The corruption scandals hit FIFA is dragging back the hosts for the World Cup next year. Russia is reportedly facing financial challenges as sponsors avoid the whole situation.
The top football regulatory body lost £300million in 2016 and could lose another £400million in 2017. The mountain of allegations upon allegations is scaring off investors and sponsors. The activities of Russia in Ukraine and Syria are not helping matters as well as tension continues to grow between Moscow and other nations.
The Swiss police are carrying out investigations if Russia officials bribed its FIFA counterparts in a bid to distort the World cup bidding process in their favour. They are making the investigations with the help of the United States and France.
Since the scandals came to light in 2015, FIFA have had just one sponsor Alfa Bank based in Moscow. On the international level, just China’s Wanda Group is supporting it next year. Other top firms that could have joined in are reportedly put off by the investigations of the FBI into the bribery allegations.
So far, Seep Blatter and Michel Platini have been banned from football but over 40 other officials are awaiting trial for various offences. Over 20 corporate entities were supporting the body but most have backed out as the brand became toxic.
The financial issues would be thrashed out Soccer Venues when the members meet for the annual congress in Bahrain. The Sponsorship and broadcasting rights weigh in heavily on the total costs spent on World Cup tournaments. Sponsors are uncomfortable about Russia, and the tensions in that region with the North Korea/South Korea issues make it worse. Less than thirty percent of required sponsors are on board as Russia face a race against time for the World Cup 2018.