The 2014 World Cup In Brazil: Or, Ricardo Teixeira’s Fiefdom
And so, with the 2010 World Cup passing into the history books, we peek ahead to 2014, as the World Cup returns to South America for the first time since 1978, heading to Brazil. It has been a long break for the continent: 4 of the first 11 World Cups staged were held there, but none of the 8 since. And now the question comes: is Brazil ready to run this show?
This is, of course, the same question that exhausted South African ears over the past several years. It turned out that South Africa was prepared and that Danny Jordaan, CEO of the World Cup Local Organising Committee, had done a tremendous job. Jordaan, briefly a professional soccer player himself in the early 1970s ahead of his time as an anti-apartheid activist, is by all reports tough, humble. and hugely capable. The whiff of corruption does not follow him around as it does so many connected to FIFA (OK, there is one very faint whiff).
The man in charge of the 2014 World Cup, Ricardo Teixeira (president of the Brazilian Football Confederation (CBF)), has spent the past two decades doing little but generating suspicion of corruption in many of his dealings running Brazilian soccer. Teixeira is head of the Local Organising Committee, and also sits on FIFA’s 24 man Executive Committee.
Brazil’s Congress extensively investigated the corruption impeding the domestic game in Brazil at the highest levels in 2000-01: Teixeira, president of the CBF since 1989, was forced to admit he had lied about having only one bank account (conceding he had a second, operated out of the Cayman Islands at Delta Bank, at the time under investigation by the US government for money laundering). This Independent newspaper report on the Congressional investigation paints a picture of Teixeira struggling to hide his corrupt dealings, and making a promise to resign from his post in 2003 that he has yet to fulfil:
The president of the CBF was once the son-in-law of the former Fifa president, Joao Havelange. Teixeira has none of his mentor’s aristocratic bearing and has been regarded as an arrogant bully boy, yet even he has embraced humility as the inquiry has progressed. Even before his long-awaited appearance at the commission last week, Teixeira declared that he would leave the post at the end of his current mandate in 2003 and spoke openly about his mistakes. He admitted that some of the clauses in the Nike contract had needed correcting, and he agreed that he had erred in selling dairy produce from his farm to the CBF. As he shuffled through his files last week he gave the appearance of a schoolboy trying to cover up the fact that he had not done his homework. He had not brought an up-to-date version of the Nike contract and could not recall to how many politicians the CBF had made donations.
Ah, yes, João Havelange: the corrupt FIFA chief and the father-in-law of Teixeira at the time of the latter’s sudden elevation from obscure lawyer to head of the CBF. Soon, Teixeira was rich, with a condo in Miami, bodyguards, and an ever-increasing salary.
That CBF deal with Nike mentioned above left many wondering where all the money had gone: it certainly hadn’t filtered into development of the domestic game. The results of the Congressional investigations were damning for Teixeira:
The probe that exposed Teixeira began with a Brazilian congressional investigation (aka CPI) into a $4 billion, ten-year contract the Nike Corporation had with the Brazilian football conference (CBF). The investigation, as is the wont of many investigations, discovered a network and underlying web of deceit, lies, and illegal dealings that ran the gamut from forgery to outright theft of funds and bribery. The first CPI was in fact brought to a close with many of its investigative discoveries squashed because the committee itself voted to keep the report of its findings secret from publication. The reality was that many of the members of the investigative body were tied in with the CBF. Men such as Eurico Miranda were on the committee. Miranda also happened to be an owner of a team in the CBF, the Vasco da Gama club. But Miranda, and others like him with CBF tie-ins, saw no reason to recuse themselves from the investigation or any ensuing votes because of this obvious conflict of interest.
It was a second CPI that the Brazilian congress convened that did trap Teixeira and others that were involved with the illegalities involving the soccer industry in Brazil.
Among the discoveries involving Teixeira were (1) he as the president of the CBF took on loans for over $30 million for the organization from a New York bank at the interest rate of about 53% annually; (2) he received from this same bank a personal loan but at the rate of 10% annually; (3) he supposedly helped to broker a $9 million fee to Jos Hawilla for acting as a go-between for the CBF and a Nike deal. Hawilla was a journalist for the Traffic Company. (That name Traffic sound familiar?) and (4) falsifying an expense of $8 million to be paid to a former partner, Marelo Tiraboschi, for being a supposed middleman for a ten-year sponsorship deal worth over $175 million with a company named Ambev.
