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    Former Fox Employee Convicted of Bribery for Soccer Broadcast Deals

    The employee, Hernán López, and an Argentine marketing firm were accused of helping make illegal payments for rights to tournaments in South America.After hearing seven weeks of often-impenetrable testimony about television contracts, codes of ethics and the interpretation of Spanish phrases in emails sent more than a dozen years ago, a federal jury in Brooklyn on Thursday convicted a former Fox employee and an Argentine sports marketing firm of paying bribes in exchange for lucrative soccer broadcasting contracts.Prosecutors said that Hernán López, who until 2016 worked for a unit of what was then known as 21st Century Fox, had taken part in a complex scheme to make millions of dollars in secret annual payments to the presidents of national soccer federations in order to secure the rights to the Copa Libertadores and the Copa Sudamericana, widely viewed South American soccer tournaments. Full Play Group, the marketing firm, stood accused of similar but far more extensive corruption. Prosecutors said it paid bribes for the rights to World Cup qualifiers, exhibition matches, the Copa América tournament and the Copa Libertadores.The government also argued that López had taken advantage of “loyalty secured through the payment of bribes” to secure inside information that helped Fox beat out ESPN in its bid for the United States broadcasting rights for the 2018 and 2022 men’s World Cups — a theory Fox has vigorously denied. Fox was never accused of any wrongdoing.López, who holds dual American and Argentine citizenship, was convicted on one count of money laundering conspiracy and one count of wire fraud conspiracy and faces up to 40 years in prison. Full Play was convicted on six fraud and money laundering counts and, as a corporation, could face financial penalties.A third defendant, Carlos Martínez, who worked under López at Fox, was acquitted on counts of wire fraud conspiracy and money laundering conspiracy.The convictions represent what Breon S. Peace, the U.S. attorney for the Eastern District of New York, called “a resounding victory” in the Justice Department’s sweeping investigation of corruption in international soccer.After a secret inquiry began in 2010, the case broke into public view in May 2015 when sensational predawn arrests were made in Zurich, the city that FIFA, soccer’s world governing body, calls home. Since then, more than two dozen individuals and entities have voluntarily pleaded guilty to a wide variety of charges, including racketeering and wire fraud. And in 2017, a different federal jury convicted two soccer officials, from Paraguay and Brazil, on wire fraud conspiracy and other charges.Prosecutors indicted López, Martínez and Full Play in March 2020, signaling that the long-running case — which shook FIFA to the core and resulted in a shakeout of several generations of leadership in its ranks — still had legs.“The defendants cheated by bribing soccer officials to act in their own greedy interests rather than in the best interests of the sport,” Peace said in a statement following the verdict. Judge Pamela K. Chen rejected a request from prosecutors that López be taken immediately into custody, instead releasing him with tightened bond restrictions. A sentencing date has not been set.John Gleeson, a lawyer for López, said in a statement that “we are obviously disappointed with the jury’s verdict.”He continued, “The proceedings have involved both legal and factual errors, and we look forward to vindicating our client on appeal.” Lopez, who left Fox in early 2016, went on to found the podcasting company Wondery, which was sold to Amazon in 2020 in a deal that valued the company at a reported $300 million.Carlos Ortiz, a lawyer for Full Play, declined to comment. The company was founded by an Argentine father and son, Hugo and Mariano Jinkis, who were charged in 2015 but were not extradited. A lawyer for Hugo Jinkis said he could not immediately comment on the news.“We are very grateful for the jury’s service,” Steven McCool, Martínez’s lead lawyer, said in a brief call after the verdict. “Carlos received justice today and it was a long time coming.”A watch party in Los Angeles for the 2022 World Cup. Fox had the U.S. English-language rights for last year’s tournament in Qatar and the 2018 tournament in Russia.Mark Abramson for The New York TimesThursday’s verdict came on the fourth day of deliberations after a complex and slow-moving trial. Jurors were presented with reams of contracts, financial spreadsheets and bank transfer statements, as well as expert witnesses who debated whether a particular phrase meant “pay him less” or “pay it less.”At one point, early in the trial, Judge Chen admonished the lead prosecutor, Kaitlin T. Farrell, for reading entire emails about