S Strasbourg, 24 July 2014

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prepared by

13th Council of Europe

Conference of Ministers responsible for Sport Macolin/Magglingen, Switzerland 18 September 2014 Introductory paper on theme I: Risk of corruption in the governance of sport

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Synopsis As a very competitive activity and even a multi-million euro business, sport can be subject to corruption. The continuing scandals reinforce this. While the implementation of good governance principles is key, sports organisations, as well as governments which support them financially, need to follow a zero tolerance policy as outlined herein.

I. Introduction As a value-oriented organisation, the Council of Europe has stressed for decades that sport pre-supposes effort, commitment, personal empowerment, respect for opponents and rules, joy, solidarity and team spirit, among other things. Far beyond the visible activity itself, sport provides role modelling and a means of conveying these values to members of society, and to the youth in particular. In addition to its educational role, sport contributes to public health, social inclusion and is an increasingly important economic activity. Sport organisations which enjoy the right to freedom of association, are expected to provide numerous social benefits, in an autonomous way but with the support of states and within the framework of the applicable law. The two key Recommendations of the Committee of Ministers to member states on the revised Code of Sports Ethics (Recommendation CM/Rec(2010)9) and on the European Sports Charter (Recommendation No. R (92) 13 rev) reflect this approach. However, as in any other sector of society sport is not immune to corruption, on the contrary, as a very competitive activity it is exposed to specific risks, especially as nowadays parts of it have become a multi-million euro business while the structures are sometimes still those of an amateur club, with limited accountability requirements. With checks and balances, transparency and accountability lacking, many sport organisations are struggling with misuse of power and corruption. This is not a singular problem as due to the high media attention for sport any negative incident becoming public is a scandal which tarnishes the image of sport and shatters the trust in sports contribution to society. Good governance in sport is needed to hold up the values inherent to sport and to ensure sport organisations are taken seriously. The Council of Europe addressed the issue of Good governance in Sport at its 10

th Conference of European Ministers responsible for Sport (Budapest, 2004); published a European

survey on it and the Recommendation Rec(2005)8 of the Committee of Ministers to member states on the principles of good governance in sport. In 2009, the Enlarged Partial Agreement on Sport (EPAS) decided to keep its focus on the manipulation of sports competitions, with the more general issue of the fight against corruption in sport to one side, to be addressed at a later stage (see ref. no. 1)

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Since then, allegations and cases of corruption in sport have continued to surface making action more urgent. On 25 April 2012 the Parliamentary Assembly of the Council of Europe adopted a resolution on Good governance and ethics in sport (ref. nos. 3 & 13), based on a report mentioning recent scandals and decisions in the governance of international football. Other international organisations have addressed the issue of corruption in sport as well. The Declaration of the Fifth UNESCO International Conference of Ministers and Senior Officials responsible for Physical Education and Sport (MINEPS V, in Berlin) in its section on Integrity of Sport, addresses corruption in sport on an equal footing with doping and the manipulation of sports competitions. Similarly, issues of corruption in sport governance or in the bidding for or preparation of major sports events have been addressed by national governments and parliaments, e.g. in Switzerland (see for instance ref. no. 9) and the United Kingdom (see for instance ref. no. 11). Considering the European involvement in the international sports movement, the role of European states hosting events or headquarters of sport organisations, and the financial involvement of public authorities in sport, the EPAS Governing Board decided in June 2013 to make corruption in the governance of sport the main topic of the 13

th Council of

Europe Conference of Ministers responsible for Sport. II. Towards better governance in sport

The promotion and enforcement of the good governance principles is considered to be the key to preventing and addressing the issue of corruption in sport. Moreover, better governance is likely to more efficient, open and reliable sports organisations. Indeed, the governance of sports organisations needs to be transparent,