The investigation was a humiliation for Teixeira, as it concluded that “Lack of control, disorganisation and bad management reign rife in the CBF. Mr Ricardo Teixeira, as president, is directly responsible for creating an environment which is ripe for an administrative disaster.”
The hundreds of millions of dollars that poured into the CBF’s coffers in the 1990s due to their lucrative deals with Nike and television company Traffic (run by a close ally of Teixeira) were spent without a budget, while expenditure on hotels and transport for officials rose 600%, and junket trips to the ’94 and ’98 World Cup were given to many people who had nothing to do with the sport, the investigation found.
Amazingly, Teixeira was reelected for a seven-year term as head of the CBF in 2007.
Last year, Teixeira was convicted of avoiding customs taxes, after returning home from the 1994 World Cup in the United States with 17 tons of imported goods that he failed to pay tax on.
Indeed, to go back to 1994, Teixeira had a run in with Pelé ahead of the 1994 World Cup that saw the star banned from the World Cup draw in Las Vegas, as Rob Hughes wrote in a 1994 New York Times article on Pelé’s elevation to Sports Minister in the Brazilian government:
And while Pelé, to my knowledge, has had a public run-in with only one man, that man happens to be Ricardo Teixeira, who presides over the CBF, Brazil’s soccer federation. More than that, Teixeira is the son-in-law of João Havelange, the Brazilian president of FIFA who single-handedly barred Pelé from the World Cup draw in Las Vegas a year ago.
It was an horrendous example of Havelange’s vindictiveness, and an early warning that the aging president intends to maneuver his son-in-law into becoming his successor in charge of the world game.
Pelé, then as now, was the catalyst between soccer and the American people; Havelange the autocrat blankly refused to speak Pelé’s name, or to discuss with his FIFA executive his reason for banning from the ceremony the greatest player the game has known.
We knew the reason. Pelé had accused Teixeira of corruption, of accepting a million-dollar bribe to favor one television contract over another, and Teixeira was suing Pelé in the Brazilian courts. So Havelange, having installed Teixeira on FIFA committees, shut out Pelé.
The backstory was that Pelé had attempted to purchase the broadcasting rights in Brazil to the 1994 World Cup, but had refused to pay $1m into a Swiss bank account as ordered by the CBF, under Teixeira’s direction. And then he had refused to keep quiet about it.
But Teixeira eventually won back the support of Pelé, whose attempts to lead reform of the Brazilian game in the 1990s failed. And that support from Pelé, coming right after the results of Brazil’s Congressional inquiry came out in 2001 and threatened to skewer Teixeira’s career, saved Teixeira, as they shared the stage to condemn the inquiry’s results. In Soccer Explains The World, Franklin Foer cites a columnist for the Brazilian sports daily Lance! on this sad moment for Brazilian soccer: “The union of Pelé and Teixeira is the biggest stab in the back that those of us fighting for ethics in sport could receive . . . He has sold his soul to the devil.”
This man, then, Ricardo Teixeira, is responsible for organising the 2014 World Cup, an organisation already described as “amazingly” behind schedule, and subject to Teixeira’s political needs, according to Tim Vickery:
Teixeira’s need to keep his power base onside has already affected the organisation of the tournament. Many state presidents wanted 2014 games to be staged in their domain, so the CBF successfully lobbied Fifa to have 12 host cities, rather than the original plan of between eight and 10. Seventeen cities applied – one later pulled out – and, to save Teixeira from the political embarrassment of excluding some of them, the final decision was pushed to Fifa.
Vickery, the most accomplished observer of the South American game we have in the English-language, concludes that the Teixeira-led power structure is the main danger to the preparations:
For all its progress, the moment in Brazil is very different [from South Africa]. Its football administrators could not be further removed from activists. They represent the old, semi-feudal Brazil.
Federal Deputy Paulo Rattes wrote a Congressional report on 2014 planning. “What struck me about South Africa,” he said, “was that there was participation from society and political leaders.” In Brazil, meanwhile, “it is a black box that no one enters, only Ricardo Teixeira and his friends.”
That black box of Teixeira is where the World Cup is headed in four years, sad to say.
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I bet he’s on steroids too. Oh, wait, wrong Teixeira.
Instead of comparing Teixeira’s influence over Brazil to the 2010 effort in South Africa, I’d be interested to see if the sort of dealings Teixeira’s involved in were common in Germany’s ’06 Cup or Korea/Japan’s ’02 Cup. Considering FIFA’s ongoing issues with corruption, I suspect that the relative lack of corruption in South Africa’s organizing committee is an aberration rather than the norm, and that what Teixeira is doing is a little more par for the course. But maybe I’m just cynical.
