Posts Tagged ‘early warning system’

A Farce, A Suicide and What This All Means

Wednesday, June 1st, 2011

We have witnessed a farce, a piece of theatre, a comic soap opera, without intelligence, without morality from an organization without credibility.

Now according to FIFA and its President Sepp Blatter, we are supposed to believe that there is no crisis at FIFA. This despite 10 of the 24 FIFA Executive Committee, who made the world’s biggest sporting business decision giving the World Cup tournament to Qatar and Russia, being linked to corruption. This despite their presidential election crumbling into a coronation on allegations of corruption and envelopes stuffed with cash for votes. Hmmm, if this is not a crisis, it makes you wonder what FIFA would consider a crisis.

It is difficult to keep a straight face to all this nonsense. I suggest we do not. What is coming out of FIFA now is beyond scorn, it is beyond righteous anger, it is simply beyond any credibility. All press conferences. All FIFA outside communication should be laughed at. Comedy is the one thing that pompous bureaucrats care about – fans, if they care about the game, should also write to FIFA’s corporate sponsors and tell them they will drink Pepsi, use Mastercard/Puma and drive non-Korean cars, until those companies stop supporting the farce.

Here is the problem. While all this goes on, the international sporting world is facing a much larger challenge. It is a challenge that no one has spoken about in a serious way. It is the problem of match-fixing because of the globalization of the gambling market. This morning, amidst the charade of the FIFA conference, the story emerged of a young Korean player who committed suicide because of match-fixing.

I was interviewed last year by Korean journalists when their lower leagues were shown to be infested with fixers. They were, as usual, puzzled by it happening in the lower division, but they were certain that no one else was involved. No native-born Korean, they declared, would ever be so unethical as to sell a match for profit. I tried to tell them that I hear this nonsense all the time, from Germans, from Finns, from Belgians, from all different nationalities around the world. The simple and sad truth is that if you underpay and exploit players anywhere in the world, they will generally all do the same things, regardless of their nationality or ethnicity.

Then came news of more suspected fixing in the Italian leagues. A former captain of Lazio has been arrested under suspicion of arranging matches. Where were the alleged fixers placing their bets? On the Asian gambling markets – and no ‘early-warning system’ had picked up on it. (Sometimes, it can be depressing to be right all the time about a particular subject. I have been saying for years that early warning systems of the gambling markets will not work. I am right about this subject because no gambling company or sporting association pays me to pretend that everything is alright, when it clearly is not).

So the situation is that we have fixing stories following the same general pattern in two different countries, in two different leagues, thousands of miles apart. They are typical of many different football leagues and sports around the world. This is the real challenge facing international sport, it will destroy the current sporting world if nothing is done about it. And no one in Zurich or anyone connected with FIFA is dealing with it in a serious way. This is the tragedy within the farce at FIFA.

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Quotes for journalists about FIFA’s seminar on Match-fixing held March 25

Friday, March 25th, 2011

FIFA Early Warning System Congress and Seminar
25 March 2011  - 26 March 2011  
Zurich, Switzerland

A good start, but almost totally useless.

Why?

Some of the people, but by no means everyone, in FIFA and the sports world, are corrupt. They know it. We know it. They know, we know it. Therefore, right from the beginning there is a credibility issue.

Two, most of the people actually giving speeches about fighting crime in sports know very little about crime and criminals. There is now a host of ‘consultants’ and ‘experts’ in sports corruption. They know little.

Three, the most interesting people are from the private company that FIFA leaders founded ‘the Early Warning System’. For the most part, their executives are deeply honest and refreshingly forthright about the problems they face in monitoring gambling markets for corruption.

Their essential problem is that they are trying to figure out corruption in football matches just from watching the changes in the odds in the betting market. This like trying to spot insider trading from reading the stock market listings in the newspaper. You can get certain information (a stock moves sharply up or down), but it does not necessarily mean corruption.

They also have difficultly getting complete and accurate information from the Asian gambling markets, where most fixers place their bets even when fixing matches in other parts of the world.

They also have difficultly getting bookmakers to share who is placing the bets. This is key to really understanding whether there is corruption going on.

Fixers are also intelligent. They spend a lot of time hiding their bets – just fixing the underdog team means that there will be no unexpected movement in the bets. The EWS guys – or any other gambling monitoring – cannot detect these types of fixes, unless the fixers make a series of errors (which they usually do not).

Finally, and this is key to understanding the entire FIFA seminar, even if the EWS spots a possible corrupt match – so what? FIFA has no investigators to investigate it. Interpol has no investigators to investigate it. The sports world in general has no investigators to investigate it. No matter what dramatic headlines declare, no matter what ‘consultants’ tell you, no matter what sports executives say in solemn tones at these types of seminars – until there is an International Agency to fight sports corruption these events will be for show only.

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It’s a Game that They Are Playing

Tuesday, July 13th, 2010

It is not football. It is the game of deliberate diplomatic deniability. The game is all about making truthful statements that do not ruffle any official feathers. Here is how it is played. Examine this section of FIFA’s statement on the allegations about Nigerian match-fixing in the World Cup.

