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Time to Cure FIFA’s Chronic Bad Governance Disease

 After Tuesday’s dismissal of Michael Garcia’s complaint against the now infamous Eckert statement synthetizing (misleadingly in his eyes) his Report on the bidding process for the World Cup 2018 and 2022, Garcia finally decided to resign from his position as FIFA Ethics Committee member. On his way out, he noted: “No independent governance committee, investigator, or arbitration panel can change the culture of an organization”. It took Garcia a while to understand this, although others faced similar disappointments before. One needs only to remember the forgotten reform proposals of the Independent Governance Committee led by Prof. Dr. Mark Pieth.

FIFA is the world’s government of football. It decides who should get to organize the World Cup every four years, but it also imposes the rules applying to international transfers of football players and redistributes a massive amount of money to the various layers of the football pyramid. Those are no mundane tasks. But, despite its relentless display of an entrenched culture of bad governance and corruption, the timidity of public authorities in confronting FIFA is striking. In fact, opacity and a dramatic lack of accountability characterize FIFA’s decision-making processes.

 

FIFA’s Opacity Culture

Transparency is one of the key requirements of “good governance”. Transparency implies that the public sphere can scrutinize the acts of government and criticize them in full knowledge of their contents. To the contrary, FIFA’s daily governmental work is marred in opacity. Disciplinary decisions, as the one handed out on Tuesday, are never released in full. Thus, it disables any critical checks on the way justice is rendered by FIFA’s disciplinary bodies. The two Garcia reports, the first on the ISL Corruption scandal and the second on the World Cup 2018 and 2022 bids were not publically released (Michael Garcia did not complain over the non-publication of his first report). In an ironical twist, FIFA regulations bar FIFA from releasing these reports supposed to restore credibility of FIFA in the eyes of the world. Hence, FIFA publically trumpets investigations into the most controversial and sensitive issues, while knowing that the findings will be buried forever. But beyond the Garcia reports, opacity is a pervasive feature of FIFA’s governance. For example, the two academic studies ordered by FIFA on the legality and desirability of third-party ownership were similarly kept in a drawer, despite the fact that they are to serve as a basis for upcoming legislation on the matter. In this way, FIFA is able to keep the public debate at bay. Maintaining the public uninformed on the substance of legislative or judicial decisions is the surest way to avoid any controversies and to distance the world government of football from its “citizens”. 

 

FIFA’s Accountability Deficit

Accountability is another keyword for anybody interested in Good Governance standards. In short, it implies that a decision-maker can be held responsible in front of a forum (legal or political) for the decisions she (or most likely he in the case of FIFA) is taking. FIFA has a huge accountability deficit for two reasons: internally no strong accountability mechanisms have been put in place; externally no societal accountability is imposed. Internally FIFA has been at pain to paint the emergence of its “independent” Ethics Committee as a revolution. However, the Garcia Report saga was prompt to display it as a farce. The Ethics Committee’s investigation as such seems to have been fundamentally flawed, suffice here to recall that the Russian Federation got away with a simple “computers destroyed”. If the Ethics Committee is incapable of inquiring seriously into those matters, it should simply be discarded as an instance of whitewashing. Moreover, despite Blatter being a finalist for this year’s edition of the world’s most hated human being, he will most likely be re-elected by FIFA’s member (the leaders of the national associations) at the upcoming congress in May 2015. Indeed, FIFA’s members are accountable to nobody as FIFA shields them from any national legal or political challenges on the pretext of protecting the autonomy of football.

As pointed out by Garcia, FIFA is incapable of reforming itself and until now it has been immune to the pressure of public outrage. All the expertise of the world would be incapable of changing this state of affairs, unless it is matched with hard legal constraints. This pressure has to come from the states, the first among those being the Swiss state. The Swiss public authorities have the duty to use all legal tools available (especially criminal law) to clean up this Swiss association seated in Zurich, they should collaborate with Europol, Interpol and the FBI in doing so (the new anti-corruption laws are a first step in that direction). In the end, the Swiss state is the sole capable of putting an end to FIFA’s corrupt politics. Would this be an inadmissible intrusion in the autonomy of sport? Even the IOC acknowledged, in the background paper to the Agenda 2020 recommendation, “autonomy has to be earned” and must be exercised “responsibly and in accordance with the basic standards of good governance”. There is no way FIFA can be seen as complying to any good governance standards. The time to clean-up FIFA has come.