corporate issues into the official record, warning that she risked losing the jury’s attention.And as in the first trial in the case, the government relied particularly heavily on a single star witness: Alejandro Burzaco, the former chief executive of the Argentine sports marketing and TV production firm Torneos, who pleaded guilty in the case in 2015 and has been cooperating with the U.S. government since.Over 11 days of testimony, he described in painstaking and sometimes stultifying detail the esoteric series of shell companies and phony contracts that had been used to pay bribes to soccer officials through a joint venture owned by Torneos and 21st Century Fox. Although he personally arranged the payments, Burzaco said he had informed both López and Martínez about their existence and said that neither executive had done anything to halt them.Burzaco also detailed using a relationship cultivated through bribes paid to Julio Grondona — a FIFA vice president and a longtime president of Argentina’s soccer association who died in 2014 — to gain inside information that helped Fox win the U.S. English-language rights to the 2018 and 2022 World Cups. ESPN had long held that coveted property.Although bidding was supposed to have been blind, Burzaco said he had asked Grondona in late 2011 for help at López’s request. Burzaco testified that Grondona had “told me if Fox puts $400 million, they are going to award it to Fox — tell your friends.” Fox ultimately paid $425 million, and several years later obtained rights to the 2026 World Cup, to be held in the United States, Canada and Mexico.Over howls of protest from defense lawyers, prosecutors called the former ESPN president John Skipper to testify about the incident. “I was disappointed,” he said. “In fact, I was angry.”In a statement after the verdict, a Fox spokesman said, “This case does not involve Fox Corporation, and it was made clear that there was no connection to Fox’s successful World Cup bids.” The company has in the past noted that the unit where López and Martínez worked, Fox International Channels, was spun off in 2019 and that it was a different division, Fox Sports, that was charged with negotiating for those rights.Although both López and Martínez maintained their innocence, claiming they were never aware any bribes had been paid, Full Play took a decidedly different tack. Its lawyers readily admitted that the company had made regular payments to Latin American soccer officials but claimed that those payments had not been bribes but simply the standard way of doing business when it came to South American soccer.Ortiz, the lawyer for Full Play, said in his closing arguments late last week: “You can look at it and, say, hey, do I like this morally? Do I think this is appropriate?” But, he added, “all of these executives and officers acted in a manner and behaved and carried themselves in a manner that sent a clear, strong message that their receipts of payments were totally fine.” More

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    Croatia Is the World Cup Team That Refuses to Lose

    Croatia, a nation of four million people, needs one more win to reach a second straight World Cup final. If it happens, it will probably come on penalties, and certainly after extra time.DOHA, Qatar — Zlatko Dalic knew that something had to change. Dalic, the coach of Croatia, was just not sure, at that precise moment, exactly what it was. Brazil was starting to ratchet up the pressure, its bright yellow jerseys pouring forward in waves. His Croatia team was scrabbling to repel the attacks. His players, he could see, were barely hanging on.His first instinct was that he needed new blood, fresh legs. In particular, his prized midfield — the timeless Luka Modric and his unflinching lieutenants, Marcelo Brozovic and Mateo Kovacic — seemed to have pushed itself beyond its limit. Perhaps, he and his staff wondered, an increase in energy might offset the unavoidable decrease in quality.In a break in play, Dalic summoned Modric, Croatia’s totemic captain, to the sideline. He was considering “replacing the midfield,” Dalic told him. What did he think? Dalic should have known the answer. Modric, at the age of 37, gave the idea the shortest shrift imaginable. Modric stayed on. He was there as Croatia held out for extra time. He was there as Bruno Petkovic scored a late equalizer to send the game to penalties. He was there to take, and score, the third spot-kick, the one that swept a country of fewer than four million people to the brink of a second successive World Cup semifinal.“This is Croats,” Dalic said. “They take it when it is most difficult.”Luka Modric and Croatia are one win from their second straight World Cup final.Gabriel Bouys/Agence France-Presse — Getty ImagesThat indefatigability, that refusal to countenance defeat, has become Croatia’s calling card. On its run to the World Cup final in 2018 and to a semifinal against Argentina here, Croatia played five knockout games. All five went to extra time. Four of them went to penalties. Croatia won them all. It has become a team that does not so much beat its opponents as outlast them.“We know nobody likes to play against us,” defender Borna Sosa said as his teammates were still celebrating Friday’s victory against Brazil. “We have really good players and a really good mentality, and it is always really difficult to win against us. We are ready to go until the end.”A Brief Guide to the 2022 World CupCard 1 of 9What is the World Cup? More