1 Refers to the number in the Bibliography for more information.

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accountable and responsive and to allow stakeholders a share in the strategic decision-making process. A system of checks and balances needs to be installed in all sports organisations to enable trust between all stakeholders. The Recommendation Rec(2005)8 on good governance in sport (ref. no. 2), specified effective policies and measures of good governance in sport, which include as a minimum requirement: - democratic structures for non-governmental sports organisations based on clear and regular electoral procedures open to the whole membership; - organisation and management of a professional standard, with an appropriate code of ethics and procedures for dealing with conflicts of interest; - accountability and transparency in decision-making and financial operations, including the open publication of duly audited yearly financial accounts; - fairness in dealing with membership, including gender equality and solidarity; Following the adoption of this recommendation, a number of notable initiatives have backed similar principles and further elaborated or operationalised them into indicators. In 2008, the IOC Basic Universal Principles of Good Governance (ref. no. 12), were approved by the XIIIth Congress, (Copenhagen, 2009) and referred to in the 2011 update of the Olympic Charter. Eventually, the principles of good governance were enacted in an explicit way in the 2013 update of the Code of Ethics: its article C1 mentions that The Basic Universal Principles of Good Governance of the Olympic and Sports Movement, in particular transparency, responsibility and accountability, must be respected by all Olympic constituents. Moreover, the quite detailed Basic Universal Principles of Good Governance of the Olympic and Sports Movement were set out as an Implementing Provision of the IOC Code of Ethics. However, so far, the IOC Code of Ethics is not self-executing in every international federation. Some sports organisations have adopted the IOC standards and started to review their governance or to consider statutory updates, whereas others are hesitant, either because they do not agree with IOCs policies or they feel insecure about what is expected from them. In parallel, the Council of the European Union, in the framework of the implementation of the Work Plan for Sport 2011-2014 (Resolution of the Council and of the Representatives of the Governments of the Member States, meeting within the Council, on a European Union Work Plan for Sport for 2011-2014), set up an Expert Group on Good governance which adopted a number of deliverables, including Principles for good governance in sport (ref. no. 8), which set a framework within which sports organisations should operate. In 2011, the European Commission supported a number of projects in the field of good governance in sport, within the framework of the preparatory actions in the field of sport (e.g. ref. nos. 13 & 4). The rationale underlying the EU principles is that there is a link between the autonomous self-regulation of the sports movement, and its compliance with good governance principles. The IOC process was possibly also influenced by this approach, since the Basic Universal Principles of Good Governance of the Olympic and Sports Movement were first elaborated in a seminar on the Autonomy of Olympic and Sport Movement, following the high profile case of MecaMedina and Majcen (C-519/04) in 2006 in which the Court of Justice of the European Union rejected a sports exception tailored for sports organisations and reinforced the legal uncertainty of the environment in which they operate (ref. no. 7). In addition, two recent specific football processes resulted in the improvement of policies and practices according to good governance principles. Following a number of allegations of corruption and of legislative interference, leading to the suspension of high level officials, the 2011 FIFA Congress, at the request of the FIFA President, ordered an independent Review on the Governance of FIFA (ref. no. 14), and subsequently set-up a temporary Independent Governance Committee (IGC). The IGC proposed a number of recommendations, some of which were adopted by the 2012 and 2013 Congresses of FIFA. There were reforms regarding the organisation of the disciplinary bodies and the function of the audit and compliance Committee, and ushering in the adoption of a code of ethics, the setting-up of a whistle-blower mechanism, etc. A number of recommendations of the IGC were not endorsed as such by the competent FIFA bodies, but were followed-up with other measures (e.g. transparency in the area of remunerations, external observers in the Executive Committee and revision of bidding processes) or were rejected (e.g. on term limits). The final report by IGC was released on 22 April 2014. While concluding his mandate, Prof. Mark Pieth, Chair of the IGC, strongly advised the FIFA stakeholders to continue focusing on the reform process and challenged the leadership to demonstrate that the organisations culture has changed. From a different background, UEFA went through a process of enhancing the financial transparency of its clubs over the same period. In order to safeguard the ethical management of clubs, it decided to introduce the principle of financial fair play. The idea behind the term is that professional clubs should not spend

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more than they earn, which would avoid overspending and bankruptcy. This set of rules goes hand in hand with enhanced mechanisms of financial overviewing, which should improve transparency of budgets and put financial management on a sound footing. UEFA also established a task force on good governance in autumn 2013. Over the last decade, the issue of good governance in sport has established itself as a top priority on the sports political agenda of sports organisations, NGOs (Transparency International, Play the Game), governments and intergovernmental organisations. Implementation, identification and exchange of good practices should be further supported and enforced.

III. The fight against corruption in the governance of sports organisations In addition to the promotion of good governance in sport, which is a long-term process involving cultural changes, sports organisations and governments need to recognise that corruption in sport damages not only the image of sport, its organisations and leaders, but also undermines the positive influence that sport has in spreading benefits to society. Therefore, acting to eliminate corruption in sport goes to the very heart of the Council of Europes mission, which includes the promotion of the Rule of Law and Democracy. At a more operational level, protecting sport against corruption not only makes sport more effective and its organisations more reliable partners, but sends an important message as well of the need to fight corruption in society. Governments granting large sums of money to sports organisations and events, both directly and indirectly, have a responsibility to their taxpayers that their money is well spent. To preserve the autonomy of sport and check that the funds are used for the purpose for which they were allocated is a challenge for governments. Obviously, both - autonomy and transparency are important; governments have to be careful that they audit how public money has been spent but also not to use good governance as an excuse to interfere in the decision-making of sports organisations. This brings up once again the Council of Europes mission for the rule of law and freedoms of association. Corruption in sport can take many forms. The most prominent one is match-fixing - EPAS focused on it over the last four years, developing the Draft Convention on the manipulation of sports competitions. Other examples are club owners requesting kickbacks for player transfers; companies and governments rigging bids for sports events or construction contracts. Indeed, any procurement and tendering process can be marred by illicit practices. Members of decision-making bodies of sports organisations can take bribes in exchange for promises to vote for a certain candidate. Doping tests can be falsified and its procedures thwarted. Appendix 1 provides examples of recent cases illustrating corrupt practices in sport. Risky processes should be identified, and the integrity of the decision-making process ensured, through appropriate preventative good governance measures. The threat of corruption in sport should be recognised. Sports organisations as well as governments should follow a zero tolerance policy for corrupt practices and co-operate at national and international level. The most effective fight against corruption may occur when the competent jurisdictions, as well as independent sports disciplinary bodies, are entrusted with investigating and sanctioning such practices. Private corruption in sports as well as in other areas - could be prosecuted ex officio and not only at the instigation of the aggrieved party, as very few cases are reported by aggrieved parties. Possible loopholes in the existing legislations and sports regulations should be identified and addressed. A special case of relevance for the prevention and the fight of corrupt practices in sport is the organisation of sports events. Law-abiding procedures are of importance to the public authorities, the public sector and the sports organisation concerned, from the bidding process to the running of the event. Such events are sometimes organised with high political priority and under time pressure due to a fixed deadline. They often involve ad hoc bodies and structures, whose statute and operating framework should be clearly defined. The United Nations Office on Drugs and Crime (UNODC), within the framework of its United Nations Convention against Corruption (UNCAC), has performed intergovernmental expert work and published a handbook called The United Nations Convention against Corruption: A Strategy for Safeguarding against Corruption in Major Public Events (ref. no. 17), which is relevant to sports events but covers a much broader range of events. This strategy uses the UNCAC as the underlying standards for building up transparency and accountability at major public events. It gathers good practice examples such as the adoption of specialised legislation to set up a governance framework and the identification or creation of specialised anti-corruption supervisory bodies. Anti-corruption standards and risk-reduction mechanisms should be included in the terms of reference for the organisation of major sports events, as well as the compliance with other international standards (e.g. on

