ANTI-BRIBERY AND CORRUPTION POLICIES IN INTERNATIONAL SPORTS GOVERNING BODIES

 



Introduction

 

Research on corruption in sport frequently focuses on only one or two aspects of the problem without looking at all of them. The Sport Doping Market, a fundamental study by Paoli and Donati, examines a serious topic over an extended period of time and offers the first description of this market's characteristics. Doping is simply one sort of sports corruption, though. Match-fixing is another kind. In order to combat the issue of gambling-related match-fixing, the international government organisation Interpol has partnered closely with athletic organisations like FIFA in recent years. The focus of this public-private cooperation, which includes contributions from both sectors, is on the specific issue of how illicit gambling affects the integrity of sport.

It's challenging to define corruption in sports. This comes as a result of how difficult it is to define corruption in the first place. The common definitions of corruption frequently have the limitations of the definer. For instance, the now-standard definition of corruption for political scientists is behavior which deviates from the formal duties of a public role because of personal regarding monetary or status gains; or violates rules against the exercise of certain types of personal regarding influence." This definition was developed from the viewpoint of a political scientist who was considering development. However, this definition leaves room for "noble cause" corruption, in which authority is usurped in the interest of the public good rather than individual gain.

Global political and economic activity is involved in modern sport, notably in the competition to host important competitions like the Olympic Games, the FIFA World Cup, and other international competitions. Recent bid processes turned the conventional wisdom about corruption on its head: when public officials bribe private players without the possibility of the public official's own personal benefit.

Sport corruption is the departure from the public's expectation that sport would be performed and run honestly. According to this definition, participating in sports includes both training and real competition. Multiple layers of sports administration—individual athletes, teams, clubs, leagues, tournaments, national associations, governmental authorities, and international organizations—from the public and private sectors are included under the umbrella word "managed." Making and enforcing sport regulations and bylaws are also included. Additionally, administration includes all levels of on- and off-field officiating as well as tribunals, panels, courts, and similar adjudication bodies. Integrity is managing athlete or team-related information discreetly and refraining from exploiting such knowledge.

 


 

Corruption in Sports

 

Corruption in sports is a global phenomenon which is constantly undermining integrity of the entire industry. Recent years have seen an increase in the instances of corruption in sports in their various forms like fraud, bribery and institutional ranging in its extent from individual to systematic occurring in different contexts including non-profit, for profit, sports, sport events. Governance, international and online betting which had ultimately resulted in several repercussions of sanctions, financial costs, tarnished reputation, increase in employee turnover, and increased oversight. A lot of research has been done into the arenas of preserving the integrity of the industry which had helped shine light on the plethora of instances of corruption and its multidimensional nature.

In commercial, administrative, governance, economics, and sociology literature, the intricacy and multifaceted character of corruption have been thoroughly documented. Talks about corruption's definition and conceptualization have an impact on how the issue is studied and measured. Macroeconomic, microeconomic, and micro-level analyses have all been used to analyse corruption's many manifestations, sources, effects, and restoration strategies in a number of circumstances. These assessments have been influenced by a number of theoretical frameworks, notably principal-agency ideology, organisational viewpoint framework, social cognitive theory, effective management organisation characteristics, and accountability and transparency. As a result, there is currently a strong theoretical foundation upon which to further the investigation of corruption in sports in particular.

Using the models developed on the basis of theories of sports helps underline the conundrum that despite the existence and adherence to strict rules, the governing bodies along with the athletes have the tendency to cheat or bribe as it is viewed as an optimal strategy.

Throughout history, there have been many instances of huge corruption and bribery incidences in sports. From the bribery case of Eupolos in 388 BC to the 2002 Olympic Games case in the Salt Lake City, corruption and bribery have raised their ugly heads numerous times throughout our history. One such case which led to questioning the integrity of football World Cup organised by FIFA. This article closely examines the case and the impact it had on the world of sports.


 

Anti-Bribery and Corruption laws in the Sports Industry

 

Sport permeates both the public and private spheres on a global scale. In 2015, it is anticipated that the private sports industry, which includes sponsorship, gate receipts, broadcast rights, and marketing, would surpass US$141 billion. The revenue from sports-related gambling, which was projected in 2012 to be worth over £50 billion for the worldwide e-betting industry alone, can be added to this.

