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Home / Sport / Football

Football: 'We have to strike while the iron is hot'

Dylan Cleaver
By Dylan Cleaver
Sports Editor at Large·NZ Herald·
29 May, 2015 05:00 PM6 mins to read

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Pressure is being brought to bear on Sepp Blatter, who is seeking a fifth term as Fifa president. Photo / AP

Pressure is being brought to bear on Sepp Blatter, who is seeking a fifth term as Fifa president. Photo / AP

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Onus on sponsors to force change, says man whose company pulled out of Fifa.

The chairman of the world's first official non-sponsor of Fifa was urging those corporates still contributing to Sepp Blatter's trough to launch an 11th hour bid to prevent his re-election.

Blatter was expected to be re-elected as Fifa president at congress last night in Switzerland, but Jaimie Fuller believes the small number of multinational corporations that sponsor Fifa still have the power to change the organisation for good, even if Blatter made it more difficult.

Prominent New Zealand sports lawyer Aaron Lloyd also believed the time was right to shine a light on the damage poor governance was doing to sport.

Fuller, chairman of sportswear giant Skins, said the astonishing thing about the arrests of nine senior Fifa officials and five connected media and promotions executives this week was that "it wasn't at all surprising".

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Skins became the first official non-sponsor of Fifa when it became aware that their corporate ideals ran counter to what they see as the graft and corruption within the world's largest sporting governing body. Fuller personally wrote to his equivalents at all the major companies sponsoring Fifa, reminding them that their stated policies did not marry with Fifa ethics.

"I mean, Visa is a financial services company. How can they have their name associated with fraud," Fuller said. "How can they possibly still support Fifa."

Visa put their heads above the parapet and issued a statement condemning Fifa, but stopped short of telling Blatter he must step down.

"Our disappointment and concern with Fifa in light of [Wednesday's] developments is profound. As a sponsor, we expect Fifa to take swift and immediate steps to address these issues within its organisation," a statement said. "This starts with rebuilding a culture with strong ethical practices. Should Fifa fail to do so, we have informed them that we will reassess our sponsorship."

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Fuller has labelled the awarding of the 2022 World Cup to Qatar as the "Hypocrisy World Cup" and believes if one sponsor goes, four or five others will follow. "It'll be bang-bang-bang-bang," he said. "The only one that will stay will probably be [Russian natural gas company] Gazprom."

He believes it has to happen now.

"We have to strike while the iron is hot. If Blatter [did get] re-elected I suspect there will a feeling of, 'Oh well, he's got away with it again'.

"There needs to be a cultural change. This [the arrests and controversy] is not an isolated incident. These are not a few rogue employees. This sort of behaviour is saturated throughout this organisation.

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"If we don't get rid of Blatter now, the only thing that will stop him is his arrest."

Fuller's interest in cleaning up Fifa was piqued further when he was "smuggled" into a labour camp in Qatar and saw the appalling conditions the most vulnerable workers from the poorest parts of Asia, mostly the subcontinent, were subjected to. He said Nepalese workers were denied the opportunity to return home in the wake of the country's recent devastating earthquake.

Fuller likened the conditions to indentured servitude and again wrote to Fifa's corporate sponsors to ask the CEOs and chairmen how they could effectively endorse such conditions, when in all cases they contradicted their own stated employment policies.

A study found that since 2010, more than 1200 migrant workers have died in Qatar under hazardous working conditions. The Guardian reported that more than 4000 are expected to die before the start of the 2022 World Cup. In comparison, 10 people died building Brazil's stadiums before last year's World Cup, and that was considered too many. One died in preparation for the London Olympics in 2012.

As global scorn continues to rain down on Fifa, New Zealand lawyer Lloyd believes this is the time to shine a light on global sports governance.

Lloyd, a partner with Minter Ellison Rudd Watts, says poorly run sports bodies are devaluing their product.

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"When you talk about boards and governance in a sports context, their paramount objective has to be to protect the value of that sport for your stakeholders," Lloyd said.

He said there was a correlation between a lack of integrity in boardrooms and on-field corruption in sport. When you get widespread corruption in sport that devalues the brand - the most obvious example being road cycling in the wake of the doping scandals.

The devil's advocate would respond that for all of Fifa's shenanigans, football's sporting primacy is unrivalled, while corruption scandals in the Olympic movement and Formula One, to name just two, haven't seemed to harm those organisations' ability to attract sponsors, broadcasters and revenue.

"That might be right now, but is it a sustainable model?" Lloyd asks. "Does corruption matter in the boardroom? You have to look at it in an almost puritanical or ethical sense. It must do."

Once integrity was undermined, whether it be on the field or in the halls around it, then the raison d'etre of sport is lost.

"There has to be genuine competition or there is no reason to buy season tickets or to bid for TV rights."

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To rid sports of corruption, significant "front- and back-end work" was required. "At the front-end we're talking governance and the management of elections for that governance," Lloyd said. "It's making sure conflicts of interest are properly managed. Good governance is the framework of integrity."

The "back-end" is the ability to investigate and to enable whistle-blowing. It is knowing how to blend internal investigations into criminal investigations. "Is it even possible to self-police? Good organisations should have internal investigative teams, but it needs to be in partnership with law enforcement."

Lloyd said the law eventually got to the heart of Fifa's corruption, proving the old adage that no one and no organisation is above it.

For more on the hypocrisy World Cup
http://www.skins.net/au/blog/hypocrisy-world-cup

Inside Fifa HQ: bunkers and secret codes

A former employee says you could be forgiven for thinking Fifa's headquarters were set up to protect corruption.

The employee, who was based in Europe and the Middle East from 2008-2012 and spoke to the Herald on condition of anonymity, was given an unauthorised tour of Fifa headquarters in Zurich, Switzerland.

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Although from the outside Fifa appears to be a relatively modest two-storey building, there are three storeys underground.

Fifa's executive committee, or Exco as it is known, meets in a bunker on the third of those underground levels.

"Honestly, it is like something out of Austin Powers. Once inside, a set of thick, titanium doors locks behind you that can only be opened by a secret code."

The employee was told that it was designed so that no electro-magnetic devices could work within its walls.

"They were obsessed with stopping leaks. I mentioned that it appeared that Exco was trying to hide something. The guide wasn't too impressed with that observation."

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