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workers protection, spectator violence, match-fixing, etc.). Objective, transparent and competitive bidding processes will help prevent corruption when host cities or venues are chosen for sporting events. They are also essential in bids for major projects, such as building stadiums. Bids need to be run in a transparent way and monitored independently

2. National federations could ask for more accountability in their continental and

international structures. Athletes could be further engaged in decision-making. Other actors should have a role too. Sponsors can play their part by promoting ethics in sport as part of their corporate responsibility programmes. Civil society already holds sport organisations and governments accountable. The media also has the power to raise awareness about corruption in sport. With these changes to the rules of the game, the sector can regain its reputation for fair play. IV. Conclusion Much can be done to break the ties between sport and corruption. Measures required include supporting the setting up of a framework of awareness raising and education for leaders, members of boards, officials, athletes and other stakeholders. Moreover, there is a need to attend to and discuss with all interested parties the importance of developing enforceable and measurable ethical rules and effective anti-corruption practices. The case of international sports organisations requires increased co-ordination. Countries, which are bidding for or hosting international sports events, as well as those home to the headquarters of international sports organisations, are expected to play a leading role. Since most international sports organisations are located in Council of Europe member states, around 75% of the posts as president and secretary general in international sports federations are held by Europeans and many international sports events are taking place in European states, those countries bear a special responsibility. In international sport, sponsors have key responsibility in securing best practise and good governance. These stakeholders are able to exert the largest amount of influence and are also a group that stand to lose if something goes wrong. Transparency in decisions and policies is vital as well as the avoidance of conflict of interest and too close links between sport, politics, business and the media. Sports organisations should include anti-corruption measures in their constitutions and codes of conduct, and infringements should be followed by independent disciplinary procedures or other relevant enforcement action. Additionally, clear regulations and openness on player transfers will protect the employment market and reduce the risk of tax evasion. In the longer term, the implementation of such standards should become a requirement for sports organisations to engage in formal co-operation with international organisations (co-operation in terms of programmes, consultative status, etc.) and states (organisation of events, location of headquarters, agreements, etc.). Governmental and other public authorities, which are supporting sport at all levels, are entitled to set conditions to ensure that their subsidies are used for their intended purpose, and that the beneficiary organisations comply with standards for good governance. Within governmental authorities, as well as between the sports movement and public authorities, enhanced co-operation should be sought between anti-corruption and criminal law authorities. In this connection the work of the Council of Europes Group of States against Corruption (GRECO), notably its country monitoring reports can be a valuable source of inspiration

3. Information identified though monitoring mechanisms on the

implementation of anti-corruption standards could provide guidance for the development of co-operation between the sports movement and public authorities, with a view to the development of an environment safe from corruption, preserving the values, the image and the social benefits of sport.

Participants are invited to focus on the following issues:

How to ensure autonomy while taking responsibility for preventing and investigating breaches of sports ethics? To what extent should national governments be involved?

What kind of mechanisms could be set up for promoting, supporting, and monitoring good governance in sport? What form could it take?

How to improve further co-operation between member states and sports federations in order to improve good governance?

2 In this connection cf. Sponsorship and corruption: the German model, feature article in GRECOs Eleventh General Activitiy Report

(2010) - http://www.coe.int/t/dghl/monitoring/greco/documents/2011/Greco(2011)1_Act.Report2010_EN.pdf 3 These reports can be accessed at GRECOs Homepage www.coe.int/greco

http://www.coe.int/t/dghl/monitoring/greco/documents/2011/Greco(2011)1_Act.Report2010_EN.pdf

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Draft Resolution No. 1 Corruption in sport The Ministers responsible for Sport, meeting in Macolin/Magglingen, in Switzerland, for the 13

th Council of

Europe Conference on 18 September 2014: - Considering that the aim of the Council of Europe is to achieve greater unity between its members for the

purpose of safeguarding and realising the ideals and principles which are their common heritage, and of facilitating their economic and social progress;

- Recalling the Criminal Law Convention on Corruption (1999, ETS No. 173), the Civil Law Convention on Corruption (1999, ETS No 174) and the Additional Protocol to the Criminal Law Convention on Corruption (2003, CETS No 191);

- Having regard to its Recommendations (92) 13Rev on the European Sports Charter; (92)14Rev on the Code of Sports Ethics and Rec(2005)8 on the Principles of Good Governance in Sport;

- Recalling the 11th Conference of Ministers responsible for Sport in Athens in 2008, which identified corruption as a new challenge to sport; the conference was followed by the decision made on match-fixing, the new convention, and the decision to handle other types of corruption following the work on the Convention;

- Having noted the work and conclusions of the 12th Council of Europe Conference of Ministers responsible for Sport, held in Belgrade on 15 March 2012, in particular in the areas of match-fixing, corruption and illegal betting;

- Acknowledging that manipulation of sports competitions is a threat to sport which may involve corrupt practices;

- Acknowledging that as addressed by the Convention, there are other areas of sport activities that may be endangered by corrupt practices;

- Considering the Recommendation CM/Rec(2005)8 of the Committee of Ministers to member states on the principles of good governance in sport, which stresses their belief that the consistent application of the principles of good governance in sport would be a significant factor in helping to eradicate corruption and other malpractices in sport;

