98
APPENDIX I
Threat
Description and rationale
Example
SYSTEMIC WRONGDOING (OVERARCHING –LEAGUE OR TRANSNATIONAL –
GOVERNANCE OR REGULATION)
Threat
Description and rationale
Example
9. Systemic Wrongdoing
Ethical misconduct
(mostly bribes given
and taken) in:
• Host venue awards
• Franchise awards
• Allocation of broad-
casting rights
• Nominations for
positions on sport-
ing bodies
• Hospitality
provision
Variety of customary governance misbehaviour
that brings discredit to the regulated sport. More
common at international level, where organisa-
tions are able to evade purview of any single
national law. Misbehaviour includes:
• Bribes accepted on either side to secure
commercial deals.
• Bribes accepted to secure influence within a
sports governing body.
• 1998:
Winter Olympics Bidding Scandal
: Salt Lake
City Olympic Bid Organising Committee members
gave substantial bribes to IOC members in successful
effort to win 2002 Games. Led to first expulsions of
members for corruption in IOC history.
• 2006:
Nagano, Japan
: report ordered by Nagano
Prefecture said city provided millions of dollars for “il-
legitimate and excessive level of hospitality” – includ-
ing $4.4 million for entertainment – to IOC members
during bidding context for 1998 Winter Games.
• 2010:
FIFA World Cup Host Country Selection
:
FIFA suspends two members of its 24-person Execu-
tive Committee, Amos Adamu of Nigeria and Reynald
Temarii of Tahiti, from all football-related activity for
three years and one year respectively for corruption.
Each sought to sell his vote in the bidding for the
2018 and 2022 host countries.
Criminal behavior:
• Match fixing
• Money laundering
• Fraud
• Embezzlement
• Drug smuggling
• Theft
Lack of outside financial regulation, transpar-
ency, and oversight in sport renders it vulnerable
to being used as a medium for financial crime.
Risk of illegal behaviour increases as the variety
and number of cash flows and/or financial trans-
actions increases.
• 2008:
Poland
: joint hosting of Euro 2012 (with
Ukraine) jeopardised ongoing investigation into match
fixing. As of mid-2010, no one yet prosecuted, but
117 people – including referees, coaches, players and
officials – charged, 29 clubs implicated.
• 2009:
Criminal Penetration of UEFA
: OECD study re-
ports effort by South American group to use criminal
proceeds to buy interest in unnamed European club;
transfers of money from East European accounts
to unlicensed agents of UEFA players for ostensible
purpose of money laundering.
• 2009:
UEFA Match Fixing Scandal
: Investigators
believe the Europa League match between FK Slavjia
Sarajevo and MFK Kosice was fixed. Widespread
scandal revealed by Bochum, Germany prosecutors
in June, leads to initial arrest of Croatian-born Ante
Sapina and 14 others. By June 2010, prosecutors
confirmed 250 people as suspects in scandal report-
edly affecting 270 matches across Europe, includ-
ing 74 matches from Turkey’s Super Lig, 53 from
Germany, and 35 from Switzerland.
• 2010:
“IPL Gate”
: Indian Premier League Commis-
sioner suspended, India’s Junior Minister for Foreign
Affairs resigns amid allegations of cricket league
graft, financial malfeasance, and money launder-
ing; league investigatory body, Board of Control for
Cricket in India, also suspect.
© MONITOR QUEST LTD. 2011
GUARDING THE GAME Preserving the Integrity of Sport
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