By Andrew Warshaw
September 16 – The saga of World Cup broadcast rights sold to the Caribbean for the 2010 and 2014 tournaments has taken another twist with FIFA saying it never received its share of any of the TV or ad sales revenue it was due under the agreement.
A Swiss television programme last week alleged that in 2005 FIFA president Sepp Blatter personally signed off the rights to the Caribbean Football Union (CFU) at the request of disgraced former CONCACAF president Jack Warner (pictured) for $250,000 and $350,000 respectively. They were sold below market value, but with a clause in the contract that allowed FIFA to participate in 50% of all revenue generated from the on-sale of those rights.
Warner transferred the rights to a company he controlled and then resold them for considerably more than he paid – though there is some uncertainty about the exact figures and how the rights might have been parceled out in this sales process.
Warner is one of those named in the US indictment for alleged widespread money laundering and racketeering and his extradition is being sought from his native Trinidad. Blatter has not been cited for any wrongdoing but is stepping down on February 26 partly as a result of the ongoing probe.
The SRF programme published a contract signed by Blatter showing the rights were sold to the Caribbean Football Union controlled at the time by Warner. According to Reuters, FIFA did not receive any of the revenue it was due, citing a 2011 termination letter sent to the CFU by FIFA Secretary General Jerome Valcke and Marketing Director Thierry Weil.
The letter said FIFA had expected to receive 50% of all revenue from the sale of broadcast sponsorship and TV commercials. “To date, FIFA has not received any payments,” the letter reportedly stated.
Swiss authorities said on Monday they planned to add the episode to their investigation of the 2018 and 2022 World Cup bid process while Caribbean Football Union General Secretary Neil Cochrane said in a statement that the group’s current executive committee had no knowledge of previous contracts signed by Warner.
FIFA issued a statement saying the CFU had failed to meet its financial obligations.
“On 12 September 2005, FIFA signed a contract with the Caribbean Football Union regarding TV broadcasting rights. Under the terms of this agreement FIFA was to receive a fixed licensing fee as well as a 50% share of any profits related to the subcontracting of these rights,” the statement said.
“The CFU made several breaches to the contract and failed to meet its financial obligations. The obligations concerning the required pre-approval for subcontracting were not met either. For these reasons, FIFA terminated its contract with the CFU on 25 July 2011.”
In the past Warner has claimed he received World Cup media rights for nominal fees in exchange for helping Blatter stay in power, an allegation FIFA forcefully rejects.
Meanwhile, reacting to warnings from the attorneys-general of the both the United States and Switzerland that further action might lie ahead in their separate investigations into the conduct of football officials, FIFA issued a short statement saying merely it was pressing ahead with reforms.
“FIFA is cooperating with the authorities and will not comment on ongoing investigations. We are dedicated to improving the organisation, and will continue to strengthen FIFA’s governance and accountability.
“Our work in this area continues to evolve, and we are focused on achieving the highest standards for the international football community.”
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