- The detail of the arrests
- John Delaney nails it again
- FIFA’s statement
- Sponsors decision making process
- Rob Hartnett and Andrew Jennings on The Last Word
Yesterday’s FIFA arrests story provided one of the most obvious but still unexpected days in the history of the business of sport.
47 indictments of 14 high ranking officials and executives on charges of wire fraud, racketeering and corruption involving $150 million and the US Department of Justice said this was ‘only the beginning’.
US Attorney General Loretta Lynch described the corruption as ‘rampant, systematic and deep-rooted’.
Still FIFA continued about its daily business live streaming a medical update new conference as the DOJ ‘show’ was being beamed around the world.
Friday’s Presidential Vote will go ahead according to the World’s most powerful governing body and it also stated that there would be no reopening of the bidding process for Russia 2018 and Quatar 2022.
The Fifa statement issued yesterday was a masterclass in deflection of blame and claiming credit for the clean up. It is unlikely that any of the current six global partners will have had a comfortable day but all are biding their time and none has been seen rushing to desert their partnership.
John Delaney, whose timing was perfect in coming out on Tuesday to say that the FAI would not be supporting his Presidency described yesterdays events as ‘like something out of a mafia movie,’ nailing the moment again.
If those arrested yesterday agree to extradition to the US they could be in court within days. If not it will take at least 40. Other investigations are ongoing in the US and Switzerland so the story will continue to lurch between the bizarre and the incredible.
For FIFA the biggest corporate concern will be over sponsors. The six listed above would expect to be joined by more as the next World Cup cycle moves on and the estimated investment on a four year basis is around €1.5 billion. That is also the sum which FIFA holds in cash reserves so it is far from broke.
The sponsors face the dilemma that having been there over the great commercial and not so great ethical times, if they were to leave now they could be replaced by market rivals who would be seen as the white knights ridding the sport of the corruption that tainted their predecessors.
Reputational damage and commercial benefit from promoting to the worlds largest and arguably most engaged audience is a difficult equation to balance in a boardroom and while campaigners on the outside can afford to draw very clear lines of good and bad, the reality of business makes that call less easy to define in a simple statement.
We understand that morals should have no complicating factors but there is a gap between aspiration and reality in a competitive marketplace where judgements are based perhaps more on success rather than being good. Right or wrong, it’s the way the world is.
Rest assured we will watch the story closely as it develops.
Sport for Business’ Rob Hartnett appeared on The Lat Word with Matt Cooper last night alongside campaigning journalist Andrew Jennings who was throwing around potentially libellous allegations like aural confetti in an entertaining segment. You can listen back here from 34:50