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    Crunch Time for the U.S. Men’s National Team

    Crunch Time for the U.S. Men’s National TeamAndrew KehReporting from Mexico City ⚽️The team remembers what happened four and a half years ago. The idea that the United States could miss the 2018 World Cup seemed absurd — until a wild turn of events on the final day of qualifying in its region.Honduras upset Mexico. Panama upset Costa Rica. And the Americans, shockingly, were upset by Trinidad and Tobago, meaning they would sit out their first World Cup since 1986. More

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    Russia, Soccer and a Line Drawn Too Late

    Soccer did not have to allow itself to be the field in which geopolitical rivalries played out, or the stage on which oligarchs sought power and prestige.Listen to This ArticleTo hear more audio stories from publications like The New York Times, download Audm for iPhone or Android.The troops were already over the border, the fighter jets screaming low through the skies, smoke billowing from the airfields when Schalke decided to act. The sound of the air raid sirens wailing, the sight of families huddled in subway stations, the images of thousands desperately fleeing Kyiv, a full-scale invasion: That was where it drew the line.Everything else, Schalke had been prepared to swallow. It did not bat an eyelid during the brief, brutal war with Georgia in 2008, or at Russia’s annexation of Crimea in 2014, or at the downing of a passenger jet the same year, or at the poisoning of Sergei and Yulia Skripal in 2018, or at Vladimir V. Putin’s longstanding support for and arming of Bashar al-Assad’s murderous regime in Syria.Throughout all of that, Schalke’s royal blue jerseys were proudly adorned with the logo of Gazprom, the energy giant that is majority-owned by the Russian state and has, variously, been described as a “geopolitical tool” and a “politicized weapon” wielded by Putin and a handpicked cadre of his cronies.That has been the case for 15 years — making it one of the longest-running sponsorship arrangements in European soccer — ever since Gerhard Schröder, the former German premier who now works with Gazprom, suggested the firm might like to invest in Schalke.That many of the club’s fans have long been uneasy with the relationship — warning more than once about the team being seen as the “lap dogs of an autocrat” — made no difference. The $17 million or so the company paid the club every year for its prime advertising space, even as it slipped from Champions League contention to relegation from the Bundesliga, was enough to override any such qualms. The old line, trotted out yet again this week by Sergey Semak, the coach of another Gazprom-backed team, Zenit St. Petersburg, that sport and politics should not be allowed to mix was the only justification anyone needed.Schalke was fine with Gazprom’s name on its shirts and Gazprom’s money in its accounts, until suddenly it wasn’t.Martin Meissner/Associated PressUntil, Thursday afternoon, that is, when Schalke suddenly discovered its moral compass. Gazprom’s logo was being removed from its jerseys, a statement on the club’s website read, because of the euphemistically-titled “recent developments” in Ukraine. Instead, when its players take to the field against Karlsruhe this weekend — and for the foreseeable future — their jerseys will simply read: Schalke 04.It is, though, somewhat churlish to focus exclusively on Schalke. Better late than never, after all: The club has done what it can, in some small way, to highlight its objection to Putin’s invasion of Ukraine. There are plenty of others who have yet to meet even that bar.Everton and Chelsea, for example, have significant financial ties to Russian oligarchs who were named by a British lawmaker this week as suitable targets for sanctions; or Manchester United, studiously quiet on its sponsorship deal with Aeroflot, the state-backed Russian airline, until suddenly dropping it Friday.Still, what do you expect, when the very bodies who are supposed to represent the game have been so acquiescent? UEFA has, at least, stripped St. Petersburg of this year’s Champions League final, something it has found easier than annulling its