- Considering the Resolution 1875 (2012)1 of the Parliamentary Assembly on good governance and ethics in sport;

- Acknowledging that, as a general rule, the sports movement is responsible for sport but that public authorities co-operate with the sports movement, in order to promote the values and benefits of sport;

- Convinced that the successful implementation by sports organisations of effective good governance policies, including codes of ethics and respect for international standards, would help to strengthen their self-regulation in matters relating to sport and would further consolidate their position with respect to public authorities on the basis of mutual respect and trust;

- Acknowledging that improvement in the democratic processes is important relating to the conditions for acquiring and keeping the autonomy of sport;

- Convinced that financial transparency and robust accounting is necessary within sports organisations, in order to comply with their democratic structures and the support they receive from tax-payers;;

- Reaffirming that the nature of sport itself, based on fair-play and equal competition, requires that unethical practices and behaviours in sport be forcefully and effectively countered;

- Stressing their belief that the consistent application of the principles of good governance and ethics in sport would be a significant factor in helping to eradicate corruption, bribery, manipulation of sports results (match-fixing) and other malpractices in sport, and that such improvements would also make sports organisations more efficient in delivering their goals;

- Recalling the commitment by Ministers for Sport to comply with high ethical standards; On the Convention on manipulation of sports competitions

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[Urge states all over the world to sign and ratify it;

Recommend the Council of Europe to seek partnerships with international organisations and international NGOs to promote signature;]

Express appreciation for the strong involvement and support demonstrated by the sports movement and by the sports betting operators in the course of the preparation of this convention, and express the hope that the same level of support and involvement will be demonstrated for the setting-up and the implementation of the Convention;

On the issue of corruption in the governance of sport

4 Provided the Convention is open for signatures at the time of the conference.

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Express appreciation and support for the processes initiated by international sports organisations on the promotion of good governance in sport;

Invite the governments of states parties to the European Cultural Convention to check whether their national law allow them to fight effectively corruption in sport, and to support the implementation of good governance principles in sport, such as those mentioned in the Recommendation CM/Rec(2005)8 of the Committee of Ministers to member states, including through educational measures;

Urge both public authorities and sports organisations to commit themselves and to execute a zero tolerance policy regarding corruption in sport;

Commit themselves to dialogue and co-operation with their national sports movement to address these issues;

Invite International sports organisations to include good governance frameworks and preventative measures against corruption as well as the requirement of complying international standards in the terms of reference for host cities and countries bidding for or organising major sports events;

Invite EPAS to Draw the attention of GRECO and CDPC, as well as member states, to possible loopholes in the

existing anti-corruption laws and mechanisms with a view to rendering the prevention and fight against corrupt practices in sport more effective;

liaise with GRECO in connection with a possible review of the anti-corruption standards pertaining to good governance in sport at regional and international levels;

Seek co-operation with anti-corruption experts to support the implementation of the UNODC handbook through co-operation activities;

Offer its support to the possible organisation of an international conference on all forms of corruption in sport, involving governmental authorities and the sports movement;

Start work with ministries of sport on how government can audit subsidies without interfering unnecessarily with the autonomy of sport organisations;

Promote and support the development of a compliance system, to be developed at European level

between the sports movement, the governments and specialists, including templates such as ethical standards and guidelines for conflicts of interests and undue advantage;

Collect and disseminate information on the measures taken by states at national level to promote good governance and to fight corruption - in sport;

Set up a framework for discussion between governments and the sports movement on how to achieve more financially, socially and environmentally sustainable sporting events with a true legacy.

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APPENDIX I

Illustrative cases reported by media and Non-governmental Organisations

2014: Players contracts According to Deutsche Welle and Forbes,in February 2014 the Barcelona football club was formally accused of tax fraud in the move of Neymar da Silva Santos Jnior from Santos, Brazil to the Spanish football club. The President of the Barcelona Football Club, Sandro Rosell, resigned in January after a federal judge began legal proceedings to potentially indict him for embezzlement. An investigation revealed that the Barcelona club paid 95M, not the 57M publicly claimed, to sign Neymar. A large amount of the money allegedly went into hidden contracts that stipulated fees for Neymars father and the former Santos Football Club.

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2014: Corruption accusations in choice of 2022 World Cup host The Sunday Times alleges that Mohamed Ben Hamman, FIFA executive member for Qatar, made payments totalling 3 million to football officials to win the contest to host the 2022 World Cup. A few months earlier, in March, the Telegraph had reported another 720 000 payment from Bin Hamman to companies belonging to the then FIFA Vice-President, Jack Warner, and his family shortly after the selection of Qatar as a host country. The selection process was already marred by corruption evidence while it took place, and Qatar is not the only country that may have applied dubious methods to win the hosting rights.

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2009-2012: Suspected fraud in international federation Berliner Zeitung and Play the Game reported concerns over suspected lack of transparency by the president of the International Weightlifting Federation (IWF). In 2009concerns were raised over several million USD in money received from the IOC being unaccounted for, which the president would not give details on either to delegates of their electoral convention or to auditors. An internal audit showed that the allocation of at least 5 million USD was unclear. In 2011 several weightlifting officials formally complained to the IOC president of IWF lack of financial transparency. The IOC stated that they would not intervene in this debate. An appeal was made to the Court of Arbitration for Sports (CAS) in 2012. The CAS found that only matters in connection with the event of the Olympic Games could be brought before them. Consequently, the CAS confirmed the right of the IOC not to intervene in the case of internal governance issues in international federations.

