The Fifa Ethics Committee: An Oxymoron? “FIFA stands for discipline, respect, fair-play, not just on the field of play, but in our society as well” 1 Despite such rhetoric being consistently uttered by Sepp Blatter, the controversial president of Fifa, the governing body of the world’s most popular sport continues to be dogged by allegations of dishonesty and fraud. In the last year alone, we have witnessed the controversy over Fifa’s revised plans to move the 2022 2 World Cup to the winter due to the searing temperatures in Qatar during the summer months. This was followed by the legitimate outcry over Qatar's human rights record and the conditions imposed on migrant workers who are being engaged in the building of the infrastructure and stadia for the 3 tournament. Then, in the weeks leading up to 2014 World Cup, the Sunday Times released the ‘Fifa Files’; millions of emails and other supporting documents that were obtained from a Fifa whistle4 blower. These documents, it was claimed, would prove beyond doubt that Qatar’s successful bid for the 2022 World Cup was founded upon bribes, bungs and corruption. And just a day before the start of Fifa’s showpiece tournament in Brazil, Lord Triesman the former Football Association (“FA”) chairman, accused Fifa of behaving “like a mafia family” and suffering from “systematic corruption” which is underpinned by “non-existent investigations where most of the 5 accused are exempt from the investigation make it impossible to proceed”. It appears that Lord Triesman’s view is now no longer an opinion held by the minority; but what are the reasons for this fundamental failure in governance and what can Fifa do to repair its toxic image? The Fifa ethics governance structure To better understand why the reputation of Fifa has reached rock bottom, let’s look back at the events 6 7 that led to the formation of the Fifa Ethics Committee (FEC) and the review of the Code of Ethics (“Code”) that underpins it. In 2011, in the wake of the original claims by the Sunday Times of corruption by members of the Fifa 8 Executive Committee (ExCo) in the voting for the 2018 and 2022 World Cups, Blatter commissioned the Independent Governance Committee (IGC) to examine Fifa’s existing governance structures and to propose recommendations. The IGC was, it was said, part of Fifa’s ‘road map’ for reforming the 9 organisation in the wake of the avalanche of corruption allegations. 10 The IGC’s inaugural report in 2012 led to a fortification of certain provisions of the Code including those related to conflicts of interest, gifts, bribery and corruption. At the same time, the FEC was established. The FEC was made up of two independent chambers: an Investigatory and an Adjudicatory chamber. Michael Garcia, a former US attorney and the man responsible for conducting the latest investigation into allegations of Fifa corruption, is currently in the post of Independent Chairman of the Investigatory 1 March 2013, interview with Sepp Blatter by Philippe Auclair in The Blizzard, Issue 8 http://www.theguardian.com/football/2014/may/16/sepp-blatter-qatar-2022-world-cup-mistake 3 http://www.washingtonpost.com/opinions/fifa-deserves-a-red-card-for-not-doing-more-on-human-rights-inqatar/2014/06/12/f4b6c662-f1a9-11e3-9ebc-2ee6f81ed217_story.html 4 http://www.thesundaytimes.co.uk/sto/news/uk_news/fifa/article1417325.ece 5 http://www.bbc.co.uk/news/uk-politics-27801996 6 http://www.fifa.com/aboutfifa/organisation/bodies/standingcommittees/committee=1882034.html 7 http://www.fifa.com/aboutfifa/organisation/footballgovernance/codeethics.html 8 http://www.thesundaytimes.co.uk/sto/news/uk_news/fifa/article626236.ece 9 http://www.theguardian.com/football/2014/apr/23/fifa-advised-implement-report-advice-reform 10 http://www.baselgovernance.org/.../FIFA/first_report_by_igc_to_fifa_exco.pdf 2 AAT is a registered charity. No. 1050724 Chamber of the FEC. Once his report is finalised, he will pass it to the Adjudicatory Chamber which will consider whether any disciplinary measures are appropriate. The question of independence The FEC was hailed by Fifa as independent by virtue of the fact that both chambers would be led by an autonomous chairman and vice-chairman. In examining the issue of independence, time is better spent exploring the FEC’s powers of sanction as opposed to casting any aspersions over the objectivity or professional integrity of any individuals involved. In other words, is Lord Triesman correct when he claims that “most of the accused are exempt from the investigation”? In