More problems on horizon for scandal-plagued FIFA
An internal investigation of world soccer’s governing body has uncovered wrongdoing that extends beyond the corruption alleged last year by U.S. prosecutors, according to a person familiar with the information.
The new details could prompt fresh charges should authorities in the U.S. and Switzerland choose to pursue them, according to the person. Some of the findings relate to FIFA commercial contracts and alleged bribes paid by former officials.
The findings, which could be presented to FIFA’s top leadership before the end of the month, are likely to add to a global scandal that has already unseated world soccer’s top leaders and cast a shadow over the World Cup, the world’s most popular sporting event.
The law firm carrying out the investigation, Quinn Emanuel Urquhart & Sullivan LLP, has billed FIFA more than US$30 million for the investigation, the person said. FIFA’s mounting legal costs have led some members of the organization to question how long the soccer body will be required to retain its lawyers.
The internal probe started shortly after the U.S. Justice Department announced charges against several senior soccer officials in May 2015 and alleged widespread corrupt behaviour dating back more than two decades.
Swiss prosecutors started separate investigations into FIFA after the U.S. filed charges. They accuse FIFA’s former president Sepp Blatter of criminal mismanagement related to the sale of media rights in the Caribbean and a suspected “disloyal payment” of two million Swiss francs (US$2 million) to the ex-head of European soccer. That case remains active and new details uncovered by FIFA’s internal investigation will be shared with Swiss authorities. Blatter denies wrongdoing.
The U.S. Justice Department charged about 40 individuals and companies with counts including racketeering, wire fraud and money-laundering conspiracy. The sprawling indictment described bribery and kickback schemes related to media and sponsorship rights worth more than $200 million.
The charges led to the ouster of most of FIFA’s senior management. Blatter, his longtime No. 2 Jerome Valcke and the once-powerful head of European soccer Michel Platini were also banned from the sport. In June, FIFA revealed Blatter, Valcke and Markus Kattner, its fired finance head, awarded themselves more than 79 million Swiss francs over the past five years from bonuses, incentives and salary increases, some of which probably broke Swiss law. Platini, Valcke and Kattner have also denied wrongdoing.
“The Swiss and U.S. investigations demonstrated the need for significant reforms at FIFA and how the business side of football is conducted throughout the world,” FIFA said in a statement. “FIFA has been conducting both an internal investigation of alleged misconduct and a full audit and review of FIFA’s finance function. FIFA implemented deep reforms and continues to co-operate with authorities and provide them the results of its reviews.”