The Connection Between Orban and Football.

(Disclaimer: I spent a few days in Budapest last month: a lovely city).

There has long been a connection between football and Hungarian Prime Minister Viktor Orban. It has long been known that Orban loves the sport. According to an article on a website called Breaking The Lines, the Prime Minister would reportedly watch up to six matches a day(when does he find the time to run the country) and often attends the finals of the World Cup and UEFA Champions League (the biggest club competition in Europe). Orban was even included in the 2006 version of Football Manager (a well-known Football Management Simulator). Orban’s first connection to football came through his local village, Felscuit, where he supported his local club, Videoton FC.

In the 2010s, a massive stadium-building boom began in Hungary. In particular, a 4,000-seat stadium was built in 2014 in Felscuit (a village of 1,000 people) at the cost of 10 million Euros for Puskas Academy, the club that Orban founded in 2007. According to a report in the BBC, 2 billion pounds of government income were directed toward Hungarian football clubs for building stadiums and operating costs. Orban has actively encouraged Hungarian oligarchs to invest in football clubs as a form of tax relief and a way to be in his good books. Hungary has a curious practice whereby vast amounts of EU development funds meant for schools and hospitals get siphoned off to oligarchs or used for infrastructure projects that don’t seem strictly necessary (the motorways, for instance, are pristine). While all of this sounds admirable, Hungary is a country that is struggling economically, and spending 2 billion pounds of government income on building a new football stadium and not schools and hospitals doesn’t seem to be beneficial to the Hungarian people.

777 Partners, Everton and the Murky World of Multi-Club Ownership in Football.

In recent weeks, Everton Football Club, based in Liverpool, England, is being taken over by an American investment firm called 777 Partners. 777 has a murky history and was at the center of a Washington Post article detailing its exploitative business practices that are not dissimilar to payday loans with extremely high-interest rates. 777 also has been buying up football clubs from around the world rapidly. The head of 777, Josh Wander, also has a colorful history; according to the Post article, in his student days, he was charged with drug trafficking after allegedly opening a package containing cocaine that the federal government was tracking. He pleaded no contest and avoided prison time but was sentenced to 14 years on probation, but surely that will be a black mark against the Premier League’s recently beefed up Owners and Directors Test has any teeth to it. One has to feel for longtime Everton supporters who have had to deal with their club struggling both on and off the pitch and could be taken over by a charlatan.

The backdrop to 777 & Everton is the growth of multi-club ownership in football, where one person, or usually an investment group, buys into several clubs worldwide. There are numerous examples, the most famous of which is the City Football Group (CFG), who owns Manchester City and clubs in Australia, the U.S., and elsewhere. According to an article in ESPN, one of the main benefits of owning several clubs is that if one club gets relegated, the financial impact won’t be as profound if the others in the network are performing strongly. Another reason that multi-club ownership is widespread is because it allows big clubs to loan out young players to smaller clubs within their network. However, there are also numerous downsides, and chief among them is a loss of identity and a corporatization of the football ecosystem, particularly in Europe. In my view, the multi-club models are bad for the future of sport because they whittle clubs down to investments and not what clubs should represent; they should represent civic pride and, most importantly, the values of their supporters.

Mes Que Un Corruption: the Sad Downfall of FC Barcelona.

FC Barcelona is one of the biggest clubs in world football. They are the pride of Catalonia and have supporters worldwide who follow the club religiously. In recent years Barca has assembled a collection of some of the best players in the sport, including Lionel Messi. However, they have also encountered significant financial difficulties due to overspending on the renewal of contracts of players like Messi and wasteful spending on new players. As a result, the club is saddled with €1 billion of debt.

