Filed under: FIFA scandal, Sepp Blatter resignation | Tags: 2018 World Cup in Russia, 2022 World Cup in Qatar, adidas, Argentina, Budweiser, Castrol, Coca-Cola, CONCACAF Secretary General Chuck Blazer, Continental Cup, Continental Tires, Emirates Airline, England, FIFA, FIFA Congress, France, futsal, Joao Havelange, Johnson & Johnson, Joseph Blatter, Jules Rimet, Master Card, McDonald's, Pepsi, Prince Ali bin al-Hussein, Sir Stanley Rous, Sony, Telstar, Visa, Women's World Cup, Zurich
Joseph Blatter resigned as president of FIFA, abruptly capping the most stunning, scandal-filled week in the 111-year history of the world’s soccer governing body.
Blatter had won an unprecedented fifth four-year term as chief during an election four days earlier in Zurich after lone challenger Jordanian Prince Ali bin al-Hussein dropped out following a first-ballot defeat. Blatter won that round, 133-73, falling just seven votes short of outright re-election.
Only two days earlier, it was announced that a lengthy investigation by U.S. authorities into FIFA had resulted in a 47-count indictment alleging decades of corruption that included corruption, money-laundering, fraud and bribery totaling more than $150 million. Federal racketeering charges were brought against 14, including nine current and former FIFA executives. Seven were arrested at a posh Zurich hotel ahead of Blatter’s election victory at the FIFA Congress.
In a separate probe, Swiss authorities raided FIFA headquarters and were examining seized documents and electronic data in which criminal mismanagement and money laundering are suspected in the awarding of the 2018 World Cup to Russia and the 2022 World Cup to Qatar.
A new FIFA presidential election is expected to he held as early as December. [June 2]
Comment I: This is only the beginning, of course. An investigation that started four years ago with former CONCACAF Secretary General Chuck Blazer–an American known during his long career in soccer administration as “Mr. Ten Percent”–wearing a wire for the Feds now knows no bounds. And predictably, it has inspired demands for reform from the highest places. Like from Blatter, who told voters in his last speech before ballots were submitted May 29, “I have been made responsible for this storm. That’s fine. That’s fine. I take that responsibility. I take it. I take it upon myself and I also want to accept this responsibility, get back on the path, to fix FIFA, together with you.”
Reform. Wonderful. But with Blatter and his cohorts–indicted and yet-to-be indicted–involved? Ludicrous.
FIFA’s problems go back to those bucolic days about a half-century ago, before satellite television turned the World Cup from a major international sporting sensation into a global mania. Things began to change in 1970, when the official ball for that year’s tournament in Mexico was dubbed by maker adidas “Telstar,” in recognition of the magical celestial orb that for the first time would bring that World Cup to nearly the entire planet. (The ball’s now-iconic 20 white hexagonal panels and 12 black pentagons were designed to make it better for TV viewers to see on black and white TV.) FIFA’s first non-European president, Joao Havelange, was elected four years later. The autocratic but visionary Brazilian, whose presidential campaign took him to 86 nations, most of them from the Third World, recognized the enormous economic potential of soccer in general and the World Cup in particular. By 1978, the 11th World Cup, in Argentina, was underwritten by Coca-Cola for a grand total of $8 million. The die was cast.
Blatter came onboard in 1981 as Havelange’s lieutenant, the organization’s secretary general, and No. 2 learned well from No. 1. With FIFA expanding its brand through the introduction of new world championships–under-20 and under-17 youth, followed by futsal, a Women’s World Cup, beach soccer, Olympic women’s, the Continental Cup, and age-specific female tournaments–the sponsorship and TV rights possibilities became limitless.
Limitless? FIFA revenue was more than $5.7 billion over the last four years. This for a non-profit organization.
Obviously, there’s no turning back to the days when filthy lucre didn’t permeate the sport and those in charge were gentlemen sportsmen like Jules Rimet of France (FIFA president 1921-54) and Sir Stanley Rous of England (FIFA president 1961-74). So there has to be reform within FIFA, starting with greater transparency, term limits for officers and a reorganization of the executive committee, but that reform must be draconian because there are too many people still holding influential positions to whom a bribe of $40,000 is a fortune.
Of course, with a dose of courage, the sponsors, the source of all that money, could do it for FIFA. Last year, Emirates Airline bowed out as a FIFA sponsor, as did Japanese electronics giant Sony, whose commitment to the world’s soccer governing body was $227 million over 10 years. In January alone, Castrol, Continental Tires and Johnson & Johnson bade FIFA farewell. But these walk-outs were hardly noticed. If reform is slow, or tepid, it would be highly effective if major longtime sponsors like Coca-Cola and Budweiser and McDonald’s and Visa loudly stomped out of the room, making it a PR impossibility for, say, Pepsi to take Coke’s place at the table or Master Card to step in for Visa. And it would bring things full circle: authorities from America, international soccer’s traditional outlier, cracked open this can of worms, and American sponsors could be the ones to dump it out.
Comment II: If there’s any good to come out of this mess, it’s this: The American public now knows the name of world soccer’s governing body; they know the name of world soccer’s governing body’s president; they finally know that the acronym for world soccer’s governing body is pronounced “Fee-Fah,” not “F-eye-Fah.” Everyone from your mom to your local news anchor now knows all that. That’s progress.