FIFA fraud could void policies

The saga between FIFA and the FBI continues to unfold, with football’s governing body warned by industry experts that being found guilty of fraud would result in the cancellation of their insurance policies for the 2018 and 2022 World Cups.

Last month, 14 members of FIFA were detained at their headquarters in Switzerland on allegations of racketeering and bribes towards influencing major football events, including the 2010 Africa World Cup.

If Russia or Qatar are stripped of the 2018 and 2022 World Cups respectively, FIFA is facing the possibility of losing $900 million in event cancellation costs, with fraud likely to void existing insurance policies.

While Russia and Qatar have denied any wrongdoing, it is believed US prosecutors are looking at how the right to host the next two World Cups were awarded and to see if the countries were involved in the money laundering.

On Sport24, Lawyer Jeffrey Schulman said this problem could drag on for a while.

“It won’t go away quickly and quietly,” Jeffrey Schulman said.

“There’s too much money at stake.”