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Asser International Sports Law Blog | International and European Sports Law – Monthly Report – August and September 2019 - By Thomas Terraz

Asser International Sports Law Blog

Our International Sports Law Diary
The Asser International Sports Law Centre is part of the T.M.C. Asser Instituut

International and European Sports Law – Monthly Report – August and September 2019 - By Thomas Terraz

Editor's note: This report compiles all relevant news, events and materials on International and European Sports Law based on the daily coverage provided on our twitter feed @Sportslaw_asser. You are invited to complete this survey via the comments section below, feel free to add links to important cases, documents and articles we might have overlooked.

 

The Headlines

Another Russian Doping Crisis? Inconsistencies Uncovered in the Data from the Moscow Lab

Storm clouds are brewing once more in the Russian Doping Saga, after several inconsistencies were uncovered by WADA from data retrieved from the Moscow Laboratory. More specifically, a certain number of positive tests had been removed from the data WADA retrieved from the Moscow Laboratory compared to the one received from the original whistleblower. WADA launched a formal compliance procedure on 23 September, giving three weeks for Russian authorities to respond and provide their explanations. WADA’s Compliance Review Committee is set to meet on 23 October in order to determine whether to recommend declaring Russia non-compliant.

Russian authorities are not the only ones now facing questions in light of these new revelations. Criticism of WADA’s decision to declare Russia compliant back in September 2018 have been reignited by stakeholders. That original decision had been vehemently criticized (see also Edwin Moses’ response), particularly by athlete representative groups.

The fallout of these data discrepancies may be far reaching if Russian authorities are unable to provide a satisfying response. There are already whispers of another impending Olympic Games ban and the possibility of a ban extending to other sports signed to the WADA Code. In the meantime, the IAAF has already confirmed that the Russian Athletes would compete as ‘authorised neutral athletes’ at the World Athletics Championship in Doha, Qatar.

Legal Challenges Ahead to Changes to the FIFA Football Transfer Market

FIFA is set to make amendments to its player transfer market that take aim at setting new boundaries for football agents. These changes will prohibit individuals from representing both the buying and selling club in the same transaction and set new limits on agent commissions (3 percent for the buying club and player representative and 10 percent for the selling team). FIFA is already in the process of creating a central clearinghouse through which all transfer payments would have to pass through, including agent commissions. FIFA will be making a final decision on these proposed changes at the FIFA Council meeting on 24 October.

If these proposed changes are confirmed, they will almost certainly be challenged in court. The British trade organization representing football agents, Association of Football Agents, has already begun its preparations for a costly legal battle by sending a plea to its members for donations. It claims that it had not been properly consulted by FIFA before this decision had been made. On the other hand, FIFA claims that ‘there has been a consultation process with a representative group of agents’ and that FIFA kept ‘an open dialogue with agents’. Regardless, if these proposed changes go through, FIFA will be on course to a looming legal showdown.

CAS Public Hearing in the Sun Yang Case: One Step Forward for Transparency?

On 20 August, 2019, the Court of Arbitration for Sport (CAS) announced that the hearing in the appeal procedure of the Sun Yang case will be held publicly. It will be only the second time in its history that a public hearing has been held (the last one being in 1999, Michelle Smith De Bruin v. FINA). WADA has appealed the original decision of the FINA Doping Panel which had cleared Sun Yang from an alleged anti-doping rule violation. The decision to make the hearing public was at the request of both parties. The hearing is set to take place November 15th and is likely to be an important milestone in improving the CAS’ transparency.

Sun Yang, who has already served a doping ban for a previous violation in 2014, has also been at the center of another controversy, where Mack Horton, an Australian swimmer, refused to shake hands and stand on the podium with Sun Yang at the world championships in Gwangju.

 

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