On top of this, there have been reports of Barcelona paying money to a company run by the former vice president of the Referee’s Committee at the Royal Spanish Football Federation (RFEF). According to an article in The Athletic, Barca paid €7.8 million to DASNIL 95, a company run by Jose Maria Enriquez Negreira, to, in his words, “make sure no refereeing decisions were made against them, which is to say, for everything to be neutral.” While this quote may not be a smoking gun yet, it does open up the possibility that Barca was paying bribes to influence the outcome of matches which would call into question the trophies they have won in recent years. According to a BBC article, Real Madrid, Barca’s arch-rival, said they would support Spanish prosecutors in their investigations. There are most likely two reasons Real is interested in this case. First, they wouldn’t mind plunging Barca into another crisis and getting one over on the old enemy. Secondly, Real would be justifiably angry if it appeared that refereeing decisions denied them opportunities to win league titles. Barca has publicly denied any involvement. However, given recent events, I wouldn’t be surprised if Barca faces another crisis of their own making.

The Trial of Fox Sports’ Acquisition of World Cup Rights

Recently, an ongoing trial has occurred in New York City involving executives from Fox Sports who are facing allegations of paying bribes to secure the World Cup rights for 2018 and 2022, as well as for the Copa Libertadores, a tournament involving clubs from countries from South America. According to an article in the AP, Fox executives schemed to undermine rival bids for the TV rights. The primary witness, Alejandro Burzaco, has alleged that his fellow Fox executives bribed South American football officials to obtain the rights. According to a New York Times article, a well-known former FIFA official from Argentina, Julio Grondona (now deceased), was quoted to have said, “ If Fox puts up $400 million, it will win the rights”. This trial comes amid previous corruption scandals that have engulfed FIFA recently. This trial is ongoing, and there will likely be more revelations—updates to follow.

The Ugly Game: How the Qatar World Cup has Tarnished Football’s Reputation.

This Sunday, the FIFA World Cup in Qatar kicks off. For 11 years, there have been many ongoing controversies over the awarding of the tournament to Qatar. The first significant controversy was over the bidding process due to allegations of corruption. The second major controversy is over the treatment of migrant workers building stadiums and other infrastructure in Qatar. Thirdly, there are well-documented human rights abuses toward women and the LGBT community in Qatar. Finally, there are concerns over the temperature in Qatar during matches, despite the tournament being held in the winter and Qatar not living up to the environmental promises listed in their bid.

Any discussion of the World Cup has to begin with how Qatar won the bidding process. FIFA organized the bidding so the 2018 and 2022 World Cups would be awarded simultaneously. Russia won the right to host in 2018 and Qatar in 2022. A recent article in The Guardian notes that while no official chain of corruption has been proven and the Qatari bid team denies all claims of wrongdoing, the stench of malfeasance is pungent. What is known is that 16 of the 22 FIFA Executive Committee members, the men who run football, have been involved in some form of corruption. The most serious allegations are that representatives of the Qatari bid funneled money to FIFA ExCo members in return for a yes vote for Qatar. These allegations led to the downfall of FIFA President Sepp Blatter and a general sense among those who follow the sport that the bidding process was unfair and that one of the other nations’ bidding, such as the U.S, would have been more suitable.

Not long after Qatar won the right to host the tournament, there were numerous reports documenting the substandard working conditions of those building the infrastructure, including stadiums, transportation, and hotels. Many of these workers came from south Asian countries, such as India, Nepal, and Bangladesh. Chief among the complaints made by the workers was Qatar’s use of the Kafala system. The Kafala system allowed the Qatari government to permit construction companies to sponsor foreign laborers to work and live in the country. According to a recent Council on Foreign Relations report, migrant workers were exploited on many levels. Under the Kafala systems, workers had their passports confiscated and were restricted from moving between jobs. There have also been confirmed reports of workers not receiving their full salary and of unsafe working conditions. According to an article written by the Atlantic Council in 2016, the International Labour Organization, which is part of the UN, sent a delegation to Qatar. The goal was to try and gain more provisions for workers, such as freedom of movement between jobs and better working conditions. These efforts yielded limited success. In a report by The Guardian from last year, more than 6,500 workers died while working in Qatar. However, the actual number is presumed to be much higher.

On top of the already serious issues involving corruption and the mistreatment of migrant workers is Qatar’s general state of human rights. As in many other Middle Eastern countries, women are not allowed fundamental rights. Women in Qatar must obtain permission from a male relative, such as a father or husband, to study abroad, get married, and even in some cases, be able to work. Until 2020 women who wanted to drive had to obtain their guardian’s permission. According to a report by the organization Human Rights Watch, women in Qatar have little recourse in escaping from a dysfunctional marriage. Women in Qatar have stated that it is nearly impossible to get a divorce from an abusive partner or gain custody of children.

