Blatter than "had been previously known." The sources said that Valcke is the "unidentified 'high-ranking FIFA official' who prosecutors say" transferred $10M in '08 "from FIFA to accounts controlled" by former CONCACAF President Jack Warner. The payment is "a key piece of last week’s indictment" accusing Warner of "taking a bribe in exchange for helping South Africa secure the right to host" the '10 World Cup. The indictment "does not say that the high-ranking official knew that the money was being used as a bribe," and Valcke is "not identified as a co-conspirator in the document." Valcke, who "said in a brief email that he had not authorized the payment and did not have the power to do so, has not been charged or accused of wrongdoing." But Rashbaum & Apuzzo note his involvement is "sure to raise more questions" about what Blatter "knew about the money transfer" (N.Y. TIMES, 6/2).
RELATIONSHIP STATUS: In London, Raf Sanchez notes Valcke was appointed to his current position in '07 at "Blatter's suggestion." The two "clasped hands" after Blatter won re-election to his post last week (London TELEGRAPH, 6/2). In N.Y., Vinton & Thompson note the indictment’s description of the transfer does not say that the official "who made it knew that the money was a bribe." But a source said there are "two people who can get Blatter -- Warner and Valcke." Valcke’s name also "appears on a confidential list of 44 names of top soccer executives" given to former CONCACAF and FIFA exec Chuck Blazer "after he began cooperating with the feds" in '11. FIFA yesterday announced that Valcke "would not attend" Saturday’s opening of the Women’s World Cup, "fueling speculation that he is avoiding a trip that could bring him within reach of U.S. law enforcement officers" (N.Y. DAILY NEWS, 6/2). FIFA Head of Media Delia Fischer said that Blatter "still intends to travel to the CONCACAF Gold Cup," which will be played in the U.S. and Canada in July (ESPNFC.com, 6/1).
FIFA SAYS THE MONEY IS CLEAN: Fischer said that the $10M payment in question "was authorized" in '07 by then-FIFA Finance Committee Chair Julio Grondona "and executed in accordance with the organization’s regulations, without acknowledging its purpose." FIFA in a statement this morning said that the $10M "was aid, approved by the South African government 'to support the African diaspora in Caribbean countries as part of the World Cup legacy'" (WALL STREET JOURNAL, 6/2). Meanwhile, GRANTLAND's Charles Pierce wrote it is "impossible to overstate the historic nature" of last week's arrests. The move by the U.S. Department of Justice is "unprecedented in the history of organized sports," but FIFA's corruption "wasn't in the least covert" (GRANTLAND.com, 6/1). The FINANCIAL TIMES' Gideon Rachman wrote of the U.S. Justice Department's indictment, "What allowed America to act in this way? Is that U.S. power transferable to other domains?" America’s power "does not just rest on the size of its market or the power of its military." Its justice system also "still possesses a moral authority that stems from its roots in an open, democratic and law-governed society." If the U.S. Department of Justice "says there is a serious case to answer, it still carries global credibility." The same benefit of the doubt "would not be extended to a prosecutor in Moscow or Beijing" (FT.com, 6/1).
AMERICAN BEAUTY? The WALL STREET JOURNAL's Matthew Futterman notes U.S. Soccer Federation President Sunil Gulati, who "has close business and personal relationships with several of the main characters in the alleged scandals, isn’t named in the indictment unveiled May 27, and he isn’t described in the list of unnamed co-conspirators." MLS Commissioner Don Garber said, "It would never occur to me that Sunil would be involved in anything like this." Futterman writes Gulati "remains a central figure in a drama that will likely roil the world of international soccer, and even international relations, for years." Potential ramifications "could involve the potential extradition of non-Americans to the U.S." Gulati "has been a close friend" of Blazer, who secretly pleaded guilty to fraud charges in '13, "for nearly four decades" (WALL STREET JOURNAL, 6/2).