Additionally, the worldwide population spends a lot of money on sports. Public spending, like the government funding for the Salt Lake City Olympics, routinely exceeds $100 million. In addition to the AU$265 million allotted by the Australian Sports Commission, the Australian government recently gave AU$156 million to the Queensland state government for the 2018 Commonwealth Games (Australian Government, 2014).

Typically, public funds are used to support anti-corruption efforts.

In order to investigate and prosecute doping cases, the Commissione per la vigilanza ed il controllo sul doping e per la tutela della salute nelle attività sportive (Commission for the Vigilance and Control on Doping and the Protection of Health in Sports Activities) is an official public body with legal standing in Italy. Similar to that, ASADA receives AU$16 million in public funding each year. The US Anti-Doping Agency (USADA), in contrast, is a private organisation whose scope does not include the four most popular sports in the country: American football, baseball, basketball, and ice hockey.



International Regulatory Bodies

 

Major international athletic organisations have high expectations for the general public. These organisations anticipate event-specific regulations to be a part of the contemporary host bidding process in addition to the millions of money taxpayers have donated to host numerous events. These expectations seem a little out of place when you know how much suspected corruption is connected to towns being awarded hosting rights. Italy was under pressure to suspend its anti-doping regulations after a failed attempt to bring charges related to the Salt Lake City bid. It may be argued that because they work internationally, officials of international athletic organisations believe themselves to be above national rules.

WADA and the Interpol/FIFA partnership to combat doping and match-fixing are two excellent examples of these organizations' commendable anti-corruption work at the sporting level. The persistent, unproven, and potentially untestable claims of high-level bribery and corruption, however, undermine a lot of the progress made.

Sporting groups and organisations have made a strong push for more public involvement in preventing corruption in sport. Sporting organisations and licenced gambling operators are aware that competition makes sport unpredictable to the point when fans, sponsors, and broadcasters stop following it. A challenge to the idea of unpredictability is match-fixing. This was well illustrated in Taiwan in 1997, where a scandal involving bribery and gambling damaged the reputation of the Taiwan Baseball League and sharply reduced attendance. The numerous international non-governmental organisations that oversee sport have been pushing for increased government engagement in preventing corruption in sport.

The necessity for legislation must be viewed in its wider perspective. More actions that constitute corruption in sport are being made illegal, either via the enactment of new laws or by decisions to apply already-existing laws to an industry that formerly operated independently. The 2001 Australian Interactive Gambling Act (AIG) is a prime illustration of the new legislative strategy. This law made it illegal to place bets on particular outcomes of athletic events, such as the next tennis point or the outcome of a football game. A recent assessment of the law acknowledged its deterrent impact and suggested expanding the ban on microbets to include bets placed over the phone or during the athletic event, despite the fact that there have been no prosecutions under the AIG.



FIFA

 

The international body for governing football is Fédération Internationale de Football Association (FIFA). It was established in 1904 to oversee international competition and promote the spirit of sportsmanship and protect the integrity of football in the sports industry.

In recent years, football has grown in popularity in many countries and territories, including the United States. Due to this heightened attention, the sport and FIFA have spent the past 20 years in the spotlight of the world's media. The organisation itself works to spread awareness of the sport around the world by hosting competitions and securing corporate support. However, newly discovered evidence has brought this organization's operations into the spotlight of controversy due to allegations of conspiracy and official bribery with connection to tournament venues and media rights deals.

The FIFA scandal and the actions of its officials are likely to have a significant impact on how the organisation operates now and in the future. FIFA is a major force in the sports industry, bringing in billions of dollars annually. In this ongoing discussion, new information is frequently disclosed.

 

The Controversy

It all started with the book of an investigative reporter which outlined the entire cash for contracts scandal following the collapse of FIFA’s marketing partner ISL.  It laid out several allegations like the pressure on several high officials of FIFA to return the bribes they have received over the years along with the vote-rigging during the election of the new President. This led to start of a huge controversy that still surrounds the entire process of voting and election in the FIFA management process. The recent decisions of Russia and Qatar being the World Cup’s hosting nations have raised a lot of questions specifically concerning Qatar which have invariably led to the tarnished image of FIFA in the industry.

 


 

Guilty Plea

Two sports broadcast rights firms and two other parties admitted guilt to financial fraud allegations brought by the US government between 2013 and 2015. The sealed petitions of Chuck Blazer, José Hawilla, Daryan Warner, Darrell Warner, Traffic Group, and Traffic Sports USA were made public in May 2015. In a different case from 2015, Singapore sentenced match-fixer Eric Ding to the "harshest sentence ever received for match-fixing" of six years in prison. Ding had bribed three Lebanese FIFA football officials with prostitutes in order to influence them to fix future games they would officiate and had also obstructed justice.