own, lucrative sponsorship agreement with Gazprom.And then, of course, there is FIFA. Oh, FIFA, whose president once accepted a friendship medal from Putin and claimed that the 2018 World Cup had highlighted how wrong the Western perception of the ruthless kleptocracy he presided over had been. On Thursday, that president, Gianni Infantino, did condemn Russia’s “use of force in Ukraine,” though there were times when outright criticism did not seem to come easily.Even placing those teams, those bodies under scrutiny, though, may still be a touch unfair. The idea that any of these institutions should be expected to have a cogent, considered reaction to a major, unfolding global crisis is, at heart, faintly absurd.The issues that have driven the world to this point, their underlying causes, their long-term ramifications, are way beyond not only the scope of their expertise — let’s go live, now, to Frank Lampard, for his take on the Minsk accords of 2014 — but the limits of their world.The Krestovsky Stadium, known as Gazprom Arena but no longer the host of this year’s Champions League final.Anton Vaganov/ReutersIf the British or American governments cannot muster a convincing, unified policy in response to Putin’s aggression, why should we expect Everton, a middling Premier League team whose main concern is not being relegated, to do so? Why should UEFA, an organization which seems to find it hard to stop people being actively racist at public events, be expected to take decisive action before the European Union and the United Nations? What core competencies does FIFA, stocked as it is by the self-interested and the chronically mediocre, have to understand the tectonic shifts in geopolitics?At what point did we decide that any of this was within soccer’s wheelhouse? At what point did soccer become a lightning rod for international diplomacy? Why would an issue this serious be refracted through the lens of something as inherently trivial as sport?The answer, of course, is because soccer wanted it this way. Or, rather, because this is a price that soccer long ago decided was worth paying, when it elected to pursue money and glamour and influence at all costs, when it chose to open its doors to anyone who wanted a part of it, regardless of their morals or their motives, as long as they were good for the money, when it allowed itself to be hijacked by those who saw it not as an end but a means, not as a sport but as a vehicle.Soccer has not just welcomed them all in — the politicians and the oligarchs and the tycoons and the nation states — but actively courted and feted and celebrated their contributions. It has transformed them from parasites, hoping to attach themselves to the world’s great, unyielding passion to serve their own interests, into saviors and heroes and idols, conferring upon them not just legitimacy but adoration.And it has done so because they have helped to turn the game into what the historian David Goldblatt has referred to as the greatest cultural phenomenon in history, a world of untold riches and unlimited promise, one that knows no borders and recognizes neither its horizons nor its hubris.That is not the worst of it, though. The worst of it is that it has sold not only its morals and its right to innocence, to simplicity, but a part of its soul to anyone who could afford it not for any grand vision of what it might be, of what it might do, but simply to bankroll the endlessly spiraling inflation of transfer fees and wages, to support an economy that is bloated beyond all recognition, one so engorged and distorted that it calls into question the very integrity of the sport itself.Soccer did not have to do any of that. It did not have to allow itself to be the field in which geopolitical rivalries played out, or the stage on which oligarchs sought power and prestige. It did not have to choose a path in which one of Germany’s grandest clubs, owned by its fans, was a pawn in the politicking around the construction of the Nord Stream II gas pipeline.It could, instead, have looked at its popularity around the globe and wondered how that might be protected from — rather than sold to — the speculators and the opportunists, how the clubs that comprise its fabric might be safeguarded rather than hawked by organizations eager to monetize it, the ones that might have designed rules to prevent a gold rush but chose simply to grab its pickax and start mining.But it did not, and so this is where it finds itself: stripping sponsors from its jerseys as the air raid sirens wail and the fighter jets scream low over the skies, way out of its depth and way beyond its limits, trying desperately to do what it can to make a stand, knowing full well that it is all far too little, far too late.A Fight Worth WinningJohannes Eisele/Agence France-Presse — Getty ImagesIt is extraordinary, really, that it has taken six years of negotiation