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1989-2008: ISL-FIFA: Biggest known corruption scheme in sport According to several newspapers and a report by the Parliamentary Assembly of the Council of Europe, in 2008 it was established in the court of Zug (Switzerland) that the sports marketing giant, International Sport and Leisure (ISL/ISSM), paid officials from mainly FIFA, but also other sports federations, at least 87.5 million euros to obtain profitable broadcasting and marketing rights in the years 1989-2001. In a settlement with prosecutors in 2010, FIFA acknowledged that irregular payments had taken place. Two members of FIFAs Executive Committee, Ricardo Teixeira and Nicols Leoz, resigned, also from their posts as national and continental football presidents. Joo Havelange (FIFA President 1974-1998) stepped down as Honorary President and was pressured to lay down his IOC membership, and the IOC reprimanded the President of the African Football Confederation and FIFA ex Co-member, Issa Hayatou.

5. Deutsche Welle (24 Feb. 2014); Barcelona pay 13.5 million euros in Neymar tax fraud case; http://www.dw.de/barcelona-pay-135-

million-euros-in-neymar-tax-fraud-case/a-17454263; Forbes (23 Jan. 2014); FC Barcelona President Quits Over Neymar Corruption Scandal: Barca Paid $150M For Brazilian Star; http://www.forbes.com/sites/afontevecchia/2014/01/23/fc-barcelona-president-quits-over-neymar-corruption-scandal/. 6 Elks S and Burrows J (1 June 2014); Qatars World Cup bid faces corruption claims over 3M payments; The Sunday times:

http://www.thetimes.co.uk/tto/sport/football/article4105784.ece; Bryant B (21 March 2014); Qatar World Cup 2022: Fifa investigates corruption allegations; The Telegraph: http://www.telegraph.co.uk/sport/football/world-cup/10714893/Qatar-World-Cup-2022-Fifa-investigates-corruption-allegations.html. 7 Play the Game (2013); IWF president under suspicion of financial mismanagement; http://www.playthegame.org/news/detailed/iwf-

president-under-suspicion-of-financial-mismanagement-5603.html; Hartmann G (8 May 2013); IOC-Mitglied Tams Ajn ist verdchtig, den Gewichtheber-Weltverband um Millionen erleichtert zu haben; Berliner Zeitung; http://www.berliner-zeitung.de/sport/korruption-im-sport-in-der-waschanlage,10808794,22708764.html.

http://www.dw.de/barcelona-pay-135-million-euros-in-neymar-tax-fraud-case/a-17454263http://www.dw.de/barcelona-pay-135-million-euros-in-neymar-tax-fraud-case/a-17454263http://www.forbes.com/sites/afontevecchia/2014/01/23/fc-barcelona-president-quits-over-neymar-corruption-scandal/http://www.forbes.com/sites/afontevecchia/2014/01/23/fc-barcelona-president-quits-over-neymar-corruption-scandal/http://www.thetimes.co.uk/tto/sport/football/article4105784.ecehttp://www.telegraph.co.uk/sport/football/world-cup/10714893/Qatar-World-Cup-2022-Fifa-investigates-corruption-allegations.htmlhttp://www.telegraph.co.uk/sport/football/world-cup/10714893/Qatar-World-Cup-2022-Fifa-investigates-corruption-allegations.htmlhttp://www.playthegame.org/news/detailed/iwf-president-under-suspicion-of-financial-mismanagement-5603.htmlhttp://www.playthegame.org/news/detailed/iwf-president-under-suspicion-of-financial-mismanagement-5603.htmlhttp://www.berliner-zeitung.de/sport/korruption-im-sport-in-der-waschanlage,10808794,22708764.htmlhttp://www.berliner-zeitung.de/sport/korruption-im-sport-in-der-waschanlage,10808794,22708764.html

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The ISL scandal is the biggest known corruption scheme in sport, but most of the bribes are still not accounted for with regard to who the beneficiaries were. Questions also remain over the role of the FIFA President since 1998, Joseph S. Blatter, who has served leading positions in FIFA. Mr Blatter handed secret court papers to an independent body, according to Mail Online, and announced he would create 3 Task Forces and a Good governance Committee. The Parliamentary Assembly of the Council of Europe has in vain called FIFA to put forward all documents in its possession pertaining to the ISL/ISSM affair. In addition, the Assembly has had no positive response in its call to FIFA to open an internal investigation in order to determine whether, and to what extent, during the latest campaign for the office of President, the candidates, and particularly the elected candidate, exploited their institutional positions to obtain unfair advantages for themselves or for potential voters.

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2013: Alleged anti-doping manipulation The Guardian reported that in early 2014, newly-elected President of the Union Cycliste Internationale, Brian Cookson, nominated a commission to investigate allegations that the UCI and its former President, Hein Verbrggen, helped the former 7-fold Tour de France winner Lance Armstrong conceal a positive doping test from the 2001 Tour de Suisse. The commission consists of experts in international criminal investigations and will work with full independence, not receiving any instructions from the UCI.

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2011: Match-fixing and money laundering Kevin Carpenter in Law in Sport states that in November 2011 Mazah Majeeed, owner of the semi-professional football club Croyden Athletic, was sentenced to 2 years and 8 months prison for match-fixing in a cricket team. He has been quoted as saying that he bought the football club to launder money.