 

The Investigation and Indictments

The Department of Justice had been investigating in the corruption process involved in the management of FIFA. Many red fags were raised during the bidding process of the host nations for World Cup 2018 and 2022. It later caused the indictment of several high-ranking officials of FIFA.

The First indictment was issued in 2015. The charges included that of racketeering, wire fraud and money-laundering conspiracies and suggests a scheme spread over a time span of 24 years to enrich certain officials through corruption in international soccer. The officers involved in this indictment were the key players in the organisation. They abused their position of trust to gain millions of dollars through bribes and kick-backs.

There were numerous instances mentioned in the indictments which suggested that the officials had entered into various agreements from early 1990s to early 2010s with several leaders of the sports advertising agencies where $150 million worth of hefty and periodic bribes and kickbacks were paid in exchange for lucrative contracts. According to the indictment, these FIFA officials and sports marketing employees mistreated the national member associations, national teams, youth leagues, and development programmes that rely on financial assistance from their parent organisations.

Later in the same year, 16 other officials of the organisation were indicted for racketeering, wire-fraud, money-laundering conspiracies in relation to the 24-year scheme. The vote to choose the host of the 2010 FIFA World Cup was one of the supplementary offences that the FIFA organisation seemed to find to be the most significant and worrisome. When South-Africa was selected over Morocco and Egypt to host the 2010 World Cup, several allegations surfaced pointing at internal bribe system in FIFA. This was significantly highlighted in the superseding indictment.

The Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy, wire fraud conspiracy, wire fraud, money laundering conspiracy, and obstruction of justice charges carry maximum sentences of 20 years in prison, according to the United States Department of Justice press release announcing these indictments. The offenders also risk forced repayment and penalties in addition to the potential confiscation of their bribes.

 

2018 Revision

FIFA updated its code of ethics in 2018 to eliminate corruption from the list of justifications for ethical transgressions. It kept bribery, financial theft, and competitive manipulation as crimes but inserted a statute of limitations provision prohibiting further prosecution for such offences beyond 10 years.

Additionally, the change made it illegal to publicly disparage FIFA in any way. The revision's "true benefit to FIFA is the chilling impact this will have on detractors," according to anti-bribery adherence specialist and former FIFA governance committee member Alexandra Wrage.

 

Impact of this Scandal

The newly elected President rushed to salvage the reputation and image of FIFA amidst all the allegations. There were several promises made with regards to reformation.

The biggest sports organisation in the world is going to be negatively affected by the scandal for years to come. Despite the potential for reputational harm, current FIFA sponsors have already started to express their worries about the allegations of wrongdoing.

This has led to the status of football and integrity in the industry being besmirched. It has left them questioning the impact it might have on their images.

For instance, Coca-Cola demanded an impartial third-party reformation of the organisation, saying, "We think that forming this independent commission will be the most credible way for FIFA to undertake its reform process and is vital to gain back the confidence it has lost." Similar worries were stated by McDonald's Corporation, another significant FIFA World Cup sponsor. According to them, recent charges and indictments have gravely damaged FIFA in a way that goes to the very core of our support. To rebuild credibility with fans and sponsors alike, FIFA must make significant changes. Both McDonald's and the rest of the world anticipate tangible results.

In light of the corruption controversy, former Argentine football star Diego Maradona criticised FIFA and compared its board of directors to dinosaurs. He claimed Fifa was a sizable museum. They are power-hungry dinosaurs that refuse to cede their position. It will always be the same.

Dick Pound criticised FIFA in October 2011 and stated that the organisation had not done a credible enough job of demonstrating that it understood the many issues it was facing, that it had the motivation to address them, that it was willing to be open about its actions and the issues it discovered, and that its future actions would allow the general public to have faith in the regulation of sport.

 

Conclusion

The South Africa World Cup controversy and related legal actions are still pending. Every time we learn anything new, we must think about the possible consequences that may result. It won't be a stable trip moving ahead because FIFA is the sport of football's main backer and promoter. The US Department of Justice is still looking into the organization's more recent judgments, votes, and other actions. FIFA will need to undergo significant and comprehensive change in order to recover its status as the world's most respected organisation in the sports industry.



Written by

Mansi Jha

LinkedIn


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