this respect, the Code is unambiguous. Amongst other punishments, individuals can be (and have been) banned from taking part in any football related activity, and the FEC can also recommend that the case is passed to criminal authorities. It is therefore clear that there is a broad range of disciplinary sanctions available to the Adjudicatory Chamber against any infringing individuals. Nevertheless, the Code is less clear about what would happen in the event of the type of wholesale corruption alleged by the Sunday Times. For example, can the Adjudicatory Chamber order a re-vote for the 2022 World Cup if the allegations are proven? Regrettably, this type of scenario has not been contemplated by the Code and all it appears that the FEC can do is make a recommendation to the Fifa president or the ExCo that the bidding procedure should be repeated. This therefore somewhat undermines the independence of the whole process. I am not convinced that anyone would deny that running the whole bidding process again would be the correct and ethical thing to do should the Sunday Times allegations be substantiated. However, there appears to be little potential for the existing Fifa president or the members of the ExCo to sanction a re-vote; after all such a decision has the potential to have severe consequences on those very same individuals. Resistance to change With the establishment of the FEC it is evident that Fifa has taken some small steps to putting its house in order. It is also realistic to expect that governance issues will arise within, what is now, a multinational conglomerate formed more than a century ago which consists of 209 football bodies from around the world. However, I do not prescribe to the commonly held (but, in my opinion, lazy and xenophobic) belief that the corruption of the type that has been levelled at Fifa is a cultural problem; an issue caused by the contrasting views of its members about transparency and public accountability; because superior western ideals are somehow not applicable to other societies. To counter that particular theory, all one has to do is recall a friendly match against Thailand hastily arranged by the English FA in 2010. This match was due to be worth millions to the Thailand FA and it is widely understood that it was arranged in order to secure the vote of the ExCo member for 11 Thailand, Worawi Makudi, for England’s 2018 World Cup bid. Needless to say, this was in direct contravention of the bidding rules, which state “the member association agrees to refrain from collaborating or colluding with any other member association or any third party with a view to unfairly 12 influencing the outcome of the bidding process”. The match never took place as, within days of Makudi defaulting on his pledge to vote for England’s bid, it was cancelled. The Chairman of the FA at the time: a certain Lord Triesman. What happened to those superior western ideals? 13 What is clear, however, is that despite recognition that "these are important times for Fifa", there has been a great deal of resistance by Fifa to any meaningful change. This is perhaps not surprising considering the self-interests involved. 11 http://www.telegraph.co.uk/sport/football/teams/england/8180374/World-Cup-2018-England-to-pull-out-of-Thailandfriendly-in-protest-after-humiliating-bid-defeat.html 12 http://es.fifa.com/mm/document/affederation/.../01/12/.../rulesofconduct.pdf 13 http://in.reuters.com/article/2014/06/11/uk-soccer-fifa-congress-idINKBN0EM1I420140611 AAT is a registered charity. No. 1050724 There were widespread media reports earlier this year that Garcia almost fell victim to a plot by some 14 Fifa executives to remove him from the FEC. While it is not within the ExCo’s power to interfere with the supposedly independent FEC (having been sanctioned by the full Fifa congress), if true this certainly indicates a level of arrogance (and anxiety) exhibited by members of ExCo who seemingly have no regard to the independence of the FEC. At a time when Fifa should be looking to modernise and reform, it was also entirely unhelpful for Blatter to claim that the allegations (originating from a British paper) surrounding the Qatar 2022 15 World Cup bid were motivated by “a great deal of discrimination and racism" thus evoking memories of Britain’s colonial past at the same time as attempting to claim that the commendable investigatory journalists somehow have an agenda against Fifa. The Olympic Example There are many parallels to be drawn between the current Fifa storm and