Another significant human rights issue is the treatment and discrimination of the LGBT community in Qatar. Under the Qatari penal code, same-sex relations are punishable by up to seven years of imprisonment. In the same Human Rights Watch report, there are incidents of the Qatari police randomly arresting members of the LGBT community and subjecting them to mistreatment in detention facilities. There are numerous reports of the Qatari police forcing confessions out of detainees and reports of physical abuse. Despite the government in 2020 saying that it will allow fans to display rainbow flags, there is a lingering sense that the Qatari authorities are not welcoming of the LGBT community during the World Cup.

The final issue I will highlight are the general concerns surrounding the tournament itself. FIFA had to move this World Cup to the winter because the Qatari summers are too oppressive in which to play football. However, this knock-on effect has forced the European leagues, such as the English Premier League, to pause during November & December. This caused more matches to be played in a tighter window of time, resulting in more players sustaining injuries in the run-up to the tournament. And there are other issues regarding the availability and cost of lodging in Qatar. The organizers have made several cruise ships available for housing. However, there are already numerous reports about a lack of rooms for budget-minded travelers. Finally, there have been concerns about policing in Qatar, particularly in a country where football isn’t mainstream and where there is unfamiliarity with traditional football culture, i.e., singing and drinking. This will be a world cup, unlike any in recent memory, with issues that will continue to exist long after the final whistle.

EU Gravy Train to be Halted in Budapest.

Recently, the European Union has threatened to cut off funds from its state budget to Hungary. Reportedly, the EU could withhold up to 7.5 billion Euros from the Hungarian government. If the EU does indeed take action, this could deliver a severe blow to an already struggling economy. According to the EU, this is being considered because the Hungarian government led by Viktor Orban has diverted EU funds to friendly oligarchs. Hungary is also accused of having inadequate anti-corruption laws. In response to this, the Hungarian government has stated that it will enact new anti-corruption legislation shortly.

It is widely acknowledged that Orban and his cronies engage in corrupt practices. Orban, like many other populist leaders, uses sport as a tool to shape their political vision, mainly to increase his domestic popularity and a way to boost his ego. This has involved the use of government money to support football clubs. For example, according to an article by Tomasz Mortimer in The Guardian, the Orban government spent around 2 billion Euros on stadium construction and youth academies’ development. Orban has also authorized 100 million Euros to Puskas Akademia FC in his hometown of Felcsut. Orban has subsidized clubs owned by his oligarch friends, which has raised concerns about how the government is spending money. Using government funds to construct football stadiums instead of investing money into healthcare or education is misguided.

Viktor Gusan: the Corrupt Sheriff of Transnistria.

Recently, in a Europa League match, Manchester United, one of the most recognizable names in world football (soccer), played a team from Moldova called FC Sheriff. The background of FC Sheriff is fascinating and mysterious. The club are based in Transnistria, a breakaway self-governing republic of Moldova that has close geopolitical ties to Russia. A company, also called Sheriff, owns the football club and additionally has its hands in many other businesses, including gas stations, supermarkets, and the local mobile phone network. Viktor Gusan, the owner of Sheriff—both the club and the company–is also allegedly involved in the illegal smuggling of many goods, including weapons. Gusan called his company Sheriff due to a love of old western movies. According to Foreign Policy magazine’s Robert O’Connor, the Sheriff company increased its bottom line through smuggling. Most of these goods make their way towards Odesa, Ukraine, a haven for illicit activities before the recent conflict with Russia.

With his accumulated wealth, Gusan built a $200 million stadium and spent lavishly on new players from foreign countries to help drive FC Sheriff to the top of the Moldavan League standings. Gusan is also heavily involved in local politics, and, according to Radio Free Europe’s Timothy Wesolowsky, he has close ties with almost every politician in the Transnistrian parliament. It is probably safe to say that not much happens in Transnistria without his approval.