and ill-feeling and controversy for U.S. Soccer to formally pledge to fulfill the simplest principle: that its men’s and women’s players should be paid the same amount of money — and given the same access to the same resources — to do the same job.That does not feel like an especially complicated issue to resolve. It certainly does not seem like the sort of issue on which anyone would willingly take the contrary position.It is not necessarily something that warrants the most lavish praise, then, that U.S. Soccer has agreed to a settlement that will see several dozen women, both current and former players, share $24 million, largely in back pay, in a belated attempt to right a historical wrong. But as noted elsewhere in this newsletter: better late than never.Russia-Ukraine War: Key DevelopmentsCard 1 of 3A new diplomatic push. More

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    USMNT Beats Honduras in a Crucial World Cup Qualifier

    Illnesses, injuries and a suspension marred the start of World Cup qualifying. A trip to Honduras offered a chance to right the ship.SAN PEDRO SULA, Honduras — For even the most assured players and talented teams, a maiden journey into the heightened drama of the World Cup qualifying tournament in North and Central America can feel like splash of cold water to the face.Here, world rankings have a way of losing their meaning. Club pedigrees and players’ salaries can quickly be forgotten. It is a rude awakening, a rite of passage. And the United States men’s soccer team is experiencing it yet again.Beginning last week, the Americans embarked on a three-game series of qualifying matches over seven days that they hoped would establish a baseline state of confidence for the long path to the 2022 World Cup in Qatar. Much of the last week had, instead, left them looking frazzled and unsure.After draws in their first two games — on the road against El Salvador and at home against Canada — the Americans’ game late Wednesday night against Honduras at the spartan Estadio Olímpico Metropolitano represented a final chance to salvage the week. A loss would have sent the team home in the beginnings of a tailspin. A draw would have prolonged the slow boil of anxiety.Instead, they strode off 4-1 winners, a result — delivered by four second-half goals after an abysmal, disjointed first half that felt like the nadir of an awful week — that will provide a kernel of positivity to cultivate in the weeks to come.The most valuable thing the players and their coaches will bring home, then, could be the lessons learned: about the perils of trusting too much in past results; about the precarity of the challenge that remains ahead; and about the fragility of a team’s best-laid plans and ambitions.“It’s a different animal than we’re used to,” Coach Gregg Berhalter said after the game, referring to the qualifying tournament. “So I think that this whole window was great for this group. We really needed that in terms of the eye-opening of what this experience actually is.”Brayan Moya’s diving header in the first half gave Honduras a 1-0 lead on Wednesday night.Moises Castillo/Associated PressThe fear was that they were tiptoeing onto the same path an earlier version of the team traveled three years ago, when the United States fell one point short of qualifying for the 2018 World Cup in Russia, ending a streak of seven straight appearances at the world’s most-watched sporting event. On some level, it seemed irrational: Even with the disappointing results from the first two games, the United States is heavily favored to qualify, perhaps more so after a win that will buoy their mood, and their hopes. But the bad memories of the last cycle remain raw in many people’s minds.“I can see it being, you know, just memories of the past, memories of the last qualifying round coming back,” Berhalter, who was hired after the 2018 World Cup, said of those concerns on Tuesday night. “And people say, ‘Oh, we’re in the same situation.’ I can understand that completely. What I’d say is this is a different group, and we’re focused on winning games, and we’re focused on getting points.”Such talk had not been convincing before Wednesday’s resounding win.Few would go as far as to call the Americans hubristic: The notion of this regional qualifying tournament as a gnarly obstacle course, with challenging factors unique in world soccer, has long been ingrained in the psyche of the team and its fans, and the players over the past week have spoken of the process with all due respect. They know, too, that it will continue with three more qualifiers in October, and two more a month after that.But the lofty standards imposed on the squad, the high expectation and calls for perfection, are in many ways of the teams’ own making.Berhalter said earlier this week that the tournament’s 14 games should be regarded by his players as “14 