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Company 3 = Globosat | Teixeira Finds Safe Harbor

Football's Cartolas: Kings of  Cprruption?

Football’s Cartolas: Kings of Cprruption?

Less than one week since the Estado de S. Paulo revealed that a third of the income received by the Brazilian team for friendly matches was diverted to an Andorran bank account in the name of Sandro Rosell, president of the Barcelona club, the former president of the Brazilian Football Federation (CBF), Ricardo Teixeira, petitioned for residence in the European tax haven. This according to a report aired this Tuesday by Radio Catalunya.

According to the Catalán radio station reproduced by the Estado on the blog of Jamil Chade, Ricardo Teixeira expedited the paperwork needed to gain resident status. The ex-director of the CBF will spend at least 150 days  in the tiny nation located between France and Spain.

According to the Catalán radio station, Ricardo Teixeira has already opened the local account into which he will deposit at least 4.9 million euros, a sum much greater than the 400,000 euros required for acceptance as a resident of the principality.

In Andorra, Teixeira will not face extradition to Brazil: the two countries do not have this cooperative relationship.

The Estado reported last week that Teixeira runs a scheme in which funds acquired from friendly matches of the five-time World Cup champion Brazilian team are diverted into the accounts of  such “top hats” — club owners — as the current president of  Barcelona.

A Swiss investigation, meanwhile, has discovered that the former director of the CPF received millions of euros in bribes from companies involved with FIFA, the international football federation. These were deposited into accounts in Andorra, the tax haven where Teixeira is searching for a new home..

Source: ESPN | Brasilianas.Org.

Wikiepedia speaks broken English on this topic.

In November 2010 Andrew Jennings, the presenter of “FIFA’s Dirty Secrets“, an edition of BBC’s flagship current affairs programme Panorama alleged that Teixeira had taken bribes in the 1990s regarding the awarding of contracts for the sale of television rights to the football World Cup., Teixeira waited until 25 July 2011 to respond to the allegations, at which point he attacked The Football Association, saying he would “make their lives hell” as long as he remained a member of FIFA’s ruling Executive Committee.

The Brazilian authorities started in October 2011 an investigation to evaluate the possibility of money laundering by Ricardo Teixeira through the Brazilian Football Confederation. The authorities will have 90 days to complete the investigation which also alleges the involvement of João Havelange as part of the scheme. Andrew Jennings told the Senate committee that Ricardo Teixeira may have amassed $9.5m in bribes from now-defunct FIFA marketing firm ISL.

In July 2012 after protracted court proceedings, Havelange and Teixeira were named as beneficiaries of bribes from ISL. A document released by a prosecutor in the canton of Zug revealed that from 1992 to 2000 Havelange and Teixeira were paid 41 million Swiss francs by ISL.

What I find curious in all this is the relationship between FIFA-CBF and the broadcast rights to the games, from which Globo — exclusive coverage — has benefited. greatly over the years.

Globo competitor Record has reported extensively on this relationship. A reported entitled “Globo paid a bribe Ricardo Teixeira in turn for exclusive broadcasting rights to Word Cup 2014 and World Cup 2018.

Swiss courts and police in Zug have finally released the results of their investigation into former CPF president Teixeira.

In the case, Teixeira and his former son-in-law, João Havelange, are accused of taking bribes …

Closer to home, Globo’s monopoly  over broadcast rights to Carnaval are viewed with suspicion, given that a state ordinance forbids exclusivity of this kind.

Rede Brasil Atual summarizes the coverage:

Code Name: Cartola Cartel

When the Swiss federal high court autorized the release of documents in the ISL/FIFA case, in which bribe-taking by Ricardo Teixeira and João Havelange was revealed, it demanded that all the names of uninvolved parties be hidden through the use of code names.

For this reason, the document released by prosecutors uses code names for persons and corporations that are merely cited, but not indicted, in the case.

FIFA president Joseph Blatter gave an interview and said that  “P1” was him, and that he saw no need for his or any other name to be swapped for a code name, if only because he was not accused of wrongdoing, and that any one can deduce from the context that P1 refers to him in his capacity as president of FIFA and Havelange’s successor .

Globo and Globosat are cited as Company 2 and Company  3, which is also easy to deduce from the context. The two are cited as the proprietors of Brazilian transmission rights for World Cup 2002 and World Cup 2006.

These are precisely the tournaments the rights to which Globo engaged in dark dealings in Uruguay and elsewhere to obtain, resulting in a tax debt that, with penalties and interest, reached R$600 million..

Even so, Globo was embarrassed and avoided identifying itself when its news broadcasts reported on the scheme.

According to one of Globo’s news programs, Ricardo Teixeira and João Havelange  merely received “commissions” from the ISL Group, and were charged with fraud.

Globo hid from the spectator the reason behind the bribe: the sale of TV transmission rights to the 2002 and 2006 World Cup. In Brazil, everyone knows that Globo was awarded the open to air broadcast rights and Globosat for pay TV.

But look, if Globo is not accused of wrongdoing, having offically paid only ISL, who then passed the sum on to Teixeira and  Havelange, as a bribe, the company should respond with indignation at having been a mere victim when it bought the rights with the bribe already embedded in the contract.

And so if Globo preferred to conceal this fact from its audience, it is because it did not really see itself as a victim, and that Teixeira and Havelange, if attacked, could reveal secrets that would embarass it.

Another passage from the Swiss prosecutor’s report helps us understand why Globo preferred to remain incognito. The report says that Ricardo Teixeira, as president of the CBF, wielded influence over the licensing contract for Brazil.

FIFA publiished the document in its entirety on its Web site. As of the moment I am writing this, I was able to observe whether Globo linked to this document from its site, with the proper identification of the parties involved.

In February, Globo was announced as the official Braziliian broadcaster of World Cup 18 and World Cup 20. The basic point of the official announcement is “Surprise, surprise, surprise! Globo wins again! Which is a good thing.” But is it?

FIFA is pleased to announce the extension of its broadcast rights agreement with Brazilian broadcaster Globo for the 2018 FIFA World Cup Russia™ and the 2022 FIFA World Cup Qatar™. The agreement with Brazil’s largest media company covers cable, satellite, terrestrial, mobile and broadband internet transmission across the country.

“Globo’s strength in distribution across such a vast territory as Brazil ensures the tournament can be followed by as many people as possible, and this was the determining factor in our decision to extend the agreement with Globo,” said Jérôme Valcke, FIFA Secretary General.

Globo’s strength lies in managing to hold onto a contract for 40 years in a market which it totally dominates.

“For more than 40 years, FIFA and Globo have developed a very fruitful partnership which has led to significant rewards for both of us. …”

A FIFA listing of broadcast rights holders for 2013 shows Globo extending its reach to many, many regional subsidiaries. See for yourself,