Thursday, July 3, 2008

Fifa to pay in ex-media firm case

Football body Fifa has been told to pay costs of 117,000 Swiss francs ($114,500; £57,000) after a trial into the collapse its ex-media partner ISL.

The finding of the Zug court was one of a series of decisions involving six former executives of ISL/ISMM.

A fraud trial in Switzerland prosecuted the six on charges including embezzlement and forging documents.

Fifa had made an initial criminal complaint against ISL, but withdrew and said it wanted to pursue a civil claim.

Three of the six ISL executives were found partially guilty by the court.

Former ISMM general director Jean-Marie Weber was found guilty of embezzlement in relation to a secret bank account used by the firm to win television and sponsorship deals, and fined 84,000 Swiss francs.

Board members Hans-Juerg Schmid and Hans-Peter Weber were found guilty of obtaining documents by false pretenses and sentenced to fines of 30,000 Swiss Francs and 12,000 Swiss Francs.

More serious charges were dismissed and the three were awarded compensation payments greater than the fines handed out.

The six were awarded damages ranging from 17,000 Swiss Francs to 190,000 Swiss Francs.

'Control account'

Prosecutors had accused ISL/ISMM of channelling 18m Swiss francs in bribes through Liechtenstein.

Prosecutors alleged that the six paid off people involved in negotiating the rights deals to major sporting events.

ISMM, the parent company of ISL, owned the television and marketing rights to the 2002 and 2006 World Cups.

ISL ran Fifa's marketing and television rights for 20 years but collapsed in May 2001 with estimated debts of $330m.

The judge in the Zug trial said Fifa was aware of the financial difficulties before its former partner went bust, but had failed to carry out checks of the "control account".

The defendants had argued that Fifa knew of the firm's financial difficulties and had accelerated its demise by breaking off agreements with the marketing firm.


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