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From 1990s until 2009: Fraud in volleyball According to Play the Game, Mario Goijman, ex-FAV (Argentine Volleyball Federation) President, raised serious questions on vast personal commissions and various other questionable initiatives for personal benefit, accusing Rubn Acosta, International Volleyball Federation (FIVB) President, of fraud and falsification of the 2000/2001 annual accounts. The issue began with the organisation of the 2002 Volleyball World Championships, where the FIVB allegedly declined to pay the balance of the Common Fund to the Argentine Organising Committee. In November 2002 Mr Acosta suspended Mr Goijman from his functions at FIVB. In 2004 Acosta left his IOC seat, supposedly to avoid the publication of a critical report from the IOCs Ethics Committee. In 2006, a Lausanne court established that Acosta had falsified the FIVB annual accounts 2000-2001, but the judge found no criminal intent and Acosta was acquitted. Mr Acosta resigned his post as President before his term expired in 2008. Whereupon the new President, in 2009, tried to put an end to legal disputes with Mario Goijman and the FIVB agreed to cover part of the legal costs in Switzerland for Mr Goijman. However, the FIVB never accepted an approximately 800,000 USD debt owed to Mr Goijman after arranging the World Championships in 2002. In April 2009 in secret minutes from the Board of FIVB, it was recognised that over the past decade the former FIVB President (1984-2008), Rubn Acosta, had taken personal commissions worth at least several million USD.

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From 2006 until today: Conflicts of interest and lack of transparency in handball As reported by Der Spiegel and Teamhandball news, the President of the International Handball Federation (IHF) since 2000, Hassan Moustafa, received 602,000 Euros as a consultant to the German sport marketing company, Sportfive. At the same time, from 2006 to 2009, Moustafa sold the broadcasting rights

8. Independent (30 April 2013); Sepp Blatter faces calls to resign as FIFA president over handling of bribery scandal;

http://www.independent.co.uk/sport/football/news-and-comment/sepp-blatter-faces-calls-to-resign-as-fifa-president-over-handling-of-bribery-scandal-8596995.html; Mail Online (21 Oct. 2011); Blatter and FIFA agree to re-open ISL financial scandal as president announces reforms; http://www.dailymail.co.uk/sport/football/article-2051915/Sepp-Blatter-FIFA-agree-open-ISL-financial-scandal.html; Play the Game (13 March 2008); Swiss judge reveals sports largest corruption scandal ever in trial against partners; http://www.playthegame.org/news/detailed/swiss-judge-reveals-sports-largest-corruption-scandal-ever-in-trial-against-fifa-partners-1460.html; Rochebloine F (5 April 2012); Good governance and ethics in sport; PACE; Doc. 12889, p. 3; http://assembly.coe.int/nw/xml/XRef/Xref-DocDetails-EN.asp?fileid=18099&lang=EN&search=MTI4ODl8dHlwZV9zdHJfZW46UmVwb3J0. 9 The Guardian (8 January 2014); Brian Cookson's UCI anti-doping investigation to report by end of 2014;

http://www.theguardian.com/sport/2014/jan/08/brian-cookson-uci-doping-investigation. 10

. Carpenter K (21 Dec. 2011); Money Laundering in Football: Lessons for the Sport Industry; Law in sport; http://www.lawinsport.com/articles/anti-corruption/item/money-laundering-in-football-lessons-for-the-sports-industry. 11

. Andersen J.S. (14 March 2014); A scandal that never dies: dialogue is required to fully restore credibility and fairness in world volleyball; Play the Game; http://www.playthegame.org/fileadmin/documents/FAV-FIVB-summary_by_Play_the_Game-2014update.pdf.

http://www.independent.co.uk/sport/football/news-and-comment/sepp-blatter-faces-calls-to-resign-as-fifa-president-over-handling-of-bribery-scandal-8596995.html;%20Mail%20Online%20(21%20Oct.%202011);%20Blatter%20and%20FIFA%20agree%20to%20re-open%20ISL%20financial%20scandal%20as%20president%20announces%20reforms;%20http:/www.dailymail.co.uk/sport/football/article-2051915/Sepp-Blatter-FIFA-agree-open-ISL-financial-scandal.html;%20%20Play%20the%20Game%20(13http://www.independent.co.uk/sport/football/news-and-comment/sepp-blatter-faces-calls-to-resign-as-fifa-president-over-handling-of-bribery-scandal-8596995.html;%20Mail%20Online%20(21%20Oct.%202011);%20Blatter%20and%20FIFA%20agree%20to%20re-open%20ISL%20financial%20scandal%20as%20president%20announces%20reforms;%20http:/www.dailymail.co.uk/sport/football/article-2051915/Sepp-Blatter-FIFA-agree-open-ISL-financial-scandal.html;%20%20Play%20the%20Game%20(13http://www.independent.co.uk/sport/football/news-and-comment/sepp-blatter-faces-calls-to-resign-as-fifa-president-over-handling-of-bribery-scandal-8596995.html;%20Mail%20Online%20(21%20Oct.%202011);%20Blatter%20and%20FIFA%20agree%20to%20re-open%20ISL%20financial%20scandal%20as%20president%20announces%20reforms;%20http:/www.dailymail.co.uk/sport/football/article-2051915/Sepp-Blatter-FIFA-agree-open-ISL-financial-scandal.html;%20%20Play%20the%20Game%20(13http://www.independent.co.uk/sport/football/news-and-comment/sepp-blatter-faces-calls-to-resign-as-fifa-president-over-handling-of-bribery-scandal-8596995.html;%20Mail%20Online%20(21%20Oct.%202011);%20Blatter%20and%20FIFA%20agree%20to%20re-open%20ISL%20financial%20scandal%20as%20president%20announces%20reforms;%20http:/www.dailymail.co.uk/sport/football/article-2051915/Sepp-Blatter-FIFA-agree-open-ISL-financial-scandal.html;%20%20Play%20the%20Game%20(13http://www.playthegame.org/news/detailed/swiss-judge-reveals-sports-largest-corruption-scandal-ever-in-trial-against-fifa-partners-1460.htmlhttp://www.playthegame.org/news/detailed/swiss-judge-reveals-sports-largest-corruption-scandal-ever-in-trial-against-fifa-partners-1460.htmlhttp://assembly.coe.int/nw/xml/XRef/Xref-DocDetails-EN.asp?fileid=18099&lang=EN&search=MTI4ODl8dHlwZV9zdHJfZW46UmVwb3J0http://www.theguardian.com/sport/2014/jan/08/brian-cookson-uci-doping-investigationhttp://www.lawinsport.com/articles/anti-corruption/item/money-laundering-in-football-lessons-for-the-sports-industryhttp://www.playthegame.org/fileadmin/documents/FAV-FIVB-summary_by_Play_the_Game-2014update.pdf

