Soccer

Sepp Blatter, other FIFA officials, gave themselves massive raises

​FIFA's top officials Sepp Blatter, Jerome Valcke and Markus Kattner awarded themselves pay raises and World Cup bonuses totalling $80 million US over their last five years in office.

Raises and World Cup bonuses totalled $80 million US over 5 years

Former top FIFA officials including ex-president Sepp Blatter had reportedly awarded themselves massive pay raises and World Cup bonuses. (Christophe Ena/Associated Press)

​FIFA's top officials Sepp Blatter, Jerome Valcke and Markus Kattner awarded themselves pay raises and World Cup bonuses totalling $80 million US over their last five years in office.

Some of the contracted payments appear to break Swiss law, and evidence will be given to American and Swiss federal prosecutors who are investigating corruption implicating the world soccer body, lawyers for FIFA said Friday.

"The evidence appears to reveal a co-ordinated effort by three former top officials of FIFA to enrich themselves through annual salary increases, World Cup bonuses and other incentives totalling more than 79 million Swiss francs [79 million US] — in just the last five years," said Bill Burck of Quinn Emanuel, the U.S. law firm retained by FIFA during its corruption crisis.

FIFA revealed details of the contracts of its former president Blatter, fired former secretary general Valcke and fired finance director Kattner one day after police raided FIFA to seize evidence for the Swiss investigation.

Massive bonus

Blatter got a $12 million US bonus after the successful 2014 World Cup in Brazil and would have been due another 12 million Swiss francs for completing his 2015-19 presidential term.

The secretly agreed bonuses were significantly more than Blatter's base salary — $3 million US in 2015 — which was published by FIFA in March.

Valcke got a $2 million base salary in 2015 before being fired, but got a $10 million World Cup bonus for 2014 and was due $11 million from the 2018 tournament in Russia.

The police raid Thursday included searches in the office of Kattner who was fired last week.

"Documents and electronic data were seized and will now be examined to determine their relevance to the ongoing proceedings," the Swiss federal prosecution office said Friday.

Swiss attorney general Michael Lauber opened criminal proceedings against Blatter last September, and against Valcke in March.

'The crisis is over' 

Both are suspected of criminal mismanagement of FIFA money. Blatter and Valcke deny wrongdoing but were banned for six and 12 years, respectively, by FIFA's ethics committee.

No criminal proceedings have yet been opened against Kattner.

"Additionally, FIFA will refer the matter of these contracts and payments to the Ethics Committee for its review," FIFA said in a statement.

Any ethics investigation could affect two senior officials at the heart of FIFA's financial operation. Finance committee chairman Issa Hayatou, the interim FIFA president while Blatter was suspended, and former audit panel chairman Domenico Scala both approved at least one of the contracts revealed Friday.

Three weeks after new FIFA President Gianni Infantino claimed that "the crisis is over," the turmoil rocking soccer's world governing body continues.

Infantino has been criticized for a breakdown in his relationship with Scala, who resigned on May 14. The FIFA president privately described as "insulting" a salary offer from Scala, reported as $2 million without bonuses.

Since Kattner's firing on May 23, German language newspapers have been fed a series of leaked minutes from meetings and FIFA emails which sought to turn scrutiny on Infantino.

Elected four months ago to replace Blatter, Infantino pledged reform and a changed culture at FIFA was expected to face resistance from insiders. The 45-year-old Swiss official also arrived with a reputation as a critic of FIFA during seven years as secretary general of European soccer body UEFA.

Infantino has not publicly criticized FIFA's former regime but the contracts revealed Friday by its top legal advisers seem to have exposed a culture of secrecy and entitlement.

Violation of Swiss law

Valcke and Kattner signed eight-year contract extensions on April 30, 2011 — five weeks before Blatter was due to contest a bitterly fought presidential election against Mohamed bin Hammam of Qatar

At the height of FIFA's crisis last year, Kattner was given further cash guarantees from FIFA, which gets almost 90 per cent of its income from the World Cup: Around $5 billion for the 2014 tournament.

On May 31, 2015 — four days after the U.S. and Swiss investigations were revealed by police raids on Zurich's Baur au Lac hotel and FIFA — Kattner's contract was extended through 2023 with extra clauses guaranteeing termination pay and indemnification for legal fees and restitution claims.

"These two provisions appear to violate mandatory Swiss law," FIFA said Friday.