“FIFA and the Early Warning System (EWS) have a network of informants from which we receive information. Of course, as you may understand, we will not disclose the identity of the informants. What we can say is that at least until today no information provided by the informants to FIFA in relation to any potential match-fixing activities during the 2010 FIFA World Cup have proved to have any substance. Furthermore, we can also say that there is no indication whatsoever until today of any match-fixing situations during any of the matches of the 2010 FIFA World Cup.”

The key to understanding the game are the phrases ‘no indication’ and ‘no information’. What FIFA has actually done is create a laughable system of anti-corruption. Its Early Warning System is a joke. It produces no information and few of their ‘informants’ actually know what they are talking about. Then when these ‘informants’ do not tell them anything substantial, FIFA can completely honestly say, ‘we have no information or evidence of match-fixing’. They are not lying. They have created a system which produces no reliable evidence, so they can report it.

What can FIFA do? Create an integrity unit. A proper one. One with high-ranking former police officers with take-charge attitudes. Baltasar Garzón, the former Spanish judge is looking for a job. Put him in command. You would see a lot of things come out very quickly!

Two, investigate the former Nigeria Football Association. Hire a couple of honest forensic accountants. The track-record of the NFA is one of deeply-rooted incompetence. Find out why it is incompetent. Go interview Glen Hoddle, the former England manager who, a few months ago, claimed that he was offered the position of manager of Nigeria at the World Cup, so long as he paid a kick-back to the NFA.

Do these two things, and then we can know for certain the truth about these allegations.

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J’accuse FIFA

Friday, April 30th, 2010

Match-fixers will be at the World Cup in South Africa. They will be there because there has been no effective action on the part of FIFA to clean up this problem. Here is a list of some of the things that FIFA could have done to make sure that the tournament was corruption-free.

One, FIFA should pay the players directly. The fact is that some of the athletes competing at the world’s biggest sporting event still do not know how much money they will be paid or even if they will be paid at all. It is this dynamic that drives match-corruption. Right now FIFA pays money to the executives of the national football associations. Those executives are supposed to pay their players. However, while most of the executives are honest; some are regarded by the players as so deeply immoral that they would steal money from their own grandmothers, and the players do not trust them.

There are some commentators who are naive enough to say that World Cup players should be playing only for patriotism or the love of the game. Good point, if no one was getting any money. But as those athletes run onto the field, they know the stadium is sold-out, they know they are being watched by hundreds of millions of people around the world (the 2006 final was seen by 5% of all humanity who have ever existed) and they know that corporations have paid billions of dollars in sponsorship money and television rights. So someone, somewhere is getting a lot of money, why aren’t all the players on all the teams being rewarded properly?

It is very easy to stop the problem. FIFA should pay the players directly. There should be wages and incentive bonuses for every game won, for each stage of the tournament a player helps his team reach, even for the number of goals that a player scores. This money should be directly into the players’ bank accounts by FIFA. These amounts should be publicly announced. This way all players know exactly how much they are supposed to receive and if national associations or sponsors want to add to this money – great. But each World Cup player should not only know how much they will be paid, they should know they will be paid and paid well.

Two, FIFA has implemented an ‘Early Warning System’. It is a good start and a bad joke. It purports to be able to detect signs of World Cup match-fixing by monitoring the gambling market. This is almost impossible. The amount of money bet on World Cup Final matches is so high – estimated at $40 billion for the 2006 World Cup – that observers cannot detect ‘unusual betting patterns’. They can do it for minor matches in obscure leagues; but they cannot do it for the world’s biggest sporting tournament. Moreover, the Early Warning System relies on information from legal, mostly European, bookmakers. They cannot independently verify the betting market where the fixers do most of their work – the illegal Asian gambling market.

Don’t believe this statement? Then take the word of one of the men who runs the Early Warning System – Wolfgang Feldner. Mr. Feldner is hard-working and deeply ethical. He has openly stated the problems of detecting fixes at the World Cup. In November 2009, Mr. Feldner said, “As good as the early warning systems are, they will hardly be able to check the black market. You can’t get information from betting companies that officially do not exist.”

The problems of the Early Warning System don’t stop there. Many bookmakers still do not share information about who is betting. So the EWS officials may be able to tell there is a lot of money on a game, but they cannot tell who placed it. This is a problem. A hypothetical example, there may be $100 million bet on England to beat the United States in the opening rounds. The EWS can see that money, but they cannot see if it is merely 20 million enthusiastic England supporters all betting $5 each, or the wife of one of the American players betting $100 million that her husband’s team will lose.

Finally, there is a still list of unasked and unanswered questions dating back to September 2008 publication of The Fix, about the relationship between the fixers, their runners and some players (The list is available on www.howtofixasoccergame.com). The questions have not been asked because there is no investigating body specifically tasked to deal with it. FIFA has not established what is standard practice in every North American sport, and increasingly other international sports like ATP tennis and cricket: an integrity unit staffed with ex-policemen and gambling experts. In September 2008, after the publication of The Fix, Michel Platini the president of UEFA, established such an integrity unit for European football. It was instrumental in uncovering a wide network of fixers working in 9 different European countries. Why hasn’t FIFA implemented a similar team?

Until these very basic steps are implemented, the fixers will be back, they will be approaching players and referees and they may, unfortunately, find a few who are willing to listen to them and there will be more fixed matches at a World Cup tournament.

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