It seems that an organization with billions of dollars in revenue and no supervision is roughly 1.5 percent corrupt ($150 million in bribes, kickbacks, etc. against $10 billion in revenue from the news reports that I’ve seen). That would be comparable to $60 billion siphoned off to cronies out of the $4 trillion annual U.S. federal budget. Here’s a fun quote (WSJ):
After Mr. Bin Hammam said he was seeking their support [to become president of FIFA], Mr. Warner allegedly told attendees that they could pick up a “gift” at a hotel conference room. Officials were allowed to enter one at a time, the indictment said, and each person was handed an envelope with $40,000 inside.
The next day, Mr. Warner allegedly told recipients that the money came from Mr. Bin Hammam. “If you’re pious, open a church, friends,” Mr. Warner allegedly said. “Our business is our business.”
It seems reasonable to assume that any organization that is structured like FIFA would be susceptible to the same kinds of corruption. What could replace it? Forgive an American’s ignorance of all things soccer-related, but what does FIFA do that is important? Is it mostly picking countries to host events, collecting broadcast and sponsorship revenues, and dividing up the cash? If so, why not replace it with a system in which any country can apply to host the World Cup or some other event and then the winner is chosen at random via a process everyone can agree is transparent (something like Bitcoin)? And have the money division be done by mid-level officials at a bank (maybe not one of those recently fined for market rigging)?
And more importantly, how will the FIFA prosecution affect the Eurovision Song Contest, which Americans cannot live without?
FIFA is the most corrupt organisation on the planet. Billions in profit (mostly extortion fees and greedy air rights for doing next to nothing), one country one vote system. Numerous impoverished, easily-corrupted African and South American countries where corruption is rampant have a strong weight in the decision-making in FIFA, so why should anyone be surprised if kickbacks are the norm?
I would not be surprised if the corruption level was way above 1.5% (perhaps closer to 90%?) given that very little of the profits actually drips down to players and most is absorbed by bureaucrats at FIFA and national federations. For what? Well, as you say, for very little. We should get rid of FIFA.
Hi Philip
It’s very interesting to see the American perspective on this debacle since it does seem odd to us Europeans that the charges are being brought by the US legislature. Then again, the US has made it clear that they will tackle corruption wherever it is in the world “if it touches the shores of the US”.
Mostly, I think we are just thankful that someone is finally dealing with the nasty smell that has been lurking over the whole set-up for some time.
But, can the sport do without it?
Maybe!
The rules of the game are governed by another body – IFAB, which is pretty much controlled by the UK – as the original home of football. FIFA is needed to administer and oversee the international competition of the game and, to an extent, the rules governing where a player can play.
It came into being when it was clear at the start of the 20th century that there needed to be some mechanism to formalise international competition. But, I agree that this could be done in many ways.
It certainly can’t be done any worse or more brazenly!
However, perhaps as an American you aren’t aware that the Eurovision Song Contest is perhaps not the best comparison – the voting in that ‘open’ competition is perhaps a little less than free!
Seems to me that this is precisely analogous to the International Olympic Committee. Every time they decide where to host one of their events, there’s a long list of stories about corruption. Some of it is what passes for business in the US now, I’m sure, like inviting foreign businesses to locate in your city, and giving them a 10-year tax holiday. Some of it is pure graft, just as has been alleged in this case. I’ve come to the conclusion that human beings just can’t deal with that level of money, and not suffer from some moral myopia. Case in point: government. Any country. Any time period.
Is Jon Corzine still walking around a free man, after stealing $1 Billion in client-segregated funds? Honestly FIFA seems like a distraction.
I think it’s just a trademark problem. Sure, you can organize a world soccer league, without the FIFA. But it won’t be the same event where Pelé, Maradona, Beckenbahuer and so many other pĺayed.
The corruption at the IOC and FIFA has grown to the point that it actually endangers the international competitions (the Olympics and the World Cup) that are essentially their reason for being. It now costs so much to host these events that its harder to get relatively non-corrupt developed nations and first tier cities to host them.
As for FIFA, if the association football organizations of Brazil, Argentina, England, France, Germany, and Italy got together, withdrew from FIFA, and put on their own international competition and invited everyone else, that would take the World Cup away from FIFA. Its strange that the United States government got involved. The conspiracy theory is that it is to spike the possibility of Russia hosting the World Cup.