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to the Handball World Championships to Sportfive. The matter is currently being investigated by German and Swiss legal authorities. Shortly after his re-election in 2009, Hassan Moustafa instructed the IHF Council to change his position from an elected official receiving 30,000 CHF to full-time President receiving 500,000 CHF (1,600% increase), while at the same meeting the Council members received an average 500% raise of their remuneration.

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Ahl C (2013); The Despotic Regime of the IHF Just Continues; Play the Game; http://www.spiegel.de/spiegel/print/d-68785468.html http://www.playthegame.org/fileadmin/image/PtG2013/Presentations/30_October_Wednesday/Christer_Ahl_Play_the_Game_2013.pdf; Von Wulzinger M. (25 Jan. 2010); 602 000 euros fur den Pharao; Der Spiegel; http://www.spiegel.de/spiegel/print/d-68785468.html; Ahl C (12 Nov. 2011); IHF/Sportfive/UFA: will the evidence be found?; Teamhandballnews.com; http://teamhandballnews.com/wordpress/2011/11/ihfsportfiveufa-will-the-evidence-be-found/.

http://www.spiegel.de/spiegel/print/d-68785468.htmlhttp://www.playthegame.org/fileadmin/image/PtG2013/Presentations/30_October_Wednesday/Christer_Ahl_Play_the_Game_2013.pdfhttp://www.spiegel.de/spiegel/print/d-68785468.htmlhttp://teamhandballnews.com/wordpress/2011/11/ihfsportfiveufa-will-the-evidence-be-found/

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APPENDIX II Bibliography Adopted Texts 1. Recommendation CM/Rec(2011)10 of the Committee of Ministers to member states on promotion of the

integrity of sport against manipulation of results, notably match fixing In this Recommendation the Committee of Ministers acknowledges the pressures on sport while insisting that fair play and ethical practices need to be enforced. It calls for the prevention of manipulating sports results. 2. Recommendation CM/Rec(2005)8 of the Committee of Ministers to member states on the principles of

good governance in sport This Recommendation asks member states to adopt policies and measures of good governance, defines the minimum requirements and states that this applies to governments as well as non-governmental sectors of sport. 3. Resolution 1875 (2012)1 on good governance and ethics in sport of the Parliamentary Assembly of the

Council of Europe The Resolution takes note of the rising financial pressures on sport and the criminal consequences which follow, of the growing discrepancy in competitors resources and the opacity in decision-making. It recommends that governing bodies strengthen financial fair play, improve governance mechanisms and take note of the Guidelines appended to the Resolution. Reports and handbooks 4. Alm J. (ed.) (2013), Action for Good Governance in International Sports organisations, final report,

Danish Institute for Sports Studies/Play the Game, Copenhagen. As part of the European Commissions call for preparatory actions in sport, Play the Game conducted a project on good governance in international sports organisations. The result is a new measuring tool for governance in sport called The Sports Governance Observer. 5. Andersen J. S. (2012), Playing by the rules: financial fair play and the fight against corruption in sport, at

a public hearing organised by the European Parliament, Play the Game. In this speech, Mr Andersen focuses on good governance and the role of the European Union in getting sport back on a democratic track. He gave examples of how corruption is prevalent in international sports federations. He offers six actions that can be taken without compromising the autonomy of sport. 6. Bures R. (2008), Why Sport is not Immune to Corruption, EPAS (2008) INF10rev., Council of Europe,

Strasbourg.

After offering several examples of corruption, the author states that corruption occurs in many aspects of sport and should not be neglected nor defined in limited terms. Sport provides many opportunities for corruption, attracts organised crime, is difficult to prosecute, occurs in amateur as well as professional sport, is difficult to accept as not seen as dirty and is difficult to reveal due to the closed nature of its clubs/federations. 7. Chappelet J-L. and Mrkonjic M. (2013), Basic Indicators for Better Governance in International Sport

(BIBGIS): An assessment tool for international sport governing bodies, IDHEAP Working Paper 1/2013, Switzerland.

As there already exists quite a number of sets of principles of good governance, this paper focuses on indicators of measurement for better governance. From the analysis done, a tool was developed to assess and measure the state of governance of international sport governing bodies: the Basic Indicators for Better Governance in International Sport (BIBGIS).

https://wcd.coe.int/ViewDoc.jsp?id=1840345&Site=CM&BackColorInternet=C3C3C3&BackColorIntranet=EDB021&BackColorLogged=F5D383https://wcd.coe.int/ViewDoc.jsp?id=850189&Site=CM&BackColorInternet=C3C3C3&BackColorIntranet=EDB021&BackColorLogged=F5D383http://assembly.coe.int/nw/xml/XRef/X2H-Xref-ViewPDF.asp?FileID=18258&lang=enhttp://www.playthegame.org/fileadmin/documents/Good_governance_reports/AGGIS_Final_report.pdfhttp://www.europarl.europa.eu/document/activities/cont/201212/20121219ATT58351/20121219ATT58351EN.pdfhttp://www.coe.int/t/dg4/epas/Source/Ressources/EPAS_INFO_Bures_en.pdfhttp://www.idheap.ch/idheap.nsf/view/D6156F1EF87ACB07C1257B3900538D87/$File/IDHEAP%20Working%20Paper%201-2013.pdfhttp://www.idheap.ch/idheap.nsf/view/D6156F1EF87ACB07C1257B3900538D87/$File/IDHEAP%20Working%20Paper%201-2013.pdf

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8. EU Expert Group Good Governance (2013), Deliverable 2: Principles of good governance in sport, EU Work Plan for Sport 2011-2014, European Union.

