The fallout from an FBI investigation into the shady operations of FIFA has led to two organizations being prevented from receiving payments from the world’s foremost soccer association. According to a report from Bloomberg on Monday, FIFA has blocked $20 million in payments to both CONCACAF and CONMEBOL, leaving each organization to operate near a minimum budget or being forced to tap their reserves for funding to move forward.
“In light of current proceedings involving individuals related to CONMEBOL and CONCACAF, FIFA has put contributions towards these two confederations on hold until further notice,” a FIFA statement to Bloomberg News said. “We are currently assessing further steps to be taken to increase the level of assurance which may again enable FIFA to release such funds in the future.”
CONCACAF was unable to access $9 million in a Cayman Islands account following the arrest of president Jeffrey Webb and others last May. As the organization governing the sport of soccer in North America, Central America, and the Caribbean region worked furiously to access funds any way possible, the organization continued operating with approximately $2 million in available funds. A total of 41 nations had to cancel meetings and none of those 41 nations were able to receive certain stipends.
“While our internal investigation is ongoing much of the financial situation was the result of poor budgeting and excessive spending by the prior administration,” a statement from CONCACAF said.
The good news, hopefully, is things cannot get much worse than this as the soccer world recovers and digs out from the bombshell FBI investigation into illegal activities by FIFA leaders. There is no reason to suspect either CONCACAF or CONMEBOL will be in danger of shutting any major tournaments or matches down, but things may be tight until a better financial situation can be figured out.
