The document summarizes a presentation about issues with FIFA, the governing body of soccer. It outlines several problems FIFA faces, including widespread bribery scandals, lack of transparency in bidding processes, and centralized power among executives. FIFA has also faced criticism for health and safety issues related to Qatar being chosen as the 2022 World Cup host. The presentation recommends changes to FIFA's governance structure and bidding processes to increase transparency, accountability, and prioritize sustainability and human rights to regain public trust.
1. (Slide 1)Jesse-
How many of you have ever kicked a soccer ball?
There’s a story of a young boy in 1998, surrounded by friends and loved ones, out on the
porch in Mexico. His family wasn’t gracious enough to have television, but was still able to
experience the World Cup through radio communication. Though he may not be aware of
the magic behind the World Cup, he was still able to understand the excitement that the
World Cup brought to his people. Despite Mexico losing the game, there is one sound that
still rings in his ears, “Goalllllllaassoooooo”. And that boy is me.
My love for soccer isn’t solitary, it’s international.
O
(Slide 2)
*Play video* *Shake hands with cyrus and give him a 100$ note*
(Slide 3) Jaine
It’s not just the optics, the stats are clear. 3.6 Billion people watched the 2018 World Cup -
that’s half the world! And 211 countries are involved, which is more countries than the United
States recognizes.
(Slide 4) Aditi
It’s obvious that people around the world love soccer, they love the idea of the world cup. but
I wish I could tell you the same thing about the organization behind it. FIFA or as you may
know it *point to doniya*. Is the global governing body of soccer.
As of late, FIFA has faced 92 criminal lawsuits and 16 arrests of FIFA executives.
It’s a “non profit” organization with over a billion dollars in the rainy day fund, sketchy isn't it?.
And, on top of that, investigations show that it was bribed by Qatar to win the 2022 bid.
(Slide 5) Jesse
But why does it matter what they do? It matters because FIFA runs it’s organization based
on one thing, and one thing only- La confiance. For those of you who don’t speak French, it
means “trust”. How many of you saw the exchange that happened between Cyrus and I.
(If yes) Why didn’t you say something? Gave him a $100 bill.
(If no) Nobody? Gave him a $100 bill.
The same is true with FIFA, we see the money going in- from sponsors, from donations- We
don’t see what happens within their black box, all we see is the World Cup.
(Slide 6) Jaine
After delving deep into what we could find out about FIFA, we found 4 main problems.
Bribery, lack of process transparency, power centralized to a powerful few, and the
ignorance of global responsibility.
(Slide 7) Aditi
Fifa has had a long standing history of being corrupt. Their code of ethics is a joke. Their
ethics committee members are elected by the congress. It's like if me and Cyrus were best
friends and I took this class for a guaranteed A. As mentioned before, Qatar paid $880
million in bribes to FIFA to win the 2022 bid. But why was Qatar winning the bid so sketchy
in the first place?
(Slide 8)
Well, if you’re a soccer fan and you go to see the World Cup, you have certain expectations.
A nice weather, airport, transport, a reasonable currency exchange rate, nice sightseeing,
2. multi cultural environment, you get the gist. Now the question is, does Qatar hold up to these
standards. I hope you're taking notes, because the answer will blow you away. You ready for
this?
(Slide 9)
It depends. If your ideal weather conditions are a 110 degree fahrenheit, Qatar is perfect.
Sarcasm aside, Qatar winning the bid makes no sense! The Riyal is stronger than most
asian and middle eastern currencies. Hotels are also likely to burn a hole in your pocket. An
average of one worker dies per day, and women’s rights aren’t the best- conservative
clothing is a must if you don’t want to be a cultural outcast. The LGBTQ+ community is not
welcome in the country either. There is an obvious misalignment Jesse, how is it even
possible?
(Slide 9) Jesse
It’s possible because their system lacks transparency. It loops back to the black box. FIFA’s
culture is this- If nobody knows how things work in the first place, chances are, they’re not
going to question them. They wouldn’t know what to question in the first place. They don’t
justify reserves, what the bidding criteria is, or even how the evaluation is conducted. And
they profit off of it, that’s how they rationalize this *point to slide*
(Slide 10) Jaine
We dissected FIFA’s system of governance and found major pain points. First, power is
completely centralized to the congress and council with the president having the most pull.
While there are “independent” committees, they don’t have an actual say. They can only
make recommendations. When we looked closer, we found this has a lot to do with FIFA’s
motivators/drivers. A centralized government is going to be driven by strong executive
power. As was delved into earlier, bribes drive key executives to make decisions within the
“black box”. Reputation as well as stakeholders motivate executives to make certain
agreements. Committees, fans, sponsors, host countries, and officials enable congress and
council to put on events such as the World Cup. FIFA’s other major processes -
broadcasting rights (50% of current revenue) and fan experience (reason for popularity of
World Cup) - are being threatened along with FIFA’s reputation.
(Slide 11) Aditi
Most big companies have a corporate social responsibility, and so does FIFA. But it has
done little to nothing to follow through, given that it prioritizes fan experience over
sustainability (that’s a glitch sorry). Disturbingly often, millions of dollars worth of stadiums
are abandoned after only a couple uses.
(Slide 11) Jesse
Additionally, thanks to awful labor laws and working conditions, it is predicted that 4000
workers will lose their lives by 2022. The 2018 world cup cost a whopping 12 Billion dollars
by FIFA and Russia combined. FIFA walked away with the revenues, but revenue from
tourism wasn’t enough to earn back what Russia spent.
(Slide 12) (Slide 13) Popcorn
Jaine - But FIFA’s not a lost cause, our recommendations include minor changes in what
drives the system. If FIFA introduces sustainability as a motivator, by using multifunctional
3. stadiums, it would increase the average life of a stadium by minimum of 90% per year (very
low considering the average life is 6 events). Multi-functional stadiums are like those used in
the Olympics and CommonWealth games. Fifa could potentially partner up with the
International Olympic Committee and promote building stadiums that can be used for
multiple sports- not just soccer.
Aditi - By using clear, open bidding and election processes FIFA can focus on fan
experience - not the game experience, but the trust that people have in FIFA. Meaning
making the approval ratings of FIFA increase by 30%. This will be made possible by using
binary bidding codification. This means assigning a numeric value to every criteria,
establishing absolute transparency and standardization.
Jesse - FIFA has always envisioned soccer for all. This can be done by funding grassroots
programs in host countries - with financial reporting following guidelines of the IFRS. The
main pain point, as we mentioned earlier, is the centralized power. By involving fans as
stakeholders in the process, FIFA diffuses the power and creates checks and balances. This
enforces transparency, there is no longer a black box.
(Slide 14)
Jaine- The current culture of not having consequences incentivises bribery. We recommend
enforcing a zero tolerance policy against convicted officials and disbarring them from both
the congress and the council.
Aditi- By changing the president’s term limit from 12 years to 4 years, FIFA reduces the
probability of bribery. Isolating the congress and the council would further help with
increased accountability.
With our recommendations, all the stakeholders have separated power, they have a say. It
results in a 50% decrease in withdrawal of bids, 70% decrease in number of lawsuits. So
everyone’s on the same page. This results in a balanced ecosystem.
(Slide 15) Jesse
But why bother spending all this money on multi functional stadiums and give up power?
Because the most important currency for FIFA is trust, they are nothing without the trust of
the ecosystem. They need to earn back the trust of their fans, their stakeholders, host
countries to accomplish what they stand for- For the game. For the world.
4. Reference (for questions at the end)
Other possible capabilities:
● Binary codification of bidding and evaluation process
● Ability to change the term limit from 12 to 8 years (two 4 year terms)