FIFA's former marketing partners set for fraud trial
BERNE, Switzerland: A high-profile fraud trial starting on Tuesday is set to shed light on the allegedly murky dealings that led to the spectacular collapse of FIFA's former marketing partner ISL.
Six former executives of the defunct firm are facing charges ranging from embezzlement to the falsification of documents.
ISL managed FIFA's marketing and television rights for more than 20 years, before its collapse in May 2001 with estimated debts of around $300 million.
Former partners also included the International Olympic Committee and the ATP tennis tour, with which ISL signed a $1.2 billion marketing deal in 1999 that was supposed to last for 10 years.
ISL's collapse forced the ATP to lay off staff and slash its 2002 budget by more than 12 percent.
The aftershock at FIFA was even more dramatic with 11 members of the body's executive committee filing a criminal complaint of financial mismanagement against their president Sepp Blatter.
The complaint was thrown out by public prosecutors in December 2002 who said the action was "bordering on false representation" and noted that the 11 men had themselves collectively approved of Blatter's business decisions.
Having successfully navigated two presidential elections since the ISL collapse and repaired the hole in FIFA's finances, Blatter has insisted his organization will not be affected by the latest proceedings.
"We have nothing to fear," Blatter told reporters following last weekend's meeting of the International Football Association Board in Scotland.
Agencies
(China Daily 03/12/2008 page23)
