Swiss prosecutors "are believed to have launched investigations into World Cup ticketing contracts stretching back decades," opening up a new front in their probe into FIFA corruption, according to Owen Gibson of the London GUARDIAN.
World Cup tickets "have been a source of controversy" for decades and in a development that emphasizes how hard it will be for new FIFA President Gianni Infantino to get on the front foot and implement the "bright new dawn" he promised shortly after succeeding the "disgraced Sepp Blatter, the Swiss attorney general is understood to be interviewing those involved in ticketing contracts stretching back to the 1990s."
Infantino "is expected to look into" all of FIFA’s existing contracts now that he has become president. Deals that may be examined include those with FIFA’s official hospitality agency, Match. The company, "run by brothers Jaime and Enrique Byrom, has held the contract to resell World Cup tickets as part of hospitality packages since the USA World Cup in 1994." A spokesperson for Match said, "Neither Mr. Byrom nor anyone at Match has been questioned by the Swiss authorities." But they added that Jaime Byrom was prepared to help the Swiss authorities with their investigations "should they consider this of possible assistance" (GUARDIAN, 2/27). In London, Nick Harris wrote high-profile FIFA figures including the disgraced former Secretary General Jerome Valcke "have already been sanctioned for involvement in touting seats for football’s showcase tournament."
But the ongoing probe "is likely to consider not just malpractice by individuals but the way in which FIFA have awarded ticketing contracts and then allocated tickets." Legal sources close to FIFA "confirmed that alleged ticketing malpractice over many years is one of four ‘priority’ areas for lawyers delving into historic corruption."
The other three "are alleged bribes paid to secure the 2006 World Cup finals for Germany," an alleged $10M bribe paid to secure the '10 finals for South Africa and various corrupt contracts awarded in the Caribbean, notably involving TV rights. The World Cup tickets market "has been worth billions of pounds since 1994." FIFA earned £378M from ticket sales for the 2014 World Cup, for example, plus another £132M from selling hospitality rights, "allowing others to make millions more marketing high-end matchday packages which included football and other entertainment" (DAILY MAIL, 2/27).
CITIGROUP QUESTIONED: REUTERS' David Henry reported Citigroup Inc. said that "it has received questions from U.S. federal authorities investigating the role of financial institutions in alleged corruption and money laundering involving FIFA." On Friday, Citigroup said that "it had received a subpoena from the U.S. Attorney for the Eastern District of New York" asking about banking relationships and transactions at its Citibank unit by "certain individuals" said to be involved in the alleged wrongdoing (REUTERS, 2/27).