finals” — effectively labeling the entire slate of games as must-win contests.Christian Pulisic found little space to work, then left with an injury.Gustavo Amador/EPA, via ShutterstockBefore the first game last week, midfielder Tyler Adams laid out the team’s ambitious to-do list: “We’re looking for a nine-point week, bottom line,” said Adams, 22.And Weston McKennie said last week the United States needed to assert its position as the best team in the confederation. “The only way to do that is to dominate it,” he said two days before taking the field for the first World Cup qualifier of his career. “And to dominate, you’ve got to win your games.”These things, for a variety of reasons, did not come true against El Salvador and Canada. And for a half against Honduras, it did not seem as if they ever would. But then the halftime substitute Antonee Robinson pulled his team even three minutes into the second half, and the U.S. started to turn the tide. Ricardo Pepi, an 18-year-old striker from Texas, gave the Americans the lead in the 75th minute, and then set up midfielder Brenden Aaronson, another substitute, for an insurance goal in the 86th.Sebastian Lletget’s finish off a rebound three minutes into injury time closed the scoring, and, at last, restored the team’s smiles.Wins have a way of quieting, if not totally erasing, questions and distractions swirling around a group.On Sunday afternoon, for instance, McKennie was suspended for violating team rules and had to miss the team’s final two games of the week. McKennie said on Instagram before the game against Canada that he had broken Covid protocols.Berhalter said the disciplinary move was for the team’s long-term health. In the short term, it hurt. The suspension deprived the team of one of its best players, and McKennie’s teammates spent the ensuing days awkwardly answering questions about his conduct. World Cup qualifying runs through March, and Berhalter suggested that McKennie, who plays for the Italian powerhouse Juventus, would be back in the picture soon enough.“It’s an open-door policy,” he said. “There will very rarely be a situation where a player would never be allowed back into national team camp. That’s not how we operate.”Yet McKennie’s lapse was only the most high profile of the personnel headaches that have befallen the team since even before it gathered late last month.Timothy Weah, one of the team’s best attackers, never joined the group after hurting his leg while training with his club team in France.Christian Pulisic, the team’s captain and top player, missed the first game while trying to regain his fitness after testing positive for the coronavirus, and then limped out of Wednesday’s win with an ankle injury.Goalkeeper Zach Steffen was ruled out for the first game, and then the rest, first by back spasms, then by a positive coronavirus test.Gio Reyna injured his right hamstring in the first game against El Salvador and was sent back to his German club without taking the field again.Defender Sergiño Dest sprained his right ankle in the game on Sunday and departed, too.These issues made for a particularly complicated situation during a cramped window of games in which Berhalter had made no secret of his plans to rotate his lineup. But they also were just a taste of the ways things can spiral in the unforgiving landscape of World Cup qualifying.“It happens,” said Aaronson, 20, of his team’s simmering turmoil. “You have to get over things. I feel like as a team we just need to get over things.”Pepi scored the Americans’ second goal, giving them the lead, and Brenden Aaronson, right, added the third.Moises Castillo/Associated PressThe next games will arrive fast: Jamaica, Panama and Costa Rica next month, then Mexico and a trip to Jamaica about four weeks later.Before then, the team has some growing up to do. Only six of the 26 players initially called into the squad had any experience in World Cup qualifying. Thirteen of them were 23 years old or younger at the start of training camp. Nine of the starters against El Salvador were appearing in their first World Cup qualifier. (That 10 members of the team are playing for clubs in the European Champions League this year reiterates the level of talent being unfulfilled thus far.)One problem that needed solving as they took the field Wednesday night was finding some scoring: Heading into the Honduras game, the United States had not produced more than one goal in any of its previous six games.They left the field after putting four past Honduras, letting them breathe a collective sigh of relief.“It’s a massive experience that we needed, just to show that with all the adversity we’ve gone through, we’re ready to come back from it,” Robinson said. “Obviously there’s been disappointing times on this trip. But in the end, we’ve ended it on a real high, and now we can attack October with everything we’ve got.” More