Money laundering in sports refers to the process of hiding illegally obtained funds through sports-related activities, such as buying or selling a sports club, sponsoring a team or event, or investing in player transfers.

 

There are various ways in which money laundering can take place in sports, such as through the use of offshore accounts, complex ownership structures, or the manipulation of transfer fees. Criminal organizations may use sports as a way to launder money because it provides an opportunity to move large sums of money quickly and easily across international borders.

 

Money laundering in sports is a serious problem that can have significant negative consequences for the integrity of the sport, as well as for the wider society. It can lead to corruption, match-fixing, and other forms of illegal activity, which can damage the reputation of sports and undermine the trust of fans and stakeholders.

 

Manchester City have been charged by the Premier League for breaking multiple Financial Fair Play rules. pic.twitter.com/eGlnxN75ey

— ESPN FC (@ESPNFC) February 6, 2023

 

Sports organizations, governments, and law enforcement agencies have taken steps to combat money laundering in sports, such as introducing stricter financial regulations, increasing transparency and accountability, and collaborating across borders to investigate and prosecute cases of money laundering. However, the challenge remains significant, and ongoing efforts are needed to protect the integrity of sports from the threat of money laundering.

 

HISTORY

 

The history of money laundering in sports can be traced back several decades. Criminal organizations have long used sports-related activities as a way to launder money, often using offshore bank accounts and complex ownership structures to hide the true source of their funds.

 

One of the most high-profile cases of money laundering in sports occurred in the late 1980s and early 1990s, when several top football officials were implicated in a scandal involving illegal payments and bribes related to the FIFA World Cup. The scandal led to the resignation of FIFA President João Havelange and the indictment of several top officials.

 

🚨 More than 200 Portuguese tax officials carried out searches yesterday in the stadiums and HQs of Benfica, FC Porto and Sporting CP! 🚔

The three clubs are suspected of vast tax evasion and money laundering schemes involving tens of millions of euros! 💰
(Source: @CNNPortugal) pic.twitter.com/8SKtyZ3woL

— 84SPORTS NEWS (@84SportsNews) May 18, 2023

 

Since then, there have been numerous cases of money laundering in sports, involving a range of sports and countries. In some cases, criminal organizations have used sports clubs as a front for money laundering, while in others, they have used sports-related activities such as betting and sponsorship deals to move illicit funds.

 

In recent years, there has been growing concern about the role of money laundering in sports, and there have been increasing efforts by governments, sports organizations, and law enforcement agencies to combat the problem. These efforts have included the introduction of stricter financial regulations, increased transparency and accountability, and greater collaboration across borders to investigate and prosecute cases of money laundering in sports. However, the challenge remains significant, and ongoing efforts are needed to protect the integrity of sports from the threat of money laundering.

 

CASES OF MONEY LAUNDERING IN SPORTS

 

There have been several high-profile cases of money laundering in sports in recent years. Here are some examples:

 

• FIFA Scandal: In 2015, the US Department of Justice indicted several high-ranking FIFA officials for racketeering, wire fraud, and money laundering. The charges were related to allegations of bribery and kickbacks in connection with the awarding of media and marketing rights to international soccer tournaments.

 

Netflix 4-part documentary streaming now on the FIFA corruption scandals and vote for Russia and Qatar to host the 2018 & 2022 World Cups.

Series followed my book on the scandals, The Fall of the House of Fifa, and it was good to do an interview for it. pic.twitter.com/oxb6tgeJSa

— David Conn (@david_conn) November 9, 2022

 

• Spanish Football: In 2018, Spanish authorities arrested several football officials, including the president of the Spanish Football Federation, Angel Maria Villar, on charges of corruption and embezzlement. The allegations included the misuse of funds and money laundering.

 

Spanish RFEF president Angel Maria Villar and his son have been arrested this morning, according to reports. pic.twitter.com/i9B7gF0CVv

— Squawka Live (@Squawka_Live) July 18, 2017

• Cycling Doping Scandal: In 2014, a report by the World Anti-Doping Agency (WADA) accused the Russian Cycling Federation of engaging in systematic doping and covering up positive drug tests. The report also highlighted allegations of money laundering and other financial irregularities within the sport.

 

ICYMI: the anti-doping system is (too) slowly but surely processing HUNDREDS of doping cases from Russian athletes from around the 2014 Olympics. Young athletes may not even know this. https://t.co/ArRehfaVC7

— Clare Egan (@BiathleteEgan) May 18, 2023

 

• Tennis Match-Fixing Scandal: In 2016, an investigation by the BBC and BuzzFeed News alleged that several top tennis players had been involved in match-fixing and that gambling syndicates in Russia and Italy were involved in money laundering as a result.

 

Now We Know What It Takes To Beat Serena Williams | Simona Halep's Doping Scandal …
Halep is the most well-known tennis player to face a doping ban since … positive for a newly banned substance at the 2016 Australian Open.https://t.co/nEh99993HW

— Anti-Doping Database (@Dopinglist) October 30, 2022

 

•  Horse Racing: In 2020, the US Department of Justice indicted 27 individuals, including trainers, veterinarians, and drug distributors, on charges of doping racehorses and laundering money

 

From illegal doping to horses dropping dead on the track—the billion-dollar horse racing industry is flooded with scandals.

PETA’s Kathy Guillermo shares the latest on the crumbling racing industry. https://t.co/iE6Lyl6V9J pic.twitter.com/KSg4fDmsv2

— PETA (@peta) February 15, 2022

 

HAS IT COME TO STAY 

 

While efforts are being made to combat money laundering in sports, it is unlikely that the problem will be completely eradicated anytime soon. Criminal organizations will always look for ways to launder their ill-gotten gains, and the vast sums of money involved in sports make it an attractive target for money launderers.

 

However, there are reasons to be optimistic that the problem can be reduced. Greater awareness of the issue has led to increased scrutiny and regulatory oversight, while advances in technology have made it easier to detect and prevent money laundering.

 

Furthermore, there is growing recognition among sports organizations that money laundering poses a threat to the integrity of their sport, and that they have a responsibility to take action to combat the problem. This has led to the introduction of stricter financial regulations and greater collaboration with law enforcement agencies.

 

Overall, while the fight against money laundering in sports is an ongoing one, there are reasons to believe that progress can be made in reducing its prevalence and impact.