As part of the work of the EU Expert Group on Good Governance, good governance principles were decided upon. They are based on 10 main principles which are accompanied by detailed practical guidance in this report. The main purpose of the principles is to serve as guidance providing minimum standards that can inspire sports bodies at all levels in the implementation of good governance across different disciplines and countries. The results of EU-funded field projects on good governance were used to complement the list of principles by providing evidence-based data and identifying examples of good practices. 9. Federal Council Switzerland (2012), Lutte contre la corruption et les matchs truqus dans le sport,

report in response to postulate 11.3754 filed June 28, 2011 by the Commission of Science, Education and Culture of the Council of States.

The Federal Council was mandated to report on what measures existed nationally and internationally to fight against corruption and match-fixing, to verify if existing legislation was sufficient or if improved means were necessary. The report covers corruption in international sports federations and manipulation of sport competitions. Recent developments are described and a legal analysis made of the situation. Available legislation on fighting corruption and match-fixing is reviewed. 10. Geeraert a., Alm J. and Groll M., in International Journal of Sport Policy and Politics (2013), Good

governance in international sport organizations: an analysis of the 35 Olympic sport governing bodies, International Journal of Sport Policy and Politics

The article sums up the result of the test survey into the governance standards of 35 Olympic sport governing bodies 11. House of Commons, Culture, Media and Sport Committee, 2018 World Cup Bid, Sixth Report of

Session 201012; The report analyses FIFAs Role during the Bidding Process as well as the English bid. 12. International Olympic Committee (2008), Basic Universal Principles of Good Governance of the Olympic

and Sports Movement, seminar on Autonomy of Olympic and Sport Movement, IOC, . Seven basic universal principles are highlighted, with their sub-themes and elements to be considered. 13. International Sport and Culture Association (ISCA) and Transparency International Germany (2013),

Guidelines for Good Governance in Grassroots Sport, ISCA, Copenhagen. Using the EU principles of good governance (democracy, accountability, transparency and inclusion of stakeholders), this document reviews the elements included in the 4 basic principles. It ends with a tool for sports leaders and organisations to help them understand their role and adhere to the principles. 14. Pieth M. (2011), Governing FIFA: concept paper and report, Universitt Basel, Basel. The large increase in funds received by sports governing bodies such as FIFA have changed their role, their traditional structure is not adapted to the new role. There has been some gradual reform, but more is needed. The report assesses FIFA as a commercial entity, as a quasi-public body and looks at its compliance with anti-corruption practices and its relation with its members, recommendations are made and the creation of a Task Force suggested. 15. Rochebloine F. (2012), Rapporteur, Good governance and ethics in sport; report by the Committee on

Culture, science, Education and Media; Doc. 12889, Council of Europe Parliamentary Assembly.

This report contains the draft resolution of the Parliamentary Assembly on good governance and ethics in sport as well as the explanatory memorandum by the Rapporteur. The memorandum explains why good governance is necessary and investigates the associated problems; it goes on to cover financial fair play and protection of young migrant sportspeople and finishes with suggestions for improvement. 16. Transparency International Swiss (2013), Corruption dans le Sport Dossier, Trasparency International

Suisse, Berne.

http://ec.europa.eu/sport/news/2013/20131017-principles-good-governance_en.htmhttp://www.baspo.admin.ch/internet/baspo/fr/home/aktuell/bundesrat_genehmigt_korruptionsbericht.parsys.83108.downloadList.89797.DownloadFile.tmp/28530.pdfhttp://dx.doi.org/10.1080/19406940.2013.825874http://dx.doi.org/10.1080/19406940.2013.825874http://www.publications.parliament.uk/pa/cm201012/cmselect/cmcumeds/1031/1031.pdfhttp://www.olympic.org/Documents/Conferences_Forums_and_Events/2008_seminar_autonomy/Basic_Universal_Principles_of_Good_Governance.pdfhttp://www.olympic.org/Documents/Conferences_Forums_and_Events/2008_seminar_autonomy/Basic_Universal_Principles_of_Good_Governance.pdfhttp://www.isca-web.org/files/GGGS_WEB/Files/Guidelines_for_Good_Governance_in_Grassroots_Sport.pdfhttp://www.baselgovernance.org/fileadmin/FIFA/governing_fifa_mark_pieth.pdfhttp://assembly.coe.int/nw/xml/XRef/X2H-Xref-ViewPDF.asp?FileID=18099&lang=enhttp://www.transparency.ch/fr/PDF_files/Dossiers/Dossier_Sport_fr.pdf

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This report presents the legal and legislative situation in Switzerland as concerns corruption in sport. It also offers practical suggestions on prevention and awareness-raising for sports clubs and federations. 17. United Nations Organization on Crime and Drugs (2013), The United Nations Convention against

Corruption: A Strategy for Safeguarding against Corruption in Major Public Events, UN, New York. The United Nations Office on Drugs and Crime (UNODC), guided by the principles in the United Nations Convention against Corruption, has developed this handbook featuring a set of practical measures designed to counter the threat of corruption.

http://www.unodc.org/documents/corruption/Publications/2013/13-84527_Ebook.pdf