the scandal that engulfed the International Olympic Committee (“IOC”) regarding the 2002 Winter Games in Salt Lake City. In 16 1998, it emerged that members had taken bribes to vote in favour of Salt Lake City. Governments 17 from around the World, including Britain’s, declared that the IOC was not fit for purpose. The controversy led to an overhaul of the IOC system and sanctions were handed out for the first time (ten members were expelled and ten sanctioned for accepting gifts). However, just as importantly, Juan Antonio Samaranch (the president of the IOC between 1980 and 2001) recognised that the corruption was the symptom of a much more deep-rooted problem. As a result, Samaranch remodelled the IOC and retired from his position, with Jacques Rogge taking over as the governing body’s president. Rogge would later remark: “We were not in denial. Samaranch understood it was not enough just to take care of the corruption but he had the vision to see that we had to review the whole functioning of the IOC. Samaranch understood that we had to move from a 18 sports club to an international organisation.” At the Fifa annual congress, just one day before the 2014 World Cup kicked off, Blatter stated, with no hint of irony, that: "The answer is easy and simple … we must lead by example and we must listen to all voices, we must be responsible and upright in all that we do, we must do the right thing even if that 19 comes at a cost". If Fifa is not prepared to be introspective for the good of football, a sport which undoubtedly has the ability to change lives for the better, then it will surely have to take notice of Fifa’s partners. These sponsors have been unusually vocal in expressing their concern at the allegations surrounding the 2022 bidding process. Considering that each partner pays Fifa between $24 and $44 million annually 20 for the right to be associated with Fifa and the World Cup, hitting Fifa in the pocket may be the best way to instigate significant reform. Unfortunately but unsurprisingly, 78-year-old Blatter recently confirmed that he intends to seek a fifth 21 term as Fifa president when his current tenure expires in 2015. This despite vocal opposition from a 22 number of influential football figures, including the UEFA head Michel Platini. It is not difficult comprehend why many now regard the designation ‘the Fifa Ethics Committee’ as an oxymoron; the same Teflon sports officials that have been implicated in many of the scandals continue to cling onto their positions and to make the decisions that shape Fifa’s governance structure and disciplinary process. Blatter’s cause appears to have been helped by Fifa’s decision not to 14 http://www.theguardian.com/football/2014/mar/25/fifa-ethics-investigator-michael-garcia-survives-plot-overthrowhim 15 http://www.theguardian.com/football/2014/jun/09/sepp-blatter-storm-fifa-qatar 16 http://www.theguardian.com/sport/2002-winter-olympic-bid-scandal 17 http://www.theguardian.com/sport/1999/feb/03/tony-banks-criticises-ioc-conference-doping-sport 18 http://www.insidethegames.biz/blogs/13285 19 http://uk.mobile.reuters.com/article/sportsNews/idUKKBN0EM1SG20140611 20 http://www.sponsorship.com/About-IEG/Press-Room/FIFA-Secures-$1-6-Billion-in-World-Cup-Sponsorship.aspx 21 http://www.bbc.co.uk/sport/0/football/27805019 22 http://www.bbc.co.uk/sport/0/football/27810126 AAT is a registered charity. No. 1050724 impose an age limit or a maximum term for officials; in a purely corporate World this would surely not be allowed to subsist. Until antiquated rules such as these are revised and there is a reorganisation right at the summit of the organisation it is difficult to see how any real reform from within can be achieved by Fifa. Zane Shihab, June 2014. About the author Zane is a Sports Lawyer and Associate Partner who provides practical commercial advice to global brands, international sporting bodies and events and high-profile individuals. He specialises in drafting commercial contracts and has negotiated numerous lucrative sponsorship and supplier agreements on behalf of sporting governing bodies (including the PGA European Tour, Ryder Cup, and London Marathon). Zane is credited in the Legal 500, 2013, as being ‘quick, and fantastic at drafting’, is a regular author of legal articles and is frequently asked by television broadcasters to provide his opinion on current sports law issues. Twitter: @ZDShihab LinkedIn: uk.linkedin.com/in/zaneshihab/ Company website: http://www.kermanco.com/ AAT is a registered charity. No. 1050724