There were definite issues with the 2002 bid (unsurprising given the degree to which all segments of South Korean and Japanese life are influenced by their massive corporations), and Germany’s “summer fairytale” is a bit tarnished by their use of guys like Peter Hargitay and Fedor Radmann (as Tom as explained so well).
Teixeira, though, has been at this more fervently, and for longer, than anyone other than Jack Warner (even longer if you see him as the seemless continuation of the pattern established by his former father-in-law Joao Havelange).
As ursus kindly mentioned, Germany’s 2006 WC bid and organisation’s suspect connections, was covered here recently.
It’s never a pleasant business, though again as ursus says, it’s particularly unpleasant when it comes to Teixeira.
I cant see any reason why BRazil won’t host an excellant World Cup, they have done so before
It’s very sad to keep reading stories like this. It seems like everywhere you turn there is some kind of corruption involved with the beautiful game. I hope the scrutiny of the world will keep corruption in 2014 to a minimum. Corruption has been a huge problem holding Brazil back in other areas as well.
FUFC — Believe me, it’s sad to have to keep writing them. It does seem to me the media (and blogs have a role to play in this) is one of the very, very few checks on FIFA and other rulers of the world game, given there is so little transparency or democracy or opportunity given for fans to be a part of governing the game they pay for: so the more we can scrutinise the people running the game and their actions, the more the bad can be held in check. That, anyway, is the hope.
Tom, forgive the plug, but I sincerely believe that it is particulary important that you continue to write these pieces because of who and where you are.
The North American audience is at once generally less familiar with the very sad history of these problems and yet is at the same time less jaded than their European and South American counterparts. That’s why what you are doing is especially vital.
FUFC – Agree but it’s pretty well known that there are a lot of prominent people making good money from football via dubious means and we don’t even know how much Herr Blatter makes as he refuses to disclose his salary. So much for transparency.
I recommend Andrew Jennings’ eye-opening book ‘FOUL’ if you want to know more. Quite a depressing, but an important read for everyone concerned about the health of the professional game. It disappoints me that Herr Blatter and his cronies get such an easy ride from the mainstream press.
And just to say thanks for the article Tom! Being indisputably the world’s number one football country, the people of Brazil certainly deserve the chance to hold the first World Cup there since 1950. But it’s disappointing that the likes of Teixeira stand to gain so much…it almost seems like a reward for his corruption and poor running of the CBF.
ursus and Tim — thank you, it’s really good to know these kind of articles are appreciated, depressing as they are. It’s an interesting tension writing these pieces for a largely North American audience, because there’s always the danger these tales of corruption just become fodder for the enemies of soccer to dismiss the world game. I think, though, we are past that point, and it’s worth doing as too few US soccer voices cover these issues in-depth.
And with the growing power of the American market in regional soccer, one also wonders if CONCACAF might not be a place where we could start with cleaning up the global game over the next decade. Jack Warner is obviously a global disgrace for the sport; right now, the US needs him (and his crony Chuck Blazer on FIFA’s Executive Committee) with the World Cup bid in play, but in years to come, that might change. US Soccer is, despite its faults, clean compared to many national associations around the world. It’s not impossible to see the US leading the way in cleaning up its own confederation in years to come, if it has the appropriate leadership, will and incentive to do so: and part of that would come via pressure from below and from the media.
Maybe I’m too hopeful and that’s quite a challenge, but as much as we should point to these problems, we should also seek solutions.
Also, Tom, the Guardian was reporting just this morning about how they’re way behind schedule on stadia, infrastructure, etc… basically the same articles people were hurrying to write 6 months ago about South Africa. However, with Teixeira’s notoriety looming large over the event, I’m hardly surprised.
http://www.guardian.co.uk/sport/blog/2010/jul/13/brazil-world-cup-2014-delays
Thanks James – it is odd to see the same kind of articles we heard about South Africa for years suddenly popping up again, though I’d agree in this case, there’s a little more concern with the oversight in Brazil in place. That said, the event will likely happen in Brazil pretty smoothly all said and done (however much it costs); how much corruption goes along with it, though, is the question.
Whats wrong with South America?
2014 ???
2014 ??? yesss
I love this information,thank you!
Tom – has the contract between the Brazilian LOC and FIFA for hosting the 2014 FWC been signed, and is this contract public?