FIFA Audit & Compliance Committee Chair Domenico Scala said that Russia and Qatar’s hosting of the next two World Cups "could be [in] peril if it’s shown bribes" helped those countries’ winning bids, according to David Li of the N.Y. POST. Scala is the "first high-ranking association official to suggest venues could still be moved, in the wake of recent arrests." Scala: "If evidence should emerge that the awards to Qatar and Russia only came about thanks to bought votes, then the awards could be invalidated." But he added, "This evidence has not yet been brought forth" (N.Y. POST, 6/8). The WALL STREET JOURNAL's Joshua Robinson writes the recent revelations of FIFA corruption have "cast a shadow over at least five World Cups," as the bid processes to host the '98, '06, '10, '18 and '22 tournaments are "now under scrutiny." The scrutiny has "become especially intense" for Russia and Qatar (WALL STREET JOURNAL, 6/8). A WALL STREET JOURNAL editorial stated many countries "could still stage" the '18 World Cup, and FIFA "won’t restore its reputation if it sticks with venues that are found to have been awarded by corrupt means." If FIFA "won’t act, then sponsors like Adidas, Coca-Cola and Visa should insist" (WALL STREET JOURNAL, 6/6).
CORRUPT IN HINDSIGHT? The LONDON TIMES noted audio recordings have revealed "sensational allegations about bribes in the contest to host" the '10 World Cup, even "including a claim that a rival bidder actually won the vote before it was then rigged in South Africa’s favour." The tapes "expose the alleged World Cup bribes that are now at the heart of the U.S. investigation into FIFA, but were suppressed by the sports body and its president, Sepp Blatter, for five years after they were handed to FIFA" (LONDON TIMES, 6/7). Meanwhile, the AP's Gerald Imray cited a report from South Africa claiming that an '07 email shows Blatter and then-South Africa President Thabo Mbeki "held 'discussions'" over the US$10M that "ultimately went to allegedly corrupt senior soccer executives as payback for supporting the country's World Cup bid." The e-mail from FIFA Secretary General Jerome Valcke to the South African government asks when the money, "characterized as a bribe by American investigators, will be transferred." Valcke wrote the $10M was ''based on discussions between FIFA and the South African government, and also between" Blatter and Mbeki (AP, 6/7). In N.Y., Lynnley Browning reported FIFA has "received a clean bill of financial health for 16 consecutive years" from auditing and accounting firm KPMG, "despite longstanding suspicion of corruption." That "only heightens the puzzling disconnect between the different pictures that are emerging of FIFA as an organization: riddled with bribes and kickbacks in the view of prosecutors, yet spotless according to the outsider most privy to its internal financial dealings." As FIFA’s "first and only outside auditor, KPMG has worked for the organization" since '99, one year after Blatter began his tenure (N.Y. TIMES, 6/6).
TANGLED NET WE WEAVE: In London, Nick Harris reported FIFA's "secret deal" to hand the U.S. TV rights for the '26 World Cup to Fox without a tender process is "expected to come under scrutiny" (London DAILY MAIL, 6/6). The WALL STREET JOURNAL's Mickle, Kowsmann & Flint report DirecTV and Fox "have had business relationships with the sports-marketing firms at the center of the corruption scandal" involving FIFA. The media companies have "been important customers" of Traffic Group and Torneos y Competencias, "acquiring rights to major soccer events through them, as have other broadcasters around the world." Public records show that the relationships in some cases also "involve corporate partnerships and joint ventures." DirecTV "owns 40% of Argentine sports-marketing firm Torneos." Torneos is a part-owner of Datisa, a company that the U.S. indictment alleged "acquired rights to the Copa America tournament allegedly through bribes" of more than $100M to soccer officials. DirecTV has "four of the nine board seats at Torneos." The satellite TV orivider "confirmed its stake in Torneos and said it has 'no management control' of the company." Fox "has its own connection to Torneos as well as to Traffic Group" (WALL STREET JOURNAL, 6/8). Meanwhile, RT.com reported former Torneos President Alejandro Burzaco, who was named in the U.S. indictment, "managed to leave Europe and is allegedly in hiding in Uruguay." He "managed to escape arrest in the same Zurich hotel while being practically in the midst of the FBI agents who didn’t recognize the man they were supposed to detain" (RT.com, 6/7).
READY FOR REFORM? SI's Grant Wahl said, "Given recent events, few organizations in the world have a worse reputation than FIFA." Wahl added the ongoing DOJ investigation into FIFA "could drag out for a while." Wahl said Blatter wants to "shape the reforms that are supposed to take place," but there are going to be the "same people voting for that new president that elected" Blatter ("2015 FIFA Women's World Cup Preview," FS1, 6/5). The N.Y. Daily News' Mike Lupica said FIFA is a "cartel and we're going to find out that there are governments involved in this" ("The Sports Reporters," ESPN, 6/7).
EXTRA DIME: REUTERS' Tom Bergin reported the average pay and pension contributions for staff at Zurich-based FIFA "was $242,000 per employee last year." That puts staff at FIFA -- which "benchmarks itself against 'far bigger private sector companies' -- among the best paid in Switzerland and 'within striking distance of one of the country's private banks.'" Meanwhile, pay "averaged $177,000 in '14 at UEFA" (REUTERS, 6/5).
