FIFA received no profit sharing from 2005 contract: letter
By Mark Hosenball
ZURICH (Reuters) - Soccer world governing body FIFA was due half of the advertising revenue from a 2005 media deal it signed with a Caribbean soccer organization but did not receive any of it, according to a termination letter sent by FIFA.
The contract was signed between FIFA and the Caribbean Football Union and involved media rights in parts of the Caribbean for the 2010 and 2014 World Cup competitions.
In the July 2011 letter, reviewed by Reuters, two FIFA officials wrote to the Caribbean Football Union to say they had expected FIFA to receive 50 percent of all revenue from the sale of broadcast sponsorship and TV commercials.
"To date, FIFA has not received any payments," wrote FIFA's Secretary General Jerome Valcke and its Marketing Director Thierry Weil.
Media contracts can be extremely lucrative for FIFA and other sports organizations because of the enormous number of people who watch events such as the World Cup and the advertisements that go with them.
It could not be determined how much money was at stake in this instance. Reuters was unable to obtain a copy of the contract.
A FIFA spokeswoman declined to comment, citing ongoing investigations, but said FIFA was continuing to cooperate with those investigations.
Swiss authorities have said they plan to investigate the 2005 deal, after a television news report that FIFA sold the media rights to the Caribbean organization for far below market value. Continued...